The company, which produces a range of scientifically tested, natural-based, proprietary skin care and supplement products for human and animal health, said that sales had continued to grow well into double digits for the first six months of the financial year, pushing profits at an even greater rate.
"Achieving profitable quarters while validating science has enabled Imagenetix to expand its branded products into the mass market," reported Bill Spencer, CEO. "Last month, in early October, and not reflected in sales or earnings figures above, the company began fulfilling some initial stocking orders for the mass markets which will be reflected in our third quarter numbers at the year end and scheduled to be reported in mid-February."
Spencer went on to say that early indicators suggest initial stocking orders could lead to a 50 per cent top line growth for the third quarter. On top of that, the company is also expecting that several mass market distributors will make initial sales of Imagenetix branded products in retail outlets throughout the US, which should lead to a further boost in the fourth quarter.
Imagenetix's key strategy for the future is to develop Celadrin, a natural compound composed of esterified fatty acid carbons (EFACs) and other active synergists. Celadrin can be formulated into both pill and cream forms and it can be used in formulations with other compounds to address the $22 billion joint health market.
But equally important to future strategy will be the development of the company's skin care products. It is currently carrying out final development of an anti-wrinkle product, which is undergoing final testing before it goes to market in 2005. The cream is said to visibly diminish the appearance of wrinkles using a combination of active nutraceutical ingredients.
The company has also recently finished scientific testing that has determined the efficacy of a psoriasis treatment, which it is also planning on putting to market next year.
For the second fiscal quarter ended 30 September, it recorded revenue of $1.03 million (€787,454), an 11 per cent increase compared to $928,481 reported in the corresponding quarter in 2003 and net income up 29 per cent to $17,812.
The company said it had still managed to increase its net income during this period despite a larger than usual income tax bill.
For the six months to 30 September, revenue of $2.22 million was reported, a 19 per cent increase compared to $1.85 million in the corresponding period for 2003. Likewise, net income of $307,841 was up 241 per cent compared to $90,153.
With the increasing distribution of its key product for joint health, Celadrin, together with new products for the skin care category, the company is expecting that its turnover will grow rapidly in the course of the next year.