LifeVantage Announces Further Cost Reduction Initiatives
SAN DIEGO, Oct. 7 /PRNewswire-FirstCall/ -- LifeVantage Corporation (OTC Bulletin Board: LFVN), the maker of Protandim® and TrueScience Anti-Aging Cream, science-based solutions for oxidative stress, announced today that it has implemented reductions in operating costs while continuing to concentrate on the science behind its products and supporting the Company's ongoing expansion in the network marketing distribution channel. As LifeVantage continues to grow and expand its network marketing business model both in the U.S. and Mexico, and as the Company continues to make progress on the scientific front, it anticipates to continue to realign its expenses with its core competencies and needs.
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LifeVantage has reduced costs associated with legal activities, public relations, marketing and distributor support by realigning assignments, bringing certain functions in house, and by working closely with top distributor leaders. The Company will continue to focus on distributor events and training as well as improved investor communication, targeting and outreach.
Most of the launch expenses attributable to the Company's entrance into the international market with its upcoming launch into Mexico were recognized in the first quarter, and the Company looks forward to its first international sales from this market later this quarter. Furthermore, as part of the Company's previously announced efforts to consolidate and streamline its team and operations, it expects to realize cost savings over the next two quarters by closing redundant office space, and consolidating warehouse facilities and related IT infrastructure, which will also result in decreased cost of goods ("COGS") through lower warehousing and shipping costs.
About LifeVantage Corporation
LifeVantage Corporation is a publicly traded (OTCBB: LFVN), science-based, nutraceutical company dedicated to helping people reach their health and wellness goals. Founded in 2003 and based in San Diego, CA, LifeVantage develops products, including Protandim®, that deliver significant health benefits to consumers. For more information, visit www.LifeVantage.com.
Forward Looking Statements
This document contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as "believe," "hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates" and variations thereof, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and the Company's actual results could differ materially from those contained in such statements. These forward-looking statements are based on the Company's current expectations and beliefs concerning future events affecting the Company and involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include, among others, the potential failure or unintended negative consequences of the implementation of our network marketing sales channel; our ability to retain independent distributors or to attract new independent distributors on an ongoing basis; the potential for third party and governmental actions involving our network marketing sales channel; the potential for product liability claims against the Company; the risk that government regulators and regulations could adversely affect our business; future laws or regulations may hinder or prohibit the production or sale of our existing product and any future products; unfavorable publicity could materially hurt our business; and the Company's ability to protect our intellectual property rights and the value of our product. These and other risk factors are discussed in greater detail in the Company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q under the caption "Risk Factors", and in other documents filed by the Company from time to time with the Securities and Exchange Commission. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document. All forward-looking statements are based on information currently available to the Company on the date hereof, and the Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this document, except as required by law.
*These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
Investor Relations Contact:
Ioana C. Hone
(858) 312-8000 Ext. 4
SOURCE LifeVantage Corporation