Natural Health Trends Corp. - C (NASDAQ:NHTC)

WEB NEWS

Tuesday, May 5, 2020

Comments & Business Outlook

First Quarter 2020 Financial Results

  • Revenue of $14.9 million decreased 23% compared to $19.3 million in the first quarter of 2019.
  • Net loss was $573,000, or $0.05 per diluted share, compared to a net loss of $1.9 million, or $0.17 per diluted share, in the first quarter of 2019.

“First and foremost, our thoughts are with all of those around the world who have been impacted by the coronavirus,” commented Chris Sharng, President of Natural Health Trends Corp. “I am pleased that we have continued to run our operations efficiently with the health and safety of our employees, members and customers guiding our decisions as our top priority. The impact of the pandemic followed the already difficult operating conditions we experienced throughout 2019. While we could have never foreseen the impact COVID-19 would have on the global economy, we focused our efforts in 2019 on preparing our business to adapt to new realities following China’s 100-day campaign and have been applying key learnings from our experience to support our affected markets. To that end, we started implementing aggressive cost reduction measures beginning in the second half of 2019 which were partially offset by additional spending during the first quarter in direct response to COVID-19 and the governments’ measures to control the spread of the virus.  As a result of the net effect of these actions, we narrowed the scope of our first quarter operating loss and decline in cash flow from operations despite the fact that our main markets were under severe lockdown for most of first quarter of 2020.”

Mr. Sharng concluded, “We have ample liquidity with $95 million in cash and cash equivalents and zero debt. Further, our highly variable cost structure allows us the flexibility to adapt in-line with order volume. As previously announced, we put a program in place to position us for increased operating efficiencies in several areas including reducing headcount and promotional spending. As a result, we now expect to realize annualized cost savings of approximately $8 million in 2020. I feel confident our employees and members will work together through these unprecedented times with our support and that we will emerge from this downturn even stronger than before.”


Regular Dividend News

HONG KONG, May 06, 2020 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced its financial results for the first quarter ended March 31, 2020.


On May 4, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on May 29, 2020 to stockholders of record as of May 19, 2020.


Wednesday, February 12, 2020

Comments & Business Outlook

Fourth Quarter 2019 Financial Results

  • Revenue of $17.8 million decreased 57% compared to $41.6 million in the fourth quarter of 2018. 
  • Net loss was $2.8 million, or $0.27 per diluted share, compared to net income of $5.6 million, or $0.49 per diluted share, in the fourth quarter of 2018.

“2019 was a challenging year for our business amid a host of macroeconomic and industry-specific factors that created a highly difficult operating environment,” commented Chris Sharng, President of Natural Health Trends Corp. “In addition to China’s 100 day campaign announced last January and negative sentiment stemming from social media as it relates to health products companies in China, additional developments such as ongoing global trade tensions, China’s slowing economy and civil unrest in Hong Kong further contributed to the decline in revenue for 2019. That said, order volume in the fourth quarter of 2019 increased 12% over the prior quarter as a result of our successful event in Macau, along with a positive response to our various product promotions and incentives.”

Mr. Sharng further commented, “While our first quarter results are typically affected by the Chinese New Year, the coronavirus outbreak and the unprecedented measures to control it are posing further challenges to the market. Following the extended Chinese New Year holidays, we plan to rely on product promotions and webcast training to overcome physical restrictions. We are continuing to monitor the evolving situation closely and will adapt our marketing programs accordingly. Looking ahead, we have implemented a strategy to more effectively manage elements within our control including: ensuring our incentives remain attractive to our leaders and member base; continuing to expand our operations into new geographies; and reducing our cost structure. To that end, we expect to achieve annualized cost savings of approximately $6.5 million in 2020.”

The Company expects to issue its 2019 audited financial results in March with its Annual Report on Form 10-K to be filed with the Securities and Exchange Commission. The financial results are preliminary and the accompanying financial statements have not been audited or have not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s 2019 audited financial results.



Friday, November 1, 2019

Comments & Business Outlook

Third Quarter 2019 Financial Results

  • Revenue of $17.0 million decreased 64% compared to $47.0 million in the third quarter of 2018.
  • Net loss was $1.2 million, or $0.12 per diluted share, compared to net income of $7.6 million, or $0.67 per diluted share, in the third quarter of 2018.

“The business environment in China continued to present broad challenges during the third quarter,” commented Chris Sharng, President of Natural Health Trends Corp. “In addition, protests in Hong Kong posed new complications. As a result, we suspended company-sponsored meetings in Hong Kong as current conditions are not conducive to hosting visitors.”

Mr. Sharng further commented, “Beyond the elements that are not within our control, we remain pleased with our leaders’ abilities to adapt our business strategy and to continue performing under these circumstances. Subsequent to quarter end, we held a successful event in Macau which was traditionally held during the third quarter. Our fourth quarter order volume trends are already improving following this major event which is a promising development. Lastly, in light of the current business environment, we are implementing cost reduction measures to focus resources on our members and markets. We expect to realize an annualized $5.7 million in savings by the first quarter of 2020. 




Tuesday, May 7, 2019

Comments & Business Outlook

First Quarter 2019 Financial Results

  • Total revenue of $19.3 million decreased 63% compared to $52.4 million in the first quarter of 2018 primarily due to a decline in Greater China revenue.
  • Net loss was $1.9 million, or $0.17 per diluted share, compared to net income of $8.8 million, or $0.78 per diluted share, in the first quarter of 2018.

Management Commentary

“As we previously disclosed, in response to the Chinese government’s announcement of its 100-day campaign in January, as was the case with many peer companies, we voluntarily suspended our member activities,” commented Chris Sharng, President of Natural Health Trends Corp. “The suspension covered more than 90% of the number of days in the first quarter, which also included the Chinese New Year holidays. We have made it our priority to fully cooperate with the government and to proactively ensure we continue to conduct our business in compliance with all applicable laws in China. While our financial performance was adversely impacted by this initiative during the quarter, we strongly support the actions taken by the Chinese government to root out bad products and deceptive practices in order to protect Chinese consumers.”

Mr. Sharng further commented, “While the 100-day campaign expired in late April, there has been no official conclusion to end the program. We have great confidence in our ability to navigate the business through uncertain times and to renew growth once the macroclimate improves. While we are cautious as it relates to our overall performance for the remainder of 2019 given the uncertain trade and regulatory environment, we were pleased with the outcome of our successful major event in Hong Kong at the end of March and ongoing support of our market leaders. We were also thrilled to have launched NHT Global in India and remain encouraged by the continued growth we have been experiencing in Latin America, led by Peru.”


Friday, February 22, 2019

Comments & Business Outlook

Fourth Quarter 2018 Financial Results

  • Total revenue of $41.6 million decreased 10% compared to $46.1 million in the fourth quarter of 2017, and decreased 12% compared to $47.0 million in the third quarter of 2018.
  • Net income was $5.6 million, or $0.49 per diluted share, compared to a net loss of $4.5 million, or $0.40 per diluted share, in the fourth quarter of 2017, and net income of $7.6 million, or $0.67 per diluted share, in the third quarter of 2018.

Management Commentary

“While 2018 was a challenging year, I’m very pleased with the ability of our company and members to navigate the difficult macroeconomic environment,” commented Chris Sharng, President of Natural Health Trends Corp. “This unpredictable and challenging operating climate, driven by increased global trade tensions, China’s slowing economy and a weaker currency resulted in a decline in revenue. Notably, the Chinese Yuan’s depreciation of 10% against the Hong Kong dollar since February essentially made our products more expensive for our Chinese consumers in 2018. Without the impact of the Yuan devaluation, revenue for the full year of 2018 would have been flat with 2017.”

Mr. Sharng further commented, “While we experienced attractive growth in many global markets and are encouraged by the continuing positive sentiment from our leaders, given the global macroeconomic backdrop and the increased regulatory and media scrutiny in China, we are cautious regarding our performance in 2019 due to the potential impact on our operations from the global trade environment, exchange rate fluctuations, adverse local publicity and the Chinese government’s 100-day campaign. As a result of this campaign and consistent with our past strategies and those of peers, we voluntarily decided in January to temporarily suspend our member activities while proactively cooperating with all relevant government agencies to ensure we continue to conduct our business in compliance with all applicable laws in China. While I am confident this is the best approach to position our Company to successfully operate in the long-term, this suspension of member activities may have a material adverse effect on our business in the near-term. Despite these elements that are beyond our control, we remain focused on geographical expansion opportunities and leader education to further our progress.”


Thursday, January 17, 2019

Investor Alert

Breaking:

After the CCTV exposure, the industrial and commercial departments of Beijing and Harbin launched an investigation into the company.

21st Century Business Herald 21 Finance APP Huang Bin Beijing Report

2019-01-17

On January 17, the 21st Century Business Herald learned that the Beijing Industrial and Commercial Department had launched an investigation into the company that was previously suspected of pyramid schemes by CCTV.

