Addition of new retail customers saves day for NAT Inc
Naturally Advanced Technologies Inc, reported sales results for its third quarter for the quarter and nine months ended September 30, 2008.
CEO Ken Barker said, “Our third quarter sales increased 13% compared to second quarter, but declined 10% compared to a year ago, somewhat reflecting the overall economic slowdown. While we believe this may temper short-term sales, we are confident our retail and corporate customers have a long-term interest in our natural fiber garments.
This year, we added more retail customers to the distribution network and increased our corporate business, which grew nine-month revenue 21%, compared to the first nine months of 2007. We also increased gross margins to approximately 41% this quarter and 38% year-to-date, indicating continued sound supply chain and operational management.”
For the third quarter ended September 30, 2008, HTnaturals posted sales of $655,000, bringing the year-to-date sales to $2.2 million, compared to $722,000 and $1.8 million over the same periods in 2007, respectively. Year-to-date gross margin has increased to $831,000, as compared to $630,000 for the same period in 2007. Third quarter net loss including $143,000 of listing fees and associated costs and $485,000 of stock-based compensation was $1.1 million, compared to the third quarter 2007 net loss of $457,000, which included stock-based compensation of $182,000, but did not include listing fees.
Year-to-day net loss, including $394,000 of research and development for development of the CRAILAR technology platform, $143,000 of listing fees, and $656,000 of stock-based compensation, was $2.4 million. This compares to a net loss $1.1 million, which included $187,000 of research and development, stock-based compensation of $303,000, but did not include listing fees, for the same period in 2007.
“We are committed to providing environmentally sustainable solutions for everyday life,” said stated Ken Barker, CEO. “We began with HTnaturals, which provides 100% organic apparel made with blends of hemp, bamboo, organic cotton and soy. Now we are pursuing our goal to commercialize our CRAILAR technology, which uses bast fibers including industrial hemp, for use in casual apparel, performance yarns, industrial filters and absorbent pulp and paper products.
As part of the process, we garnered a listing on the Toronto Stock Exchange this quarter and are investing in creating operating platforms that allow us to take our Crailar technology to market. While our operating expenses increased compared to last year, we believe they are helping to build the foundation of our company and support our long-term growth,” concluded Barker.
About Naturally Advanced Technologies,Inc.:
Naturally Advanced Technologies Inc. is committed to unlocking the potential of renewable and environmentally sustainable biomass resources from hemp and other bast fibers. NAT, through its wholly owned subsidiary Crailar Fiber Technologies Inc., is developing proprietary technologies for production of bast fibers, cellulose pulp, and their resulting by-products, in collaboration with Canada's National Research Council and the Alberta Research Council.