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8-K - CURRENT REPORT - ChromaDex Corp. | cdxc8k_feb122018.htm |
Exhibit 99.1
CHROMADEX
CORPORATION REPORTS PRELIMINARY 2017 RESULTS
- Fourth
Quarter 2017 Net Revenues Expected to Increase by 69% to
Approximately $7.5 Million -
Irvine, CA – February 12, 2018 - ChromaDex Corporation
(NASDAQ: CDXC), a science-based,
integrated nutraceutical company devoted to pioneering technologies
that improve the way people age, is providing selected preliminary
fourth quarter and full year 2017 results.
Based
on preliminary unaudited information, ChromaDex expects to report
net revenues for the fourth quarter of 2017 of approximately $7.5
million, up 69% compared to $4.5 million from continuing operations
in the fourth quarter of 2016. The increase in fourth quarter
revenues was driven by growth in sales of TRU NIAGEN®. For the full year 2017, net
revenues are expected to be approximately $21.2 million from
continuing operations, down 2% compared to $21.7 million in 2016 as
the Company shifted to an integrated global, consumer facing
nutraceutical company.
An
operating loss for the fourth quarter of 2017 is expected to be in
a range of $8.5 million to $9.5 million, compared to a loss of $2.2
million from continuing operations in the fourth quarter of 2016.
For the full year 2017, the operating loss from continuing
operations is expected to be in a range of $16 million to $17
million, compared to a loss of $2.9 million in 2016. The higher
losses in the fourth quarter and full year were the result of the
strategic decision to invest ahead of growth in marketing
expenditures, as well as higher legal costs associated with ongoing
litigation and higher stock-based compensation
expense.
Following the strategic shift of the Company, the Company made
significant progress in 2017, ChromaDex:
✓
Increased
TRU NIAGEN brand revenue to a majority of total NIAGEN related
revenues in the second half of the year;
✓
Continued
the international expansion of the TRU NIAGEN brand with the
successful launch in Hong Kong and Macau in 2017, followed by a
first quarter 2018 launch in Singapore;
✓
Sold
the laboratory business in 2017 for $7.5 million;
✓
Raised
$48 Million from strategic investors, including an affiliate of Mr.
Li Ka-Shing, and high-profile venture capitalists;
✓
Strengthened
the management team, scientific advisory board, and board of
directors, and;
✓
Continued
to build the science with 11 publications on NIAGEN.
“We expected to see our new business model accelerate growth
in revenues and gross profits, and this is exactly what we saw in
the fourth quarter,” said Frank Jaksch, Jr., CEO and
co-founder of ChromaDex. “We look forward to continued
validation of our science in the coming months and
years.”
Rob Fried, President and Chief Operating Officer of ChromaDex
commented: “Our revenue continued to exceed our expectations
led by TRU NIAGEN. We continue to believe in the global opportunity
to expand the TRU NIAGEN brand, and we expect TRU NIAGEN to
continue to grow significantly in 2018."
Important Note on Forward Looking Statements and 2017 Preliminary
Estimates:
Statements
contained in this press release regarding matters that are not
historical facts are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act.
Because such statements are subject to risks and uncertainties,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Such statements include
statements regarding the Company’s fourth quarter and full
year 2017 financial results, continued growth in revenue and gross
profits and continued validation of our science. The financial
information included herein for the fourth quarter and full year
2017 are preliminary, unaudited estimates and may change
materially, including as a result of the finalization of financial
statements for the Company’s fourth quarter and full year
ended December 30, 2017, completion of the Company’s audit by
the Company’s independent registered public accounting firm
and other factors and adjustments related to the Company’s
financial reporting process. Other risks that contribute to the
uncertain nature of the forward-looking statements are reported in
our most recent Forms 10-Q and 10-K as filed with the SEC. There
can be no assurance that our final results for the year will not
differ from these estimates and that such changes will not be
material; accordingly, these statements should not be viewed or
relied upon as a substitute for complete audited financial
statements to be prepared in accordance with GAAP (Generally
Accepted Accounting Principles) or as a measure of our actual
performance. The Company’s final audited results for the
fourth quarter and full year 2017 are expected to be released in
early-March 2018. The Company will provide a reconciliation of
non-GAAP measures to the related GAAP measure in such
release.