Mannatech posts $10M loss as legal woes hurt recruiting

by louabbott on August 8, 2008

Dallas News – Published August 8, 2008

Mannatech Inc., the Coppell-based nutritional supplement maker being sued by the Texas attorney general, reported deep losses Friday and a 22 percent drop in sales in its second quarter.

In the three months ended June 30, the company lost $10.5 million, or 40 cents per share, compared with earnings of $1.5 million, or 6 cents per share, in the second quarter of 2007.

Operating expenses changed little. But sales plummeted from $111.7 million in the second quarter to $86.8 million as the company struggled to recruit new salespeople.

North American sales were hit especially hard, declining 31.8 percent compared with the second quarter of 2007. International sales dropped only slightly, by 2.8 percent.

Mannatech’s stock fell 13 cents Friday to close at $5.52.

Wayne Badovinus, Mannatech’s president and CEO, blamed litigation with the Texas attorney general for stifling the company’s recruiting efforts. Mannatech is a multi-level marketing company, much like Amway Corp., and brings in revenue from a large independent sales force around the world, with salespeople rewarded for bringing in sales staff by receiving a portion of the sales of those they recruit.

Read the entire article at the Dallas News

Also, read our company overview:  Mannatech Facts, News and Review

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