The Quigley Corporation Reports Second Quarter 2008 Results: Continues Investment...

The Quigley Corporation Reports Second Quarter 2008 Results: Continues
Investment in Pharmaceutical R&D Future

DOYLESTOWN, Pa., July 31 /PRNewswire-FirstCall/ -- The Quigley Corporation
(Nasdaq: QGLY) today reported net sales from continuing operations of $2.1
million, for the second quarter ended June 30, 2008, compared to $2.2 million
reported for the second quarter ended June 30, 2007. For the six months ended
June 30, 2008, net sales were $7.4 million compared to $8.4 million reported
for the six months ended June 30, 2007.
2008 net sales were influenced by distribution changes and the unusually
slow start to the 2007/2008 cold season and fewer incidences of colds by
consumers during much of the period. The second quarter and first six months
of 2008 reflect these facts in that customer inventories remained higher than
they desired, and although the cold season started to improve later in the
season, it was too late to positively influence the first six months of 2008.
Additionally, there was a favorable offset by a combined price increase and
new products not present in the 2007 comparable periods amounting to
approximately $300,000 and $1.0 million, respectively.
Loss from continuing operations for the second quarter and six months
ended June 30, 2008 was $2.9 million, or ($0.22) per share, and $5.3 million,
or ($0.42) per share, respectively as compared to $3.4 million, or ($0.27) per
share, and $5.1 million, or ($0.40) per share, respectively for the same
period in 2007.
Net loss for the second quarter and six months ended June 30, 2008 was
$2.9 million, or ($0.22) per share, and $4.4 million or ($0.35) per share,
respectively, compared to a net loss for the second quarter and six months
ended June 30, 2007 of $3.5 million, or ($0.28) per share, and $5.4 million,
or ($0.43) per share, respectively. The improvement in net loss for the six
months ended June 30, 2008 reflects gains in the discontinued operations as
compared to a loss for the same period in 2007.
The decrease in loss from continuing operations for the second quarter
ended June 30, 2008 primarily reflects savings in operations for legal
expenses and costs associated with the continued investment in Quigley Pharma,
a wholly owned Ethical Pharmaceutical subsidiary developing natural-source
potential prescription and other products. The overall slight increase in loss
from continuing operations for the six months ended June 30, 2008 primarily
reflects the reduction of gross profit from reduced sales as compared to 2007.
The Quigley Corporation continues to enhance its position to capitalize on
the growth potential of Quigley Pharma by investing in key pharmaceutical
research and development including QR-333, an investigational new drug for
treating conditions associated with diabetic peripheral neuropathy. The
Company is in the midst of Phase II (b) clinical study for QR-333, which is a
key segment of the Company's strategic initiatives to generate future growth.
Over 170 million people have diabetes worldwide including an estimated 20
million people within the United States, comprising approximately 7% of the
country's population. Nearly 60% of people with diabetes will suffer mild to
severe nerve damage due to diabetic peripheral neuropathy, the treatment of
which may offer a significant opportunity for QR-333. In addition to QR-333,
The Company continues to invest in developing natural-source potential
products for disease states associated with inflammation, the protection
against infectious diseases in poultry products as well as protection against
ionizing radiation.
No tax provision or benefits, to reduce losses, are provided for the
quarter and six month period ended June 30, 2008 and 2007, since the Company
is in a net operating loss carry-forward position for which a valuation has
been established.
In March 2008, The Quigley Corporation completed the sale of its wholly
owned subsidiary, Darius International Inc. ("Darius"), which constituted the
Health and Wellness segment, to InnerLight Holdings, Inc. Net loss of the
Company for the six months ended June 30, 2008 reflects results from
discontinued operations associated with the sale of Darius that included a
gain on disposal of $737,000 and income from discontinued operations of
$139,000, totaling $876,000 as compared to a loss from discontinued operations
of $390,000 for the same period in 2007.
At the end of the second quarter, The Quigley Corporation was added to the
Russell Microcap(R) Index, membership in which remains in place for one year
and garners automatic inclusion in the appropriate growth and value style
indexes. Russell indexes are widely used by investment managers and
institutional investors for index funds and an industry-leading $4.4 trillion
in assets are currently benchmarked to them.
The Quigley Corporation makes no representation that the US Food and Drug
Administration or any other regulatory agency will allow this Investigational
New Drug to be marketed. Furthermore, no claim is made that potential
medicine discussed herein is safe, effective, or approved by the Food and Drug
Administration.
Additionally, data that demonstrates activity or effectiveness in animals
or in vitro tests do not necessarily mean the formula test compound;
referenced herein will be effective in humans. Safety and effectiveness in
humans will have to be demonstrated by means of adequate and well-controlled
clinical studies before the clinical significance of the formula test compound
is known. Readers should carefully review the risk factors described in
filings the Company files from time to time with the Securities and Exchange
Commission.
About The Quigley Corporation
The Quigley Corporation (NASDAQ: QGLY, http://www.Quigleyco.com) is a
diversified natural health medical science company. Its Cold Remedy segment
is a leading marketer and manufacturer of the COLD-EEZE(R) family of lozenges,
gums and sugar free tablets clinically proven to cut the common cold nearly in
half. COLD-EEZE customers include leading national wholesalers and
distributors, as well as independent and chain food, drug and mass merchandise
stores and pharmacies. The Quigley Corporation has wholly owned subsidiaries;
Quigley Manufacturing Inc. consists of two FDA approved facilities to
manufacture COLD- EEZE(R) lozenges as well as fulfill other contract
manufacturing opportunities and Quigley Pharma Inc.
(http://www.QuigleyPharma.com) conducts research in order to develop and
commercialize a pipeline of patented botanical and naturally derived potential
prescription drugs.
Forward-Looking Statements
Certain statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and
involve known and unknown risk, uncertainties and other factors that may cause
the Company's actual performance or achievements to be materially different
from the results, performance or achievements expressed or implied by the
forward-looking statement. Factors that impact such forward-looking statements
include, among others, changes in worldwide general economic conditions,
changes in interest rates, government regulations, and worldwide competition.
CONTACT:
George J. Longo Carl Hymans
Vice President, CFO G.S. Schwartz & Co.
(215) 345-0919 (212) 725-4500
carlh@schwartz.com

