A loss in product sales and royalties left US-based Senetek with a net loss for the quarter ended 31 March, 2003, of $69,000 or $0.00 per share, compared to net income of $504,000, or $0.01 per share, for the quarter ended 31 March, 2002.
The reduction in royalty revenue was due mainly to a 33 per cent reduction in royalties from cosmetics company Revlon resulting from lower than anticipated unit sales and a lower average royalty rate due to the mix of products sold, said the company.
The company's gross profit percentage continues high and in fact increased to 84.3 per cent in the quarter ended 31 March, 2003 compared to 83.8 per cent for the same period in 2002. But the overall gross profit decreased approximately $342,000 during the three month period due to lower revenues.
Again, a reduction in revenues and product sales impacted revenues from continuing operations for the period which dropped by 17 per cent compared to the previous year.
According to the company, the reduction in product sales was based on delays in the timing of customer product launches and resultant delays in placing anticipated product orders.
"Although we are disappointed with our lower revenue figures and small loss for the quarter, we are very pleased by the continued strength of our balance sheet and the progress we are making with our existing projects," said a positive Brad Holsworth, chief financial officer of the company.