North American Scientific posts 20 percent net sales gain in quarterly report

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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.