“The industry and commerce said that it is taking the time to contact the branch office, and finally will report the results in writing to tell me the results.” A Beijing lawyer told the 21st Century Business Herald that he was recently commissioned by the family members of the Ran Global member. Reported to Beijing Chaoyang Industrial and Commercial Bureau and received this reply, "They said that the branch is now cooperating with the investigation." The lawyer also showed the reporter a copy of the internal health information of the company. According to the statistics of the reporters, the propaganda materials listed more than 20 Chinese and foreign high-ranking members sharing their feelings. Among them, Ma Mou, Zhang Mouqiu and other members have frequently appeared in the publicity materials of the previous Health Global.

"There are a lot of introductions from the nine-level members. We feel that the industry and commerce may also be able to investigate from these individuals, so we will add some clues to the past," the lawyer told reporters.

The reporter called the Chaoyang Industrial and Commercial Bureau and confirmed that the bureau is investigating Ran Global, but the other party said that it could not disclose the progress of the case under investigation.

On the evening of January 5, CCTV released an exclusive survey, “Is the juice to cure all diseases?” Ran Health Global is suspected of MLM’s launching. It pointed out that Ran Global has packaged its main product “Noli Juice” into “can effectively improve various common Disorders, even terminal illnesses, even if they are regular medicines, it is difficult to compare the magical effects of its magical products. At the same time, it is better than the sales of products, and the senior members of the company are more keen to make big money together. The argument is to pull people into the conference." On the same day, CCTV also released the titled "Ranjian Global is suspected of pyramid schemes: market disorder, where is regulation? "The commentary program, further analysis of this matter. Previously, an in-depth article by Dr. Clove, “The Health of the Ten Thousands of Health Essences, and the Chinese Family in Its Shadows” unraveled the dark corners of the domestic health care products market.

In this context, 13 departments including the State Administration of Markets and General Administration held a joint televised “health” market chaos on January 8th. Carry out a 100-day joint rectification of the “health” market chaos.

Since then, local governments have successively introduced plans to rectify the chaos in the healthcare market. Among them, the Harbin Food and Drug Administration held a special action promotion conference on combating rectification of fraudulent sales of health products to the elderly, and mentioned that “the conference has deployed the relevant work of the whole city to investigate Quanjian and Ranjian Global.”

The reporter called the Harbin Food and Drug Administration several times to understand the progress, but as of press time, the phone could not be connected.

(Editor: Ma Chunyuan)

https://m.21jingji.com/article/20190117/herald/bbd1f935e9c4253c09171f1742ea6d59.html


 


Thursday, January 17, 2019

Comments & Business Outlook

HONG KONG, Jan. 17, 2019 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness, and “quality of life” products under the NHT Global brand, today announced its preliminary revenue estimates for the fourth quarter and full year of 2018.

The Company estimates total revenue for the fourth quarter and full year ended December 31, 2018 to be $41.6 million and $191.9 million, respectively, compared to $46.1 million and $197.6 million in the comparable periods of 2017. The Company further estimates that its deferred revenue at December 31, 2018 increased $2.3 million to $6.8 million, compared to $4.5 million at September 30, 2018 due to the success of repeat order promotions near year end. At December 31, 2017, deferred revenue was $4.5 million, compared to $3.6 million at September 30, 2017.

“In spite of our effective sales initiatives, our preliminary revenue estimate for the fourth quarter of 2018 also reflected the current challenging market conditions of increased global trade tensions, China’s slowing economy and a weaker Chinese currency. Even with these headwinds, the fourth-quarter and full-year orders were roughly flat year-over-year on a constant currency basis,” commented Chris Sharng, President of Natural Health Trends Corp.

Last week the Chinese government announced a comprehensive 100-day campaign nationwide to review and focus on the regulations for certain food, equipment, daily necessities, small home electrical appliances and services that producers claim to promote health functions. While the results of this program are not yet clear, the Company believes this is a positive development that will benefit Chinese consumers and NHT Global in the long-term.

The Company expects to issue its complete fourth quarter and full year 2018 financial results in mid-February.  The revenue estimates are preliminary and have not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s fourth quarter and full year 2018 financial results.  In addition, the Company’s financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Monday, January 7, 2019

Company Rebuttal

HONG KONG, Jan. 07, 2019 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, issued the following statement in response to speculations and allegations falsely purported against the Company in a segment that aired on January 5, 2019 on China Central Television (“CCTV”). The Company rejects the claims made that Natural Health Trends is operating illegally in China. The Company believes short sellers arranged with associates at CCTV to create a deceptive exposé about the Company and its products attempting to misleadingly portray the business as a pyramid scheme.

Natural Health Trends, a U.S. public company listed on the NASDAQ stock market, distributes its products in more than 40 countries and regions around the world. The Company complies with all applicable laws and regulations to protect the rights and interests of consumers, and benefits from a robust international compliance program.

“Natural Health Trends is committed to conducting business with honesty, integrity and fairness in accordance with the highest ethical standards,” commented Chris Sharng, President of Natural Health Trends Corp. “We are confident that our operations in China are in compliance with all applicable regulations. We believe these inaccurate claims were made in an effort to damage our brand, business in China, reputation and shareholder value, and we are prepared to vigorously defend our Company.”


Tuesday, October 30, 2018

Comments & Business Outlook

Third Quarter 2018 Financial Results

  • Total revenue of $47.0 million increased 17% compared to $40.1 million in the third quarter of 2017, and decreased 8% compared to $50.9 million in the second quarter of 2018.
  • Net income was $7.6 million, or $0.67 per diluted share, compared to net income of $7.3 million, or $0.65 per diluted share, in the third quarter of 2017, and $9.0 million, or $0.80 per diluted share, in the second quarter of 2018.

Management Commentary

“Despite a generally difficult trading environment, our performance in the third quarter was driven by the momentum we created since the beginning of the year,” commented Chris Sharng, President of Natural Health Trends. “So far in 2018, both a rapidly depreciating Chinese yuan, down 10% since February, and the seasonality associated with the summer months, contributed to an 8% decline in our revenue from the second quarter to the third quarter this year. Without the adverse effect of the yuan devaluation, our third quarter revenue would have been flat with the second quarter. While we have no control over these conditions, I believe we have been doing a good job navigating in an increasingly difficult and unpredictable setting.”


Friday, July 20, 2018

Company Rebuttal

LOS ANGELES, July 20, 2018 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, issued the following statement in response to an allegation made against the Company through an online posting from July 19, 2018.

“It has been brought to our attention that a Chinese website cited an anonymous source alleging that we are under investigation by a provincial police department in China.  We are unaware of such an investigation,” commented Chris Sharng, President of Natural Health Trends Corp. “Should we learn of any material information regarding this allegation, we will promptly notify the investment community.”


Thursday, July 12, 2018

Comments & Business Outlook

LOS ANGELES, July 12, 2018 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NASDAQ:NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness, and “quality of life” products under the NHT Global brand, today announced its preliminary revenue estimate for the second quarter of 2018.

The Company estimates total revenue for the second quarter ended June 30, 2018 to be $50.9 million, representing a decrease of 1% compared to $51.5 million in the second quarter of 2017 and a decrease of 3% compared to $52.4 million in the first quarter of 2018. The Company further estimates that its deferred revenue at June 30, 2018 was $3.8 million, compared to $4.1 million at March 31, 2018. At June 30, 2017, deferred revenue was $4.0 million, compared to $4.3 million at March 31, 2017.

“The second quarter reflected a continuation of the momentum we have been experiencing since the fourth quarter of 2017,” commented Chris Sharng, President of Natural Health Trends Corp. “However, during the quarter we held most of the out-of-market activities, including incentive trips to Australia and Seattle, for which the performance-based qualifications concluded in previous periods. While our members’ travel, coupled with an uncertain global trade environment and currency headwinds, muted our second quarter sales growth, we were pleased to have maintained our order volume from the first quarter of 2018.”

The Company expects to issue its complete second quarter 2018 financial results in early August.  The revenue estimate is preliminary and has not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s second quarter 2018 financial results.  In addition, the Company’s financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Wednesday, May 2, 2018

Comments & Business Outlook

First Quarter 2018 Financial Results

  • Total revenue of $52.4 million decreased 13% compared to $59.9 million in the first quarter of 2017 and increased 14% compared to $46.1 million in the fourth quarter of 2017.
  • Net income was $8.8 million, or $0.78 per diluted share, compared to net income of $10.4 million, or $0.93 per diluted share, in the first quarter of 2017.

Management Commentary

“Our momentum in the back half of 2017 carried into 2018 with our total revenue increasing 14% over the prior quarter, marking our second consecutive quarter of sales growth,” commented Chris Sharng, President of Natural Health Trends Corp. “Our improved top-line performance is a direct result of the enhancements made to our commission plan to better incentivize up-and-coming members and ease rank advancement, along with our effective marketing programs. We also held our international Ambassador Academy in Hong Kong, which attracted over 5,500 people. The orders generated by promotions directly related to the event exceeded those of the last three years.”

Mr. Sharng further commented, “With our revenue for the quarter improved, 2018 is off to a good start. Our leaders remain energized and enthusiastic and we look forward to more productive incentive trips and targeted training programs this year to drive further progress and growth.”


