SCOTTSDALE, Ariz., Jan. 20, 2011 /PRNewswire/ -- Matrixx Initiatives, Inc. (Nasdaq: MTXX), an over-the-counter healthcare company that develops and markets Zicam® products, today announced financial results for its fiscal third quarter and nine months ended December 31, 2010.
For the third quarter ended December 31, 2010, the Company reported net sales of $20.3 million, or 29% below the $28.5 million in net sales for the comparable quarter last year. The Company reported a net loss for the quarter ended December 31, 2010 of $11.3 million, or $(1.21) per diluted share, compared to net income of $3.8 million, or $0.41 per diluted share, for the quarter ended December 31, 2009. The net loss includes $15.0 million of net costs associated with the settlement of the personal injury product liability claims ($15.5 million for the settlement less the $523,000 previously reserved) , $2.2 million to reserve for costs associated with the potential settlement of the economic injury claims, and approximately $1.8 million for merger-related expenses. The lower level of sales versus the quarter ended December 31, 2009 is primarily attributable to last year's high pre-season inventory purchases by retailers due to publicity of the H1N1 flu outbreak.
For the nine months ended December 31, 2010, the Company reported net sales of $44.8 million, and a net loss of $8.4 million, or $(0.91) per diluted share. This compares to net sales of $61.0 million, and a net loss of $(13.9) million, or $(1.51) per diluted share, for the nine months ended December 31, 2009. Results for the nine months ended December 31, 2009 included $2.0 million of sales of nasal Cold Remedy products, which were withdrawn from the market in June 2009, and charges of $32.9 million related to withdrawal of the products.
Bill Hemelt, President and Chief Executive Officer, said, "We began to see increases
|SOURCE Matrixx Initiatives, Inc.|
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