Natural Health Trends Posts Fifth Straight Quarter of Operating Profit

Natural Health Trends reported second-quarter revenue of 16.2 million dollars, up 20 percent from 13.5 million dollars in the first quarter and down 2 percent from 16.4 million dollars a year earlier. Operating income was 385,000 dollars, compared with 220,000 dollars in the prior quarter and 183,000 dollars a year earlier. Net income was 229,000 dollars, or 0.02 dollars a share. It was the fifth straight quarter of positive operating income and net income.

Active members fell 5 percent from March 31 to 46,860 and were down 14 percent from a year earlier. Cash and cash equivalents were 88.1 million dollars, and operating cash flow was positive for a third straight quarter. The board declared a quarterly cash dividend of 0.20 dollars a share.

President Chris Sharng said sequential growth came even with macroeconomic pressure, helped by in-person events and roadshows. He also said outbreaks limited some meetings and supply constraints lengthened lead times, which contributed to a 1.5 million dollar rise in deferred revenue from March to June. For the first half, revenue was 29.6 million dollars, down 6 percent, and net income was 382,000 dollars versus a loss a year earlier.