North American Scientific posts 20 percent net sales gain in quarterly report
North American Scientific Inc. (NAS) says progress of its direct sales force can be seen in the company's second fiscal quarter, ending April 30.

Net sales increased 20 percent to $3.5 million, compared with $2.9 million in the second quarter of FY03. The net loss reached $3.9 million, compared with a net loss of $2.4 million in the year-ago quarter. Net loss results include an operating loss of $200,000 from an investment in a variable interest entity. The year-ago net loss includes a one-time gain of $600,000 from the sale of an investment in non-marketable securities.

For the six-month period, net sales slipped 15 percent to $6.8 million, compared with $8 million in the first half of FY03. NAS blamed the net sales decline on its transition from a third-party distribution relationship to a direct sales force that began toward the end of the first fiscal quarter of FY03.

The six-month net loss increased to $7.8 million, compared with $3.5 million in the year-ago period. The net loss was due, in part, to a one-time charge of $951,000 related to the resignation of NAS' former CFO and a $311,000 charge for the cumulative effect of a change in accounting principle related to future decommissioning costs.

NAS President and CEO L. Michael Cutrer said the company is "now positioned for further growth with the capability of offering a broader range of products and services to the oncology community" with its recent acquisition of Nomos Corp. and Nomos' brachytherapy and intensity modulated radiation therapy (IMRT) products.