LifeVantage third-quarter net revenue up 316%

LifeVantage Corporation (OTC Bulletin Board: LFVN), the maker of science-based solutions to oxidative stress, announced today unaudited third quarter fiscal 2010 financial and operating results.

The Company recorded approximately $2.7 million net revenue for the three month period ended March 31, 2010, which represents a 316% increase over net revenue from the same quarter last fiscal year, and an 11% increase over the second fiscal quarter of 2010. The continued increase in third quarter revenue is attributed to increased sales volume through the network marketing sales channel. The Company also recorded $2.3 million in gross profit, and a gross margin of 84%, an approximate 3% improvement over same quarter last year, and a slight improvement over the second fiscal quarter 2010.

Total operating expenses for the three months ended March 31, 2010 were approximately $3.6 million as compared to operating expenses of approximately $4.7 million for the three months ended December 31, 2009. The decrease of $1.1 million, or 23%, is primarily attributable to settling a legal complaint in the second fiscal quarter of 2010, and recording reduced stock compensation and other SG&A expenses in the third fiscal quarter of 2010.

The Company recorded an operating loss of $1.3 million in the third fiscal quarter of 2010, compared to operating losses of $2.5 million for the same quarter last year, and $2.7 million for the second fiscal quarter 2010. The 50% decrease in operating loss from the second fiscal quarter to the third fiscal quarter, is a result of improvements in revenue, gross profit, gross margin, and reduced operating expenses. The net loss of approximately $8.2 million for the three month period ended March 31, 2010 includes an aggregate of approximately $6.9 million of non-cash expenses, comprised of interest expenses related to the convertible debt the Company issued in 2009, and the change in fair values related to the treatment of the Company's derivative liabilities.