Miami Beach, Nov. 15, 2012 (GLOBE NEWSWIRE) -- Divine Skin Inc. (DSKX), a leading developer of personal care products, announced results for its third quarter ending September 30, 2012.
Net revenues for three months ending in September 30, 2012 grew to $3,190,390, a 54.7% increase over revenues of $2,062,178 in the same period in 2011. Revenue growth was driven by increased sales and continued demand for the Company's products through its continued expansion of sales to salon outlets.
Gross profits increased by 76% to $1,791,383 in the third quarter of 2012, as compared to
$1,019,370 in third quarter of fiscal 2011 as a result of increased domestic and international demand for our products.
Net loss for the third quarter ended September 30, 2012 decreased by 90.4% to $(40,364), as compared to $(420,361) in the same period of the prior year as a result of improved margins and increased revenue.
The Company reported total current assets of $8,207,414 and total shareholders' equity of $6,879,116 for the period ended September 30, 2012.
Operating activities used net cash for the nine months ended September 30, 2012 of $1,286,161. Net cash used reflects an adjusted net income for the nine months ended in September 30, 2012 of $17,808, as adjusted for various items which impact net loss but do not impact cash during the period, such as issuance of warrants or stock for services and for depreciation and amortization.
Net loss for the nine month period ended September 30, 2012 increased $180,293 or 27.0% to $(848,786) from a net loss of $(668,493) in the nine months ended September 30, 2011. The increase in net loss was primarily driven by increases in sales promotions and travel along with increases in corporate public relations and legal expenses. This results from our strategy to increase revenues by expanding our distributor base and corresponding market share.
About Divine Skin
Divine Skin Inc. leads in the development of biotechnology for topical, nutritional therapies. It markets worldwide through online and specialty retailers, cosmetics wholesalers, salons, and medical offices.
DS Laboratories, its flagship brand, offers high-performance topical solutions to restore growth and radiance to hair, suppress dandruff and unwanted hair, control acne, improve hygiene, and reduce cellulite and wrinkles. Bioavailability is enhanced through Nanosome encapsulation (www.DSLaboratories.com).
The Sigma Skin brand sells through upscale retailers like Neiman Marcus in the United States and Harvey Nichols in the United Kingdom. The topical products address hair loss and other signs of aging. (www.SigmaSkin.com).
Polaris Research Laboratories makes high-potency minoxidil-based hair-growth formulas (PolarisResearchLabs.com).
The Pure Guild offers purity with performance: Botanical compounds proven effective in clinical trials are extracted without industrial solvents or damaging heat and are sold through premium retailers (ThePureGuild.com).
Forward-Looking Statements:
Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "expects," or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, difficulty in developing and marketing products, intense competition and additional risks factors as discussed in reports filed by the company with the Securities and Exchange Commission, which are available at http://www.sec.gov.