LifeVantage Announces Cost Reduction Initiatives Designed to Increase Efficiency and Productivity
LifeVantage Corporation (OTCBB:LFVN), a science-based, natural products company dedicated to helping people reach their health and wellness goals through science-based solutions to oxidative stress and a maker of Protandim®, announced today that it has implemented cost reduction initiatives designed to reduce operating costs while increasing efficiency and productivity throughout the Company.
In February of this year, LifeVantage announced that an experienced 52 person network marketing team was joining its existing nine person corporate team. Following the merger of these two teams, the Company instituted a comprehensive review to evaluate, merge and streamline job functions and responsibilities to recognize the traditional benefits of eliminating redundant functions. As a result, the Company has already phased-out or plans to phase out a total of 18 positions by the end of this quarter. Of these, four employees have been offered alternative positions which better fit the individual employees' skill sets and the Company's growth needs. With these changes as well as some independent departures, the Company will have 44 employees. These initiatives are expected to allow LifeVantage to retain the most qualified and essential personnel required for continued operations and growth of its network marketing distribution model.
Earlier this year, LifeVantage launched into the network marketing sales channel and the Company looks forward to recognizing the benefits of its new team and revenue model. Expenses related to the addition of the new team, legal and marketing expenses necessary to re-launch the Company and TrueScience™, the Company's new skin cream product, have now been recognized. In addition, LifeVantage has also implemented reductions in overhead and operating expenses and moving forward the Company is poised to execute its growth plans with a more efficient corporate and operational structure.
"It is never easy to integrate and transition a new team, and while these decisions were difficult, they are essential in attaining profitability while maintaining competitiveness and financial flexibility moving forward," stated David W. Brown, LifeVantage President & CEO. "During these high-growth times, our priorities are investing in the right areas of our business, leveraging cash and continuing to effectively make use of our existing team in order to become profitable for the long term benefit of our stockholders, employees, distributors and customers," added Mr. Brown. "We saw an expected substantial increase in net revenue of 150% in the fourth quarter which demonstrates the early results of our expansion into the network marketing sales channel. We believe the team we now have in place will continue to significantly impact our continued growth and expansion."
About LifeVantage Corporation
LifeVantage Corporation is a publicly traded (OTCBB:LFVN), science-based, natural products company dedicated to helping people reach their health and wellness goals through science-based solutions to oxidative stress. Founded in 2003 and based in San Diego, CA, LifeVantage develops nutraceutical products, including Protandim®, that leverage the company's expertise and that are intended to deliver significant health benefits to consumers. For more information, visit www.LifeVantage.com.
About Protandim®
Protandim® is a clinically proven supplement that provides substantial benefits to help with the challenges of healthy aging. This patented antioxidant therapy works in a very different way than conventional foods such as red wine, oranges, blueberries or other popular antioxidant supplements. Protandim® works by increasing the body's natural antioxidant protection at the cellular level, triggering (inducing) cells to produce naturally occurring protective antioxidant enzymes such as superoxide dismutase (SOD), catalase, and glutathione synthase.
A peer-reviewed human clinical study showed that after Protandim® was taken for 30 consecutive days, the accumulation of lipid peroxidation products (a biochemical marker of aging) was decreased by an average of 40%, although that reduction may be not be typical for all those who consume the product. The study also reported that this important marker of aging was decreased after taking Protandim® to the level of a typical 20 year old. Protandim® is currently the subject of approximately 20 scientific studies at leading universities and research facilities. The nature and stages of the studies vary, as some of the testing is at the preliminary stage, while other studies using Protandim® are currently in progress. For more information about Protandim®, visit www.LifeVantage.com.
About LifeVantage TrueScience™ Anti-Aging Cream
LifeVantage TrueScience™ is scientifically-based and contains cutting-edge ingredients, including those found in Protandim®. LifeVantage TrueScience™Anti-Aging Cream gives skin a beautiful, even and smooth tone, diminishes fine lines and wrinkles, and provides a vibrant and glowing appearance. LifeVantage TrueScience™ also improves skin smoothness and pigmentation, while increasing skin moisture. For more information about LifeVantage TrueScience™, 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-KSB 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.
LifeVantage Corporation
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