Thursday, April 12, 2018

Comments & Business Outlook

LOS ANGELES, April 12, 2018 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NASDAQ:NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness, and “quality of life” products under the NHT Global brand, today announced its preliminary revenue estimate for the first quarter of 2018.

The Company estimates total revenue for the first quarter ended March 31, 2018 to be $52.4 million, representing a decrease of 13% compared to $59.9 million in the first quarter of 2017 and an increase of 14% compared to $46.1 million in the fourth quarter of 2017. The Company further estimates that its deferred revenue at March 31, 2018 was $4.1 million, compared to $4.5 million at December 31, 2017. At March 31, 2017, deferred revenue was $4.3 million, compared to $4.9 million at December 31, 2016.

“Our estimated total revenue for the first quarter of 2018 represented the second sequential quarterly increase since last September,” commented Chris Sharng, President of Natural Health Trends Corp. “In addition to our international Ambassador Academy in January which attracted over 5,500 members and guests, we believe that the enhancements we made to our commission plan to better incentivize up-and-coming members, coupled with successful marketing programs, predominately drove the sequential sales growth. We look forward to various productive incentive trips and targeted training programs in 2018 to drive further progress and growth.”

The Company expects to issue its complete first quarter 2018 financial results in early May.  The revenue estimate is preliminary and has not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s first quarter 2018 financial results.  In addition, the Company’s financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Wednesday, February 14, 2018

Comments & Business Outlook

Fourth Quarter 2017 Financial Results

  • Total revenue of $46.1 million decreased 26% compared to $62.3 million in the fourth quarter of 2016, and increased 15% compared to $40.1 million in the third quarter of 2017.
  • Net loss was $4.5 million, or $0.40 per diluted share, compared to net income of $19.0 million, or $1.70 per diluted share, in the fourth quarter of 2016, and net income of $7.3 million, or $0.65 per diluted share, in the third quarter of 2017.

“While 2017 was a challenging year, we regained momentum in the fourth quarter with the first sequential quarter of sales growth since mid-2016,” commented Chris Sharng, President of Natural Health Trends Corp. “The overall sales decline can be traced to factors beyond our control which hindered our members’ ability to organize meetings and conduct business, including the G20 Summit in late 2016, the 20th Anniversary of Hong Kong’s handover and China’s Communist Party’s 19th National Congress.”

Mr. Sharng further commented, “We believe our ability to increase sales over the prior quarter was a result of the improvements we made to our commission plan, combined with a number of productive incentive trips and training programs held throughout the year. Additionally, we continued to gain traction in international markets such as Europe, Southeast Asia and Japan, which all grew sales over 2016. We have also worked hard to preserve our strong margin profile despite our top-line decline through diligent expense management that aligned our cost structure to current sales levels. As we look ahead to 2018, we believe our targeted training programs and promotions, opportunities for international expansion and new product introductions will translate into improved financial performance in the quarters to come.”


Wednesday, January 17, 2018

Comments & Business Outlook

Fourth Quarter 2018 Financial Results

  • The Company estimates total revenue for the fourth quarter ended December 31, 2017 to be $46.1 million, representing a decrease of 26% compared to $62.3 million in the fourth quarter of 2016 and an increase of 15% compared to $40.1 million in the third quarter of 2017. For the full year ended December 31, 2017, the Company estimates total revenue to be $197.6 million, compared to $287.7 million in 2016.
  • The Company further estimates that its deferred revenue at December 31, 2017 was $4.5 million, compared to $3.6 million at September 30, 2017. At December 31, 2016, deferred revenue was $4.9 million, compared to $4.2 million at September 30, 2016.

“Our revenue estimate reflects the first sequential quarter increase in net sales that we have experienced since the second quarter of 2016,” commented Chris Sharng, President of Natural Health Trends Corp. “We have been working with our leaders to revitalize growth and believe the enhancements to our commission programs, coupled with incentive trips and training programs held during the quarter and throughout the year helped deliver improved sales. We look forward to a productive first-half event to kick off 2018 ahead of the Chinese New Year later this month.”

The Company expects to issue its complete fourth quarter and full year 2017 financial results in mid-February. The revenue estimates are preliminary and have not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s fourth quarter and full year 2017 financial results. In addition, the Company’s financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Monday, October 16, 2017

Comments & Business Outlook

LOS ANGELES, Oct. 13, 2017 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness, and “quality of life” products under the NHT Global brand, today announced its preliminary revenue estimate for the quarter ended September 30, 2017.

The Company estimates total revenue for the third quarter to be $40.1 million, compared to $70.7 million in the third quarter of 2016. The Company further estimates that its deferred revenue at September 30, 2017 was $3.6 million, compared to $4.0 million at June 30, 2017. At September 30, 2016, deferred revenue was $4.2 million, compared to $8.8 million at June 30, 2016.

“While our preliminary revenue estimate for the third quarter of 2017 reflects a year-over-year and quarter-over-quarter decline, we remain on track to revitalize sales growth,” commented Chris Sharng, President of Natural Health Trends Corp.  “During the quarter, a temporary slowdown related to the 20th anniversary of Hong Kong's handover and the upcoming 19th National Congress of the Communist Party of China scheduled for mid-October tempered our progress.”

Mr. Sharng continued, “Despite the challenging environment during the quarter, a number of our markets achieved double-digit sales growth including Peru, Europe, Southeast Asia and Japan. We have provided targeted training programs and implemented enhancements to our international recognition program and matching bonus to better support our leaders, who remain enthusiastic and dedicated to their own sales growth and the overall Company’s success.”

The Company expects to issue its complete third quarter 2017 financial results in early November.  The revenue estimate is preliminary and has not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s third quarter 2017 financial results.  In addition, the Company’s financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Friday, July 14, 2017

Comments & Business Outlook

Second Quarter 2017 Financial Results

  • The Company estimates total revenue for the second quarter to be $51.5 million, compared to $80.4 million in the second quarter of 2016. The Company further estimates that its deferred revenue at June 30, 2017 was $4.0 million, compared to $4.3 million at March 31, 2017. At June 30, 2016, deferred revenue was $8.8 million, compared to $6.5 million at March 31, 2016.
  • Earnings per diluted share for the second quarter are estimated to be in the range of $0.85 to $0.90, compared to $1.07 per diluted share in the second quarter of 2016.

“Our preliminary revenue estimate for the second quarter of 2017 remained under pressure as our leaders continued to progress through the slowdown we have been experiencing in our Asian markets since the third quarter of 2016,” commented Chris Sharng, President of Natural Health Trends Corp.  “In order to reinvigorate momentum in Asia, we have enhanced our incentive programs, launched new promotions and prepared for our summer event in Kuala Lumpur. Further, the second quarter of 2016 presented a difficult year-over-year comparison as a significant product price increase was phased in starting from June last year, pulling demand forward into the quarter a year ago, which led to record product orders. Partially offsetting the sales decline during the second quarter of 2017 was strength in Europe and the market opening in Peru as well as a positive response to our recent product introductions. Importantly, we have been able to successfully retain all of our top ranked leaders through these challenging times and morale remains strong.”

The Company expects to issue its complete second quarter 2017 financial results in early August.  The estimates for the Company’s financial results are preliminary and have not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s second quarter 2017 financial results.  In addition, the Company’s financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Thursday, April 27, 2017

Comments & Business Outlook

First Quarter 2017 Financial Results

  • Total revenue decreased 19% to $59.9 million, compared to $74.3 million in the first quarter of 2016.
  • Net income was $10.4 million, or $0.93 per diluted share, compared to $11.3 million, or $0.95 per diluted share, in the first quarter of 2016.

“Our first quarter 2017 revenue declined year-over-year as we are still working to overcome the slowdown we have been experiencing since the third quarter of 2016,” commented Chris Sharng, President of Natural Health Trends Corp. “We also moved our first half major event from early January in prior years, to March this year, making the year-over-year comparison challenging. In addition, the stronger dollar made our products more expensive for our Chinese consumers. Partially offsetting the factors affecting our top-line was heightened productivity in March, following our successful Ambassador Academy in Macau, which attracted over 6,000 members and guests. We were very pleased with the record turnout after moving the event to after the Chinese New Year, which we believe will improve the member experience longer-term.”

Mr. Sharng further commented, “Our strong balance sheet and working capital management afford us the ability to focus on our growth initiatives while simultaneously returning capital to our valued stockholders. I am pleased to announce our Board of Directors declared a special dividend in the amount of $0.35 per share as well as an 11% increase in our quarterly dividend to $0.10 per share, compared to the prior quarter. While it will take time for the results of our strategic initiatives to bear fruit, we are confident in our ability to attract, motivate and retain a strong member base as well as to expand our product offering into new geographies and categories.”


Thursday, April 13, 2017

Comments & Business Outlook

LOS ANGELES, April 13, 2017 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness, and “quality of life” products under the NHT Global brand, today announced preliminary estimated revenue for the quarter ended March 31, 2017.

