Imagenetix, Inc. Reports Year End Results

- Revenue Decreases to $6,596,000 from $7,461,000

- Earnings Per Share Equals a Loss of $0.06 vs. $0.04 Profit for Prior Year

Jun 21, 2010, 09:00 ET from Imagenetix, Inc.

SAN DIEGO, June 21 /PRNewswire-FirstCall/ -- Imagenetix, Inc. (OTC Bulletin Board: IAGX) announced today results for its fiscal year ended March 31, 2010. Net sales decreased 12% for the year to $6,596,000 from the $7,461,000 reported for the same period last year.  

Gross profit as a percentage of sales decreased to 43% from 46% percent for the prior fiscal year.  This decrease was primarily due to the sales mix, which included increased percentages for advertising allowances for the Company's branded retail products.

Net loss for the year was $697,000 or $.06 per share compared to a net profit of $430,000 or $.04 per share in the prior fiscal year.

Commenting on the results of the year, Mr. William Spencer, Imagenetix Chief Executive Officer said, "We continued to make progress in the mass market segment of our business by expanding the number of stores in which Celadrin® can be purchased.  Activity in wholesale and distribution revenue came in lower which resulted in a year over year reduction in sales and a loss for the current year.  We have already started shipment of Celadrin© to the nation's number one retailer at the start of the new fiscal year and are anticipating solid growth for fiscal 2011. Sales and profit growth are expected to primarily stem from our mass market related sales."

Imagenetix, based in San Diego, California, is an innovator of scientifically tested, natural-based, proprietary, bioceutical products developed to enhance human health on a global basis.  Imagenetix develops and formulates proprietary over-the-counter topical creams, skincare products and nutritional supplements to be marketed globally through multiple channels of distribution.  In addition, the company develops patentable compounds for entering into licensing agreements with pharmaceutical partners.  Imagenetix is the creator of Inflame Away®-Celadrin®.  Please visit, www.celadrin.com or www.imagenetix.net.

Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to vary materially from those projected.  Such risks and uncertainties include, but are not limited to, adverse fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the company's products and services.  Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in the company's SEC filings, including its Form 10-K for the year ended March 31, 2010.

Imagenetix, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

Year Ended

March 31,

2010

2009

Net sales    

$

6,596

$

7,461

  Cost of sales

3,732

4,003

Gross profit

2,864

3,458

Gross profit percent

43.4%

46.3%

Operating expenses:

General and administrative

2,571

2,241

Payroll expense

1,090

1,077

Consulting expense

1,481

1,059

Operating expenses

5,142

4,377

Operating income (loss)

(2,278)

(919)

Other income

8

25

Settlement income

1,168

1,785

Interest expense

(3)

(2)

Income (loss) before income taxes

(1,105)

889

Income tax expense (benefit)

(408)

459

Net income (loss)

$

(697)

$

430

Income (loss) per share:

Basic

$

(0.06)

$

0.04

Diluted

$

(0.06)

$

0.04

Weighted average common shares outstanding:

Basic

11,011

10,991

Diluted

11,011

11,010

Imagenetix, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

March 31,

March 31,

2010

2009

Assets:

Current assets:

Cash and cash equivalents

$

981

$

1,226

Accounts receivable, net

1,049

1,096

Inventories, net

1,350

1,337

Prepaid expenses and other current assets

151

109

Deferred tax asset

933

535

  Total current assets

4,464

4,303

Property and equipment, net

89

116

Long-term prepaid expenses

18

30

Other assets

125

134

  Total assets

$

4,696

$

4,583

Liabilities and stockholders' equity:

Current liabilities:

Accounts payable

$

997

$

274

Accrued liabilities

83

81

Income tax payable

-

70

Customer deposits

25

59

Contract payable

86

43

Short term license payable

-

3

  Total current liabilities

1,191

530

Long term license payable

-

-

Stockholders' equity

3,505

4,053

  Total liabilities and stockholders' equity

$

4,696

$

4,583

Contact:

Imagenetix Investor Relations

William P. Spencer

(858)385-2797

Chief Executive Officer

Imagenetix, Inc.

Tel: (858) 674-8455

SOURCE Imagenetix, Inc.



RELATED LINKS

http://www.imagenetix.net


http://www.celadrin.com