The American producer of nutritional supplements Galaxy Nutritional Foods announced results for its first quarter ended June 30, 2001. Net sales increased 5 per cent to $11,814,790 (Euro 12.973m) compared with net sales of $11,256,421 (Euro12.360m) a year ago. According to the company, sales growth was significantly inhibited by unanticipated delays in the installation of additional production lines during the latter part of fiscal 2001 and this first quarter ended June 30, 2001. The company also reported an operating loss of $1,578,513 (Euro1.733m) with $1,573,566 (Euro1.727m) of this amount representing a non-cash compensation charge related to stock options which were previously treated as non-compensation. Galaxy Nutritional Foods had to adopt new accounting principles relating to the accounting of various modifications to fixed stock options resulting in the need to record these compensation options as an expense at each reporting period. This operating loss is compared with an operating profit of $713,237 (Euro783,174) for the comparable quarter one year ago. The EBITDA results for the quarter are a positive $450,600 (Euro494,784). After all adjustments, the total net loss for the quarter was $2,241,771 (Euro2,461,591), or $0.26 (Euro0.29) per share compared to a net profit of $689,324 (Euro759,916), or $0.07 (Euro0.08) per share, one year ago.