Consolidated Statements of Operations (Unaudited)

The following represents condensed financial data (in thousands) except
per share data:

Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
($) ($) ($) ($)

Net Sales 2,068 2,217 7,373 8,367
Gross profit 898 995 4,467 4,934
Sales & marketing expenses 566 556 2,799 3,046
Administrative expenses 2,030 2,436 4,538 4,582
Research & development 1,265 1,622 2,675 2,774

Income taxes (benefit) - - - -
Income (Loss) from:
Continuing operations (2,879) (3,417) (5,324) (5,058)
Discontinued operations - (103) 876 (390)
Net Income (Loss) (2,879) (3,520) (4,448) (5,448)

Diluted income (loss)
per share:
Continuing operations ($0.22) ($0.27) ($0.42) ($0.40)
Discontinued operations - (0.01) 0.07 (0.03)
Net loss ($0.22) ($0.28) ($0.35) ($0.43)

Diluted weighted average
common shares
outstanding: 12,861,800 12,684,633 12,860,616 12,684,633

Consolidated Balance Sheets (Unaudited)

The following represents condensed financial data (in thousands) at June
30, 2008 and December 31, 2007:
2008 2007
($) ($)

Cash & cash equivalents 14,375 15,134
Accounts receivable, net 1,613 6,649
Inventory 4,621 4,136
Total current assets 21,486 28,835
Total assets 25,557 33,502
Total current liabilities 6,749 10,258

Total stockholders' equity 18,808 23,244

SOURCE Quigley Corporation

George J. Longo, Vice President, CFO, +1-215-345-0919; or Carl Hymans, G.S.
Schwartz & Co., +1-212-725-4500, carlh@schwartz.com