Manufacturer of cosmetics and skin care products reports first-quarter loss of $183,000, or $0.02 per share, compared with net income of $3,000, or $0.00 per share, in 2004.Buena’s IGI (AMEX:IG) said Friday it has hired an investment banker to advise the company on strategic alternatives that may result in a sale or merger.
The manufacturer of cosmetics and skin-care products made the announcement while reporting a first-quarter loss of $183,000, or $0.02 per share, compared with net income of $3,000, or $0.00 per share, in 2004.
Revenues declined to $775,000 from $987,000 in the prior year. Product sales of $505,000 was down 41% from the prior year. Licensing and royalty revenues, however, rose 105% to $270,000.
IGI said the difference in product sales versus royalty revenues relates to a change in business with Estee Lauder in accordance with a new license agreement.
“This action is allowing the company to offer our technology to a wide range of new customers in the U.S., Europe and Asia, and should result in sustained revenue increases by the end of the year,” Frank Gerardi, IGI’s chairman, said.
At the close of trading, IGI shares were unchanged at $1.18.