NUTLEY, N.J., June 13 /PRNewswire-FirstCall/ -- Diet Coffee, Inc. (OTC Bulletin Board: DCFF; Frankfurt: T5V.F) -- today announced financial results for the three months ended March 31, 2008.
Diet Coffee Inc. reported quarterly revenues of $348,114, a nominal increase over the $347,688 reported for the three months ended March 31, 2007. Net loss for the period was ($146,207), a nominal improvement over the net loss of ($146,969) recorded for the three months ended March 31, 2007.
Revenues for the quarter consisted of entirely of Ionic Bulb product sales which the company primarily began marketing during the three month period. Revenues for the corresponding reporting period during 2007 were generated wholly through sales of the recently terminated Slim Coffee product line. Diet Coffee Inc. no longer sells or markets the product line and does not anticipate doing so in the foreseeable future.
Operating expenses for the three months ended March 31, 2008 decreased $126,756 or 32% from the prior year period. Operating expenses for the quarter were largely attributable to personnel costs, stock-based compensation costs and Ionic Bulb-related licensing and supply agreements. Conversely, operating expenses for the three months ended March 31, 2007 consisted primarily of product advertising, sales/marketing, consulting fees, personnel costs and customer order fulfillment costs.
Gross profit for the quarter decreased $98,122 or 39.6% to $150,137 from a gross profit of $248,259 for the three months ended March 31, 2007. Gross profit percentage for the three months ended March 31, 2008 was 43% as compared to 71% for the prior year period.
Management states that both gross profit and gross profit percentage are typically higher for sales made through direct response marketing. While the recently terminated Slim Coffee product line relied heavily on sales through this medium, the company's new focus, the Ionic Bulb currently derives the bulk of its revenues through sales into the mass market/specialty retailer channel, which typically generates lower margin business. Management aspires to gradually shift towards a more direct-to-consumer focused business model upon future dissemination of its Ionic Bulb infomercial through a wide range of advertising mediums including television, radio, and the Internet as well as adding e-commerce capabilities to its new and improved corporate website.
"The reporting period ended March 31, 2008 marked the launch of our landmark Ionic Bulb product and the termination of our previous Slim Coffee offering. While we are quite pleased with initial sales levels for the Ionic Bulb during its first full quarter of operations, the company is firmly dedicated to exploring new sales and distribution opportunities that will facilitate improvement to business margins. As we migrate towards a more direct-to-consumer centric business model in the future through a combination of increased advertising efforts and sales via our corporate website and toll free sales hotline, we believe that operating margins will improve over current levels." Said CEO Adam Engel.
About Diet Coffee, Inc.:
Diet Coffee, Inc., through its wholly owned subsidiary, Zevotek, Inc. plans to market and sell independently a range of distinct and independent lines of home care and household products. In May 2007, the company entered into a license agreement to sell an energy saving compact fluorescent light bulb named the Ionic Bulb. The company plans to market the Ionic Bulb through TV infomercials, catalogs, magazines and major U.S. retail and specialty stores.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this release with respect to the Diet Coffee, Inc.'s business, financial condition and results of operations, as well as matters of timing and the prospective terms of the transaction described are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond Diet Coffee, Inc.'s control with respect to market acceptance of their products, whether financing will be available, the plans for Zevotek, Inc. to market and sell home care and other household products as well as certain other risk factors which are and may be detailed from time to time in Diet Coffee, Inc.'s filings with the Securities and Exchange Commission.
This press release contains forward-looking statements. The words or phrases 'may,' 'intends,' 'expects,' 'estimate,' 'indicate,' 'plans,' 'anticipates,' 'could,' 'if,' 'will,' 'should' or similar expressions are intended to identify 'forward-looking statements.' Actual results could differ materially from those projected in forward-looking statements as a result of a number of risks and uncertainties. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. Diet Coffee, Inc. cautions readers not to place undue reliance on such statements. Unless otherwise required by applicable law, Diet Coffee, Inc. does not undertake, and Diet Coffee, Inc. specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
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