Third-quarter fiscal 2009 results announced by GeneLink

GeneLink, Inc.Nov 16 2009

GeneLink, Inc. (OTCBB: GNLK.OB, “the Company,” or “GeneLink”), a leading consumer genomics biotech company, today reported financial results for the fiscal 2009 three-month period ended September 30, 2009.

Financial Highlights:

• Quarterly net sales of $2,134,504 compared to $2,113,177 in the previous quarter;
• Quarterly gross profit of $1,265,176 compared to $1,175,645 in the previous quarter; and
• Operating loss trimmed to $711,583 compared to $760,743 in the previous quarter.

Fiscal 2009 Third Quarter Overview:

In the first nine months of 2009, GeneLink continued to develop its foundation as a leading provider of genetically customized nutritional and personal care solutions. Essentially all of the $6,219,719 of revenue realized in the first three quarters of 2009 was through its wholly owned subsidiary, GeneWize Life Sciences, Inc. (“GeneWize”), which launched in August 2008.

Total revenues for the three months ended September 30, 2009 were $2,134,504 as compared to $2,113,177 for the three months ended June 30, 2009, an increase of 1.0%. Quarterly gross profit increased by 7.6% to $1,265,176 for the three months ended September 30, 2009 as compared to $1,175,645 for the three months ended June 30, 2009, as gross profit margin improved to 59.3% from 55.6%. Operating loss in this period, decreased to $711,583 from $760,743 for the three months ending June 30, 2009. The loss for the three months ended September 30, 2009 included $88,167 of non-cash expenses related to option grants, most of which were issued in prior years and which vested in the current quarter and $172,151 of net expenses from GeneWize’s annual Recognition Celebration.

Monte Taylor, GeneLink’s CEO stated, “In the third quarter, GeneWize took major steps towards growth and profitability. As announced at the GeneWize annual Recognition Celebration, on September 16, 2009 GeneWize launched LifeMap Me^TM (made exclusively) Skin Serum and enhanced the formulation of LifeMap Me^TM (made exclusively) Custom Nutrition to include the enzyme CoQ10 and digestive enzymes. To further support our marketing Affiliates, we unveiled several new and improved sales and marketing tools.”

Mr. Taylor added, “By introducing our skin serum and upgrading our core nutrition product and marketing support, we hope to increase the benefits of genetic science to our customers and marketing Affiliates. In the year since its launch in August 2008, our nutritional product has proven to have such strong customer retention that we were able to simplify pricing to a single monthly price, thereby lowering the cost-of-entry for new customers while increasing overall margins to the Company. We are hopeful that this combination will allow us to build our recurring customer base, increase revenues and help us to reach profitability. We remain committed to achieving profitability through GeneWize, and at the same time we are seeking ways to further leverage GeneLink’s scientific and intellectual property assets for the benefit of the Company’s shareholders.”