Financial Highlights:
- Quarterly net sales of $2,113,177 compared to $124,503 in the same period in fiscal 2008
- Quarterly gross profit of $1,175,645 compared to $15,331 for the same period in fiscal 2008
- Operating Loss trimmed to $760,743 from $837,267 for the same period in fiscal 2008
Fiscal 2009 Second Quarter Overview:
In the first half of 2009 GeneLink continued to develop its foundation as a leading provider of genetically customized nutritional and personal care solutions. Essentially all of the $4,085,215 of revenue realized in the first two quarters of 2009 was through its wholly owned subsidiary, GeneWize Life Sciences, Inc. ("GeneWize"), which launched in August 2008.
Total revenues for the three months ended June 30, 2009 were $2,113,177 as compared to $1,972,038 for the three months ended March 31, 2009, an increase of 7.2%. Quarterly gross profit increased by 12.2% to $1,175,645 for the three months ended June 30, 2009 as compared to $1,047,264 for the three months ended March 31, 2009, as gross profit margin improved to 55.6% from 53.1%. Operating loss in this period, however, increased to $760,743 from $470,474. The loss for the three months ended June 30, 2009 included $153,950 of non-cash expenses related to option grants, most of which were issued in prior years and which vested in the current quarter, $71,673 of laboratory development related expenses, and $81,299 of litigation related expenses, the majority of which were incurred in efforts resulting in the dismissal of the lawsuit brought by the Company's former CEO and his wife.
Monte Taylor, GeneLink's CEO stated, "In the second quarter, we continued to build upon our core base of Affiliates and customers who are receiving their customized product formulation monthly. GeneWize took major steps in the quarter to support and accelerate this growth. Sharon Tahaney joined the Company as GeneWize's Senior V.P. of Sales and Marketing. Our First Annual GeneWize Leadership Conference was held recently in Orlando, Florida. Sharon's enthusiasm and leadership was apparent to all those in attendance and her impact will be felt throughout our Affiliate organization in the coming months. We're confident our Affiliates and customers will be pleased with the introduction of our LifeMap Me™ customized skin serum and other new products, systems, and marketing tools."
Mr. Taylor added, "In addition to focusing on sales growth, GeneLink and GeneWize have embarked on a cost reduction and operational efficiency campaign targeted on accelerating our march toward profitability. The launch of GeneWize has catalyzed GeneLink's evolution from a scientific research company to a revenue-producing operating entity. We are pleased to have achieved over $11M in revenue within a year of the initial launch and we are committed to achieving profitability through GeneWize, as well as seeking ways to further leverage GeneLink's scientific and intellectual property assets for the benefit of the Company's shareholders."
About GeneLink, Inc:
GeneLink is a 15-year old leading biosciences company specializing in consumer genomics. GeneLink's patented and patent pending technologies include proprietary genetic assessments linked to personalized health, beauty and wellness applications. Its DNA assessments provide information that enables the customization of nutritional products, skincare products and health maintenance regimens designed to fulfill individual consumer needs. For more information visit: www.genelinkbio.com
About GeneWize Life Sciences, Inc.:
GeneWize is the first direct selling industry company to focus on providing individually customized nutritional and skin care formulations based on a consumer's personal DNA assessment. The company's mission is to empower individuals to take personal responsibility and control of their health.
Every LifeMap Me™ custom nutritional formula and LifeMap Me™ custom skin care formula is "made exclusively" for each customer. This is a revolutionary new scientific approach to delivering products that truly address individual needs. GeneWize is committed to innovating and manufacturing the highest quality, scientifically proven health, beauty and wellness products. For more information on GeneWize, please visit: www.genewize.com
This release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in the press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement. GeneLink disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future developments or otherwise.