The Company estimates total revenue for the first quarter to be $59.9 million, compared to $74.3 million in the first quarter of 2016. The Company further estimates that its deferred revenue at March 31, 2017 was $4.3 million, compared to $4.9 million at December 31, 2016. At March 31, 2016, deferred revenue was $6.5 million, compared to $4.0 million at December 31, 2015.

“As discussed in the prior quarter, the first quarter of 2017 presented a challenging year-over-year comparison as our re-branded Ambassador Academy, which is traditionally held in January of each year, was held in March,” commented Chris Sharng, President of Natural Health Trends Corp. “In addition, we experienced a slight seasonal decline due to the Chinese New Year which was in-line with historical trends. Partially offsetting these factors was heightened activity in March following our successful Ambassador Academy in Macau which attracted over 6,000 members and guests as well as a productive three week product roadshow for Premium Noni Juice. We were thrilled to introduce various new products at the March event as well as to announce exciting incentive programs for the year.”

The Company expects to issue its complete first quarter 2017 financial results in late April.  The revenue estimate is preliminary and has not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s first quarter 2017 financial results.  In addition, the Company’s financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Wednesday, February 8, 2017

Comments & Business Outlook

Fourth Quarter 2016 Financial Results

  • Total revenue decreased 15% to $62.3 million, compared to $73.7 million in the fourth quarter of 2015.
  • Net income was $19.0 million, or $1.70 per diluted share, compared to $13.7 million, or $1.13 per diluted share, in the fourth quarter of 2015.

“2016 was a tremendous year for Natural Health Trends and reflected solid progress on our strategic plan despite some external challenges we experienced throughout the year,” commented Chris Sharng, President of Natural Health Trends Corp. “Specifically, the fourth quarter reflected a continuation of some of the challenges we discussed in the prior quarter, including a slowdown in Hangzhou, one of our top three markets, after the G20 summit was held in that city last September. Local members in the affected metropolitan area were unable to organize activities and events for weeks, which are key to their effectiveness. In addition, the Chinese yuan depreciated by 7% against the Hong Kong dollar which effectively increased the price of our products for our members residing in mainland China. We expect the first quarter will also present a difficult year-over-year comparison as we plan to launch various new products at our first-half event, the re-branded Ambassador Academy, in March versus in January last year.”

Mr. Sharng further commented, “We increased our full year 2016 revenue by 9% over 2015. We are working to strengthen growth through increased leader training and motivation while expanding our reach by geography and products. These efforts will be supported by technological advancements to enhance overall member communication and productivity. Further, due to the flexibility we have built into many of our promotions and incentive programs, we were able to generate record operating profit for the fourth quarter of 2016. I’m also very pleased we will once again be declaring a special dividend in the amount of $0.35 per share as well as increasing our regular quarterly dividend to $0.09 per share. Our ability to return capital to our stockholders is due to our robust operating cash flow driven by effective management of our working capital which has kept our balance sheet strong. We look forward to a bright future for Natural Health Trends.”


Friday, October 14, 2016

Comments & Business Outlook

TAIPEI, Taiwan--(BUSINESS WIRE)--

Advanced Semiconductor Engineering, Inc (ASE, TAIEX:2311, NYSE:ASX), the leading provider of semiconductor assembly and test services, today announced that its Chung Li, Taiwan facility has received the ISO 26262 certification from TÜV NORD, a technical service provider that helps companies to validate the safety of products and services. ISO 26262 is a standard related to the safety of electrical and electronic systems within a car and addresses possible hazards caused by malfunctioning behavior of safety-related systems, including interaction of these systems.1

‘The increasing number of electronic functions in an automotive vehicle has added to the complexity in automotive manufacturing. Such complexity also adds to the increased need for the IC assembly manufacturing process to adhere to strict automotive benchmarks and practices in order to achieve zero ppm in automotive testing. Zero ppm creates a mindset that strives to guarantee quality and reliability to ensure that vehicles are safe and dependable,’ says TS Chen, President of ASE Chung Li. ‘ASE has invested time, financial and human resources to train its engineers to identify and manage risks within the manufacturing process and to avoid these risks by providing appropriate requirements and processes as outlined in the ISO 26262 standards,’ he continued.

The ASE Chung Li site has been in the forefront of automotive IC assembly and testing, providing many of the industry’s top tier automotive device players with packaging solutions for almost two decades. The facility is also TS 16949 certified and continues to improve its quality and safety standards by undertaking global certification programs. The ISO 26262 certification will greatly benefit customers and ASE as both parties would be able to shorten the time needed to verify the functional safety of all products and enable customers to reach their intended markets quickly.

Heterogeneous integrated package solutions such as ASE’s System-in-Package, MEMS and sensor module solutions are robust technologies developed for the myriad and sophisticated electronics that make automotive vehicles smarter and safer. In an industry that innovates non-stop, ASE is poised to grow its IC packaging portfolio and technology capability as well as the adoption of international safety and quality standards for the future in connected and autonomous cars.


Wednesday, July 27, 2016

Comments & Business Outlook

Second Quarter 2016 Financial Results

  • Total revenue increased 15% to $80.4 million, compared to $69.7 million in the second quarter of 2015.
  • Net income was $12.2 million, or $1.07 per diluted share, compared to $12.3 million, or $0.98 per diluted share, in the second quarter of 2015. Net income, excluding the impact of the additional tax provision, would have increased 19% to $14.6 million, or $1.29 per diluted share.

“We had an excellent second quarter characterized by record product orders and operating profit,” commented Chris Sharng, President of Natural Health Trends Corp. “We once again achieved a double-digit, year-over-year increase in revenue growth driven by our emphasis on products, training, services and marketing.”

Mr. Sharng further commented, “Going forward, we will remain focused on expanding our global footprint, continuing to acquire members in new and existing markets, as well as our product development initiatives to drive sustainable, long-term growth. Through our strong cash generation, we are very well positioned to grow our business organically while simultaneously returning value to our stockholders through quarterly cash dividends and execution on our $70 million stock repurchase program.”


Thursday, January 14, 2016

Research

As NHTC Responds to Media Reports, We Continue Our Due Diligence

Yesterday we released our article called “Another Day, Another Raid” which detailed a police presence at NHTC’s Guangzhou headquarters just days after SINA Finance and other reputable media outlets in China reported that the company's satellite offices in Beijing were “raided”. After hearing this news, we sent our investigator to Guangzhou, where they were able to collect  video and photographs of uniformed police and SAIC officials with NHTC employees shortly after arriving on the scene at NHTC’s headquarters in Guangzhou. The company responded yesterday in a press release, claiming among other things:

“The Company believes that some Chinese accusers, working in tandem with parties making online posts, have been aggressively pressing the Beijing City government to conduct an investigation of Natural Health Trends. The Company’s staff attorney and branch manager participated in a meeting with the Beijing Chaoyang District SAIC and the Public Security Bureau at Natural Health Trends’ Beijing office on January 11, 2016. Two accusers were present, though they declined to exchange business cards with the Company’s employees. The outcome of this meeting, which has been grossly mischaracterized in an online posting as a government “raid,” was that the government authorities advised the Company and the accusers that there was insufficient evidence to warrant an investigation of Natural Health Trends.  No office computers or other Company property has been removed from Natural Health Trends’ offices by Chinese governmental authorities. In a separate event, on January 13, 2016, several public security officials of various districts in the Guangzhou city visited the Company’s Guangzhou office as part of a routine examination.  This is the office that is currently applying for a direct selling license.”

Geo made note yesterday on Twitter that the word “raid” was used in some of the original Chinese media posts that documented this story and that we have had no involvement with whistleblowers or contacting the Chinese government. We also note that the company's explanation of a coincidental “routine examination” in their main office does not pass muster with us. Uniformed police and SAIC officials would not, in our opinion, conduct a routine (joint) examination at all much less two days after NHTC’s Beijing office was reportedly raided. We believe we’ve seen this before, where Chinese management teams misrepresent themselves to U.S. investors, and the company’s buyback comes as no surprise to us. You can read the company’s full press release here.

We are continuing our due diligence on NHTC and we remain short.


Wednesday, January 13, 2016

Comments & Business Outlook

Item 8.01 Other Events.
 
On January 13, 2016, Natural Health Trends Corp. (the “Company”) issued a press release announcing it strongly refutes false allegations made against it by U.S. and Chinese parties that appear to be working in concert with the goals of improperly influencing the market for the Company's stock and damaging the Company's reputation, brand value and business in China.


In addition, the Company's Board of Directors has authorized an increase in its previously announced stock repurchase program from $15 million to $70 million, $10 million of which has already been completed. The Company will seek to expeditiously pursue the repurchase program, consistent with applicable U.S. securities laws and prudent management of the Company's resources. The press release is attached hereto as exhibit 99.1.


Monday, January 11, 2016

Comments & Business Outlook

BEIJING, Jan. 08, 2016 (GLOBE NEWSWIRE) -- BeiGene, Ltd., a clinical-stage biopharmaceutical company focused on developing molecularly-targeted and immuno-oncological drugs for the treatment of cancer, today announced that the U.S. Food and Drug Administration (FDA) has completed its review of the Investigational New Drug (IND) application for the clinical development of BGB-A317, a humanized monoclonal antibody against the immune checkpoint receptor PD-1 and Phase IA/IB studies for BGB-A317 may now proceed in the U.S.

