Allergy Research Group, Inc. Reports Increased Sales for Third Quarter.ALAMEDA, Calif. -- Allergy Research Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ALRG) announced financial results for the third quarter ending September 30, 2005. ALRG recorded total revenue of $3,835,014 for the quarter, up 3% from 2004. The increase of $111,613 is primarily due to increased sales to distributors and professional accounts. Cost of sales increased $269,276 to $2,345,898 for the quarter ended September 30, 2005, compared to $2,076,622 for the quarter ended September 30, 2004. The increase in cost of sales is partially due to the increase in sales, but we also experienced increases in the cost of certain raw ingredients due to supply and demand pressures and increased product testing for quality assurance. The increase in costs was not passed on to our customers in order to preserve our customer base; therefore, gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. decreased from approximately 44% for third quarter 2004 to approximately 39% for 2005. Based on the market pressures, we will forestall any significant price increases until 2006. During the quarter ended September 30, 2005, the Company recorded net earnings of $244,274 as compared to net earnings of $354,336 for the same period in 2004. Net income decreased due to the decrease in profit margins and increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Complete copies of the company's financial statements, including notes to the financials, can be found on its website at www.nutricology.com. About Allergy Research Group, Inc. Allergy Research Group, Inc. is an innovative leader in nutraceutical research and product formulation. Since its inception in 1979, the company has been noted for quality, hypoallergenic hy·po·al·ler·gen·ic adj. Having a decreased tendency to provoke an allergic reaction. hypoallergenic (hī´pōal´urjen´ik), adj nutritional supplements Nutritional Supplements Definition Nutritional supplements include vitamins, minerals, herbs, meal supplements, sports nutrition products, natural food supplements, and other related products used to boost the nutritional content of the diet. and supplies products to physicians and healthcare practitioners worldwide. Except for historical information contained herein, this release contains, within the meaning of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results include but are not limited to: the impact of competitive products, changes in law and regulations, adequacy and availability of insurance coverage, availability of raw materials, dependence on distributors and customers, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , limitations on future financing, the effect of adverse publicity, uncertainties relating to acquisitions, managing and maintaining growth, customer demands, as well as other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company's investor relations Investor relations The process by which the corporation communicates with its investors. department. |
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