MATAWAN, N.J. PacificHealth Laboratories on Wednesday reported a net loss of $433,000, which included a $439,000 write-off of Satiatrim inventory because soon-to-expire shelf dates.
“Satiatrim has gotten off to a slower start than we anticipated, which has resulted in a write down of all finished product inventory due to freshness dates expiring at year end,” stated Robert Portman, PacificHealth president and chief executive officer. “On the positive side, we experienced a significant increase in sales in October as a result of our print and radio advertising. Of particular note is that consumer repurchase is 16 percent and our new web site, which we redesigned in the second quarter, has a very high sales conversion percentage for new visitors,” Portman said. “The advertising programs, although limited in scope, demonstrate that if we drive more people to the web site they will purchase the product.”
To help support expansion of Santiatrim at retail, PacificHealth recently signed Dr. Jonny Bowden, an expert in weight loss who appears frequently in media and is the author of numerous books on the subject, as a brand spokesman.
“If one looks at the endurance line separately, we turned a major milestone this quarter as we achieved profitability in this line,” Portman said. “I am confident that we will continue to see a significant increase in the growth and profitability of endurance products going forward as a result of a number of initiatives that we have implemented including an expansion of our sales force and development of new products under the Endurox brand that we anticipate introducing in early 2008.”