Manufacturer of functional food ingredients derived from rice bran RiceX reported lower revenues and net income for the second quarter compared with the same period last year, but said sales in domestic markets have grown.
RiceX had a gross revenue of $1.2 million (€1.21m) for the three months ended 30 June 2002, compared to $1.68 million in the second quarter of 2001. Net income for the period was $25,000, compared to $343,000 for the same period last year.
For the six months ended 30 June 2002, RiceX reported a gross revenue of $2.6 million and a net income of $360,000, compared to gross revenues of $2.9 million and a net income of $251,000, for the first six months of 2001.
The company's total cash at 30 June 2002 was $1.9 million, compared with $528,000 at the same point last year.
"Our second quarter results have been affected by the timing of international orders," said Daniel McPeak, chairman and chief executive officer of RiceX.
"However, we continue to actively pursue our business development objectives in Central America and have been advised by our manufacturers' representative that orders are forthcoming. In addition, I am pleased to report that revenues in our domestic markets experienced double-digit growth during the first half of the year."
While consolidated revenues were down 27 per cent in the second quarter compared to last year, revenues from domestic markets increased 13 per cent. The company expects domestic market growth to be fuelled by the recent appointment of two new sales managers."We are pleased with our operating position, especially considering the current economic climate," said Todd Crow, vice president for finance and chief financial officer.
"Our company is generating positive net earnings and cash. We're debt free and command a cash reserve more than three times as large as the reserve at the same point last year. And by effectively managing our operating expenses, we increased our gross margin by 4 per cent, from 56 per cent in the second quarter of 2001 to 60 per cent in the second quarter of 2002."