Mannatech released their second quarter numbers, and the news is less than spectacular. The Texas based company reported a staggering 22% percent drop in sales during the second quarter of 2008.
The company lost $10,5 million in the second quarter or 40 cents per share compared with 2007 earnings. Mannatech also reported that sales plummeted from $111.7 million to $86.8 million. While international sales only dropped around 3% percent, sales in the US fell over 31% percent. Mannatech also reported that the company is having difficulty recruiting new distributors.
Mannatech’s president and CEO, Wayne Badovinus, who came to the company in August, blames ongoing litigation for the company’s problems. Mannatech was recently sued by the Texas Attorney General for exaggerating claims made by the company about the effectiveness of their products, including claims that the products have therapeutic benefits for people suffering with cancer, and other serious illness
While Mannatech says that they are “moving toward a resolution” the damage has already been done. The company recently had to lay off 15% percent of its US workforce, and has seen a 20 percent drop in new distributors in 2008.
Mannatech’s stock (NASDAQ: MTEX) fell 13 cents Friday to close at $5.52
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