�This is a significant milestone for BeiGene, and also for the wider Chinese biopharmaceutical industry,� said John V. Oyler, Chief Executive Officer of BeiGene. �We are honored to be at the forefront of the expanding global efforts of Chinese drug discovery.�

Wendy Yan, Senior Vice President and Head of Regulatory Affairs additionally commented, �We are delighted to build on the success of our previous U.S. IND, for our small molecule BTK inhibitor BGB-3111, with this IND effective of our first biologic in the United States.�

BeiGene plans to develop BGB-A317 as a monotherapy and as a combination agent with small molecule therapeutics for various solid-organ and blood-borne cancers. The IND will allow BeiGene to include sites in the United States in its ongoing global study for BGB-A317 in patients with relapsed or refractory solid tumors. The trial, which is currently underway in Australia, is an open label, dose-escalation and expansion study to investigate the safety, pharmacokinetics, and antitumor activities of BGB-A317 in patients with advanced tumors. A total of 51 patients had been dosed in the study as of November 30, 2015.

Ruirong Yuan, M.D., Chief Medical Officer and President of BeiGene Global Clinical Research and Development, commented �We believe BGB-A317 is potentially differentiated from currently approved PD-1 antibodies in that its ability to bind the Fc gamma receptor I has been specifically engineered out, and we believe this could potentially lead to improved activities. In addition, BGB-A317 has unique binding characteristics to PD-1, and may have superior target specificity.�


Thursday, October 29, 2015

Comments & Business Outlook

Item 1.01     Entry Into a Material Definitive Agreement.
 

Further to the stock repurchase program announced by Natural Health Trends Corp. (the “Company”) on July 28, 2015, on October 28, 2015 the Company entered into a Stock Repurchase Agreement with George K. Broady (“Broady”), the Company’s largest stockholder and a member of its board of directors (the “Stock Repurchase Agreement”). The Stock Repurchase Agreement, which the Company and Broady entered into in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, provides for the Company’s purchase from Broady of 0.4066 of the number of shares of common stock purchased by the Company’s broker in the open market under the Company’s previously announced stock repurchase program.
 
As a part of such stock repurchase program, the Company has recently entered into a Rule 10b5-1 Issuer Repurchase Plan with its broker (the “Purchase Plan”) under which the Company’s broker is authorized to purchase shares of the Company’s common stock in the open market for a total purchase price of $3,555,000 in accordance with Rule 10b-18 under the Securities Exchange Act of 1934. The Stock Repurchase Agreement with Broady requires that the Company report to Broady on a weekly basis information regarding the broker’s open market purchases, and that the Company purchase from Broady 0.4066 of the number of shares purchased by the Company’s broker in the open market, which shares shall be purchased on a weekly basis from Broady at a per share purchase price equal to the weighted average price per share paid by the Company’s broker to purchase shares in the open market.
 
The Company expects to expend approximately $5.0 million in the aggregate under the Stock Repurchase Agreement with Broady and the Purchase Plan, which when combined with the Company's prior expenditures under the stock repurchase program announced on July 28, 2015, would result in aggregate expenditures of approximately $10.0 million, plus transaction costs.  Although the Company has reserved the right to discontinue at any time the stock repurchase program, it expects that upon completion of the purchase of shares under the stock repurchase program it will have expended approximately $15.0 million, plus transactions costs.


Wednesday, October 28, 2015

Comments & Business Outlook
Third Quarter 2015 Financial Results

Total revenue increased 154% to $80.8 million, compared to $31.8 million in the third quarter of 2014. 

Net income available to common stockholders was $14.5 million, or $1.18 per diluted share, compared to $5.4 million, or $0.42 per diluted share, in the third quarter of 2014.

"The third quarter was a record quarter, driven by our successful execution efforts for launching and marketing our products, as well as through supporting our leaders in developing effective sales techniques," commented Chris Sharng, President of Natural Health Trends Corp. "Our record third quarter revenue and net income both posted significant sequential increases and more than doubled versus the third quarter last year. Strengthened consumer demand for our products in China, coupled with strong growth in our active member base helped contribute to this impressive growth."

Mr. Sharng continued, "We were very pleased to report that we have initiated the process for submitting a direct-selling license application in the Chinese province of Guangdong. We are hopeful that a license will enable us to drive incremental growth by leveraging our growing brand recognition in China as well as our Hong Kong distribution infrastructure. As we are still very early in this process, timing for obtaining our direct-selling license remains uncertain. In the interim, we will remain highly focused on managing all aspects of our core business that are within our control."


Tuesday, August 4, 2015

Comments & Business Outlook
Second Quarter 2015 Financial Results
  • Total revenues increased 104% to $69.7 million, compared to $34.2 million in the second quarter last year.
  • Net income was $12.3 million, or $0.98 per diluted share, compared to $6.1 million, or $0.49 per diluted share, in the second quarter last year.

"We delivered another quarter of solid top-line growth and doubled our net income as we continue to leverage the strength and utility of our Hong Kong infrastructure to meet the increasing consumer demand for our health and wellness products," commented Chris Sharng, President of Natural Health Trends Corp. "During the quarter we launched several new products to extend our product line and kicked off additional incentive programs for top performers. The combination of consumer demand supported by our market-leading products and effective sales, leadership and incentive programs are proving to be very successful strategies for expanding our base of consumers and distributors while fortifying an already firm foundation for future growth."

"Our Hong Kong business continues to excel, and to date, the economic slowdown in China has not impacted us," continued Mr. Sharng. "In the long term, we feel that the re-orientation of the Chinese economy toward consumption is good for businesses like ours, as we work to introduce high-quality consumer products to the increasingly affluent Chinese consumers. We are in the Chinese market for the long haul and are bullish on its prospect."

"Further, during the quarter, we funded the required deposit for the consumer protection fund in China, which is a prerequisite to submitting our direct selling license application," concluded Mr. Sharng. "We view applying for a direct selling license as strategically valuable to help us drive incremental growth as our brand recognition continues to grow in China and Asia."


Friday, July 31, 2015

Comments & Business Outlook

Item 1.01     Entry Into a Material Definitive Agreement.


Further to the stock repurchase program announced by Natural Health Trends Corp. (the “Company”) on July 28, 2015, on July 31, 2015 the Company entered into a Stock Repurchase Agreement with George K. Broady (“Broady”), the Company’s largest stockholder and a member of its board of directors (the “Stock Repurchase Agreement”). The Stock Repurchase Agreement, which the Company and Broady entered into in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, provides for the Company’s purchase from Broady of 0.4085 of the number of shares of common stock purchased by the Company’s broker in the open market under the Company’s previously announced stock repurchase program.

As a part of such stock repurchase program, the Company has entered into a Rule 10b5-1 Issuer Repurchase Plan with its broker (the “Purchase Plan”) under which the Company’s broker is authorized to purchase shares of the Company’s common stock in the open market for a total purchase price of $3,550,000 in accordance with Rule 10b-18 under the Securities Exchange Act of 1934. The Stock Repurchase Agreement with Broady requires that the Company report to Broady on a weekly basis information regarding the broker’s open market purchases, and that the Company purchase from Broady 0.4085 of the number of shares purchased by the Company’s broker in the open market, which shares shall be purchased on a weekly basis from Broady at a per share purchase price equal to the weighted average price per share paid by the Company’s broker to purchase shares in the open market.

The Company expects to expend approximately $5.0 million in the aggregate under the Stock Repurchase Agreement with Broady and the Purchase Plan. Although the Company has reserved the right to discontinue at any time the stock repurchase program it announced on July 28, 2105, it expects that upon completion of the purchase of shares under the stock repurchase program it will have expended approximately $15.0 million, plus transactions costs.


Monday, April 13, 2015

Comments & Business Outlook

DALLAS, April 13, 2015 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NHTC) estimates revenue for the quarter ended March 31, 2015 to be $40.9 million. The Company also estimates that its deferred revenue at March 31, 2015 was $10.2 million, compared to $2.7 million at December 31, 2014. In the first quarter of 2014, revenue was $23.2 million, with deferred revenue of $7.9 million at March 31, 2014 and $2.6 million at December 31, 2013.

Increase in quarter end deferred revenue compared to a year ago was attributable to the rapid increase in total orders, the Chinese New Year falling on a later date this year compared to last year and the labor strife on the U.S. West Coast.

The revenue estimate is preliminary and has not been reviewed by the Company's independent accountants. Significant updates and revisions may be required before the release of the Company's first quarter financial results in May. In addition, the Company's quarterly financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Wednesday, March 4, 2015

Comments & Business Outlook

Fourth Quarter Financial Results

  • Total revenues increased 85% to $35.4 million, compared to $19.1 million in the fourth quarter last year.
  • Net income was $5.8 million, or $0.45 per diluted share, compared to $1.6 million, or $0.14 per diluted share, in the fourth quarter last year.

