OpTree

The second quarter results should be starting to file in during the next couple weeks, and the first major company to release results is USANA. The numbers were mixed, but overall not terrible given the somewhat public legal battle over taking the company public.

Net sales for the second quarter of 2008 increased by 1.5% to $109.2 million, compared with $107.5 million in the second quarter of the prior year. USANA attributes the increase in net sales to a new incentive program for distributors along with strong foreign currencies. Earnings per share saw a slight decrease from second quarter of 07 falling from $0.66 per share to $0.62 per share, a 6% percent decrease. USANA says that the slight decline comes from a slight rise in operating costs.

North America saw a 3.3% percent decrease in sales to $65.9 million, however net sales in the Asia Pacific Region increased by 9.9% percent to $43.3 million.

“We were pleased to see our second quarter financial results come in above our original expectations,” said Dave Wentz, president of USANA Health Sciences. “Achieving sequential quarterly sales gains in all but two of our 13 markets gives me confidence that our business is starting to regain its upward momentum. We will continue to focus on accelerating our top-line growth.”

USNA’s stock (NASDAQ: USNA) didn’t react too well to the news sending the stock down a bit to close at $27.10.

USANA predicts that for the full year 2008, net sales will be somewhere around $435-$445 million dollars and earning per share, on a fully diluted basis will be between $2.30 and $2.36.

In a bit of more surprising news from the company, Dave Wentz (son of Dr. Myron Wentz) will takeover as CEO after his stint as President. Dr. Wentz will remain on as Chairman. No question the debacle of trying to take the company private has had its effects on the senior Wentz over the past few weeks. A concern we have is now Dave is the CEO of USANA and the Chairman of the DSA as we reported last month.

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