ORLANDO, Fla., Nov. 21, 2011 /PRNewswire/ -- GeneLink, Inc. (OTCBB: GNLK.OB, "the Company," or "GeneLink"), a leading consumer genomics biotech company, reported financial results for the quarter ended September 30th, 2011.
Bernard L. Kasten, M.D., GeneLink's Chairman and CEO stated, "From a business development potential, the third quarter has been the most exciting period in the history of the Company. The Company continues to make progress towards the launch of two exciting new personalized consumer product lines. These include a large scale direct-to-consumer initiative featuring a new brand being launched with Robert B. Trussell, Jr., Founder and Vice-Chairman of Tempur-Pedic, Inc. In addition to this opportunity, in early 2012 we will launch a specialized exclusive product line for aesthetic physicians under GeneLink's Dermagenetics® brand. We have already developed a unique line of products and are working with world class marketing partners for our initial launch into this arena."
Dr. Kasten added, "Importantly, the third quarter was most notable for our announced pending sale of GeneWize, our direct selling subsidiary, to Capsalus Corp. (OTCBB: WELL). The definitive agreements which we executed on
October 13, 2011 provide us with a motivated and experienced marketing partner in multiple direct selling channels. Once we receive the necessary GeneLink's shareholder approval for the sale of GeneWize to Capsalus, we will be especially pleased to have positioned GeneWize and its marketing affiliates for success."
Financial Results for the three months ended September 30, 2011 , are comprised mainly of sales from the Company's GeneWize direct selling subsidiary, and compared to 2010 results as follows:
- Net sales were $1,069,760, compared to $1,877,136 in the prior year.
- Gross profit margins decreased to 59%, compared to 66.8% in the prior year.
- Operating losses were $880,009 compared to $822,970 in the prior year.
John A. Webb, GeneLink's, CFO added: "Financially, the pending sale of GeneWize has provided an attractive way to expand our operating infrastructure in support of our distribution partners. In each relationship, our partners will be selling services and products purchased from GeneLink. This business model is designed to allow GeneLink to sell more products, at stronger margins, with reduced overhead. It also allows management and our renowned Scientific Advisory Board to extend GeneLink's position as a consumer genomics leader through focused efforts in developing new and innovative assessments, products, and customization methodologies."Dr. Kasten concluded, "The short term future of GeneLink is more promising than at any time in the history of this Company. We at GeneLink intend to remain a leader in the burgeoning field of personalized consumer genetics for years to come."