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NutraCea Announces Third Quarter 2008 Financial Results
Date:11/7/2008

PHOENIX, Nov. 7 /PRNewswire-FirstCall/ -- NutraCea (OTC Bulletin Board: NTRZ), a world leader in stabilized rice bran (SRB) nutrient research and technology, today announced financial results for its third quarter ended September 30, 2008.

Net revenues for the 2008 third quarter increased to $11.2 million compared with net revenues of $1.5 million for the third quarter of 2007. Growth was driven by a $1.9 million increase in net revenues from the Company's NutraCea segment and $7.8 million from its Irgovel subsidiary which was acquired in 2008. Net revenues for the third quarter of 2007 were offset by $1.5 million of returned product.

Sequentially, net revenues for the third quarter of 2008 increased 8.6% over second quarter 2008 net revenues of $10.3 million. The Company's two business segments, NutraCea and Irgovel, recorded net revenues of $3.4 million and $7.8 million, respectively, for third quarter of 2008.

Net loss for the third quarter of 2008 decreased to $4.5 million, or ($0.03) per share, compared to a net loss of $4.8 million or ($0.03) per share, in the comparable period of 2007. The decreased net loss for the 2008 third quarter was primarily due to the increased gross margin of $2.6 million, offset by a net increase of $2.4 million in operating expenses, other expenses and income, and income taxes.

Sequentially, NutraCea realized a reduction in net loss from the $6.1 loss reported in the second quarter of 2008 compared with the $4.5 million net loss reported in the third quarter of 2008. Our NutraCea segment had a loss before income taxes of $5.0 million compared with a net loss before income taxes of $6.9 million in the second quarter of 2008. The Irgovel segment, which was acquired in February 2008, reported income before income taxes of $718,000 for third quarter of 2008.

Sales, General and Administrative (SG&A) expenses totaled $6.5 million for the third quarter of 2008, compared with SG&A expenses of $4.6
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SOURCE NutraCea
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