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 $622,000 or $0.09 per diluted share on net sales of $19.1 million for the quarter ended March 31, 2014 (see also Natural Alternatives International, Inc.).
Net sales for the three months ended March 31, 2014 increased by $3.3 million or 20.8% from $15.8 million recorded in the comparable prior year period. For the quarter ended March 31, 2014, contract manufacturing sales increased $3.2 million or 22.0% from the comparable quarter last year due primarily to higher sales of established products to existing costumers and new product sales to new customers. Patent and trademark licensing revenue increased 13.1% to $1.1 million during the quarter ended March 31, 2014 as compared to the prior year period. Our branded products sales totaled $294,000 for the third quarter of fiscal 2014 as compared to $321,000 for the comparable prior year period.
Net sales for the nine months ended March 31, 2014 increased 14.7% to $52.8 million from $46.0 million recorded in the comparable prior year period. Contract manufacturing sales during the first nine months of fiscal 2014 increased $6.3 million or 15.0% from the comparable prior year period and patent and trademark licensing revenue increased $605,000 or 18.9% during this same period. Our branded products sales decreased $112,000 or 11.2% for the first nine months of fiscal 2014.
Net income for the first nine months of fiscal 2014 totaled $904,000 or $0.13 per diluted share compared to net income of $977,000 or $0.14 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 $1.7 million for the first nine months of fiscal 2014 as compared to $1.8 million for the comparable prior year period.
As of March 31, 2014, we had cash of $15.2 million and working capital of $30.5 million compared to $16.7 million and $29.4 million, respectively, as of June 30, 2013. As of March 31, 2014, we had $5.6 million available under our line of credit agreements with no amount outstanding.
Mark A. LeDoux, Chairman and Chief Executive Officer remarked, "The third quarter ending March 31, 2014 demonstrated growth in sales and profitability over the prior period, yielding an increase of over $3 million in revenues and a tripling of profitability. This growth materialized from a variety of venues, particularly from contract manufacturing requirements for Asia, Europe and North America. With higher capacity utilization, NAI experienced greater efficiencies in throughput and overhead absorption, and continues to see growth potential in the future in a variety of markets.
"In the last several months we have seen two seminal studies published in peer-reviewed journals extolling the virtues and benefits from the ingestion of our CarnoSyn® and sustained release SR CarnoSyn® beta-alanine ingredient. We continue to seek additional growth opportunities from clinical research surrounding beta-alanine and remain confident the validity and enforceability of our beta-alanine patents will be judicially upheld in the not too distant future."
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.
Keywords for this news article include: Legal Issues, beta-Alanine, Natural Alternatives International Inc..
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