"We capped off 2014 with another strong quarter, and delivered triple-digit sales growth, solid margin expansion and a more than four-fold increase in earnings per share for the year," commented Chris Sharng, President of Natural Health Trends Corp. "Clearly, our marketing strategy has been effective in driving strong top- and bottom-line growth. We have been keen to develop and extend our product line while providing the necessary infrastructure, including leadership development, training and competitive incentives, to attract and retain talented distributors and leverage existing operations to increase our margins."

"We recently concluded a successful event in Macau where 3,000 attended our Success Forum designed to recognize superior performance and serve as a platform for new product introductions. Our leaders are motivated and optimistic," continued Mr. Sharng. "Our momentum is strong going into the new year."


Thursday, December 4, 2014

Comments & Business Outlook

Item 5.03  Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.


On December 3, 2014 the Company filed with the Secretary of State of the State of Delaware a Certificate of Elimination of the Series A Convertible Preferred Stock of the Company (the “Certificate”). The Certificate, which was effective upon filing, cancels the Company’s “Series A Convertible Preferred Stock,” no shares of which remain outstanding as a result of the automatic conversion of all of such shares into the Company’s common stock due to the fact that the average closing price of the Company’s common stock equaled or exceeded $10.00 per share over a recent, consecutive trailing 6-month period.


Tuesday, November 4, 2014

Comments & Business Outlook

2014 Third Quarter Financial Results:

  • Total revenues were $31.8 million, up 125% compared to $14.2 million in the third quarter last year.
  • Non-GAAP of $0.42, compared to $0.12 in the third quarter last year.


"We continued our strong momentum into the third quarter, with our highest level of orders in any quarter this year," commented Chris Sharng, President of Natural Health Trends Corp. "We are effectively leveraging our business model, with a 308% increase in net income during the quarter. In just nine months, we have delivered a 256% increase in net income compared to all of 2013."

"Our efforts to add new products have helped accelerate our growth, and we are simultaneously working to improve the performance of our distributors, through leadership development and training programs, services and promotions, and this effort is showing positive results as our member base is increasingly well informed and motivated, driving higher average sales per member," continued Mr. Sharng. "We remain very pleased with the recent performance and we are increasingly optimistic about the long-term future of Natural Health Trends."


Dividend and Share Repurchase

Yesterday, the Board of Directors declared a cash dividend of $0.032 per share on outstanding Series A preferred stock, which represents the accrued unpaid dividends through the declaration date, and a cash dividend of $0.01 per share on each share of common stock outstanding, representing an aggregate dividend amount of $130,000, payable in cash on December 3, 2014 to stockholders of record on November 25, 2014.

Additionally, on November 4, 2014, the Board of Directors approved a special stock repurchase program of up to $5 million of the Company's outstanding shares of common stock. Such repurchases are expected to begin during November and be complete by January 2015. Such purchases will be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934 (the "Exchange Act"). For all or a portion of the authorized repurchase amount, the Company may enter into a plan that is compliant with Rule 10b5-1 of the Exchange Act that is designed to facilitate these purchases. The repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. The share repurchases will be funded from available working capital.

The Company is advised by George K. Broady, its largest shareholder and a member of its Board of Directors, that Mr. Broady desires to participate in the Company's repurchase program on a basis roughly proportional to his ownership interest, with an estimate of generating approximately $1.5 million through the sale of a portion of the shares of the Company's common stock held by him. To that end, the Company and Mr. Broady are in discussions regarding the terms of a mutually agreeable stock purchase agreement.

"The Board of Directors believes that, at the current valuation, a stock repurchase program will serve the best interests of all shareholders and represents a compelling use of the Company's capital," added Mr. Sharng.


Listing of Shares on The Nasdaq Capital Market

Finally, on November 4, 2014, the Board of Directors authorized management to pursue the listing of its shares of common stock on The Nasdaq Capital Market. "With the Company's solid and expanding profitability and strong balance sheet, the Board believes now is the optimal time to pursue a listing of our common stock," said Mr. Sharng. Although the Company believes that it will be able to satisfy Nasdaq's applicable listing requirements, there can be no assurance as to whether, or in what timeframe, it will be able to do so.


Wednesday, October 15, 2014

Comments & Business Outlook

DALLAS, Oct. 14, 2014 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (OTCQB:NHTC) estimates revenue for the quarter ended September 30, 2014 to be $31.8 million. The Company also estimates that its deferred revenue at September 30, 2014 was $2.9 million, compared to $3.2 million at June 30, 2014. In the third quarter of 2013, revenue was $14.2 million, with deferred revenue of $1.5 million at September 30, 2013 and $1.1 million at June 30, 2013.

The revenue estimate is preliminary and has not been reviewed by the Company's independent accountants. Significant updates and revisions may be required before the release of the Company's third quarter results. In addition, the Company's quarterly financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Wednesday, July 30, 2014

Comments & Business Outlook

Second Quarter 2014 Financial Results:

  • Total revenues were $34.2 million, up 223% compared to $10.6 million in the second quarter last year.
  • Diluted EPS in this quarter was $0.49, compared to $0.08 in prior year.

"This was another excellent quarter for Natural Health Trends," remarked Chris Sharng, President of Natural Health Trends Corp. "Orders taken during the second quarter were very strong. In addition, the quarter's financial results also benefited from delivering significant orders taken but unshipped in March, with shipments made during the second quarter."

"For the first six months of 2014, the Company generated more revenue and net income than it did for the entire 2013 year," added Mr. Sharng. "The strong results so far in 2014 clearly demonstrate that our efforts to enhance our leadership development and training programs, and expand our products, services and promotions, can effectively drive strong results. The result has been a more informed base of members, and this has translated to higher average sales per member. We have focused particularly on investments in China, Hong Kong and Taiwan, where we think we have the most promising opportunities. Our programs aim for long-term growth. We are very pleased with the recent performance but are more excited about what we can accomplish in the long run."


Tuesday, July 15, 2014

Comments & Business Outlook

DALLAS, July 15, 2014 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (OTCQB:NHTC) estimates revenue for the quarter ended June 30, 2014 to be $34.2 million. The Company also estimates that its deferred revenue at June 30, 2014 was $3.2 million, compared to $7.9 million at March 31, 2014. In the second quarter of 2013, revenue was $10.6 million, with deferred revenue of $1.1 million at each of June 30, 2013 and March 31, 2013.

The revenue estimate is preliminary and has not been reviewed by the Company's independent accountants. Significant updates and revisions may be required before the release of the Company's second quarter results. In addition, the Company's quarterly financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Tuesday, June 17, 2014

Deal Flow

NATURAL HEALTH TRENDS CORP.


930,794 shares of common stock issuable upon exercise of warrants

This prospectus relates to the sale or other disposition of up to a total of 930,794 shares of our common stock, par value $0.001, that may be offered from time to time by the selling stockholders listed on page 16 of this prospectus or their transferees. The shares being offered by this prospectus are issuable upon the exercise of warrants held by the selling stockholders. The warrants were issued in a private placement financing completed in October 2007.

This prospectus also covers any additional shares of common stock that may become issuable upon any anti-dilution adjustment pursuant to the terms of the above-described warrants by reason of stock splits, stock dividends, or similar events.

We will receive no proceeds from the sale or other disposition of shares of our common stock by the selling stockholders. However, we will receive proceeds of $3.5137 per share from the exercise of any of the warrants, except to the extent that any such warrants are exercised on a cashless basis.

The selling stockholders may sell or otherwise dispose of the shares of common stock covered by this prospectus in a number of different ways and at varying prices. For a description of the plan of distribution of the shares, please see page 18 of this prospectus. The selling stockholders will pay all brokerage fees and commissions and similar expenses. We will pay all expenses (except brokerage fees and commissions and similar expenses) relating to the registration of the shares with the Securities and Exchange Commission (the “SEC” or “Commission”).

Our common stock is quoted under the symbol “NHTC” on the OTCQB tier of the OTC Market. The last sales price of our common stock on June 13, 2014 was $6.43 per share.


Wednesday, May 7, 2014

Comments & Business Outlook

First Quarter 2014 Financial Results

  • Total revenues were $23.2 million, up 168% compared to $8.7 million in the first quarter last year and up 21% sequentially compared to $19.1 million for the fourth quarter last year.
  • Net income was $3.1 million, or $0.26 per diluted share, compared to $283,000, or $0.03 per diluted share, last year and $1.6 million, or $0.14 per diluted share, for the fourth quarter last year.

"The strong momentum we built in 2013 continued into the first quarter," commented Chris Sharng, President of Natural Health Trends Corp. "Net sales in Hong Kong increased 237% and sales in Taiwan increased 12% compared to the first quarter of last year, demonstrating the strong organization we have built in these two important geographies. We continue to expand our gross profitability, grow our operating income and expand our free cash flow, helping to support our prospect for long-term growth."

"Our focus is on sustaining this momentum and continuing to drive improved results," added Mr. Sharng. "All of the critical business drivers that we built: leader support, promotional plans, training, product development, member services and commissions plan are working effectively. We expect 2014 will be an exceptional year for Natural Health Trends, its members, customers and shareholders."


