UPDATE 1-Matrixx Q3 profit down; oral cold products sales up

* Q3 rev falls 26 pct to $28.5 mln

* Q3 EPS falls 19 pct to $0.41/shr

* Sees loss for Q4

Jan 25 (Reuters) - Matrixx Initiatives Inc MTXX.O said sales of its oral cold remedy products grew 62 percent in the third quarter and offset some of the losses from the withdrawal of its nasal cold remedy products, sending its shares up about 11 percent after the bell.

In June of last year, the company voluntarily withdrew two of its nasal cold remedy products after the U.S. Food and Drug Administration issued a warning letter that the products could cause a loss of smell. [ID:nN24151638]

Nasal cold remedy sales accounted for about 40 percent of net sales in the prior fiscal year, the company said.

For the third quarter, the company's net income fell 19 percent to $3.8 million, or 41 cents per share, compared with net income of $4.8 million, or 50 cents per share.

Revenue fell 26 percent to $28.5 million from $38.7 million in the year-ago period.

Two analysts, on average, were expecting a loss of 7 cents a share, according to Thomson Reuters I/B/E/S.

Matrixx said the incidence of colds historically increases in the January through March quarter and it anticipates spending about $10 million on marketing activities during the fourth quarter.

Due to the high level of marketing support planned for the fourth quarter relative to anticipated sales, Matrixx said it expects to incur a sizable loss in that quarter.

Shares of Matrixx closed at $4.56 Monday on Nasdaq. They were trading up at $5.05 after the bell. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Jarshad Kakkrakandy)