LifeVantage Corporation, home of Donny Osmond (Photo) and maker of Protandim, the Nrf2 Synergizer patented dietary supplement, today reported financial results for the second quarter and six months ended December 31, 2011.
Fiscal 2012 Second Quarter Results
For the second fiscal quarter ended December 31, 2011, the Company reported record net revenue of $25.3 million, compared to $7.5 million for the same period in fiscal 2011, an increase of 239%. On a sequential quarter basis, net revenue increased 26% from the $20.1 million reported for the Company's 2012 first fiscal quarter ended September 30, 2011.
Gross profit for the quarter ended December 31, 2011 increased to $21.6 million, compared to $6.3 million for the same period last year, delivering a gross margin of 85.4%, compared to 84.0% for the same period last year.
Operating expenses for the second fiscal quarter decreased as a percent of revenue to 68.5%, or $17.3 million, compared to 75.9% of revenue, or $5.7 million, for the same period last year. On a sequential quarter basis, operating expenses as a percentage of revenue were relatively flat. The gross increase in the amount of operating expenses is due primarily to increased sales commissions which are a direct result of the Company's higher sales volume. This increase also reflects greater investment in personnel and infrastructure to position the Company for future growth.
Operating income improved to $4.3 million for the second fiscal quarter, compared to $0.6 million in the same period last year and $3.4 million in the first fiscal quarter. This was the Company's sixth consecutive quarter of achieving operating income. Operating income margin was 16.9% in the second fiscal quarter, compared to 8.2% in the same period last year and 17.1% in the first fiscal quarter.
Fiscal 2012 First Six Months Results
For the six months ended December 31, 2011, the Company reported record net revenue of $45.4 million, compared to $13.9 million for the same period in fiscal 2011, a 226% increase. Operating income increased to $7.7 million, compared to $1.0 million in the same period last year.
Douglas C. Robinson, President and Chief Executive Officer of LifeVantage, stated, Our record second fiscal quarter revenue and operating income, combined with the doubling of our operating margins, underscore our ability to achieve leverage in our business while making strategic investments. We plan to continue to strengthen our infrastructure by adding headcount for all areas of our business and increasing our marketing investments as we build the necessary platform to continue our profitable organic growth.
As awareness and understanding about Protandim and LifeVantage TrueScience(R) Anti-Aging Cream continues to expand in consumer markets as well as among medical professionals, we believe that our business is positioned for continued long-term growth. We are seeing a growing number of distributors join our team, as evidenced by record attendance at our recent quarterly distributor convention. We look forward to building upon this positive momentum and delivering another record year for LifeVantage in fiscal 2012.
Mr. Robinson concluded, Reflecting our commitment to continue enhancing our corporate leadership, our shareholders recently elected four new members of the Board of Directors. These directors add diverse and deep leadership experience to the Board and are a strong addition to our Company. We are very excited about our continued outlook for fiscal 2012 and look forward to continuing to achieve long-term growth and profitability while helping people around the world improve their health and wellness through the science of Protandim.
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