Executive Summary

Weight loss extension "completely different from Dexatrim Natural" planned for Q4, Chairman/CEO Zan Guerry tells analysts in earnings teleconference June 21. New product probably will join Dexatrim line, but might use new brand name, he adds. Dexatrim sales for second quarter ended May 31 down roughly $500,000 from year-ago period following elimination of PPA-containing flagship product last year. Ninety-count Dexatrim Natural sales flagging, will be focus of promos, Guerry says. Net sales for quarter, excluding Ban line divestiture to Andrew Jergens last fall, decline 5.4% to $56.5 mil. Net income dropped 44.3% to $3.4 mil. Firm is "watching Gold Bond very closely" as sales dip $1.5 mil. and hopes to boost brand with new TV ad, line extension