Monday, April 14, 2014

Comments & Business Outlook

DALLAS, April 14, 2014 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (OTCQB:NHTC) estimates revenue for the quarter ended March 31, 2014 to be $23.1 million. The Company also estimates that its deferred revenue at March 31, 2014 was $7.9 million, compared to $2.6 million at December 31, 2013.  In the first quarter of 2013, revenue was $8.7 million, with deferred revenue of $1.1 million at March 31, 2013 and $836,000 at December 31, 2012.

The revenue estimate is preliminary and has not been reviewed by the Company's independent accountants. Significant updates and revisions may be required before the release of the Company's first quarter results in May.  In addition, the Company's quarterly financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Sunday, March 9, 2014

Comments & Business Outlook

NATURAL HEALTH TRENDS CORP.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Data)

 

   

Year Ended December 31,

 
   

2012

   

2013

 
                 

Net sales

  $ 37,514     $ 52,527  

Cost of sales

    9,685       12,551  

Gross profit

    27,829       39,976  

Operating expenses:

               

Distributor commissions

    15,724       24,053  

Selling, general and administrative expenses (including stock-based compensation expense of $94 and $110 during 2012 and 2013, respectively)

    9,415       11,634  

Depreciation and amortization

    45       66  

Total operating expenses

    25,184       35,753  

Income from operations

    2,645       4,223  

Other expense, net

    (39 )     (32 )

Income before income taxes

    2,606       4,191  

Income tax provision (benefit)

    (24 )     102  

Net income

    2,630       4,089  

Preferred stock dividends

    (17 )     (15 )

Net income available to common stockholders

  $ 2,613     $ 4,074  
                 

Income per share of Natural Health Trends – basic

  $ 0.24     $ 0.36  

Income per share of Natural Health Trends – diluted

  $ 0.23     $ 0.36  
                 

Weighted-average number of shares outstanding – basic

    10,944       11,154  

Weighted-average number of shares outstanding – diluted

    11,234       11,331  

Management Discussion and Analysis

Results of Operations

Net sales were $52.5 million for the year ended December 31, 2013 compared with $37.5 million a year ago, an increase of $15.0 million, or 40%.  Hong Kong net sales increased $14.4 million, or 55%, over the prior year.  The increase can be attributable to the year-long marketing campaign and in-market activities designed to reward our members with additional cash bonuses, prizes and advancement in our international recognition program, which we refer to as the Supreme Bonus program. A similar incentive program during the prior year ended in June.

Outside of our Hong Kong business, net sales elsewhere increased $663,000, or 6%, compared with a year ago. A decrease in the Russian market was substantially offset by increases in Taiwan and South Korea, both of which benefited from additional sales and marketing programs offered during 2013.

As of December 31, 2013, the operating subsidiaries of the Company had 27,520 active distributors, compared to 20,680 active distributors at December 31, 2012. Hong Kong experienced an increase of 6,060 active distributors, or 43%, from December 31, 2012 to December 31, 2013.

As of December 31, 2013, the Company had deferred revenue of $2.6 million, of which $1.9 million pertained to unshipped product orders, $449,000 pertained to auto ship advances and $182,000 pertained to unamortized enrollment package revenue.


Tuesday, January 14, 2014

Comments & Business Outlook

DALLAS, Jan. 13, 2014 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (OTCQB:NHTC) estimates revenue for the quarter ended December 31, 2013 to be $19.1 million. The Company also estimates that its deferred revenue at December 31, 2013 was $2.6 million, compared to $1.5 million at September 30, 2013. In the fourth quarter of 2012, revenue was $8.1 million, with deferred revenue of $836,000 at December 31, 2012 and $768,000 at September 30, 2012.

The revenue estimate is preliminary and has not been reviewed by the Company's independent accountants. Significant updates and revisions may be required before the release of the Company's fourth quarter results in March.  In addition, the Company's audited financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Friday, December 6, 2013

Deal Flow

NATURAL HEALTH TRENDS CORP.

 

1,495,952 shares of common stock issuable upon exercise of warrants

 

This prospectus relates to the sale or other disposition of up to a total of 1,495,952 shares of our common stock, par value $0.001, that may be offered from time to time by the selling stockholders listed on page 16 or their transferees. The shares being offered by this prospectus consist of up to 1,495,952 shares issuable upon the exercise of warrants held by the selling stockholders. The warrants were issued in a private placement financing completed in October 2007.

 

This prospectus also covers any additional shares of common stock that may become issuable upon any anti-dilution adjustment pursuant to the terms of the above-described warrants by reason of stock splits, stock dividends, or similar events.

 

We will receive no proceeds from the sale or other disposition of shares of our common stock by the selling stockholders. However, we will receive proceeds of $3.52 per share from the exercise of any of the warrants, except to the extent that any such warrants are exercised on a cashless basis.

 

The selling stockholders may sell or otherwise dispose of the shares of common stock covered by this prospectus in a number of different ways and at varying prices. For a description of the plan of distribution of the shares, please see page 18 of this prospectus. The selling stockholders will pay all brokerage fees and commissions and similar expenses. We will pay all expenses (except brokerage fees and commissions and similar expenses) relating to the registration of the shares with the Securities and Exchange Commission (the “SEC” or “Commission”).


Wednesday, November 27, 2013

13D and 13G Activity

13D filed on 11/26/2013

Purpose of transaction:

Mr. Broady and the Trust acquired the Shares for investment purposes. Neither Mr. Broady nor the Trust have any plans or proposals with respect to any of the matters set forth in paragraphs (a) through (j) of Item 4 of Schedule 13D; provided, that Mr. Broady has served on the board of directors of the Issuer since October 17, 2008. Based on various factors such as current or anticipated trading prices for the Shares, market and industry conditions, the financial and operating condition of the Issuer, and the composition of the Issuer’s board of directors, Mr. Broady and/or the Trust may acquire additional Shares or sell all or part of their Shares, in their sole discretion, in open market or private transactions without any prior notice to the Issuer. In connection with serving on the board of directors, Mr. Broady also regularly communicates with and makes suggestions to the Issuer’s officers, other directors and other shareholders with respect to the Issuer, including matters involving the Issuer’s operations, policies, management and board of directors composition.

Mr. Broady is deemed to beneficially own 3,615,737 Shares. Of the 3,615,737 Shares reported in this Item 5(a): (i) 3,376,934 Shares are held directly by Mr. Broady, (ii) 61,693 Shares are issuable to Mr. Broady upon conversation of Series A Convertible Preferred Stock, (iii) 177,110 Shares are held by the Trust, of which Mr. Broady is the trustee and a beneficiary.


Thursday, November 7, 2013

Comments & Business Outlook

Third Quarter Financial Results

  • Total revenues were $14.2 million, up 52% compared to $9.3 million for the third quarter last year, and up 34% sequentially from the $10.6 million for the second quarter this year. This was the third consecutive sequential quarterly increase in revenues.
  • Net income was $1.3 million, or $0.12 per diluted share, compared to $747,000, or $0.07 per diluted share last year.

"Expanded promotions, successful product launches, effective training and enhanced leadership development programs are propelling our strong sales momentum for the third quarter and on a year-to-date basis got us caught up to a more expected pace of growth," commented Chris Sharng, President of Natural Health Trends Corp. "As we have indicated before, we are well positioned to deliver growth for the full year with a strong second-half of the year, and the results for the third quarter reinforce that confidence."


Monday, October 14, 2013

Comments & Business Outlook

DALLAS, Oct. 11, 2013 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (OTCQB:NHTC) estimates revenue for the quarter ended September 30, 2013 to be $14.2 million. The Company also estimates that its deferred revenue at September 30, 2013 was $1.5 million, compared to $1.1 million at June 30, 2013. In the third quarter of 2012, revenue was $9.3 million, with deferred revenue of $768,000 at September 30, 2012 and $1.6 million at June 30, 2012.

The revenue estimate is preliminary and has not been reviewed by the Company's independent accountants. Significant updates and revisions may be required before the release of the Company's third quarter results in November. In addition, the Company's quarterly financial results will include other factors necessary to calculate additional financial metrics, including gross profit and net income.


Wednesday, August 7, 2013

Comments & Business Outlook

Second Quarter 2013 Financial Results

  • Total revenues were $10.6 million compared to $11.0 million in the second quarter last year, and up sequentially from the $8.7 million in the first quarter. This was the second consecutive sequential quarterly increase in revenues. The year-over-year decrease in revenues for the second quarter reflects a change in the Company's promotional plans, which deploy a full-year cash incentive this year, while last year's comparable campaign ended at the end of June. Additionally, a price increase in Hong Kong for Premium Noni Juice� may have accelerated orders into the second quarter last year.
  • Operating income was $948,000, an increase of 7% compared to $889,000 last year.
  • Net income was $904,000, or $0.08 per diluted share, compared to $846,000, or $0.08 per diluted share last year.

"We are excited to have kept pace with an exceptional first half of 2012, which was a huge 62% increase over 2011, and we have delivered multiple consecutive quarters of sequential revenue increases," said Chris Sharng, President of Natural Health Trends Corp. "We are well positioned to deliver a strong second-half of the year."

