By a News Reporter-Staff News Editor at Life Science Weekly -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, announced net income of $194,000 or $0.03 per diluted share on net sales of $16.5 million for the quarter ended December 31, 2013 (see also Natural Alternatives International, Inc.).
Net sales for the three months ended December 31, 2013 increased by $2.8 million or 20.4% from $13.7 million recorded in the comparable prior year period. For the quarter ended December 31, 2013, contract manufacturing sales increased $2.5 million or 20.1% from the comparable quarter last year due primarily to higher sales of established products from existing costumers and new product sales from new customers. Patent and trademark licensing revenue increased 39.9% to $1.2 million during the quarter ended December 31, 2013 as compared to the prior year period. Our branded products sales totaled $278,000 for the second quarter of fiscal 2014 as compared to $338,000 for the comparable prior year period.
Net sales for the six months ended December 31, 2013 increased 11.6% to $33.6 million from $30.1 million recorded in the comparable prior year period. Contract manufacturing sales during the first six months of fiscal 2014 increased $3.1 million or 11.4% from the comparable prior year period and patent and trademark licensing revenue increased $500,000 or 21.5% during this same period. Our branded products sales decreased $85,000 or 12.5% for the first six months of fiscal 2014.
Net income for the first six months of fiscal 2014 totaled $282,000 or $0.04 per diluted share compared to net income of $799,000 or $0.12 per diluted share in the comparable prior year period. The decline in net income was primarily attributable to lower average sales prices for a portion of our higher volume products, an unfavorable international sales mix and lower average EUR exchange rates. Patent litigation and prosecution expenses totaled $1.3 million for the first six months of fiscal 2014 as compared to $1.4 million for the comparable prior year period.
As of December 31, 2013, we had cash of $16.4 million and working capital of $29.2 million compared to $16.7 million and $29.4 million, respectively, as of June 30, 2013. As of December 31, 2013, we had $5.6 million available under our line of credit agreements with no amount outstanding.
Mark A. LeDoux, Chairman and Chief Executive Officer commented, "As we exited our fiscal second quarter we realized an improvement in the sales order flow from several customers who completed their inventory reduction and product and packaging reconfiguration programs that we reported during the prior quarter. We continue to see significant growth in multiple Asian markets and continued business opportunities driven from what we believe is a growing trend to do business with companies like NAI with a positive regulatory reputation in the global markets.
"New products have been launched and more are anticipated from our Swiss subsidiary in Europe, many of which take advantage of the 'approved health claims' we can help to deliver. With the Sochi Olympics under way, we are gratified to know that many of the participating Olympians have been training on our patented CarnoSyn® brand of beta-alanine. We also remain hopeful the litigation we have initiated against several infringers of our beta-alanine patents will conclude favorably in the not too distant future. We are optimistic as we enter the second half of our fiscal year that our financial performance should continue to improve."
NAI, headquartered in San Marcos, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including: scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see our website at http://www.nai-online.com.
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