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Imagenetix, Inc. Reports Third Quarter 2011 Results
Date:2/25/2011

SAN DIEGO, Feb. 25, 2011 /PRNewswire/ -- Imagenetix, Inc. (OTC Bulletin Board: IAGX) announced today results for the three and nine months ended December 31, 2010. Net sales decreased 4% for the third quarter of fiscal year 2011 to $1,696,000 from $1,765,000 for the same period of last year. A loss of $1,202,000, $0.10 per share, was reported for the third quarter of fiscal year 2011, compared to a net loss of $294,000, $.03 per share, for the same period of the prior fiscal year.  

For the nine months ended December 31, 2010, net sales increased 11% to $6,001,000 from $5,368,000 for the same period the previous fiscal year.  The company reported a net loss of $1,736,000, $0.15 per share, compared to a net loss of $156,000, $0.01 per share, for the previous fiscal year.  The previous fiscal year included one-time before tax settlement income of $1,250,000.

Commenting on the results of the third quarter, Mr. William Spencer, Imagenetix Chief Executive Officer said: "The loss during the quarter was driven by our advertising and promotional campaigns.  Although quarterly sales to the mass market segment increased by 66% for the quarter, it was not enough to offset reductions in the wholesale and distribution segment sales.  This was coupled with a significant increase in advertising and sales promotions to introduce consumers to our product line that now reaches nation-wide for Celadrin softgels and BioGuard, and throughout the west for Celadrin cream.  We held many product demonstrations, offered manufacturers rebates and advertised in both print and national television media.  We recognize this to be the most effective way to increase product exposure and impact sales and product recognition over the long term. In addition, we continue to analyze strategic alliances for our array of intellectual properties as well as exploring sale of
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SOURCE Imagenetix, Inc.
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