"We continue to place great emphasis on our product offering, rolling out new products and supporting our existing lines," Mr. Sharng continued. "This quarter we were pleased to announce exclusive multi-level marketing distribution rights for one of our top selling products, Alura by NHT Global. The exclusive arrangement states that we are the sole organization in our industry with the right to offer Alura's proprietary, patented formula under any brand name. To support this announcement to the field, Dr. Ronald J. Thompson will be a featured guest at many of our upcoming events and trainings held in our markets around the world. These activities, and the many others we have planned for the remainder of the year, provide avenues for member growth, opportunities for learning and sharing, and give our established leaders tools they need to succeed."


Thursday, May 9, 2013

Comments & Business Outlook

First Quarter Financial Highlights

  • Total revenues were $8.7 million compared to $9.1 million in the first quarter last year and $8.1 million in the fourth quarter of 2012. The year-over-year decrease in revenues for the first quarter reflects a change in the Company's promotional plans. In 2013, a cash promotion in Greater China runs through the entire year. In 2012, the comparable cash promotion ended at June 30th.
  • Net income available to common stockholders of Natural Health Trends was $283,000, or $0.03 per diluted share, compared to net income of $503,000, or $0.04 per diluted share last year.
"We are pleased with our members' enthusiastic response to our marketing plans in this new year," commented Chris Sharng, President of Natural Health Trends Corp. "The events in Macau and St. Petersburg respectively staged for our Greater China and Commonwealth of Independent States markets were both very successful. Our sales are keeping pace with a very strong first half a year ago. Thus far, 2013 has been a year of exceptional activity, as we focus on leveraging our established leaders with new promotions, robust training, and additional products to drive growth."

Monday, April 15, 2013

Comments & Business Outlook

DALLAS, April 15, 2013 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (OTCQB:NHTC) today provided a preliminary outlook for its first quarter financial results, the period ended March 31, 2013. The Company estimates revenue for the quarter to be $8.7 million. The Company also estimates that its deferred revenue, consisting of unshipped product and unamortized enrollment fees, at March 31, 2013 was $1.1 million, compared to $836,000 at December 31, 2012. In the first quarter of 2012, revenue was $9.1 million, with deferred revenue of $1.3 million at March 31, 2012 and $967,000 at December 31, 2011.

These results are preliminary and have not been reviewed by the Company's independent accountants. Significant updates and revisions may be required before the release of the Company's first quarter results in May.


Wednesday, August 15, 2012

Comments & Business Outlook

Second Quarter 2012 Results

  • In the second quarter, sales, at $11.0 million, were up 52% over a year ago.
  • Second quarter earnings per share were $0.08, a 33% increase over the comparable period in 2011.

"Our rewarding business model that is centered around dedicated field leaders, an enhanced commission structure, systemic training, dedicated support and services, effective promotions and high-quality products offers an ideal opportunity for personal success for our members," said Chris Sharng, President of Natural Health Trends. "We believe it's our continued focus on these core areas of our business that is driving our business growth. We are pleased with the results and will continue building upon our success."


Sunday, July 15, 2012

Comments & Business Outlook

DALLAS, TX, July 13, 2012 -- Natural Health Trends Corp. (OTCQB: NHTC) announced today that its estimated revenue for the quarter ended June 30, 2012 was $11.0 million, a 52% increase over the comparable period a year ago. The Company also estimates that its deferred revenue, consisting of unshipped product and unamortized enrollment fees, at June 30, 2012 was $1.6 million, compared to $1.3 million at March 31, 2012. In the second quarter of 2011, revenue was $7.2 million, with deferred revenue of $2.7 million at June 30, 2011 and $1.6 million at March 31, 2011. The increase year-on-year was largely due to the Hong Kong market.

For the six months ended June 30, 2012, estimated revenue is $20.1 million, a 62% increase over the comparable period in the prior year.

These results are preliminary and have not been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of our first quarter results in August.


Sunday, May 13, 2012

Comments & Business Outlook
NATURAL HEALTH TRENDS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, Except Per Share Data)

     
   
2011
   
2012
 
             
Net sales
  $ 5,175     $ 9,090  
Cost of sales
    1,529       2,399  
Gross profit
    3,646       6,691  
Operating expenses:
               
Distributor commissions
    1,762       3,691  
Selling, general and administrative expenses (including stock-based compensation expense of $14 and $20 during the three months ended March 31, 2011 and 2012, respectively)
    2,030       2,437  
Depreciation and amortization
    232       12  
Total operating expenses
    4,024       6,140  
Income (loss) from operations
    (378 )     551  
Other expense, net
    (95 )     (63 )
Income (loss) before income taxes
    (473 )     488  
Income tax provision (benefit)
    7       (19 )
Net income (loss)
    (480 )     507  
Plus:  Net loss attributable to the noncontrolling interest
    8        
Net income (loss) attributable to Natural Health Trends
    (472 )     507  
                 
Preferred stock dividends
    (4 )     (4 )
Net income (loss) attributable to common stockholders of Natural Health Trends
  $ (476 )   $ 503  
                 
Income (loss) per share of Natural Health Trends:
               
Basic
  $ (0.04 )   $ 0.05  
Diluted
  $ (0.04 )   $ 0.04  
                 
Weighted-average number of shares outstanding:
               
Basic
    10,635       10,863  
Diluted
    10,635       11,181  
 
The following table sets forth revenue by market for the periods indicated (in thousands):

   
Three Months Ended March 31,
 
   
2011
   
2012
 
                         
North America
  $ 297       5.8 %   $ 435       4.8 %
Hong Kong
    2,376       45.9       6,126       67.4  
China
    286       5.5       215       2.4  
Taiwan
    659       12.7       499       5.5  
South Korea
    110       2.1       114       1.2  
Japan
    75       1.5       45       0.5  
Russia
    1,268       24.5       1,573       17.3  
Europe
    104       2.0       83       0.9  
Total
  $ 5,175       100.0 %   $ 9,090       100.0 %

Net sales were $9.1 million for the three months ended March 31, 2012 compared with $5.2 million for the comparable period a year ago, an increase of $3.9 million, or 76%. Hong Kong net sales increased $3.8 million, or 158%, over the comparable period a year ago. The increase in Hong Kong was largely due to a successful marketing event held in Macau in January 2012, and even moreso, due to new incentive programs launched at the beginning of the year surrounding our recognition program. These programs are expected to last at least until the end of the second quarter of 2012. In 2011, the Company's 10th Anniversary celebration in Hong Kong may have deferred or pulled forward more orders into the late second and early third quarters. For year-on-year evaluation, we believe that a year-to-date comparison with the comparable periods a year ago through June and September may be more indicative of our business trend.


Thursday, March 29, 2012

Liquidity Requirements

The Company believes that its existing internal liquidity, supported by cash on hand and cash flows from operations should be adequate to fund normal business operations and address its financial commitments for at least the next 12 months, assuming no significant unforeseen expense or further revenue decline.

The Company does not have any significant unused sources of liquid assets. Potentially the Company might receive additional external funding if currently outstanding warrants are exercised. Furthermore, if necessary, the Company may attempt to generate more funding from the capital markets, but currently does not believe that will be necessary.


Thursday, February 16, 2012

Comments & Business Outlook

We will begin tracking the the NHTC story to determine if its restructuring efforts have staying power:

DALLAS, TX, November 14, 2011 -- Natural Health Trends Corp. (Pink Sheets: NHTC) announced today that it has filed with the Securities and Exchange Commission periodic reports covering periods ended after September 30, 2009, including a comprehensive Annual Report on Form 10-K for each of the fiscal years ended December 31, 2009 and 2010 (in lieu of filing separate reports for each of those years), and separate Quarterly Reports on Form 10-Q for each of the quarters ended March 31, 2011 through September 30, 2011.  The Company does not intend to file separate Quarterly Reports on Form 10-Q for any of the quarters ended March 31, 2010 through September 30, 2010, because that information is included in the comprehensive Annual Report.
 
Focusing on its most recent results, the Company announced $1.8 million of net income, or $0.17 income per share, on $22.9 million of sales during the first nine months of 2011, compared to $2.1 million of net loss, or $0.20 loss per share, on $17.4 million during the comparable period in 2010.   Year on year sales increased 32%, while selling, general and administrative expenses decreased 15%.
 
Chris Sharng, president of Natural Health Trends, said, “In the last two years, we have completely changed our culture and re-built a competitive business model based on dedicated field leaders, enhanced commission structure, systemic training, attentive services, effective promotions and high-quality products.  Our operating costs are way down after aggressive restructuring and will enable us to benefit from revived revenue, particularly in Greater China.”
 
“The third quarter’s results were bolstered by our 10th anniversary celebration and shipments of orders received in the prior quarter.  Our business is still expected to be significantly influenced by seasonality factors, such as the Chinese New Year, the Chinese Golden Week (in early October) and the summertime.  The cash we generate will have to be re-invested in the business to support existing operations and pursue opportunities we have in our markets.”