Matrixx shares fall on wider loss

(Reuters) - Shares of Matrixx Initiatives Inc MTXX.O fell as much as 17 percent on Tuesday, a day after the company posted a wider quarterly loss and withdrew its outlook for the year.

For the first quarter, the company took a $9 million charge from the recall of nasal versions of its cold remedy, Zicam, and a goodwill impairment charge of $23.9 million related to the recall.

"The recall of two of our best-selling products has required us to take impairment charges, record reserves for customer returns, and withdraw our sales and earnings guidance for the year," Chief Operating Officer Bill Hemelt said in a statement.

In June, the U.S. Food and Drug Administration ordered Matrixx to stop selling intranasal versions of Zicam after the agency received more than 130 reported complaints about consumers losing their sense of smell.

"In light of recent events, we did not attempt to renew our $8.0 million line of credit that expired in early July," the company said, adding that it did not have any borrowings under the credit facility.

The company had $37.4 million in cash and certificates of deposit at June 30, and expects the resources to fund operations for at least the next 12 months.

Hemelt also said that the company would see an increase in legal expenses going forward. Shares of the company were trading down 10 percent at $5.24 in late morning trade on Nasdaq. They touched a low of $4.82 earlier in the session.

(Reporting by Vidya L Nathan in Bangalore; Editing by Anne Pallivathuckal)