Zurvita Holdings Inc., a direct-to-consumer network marketing company offering turn-key solutions for high-quality consumer and business products and services, today announced its financial results for the first quarter of the 2011 fiscal year ended October 31, 2010.
For the first quarter of fiscal 2011, Zurvita posted a 5 percent increase in revenue to $1.3 million compared to $1.2 million reported for the first quarter of fiscal 2010. The company attributes the increase primarily to continued growth in administrative web site, advertising and energy commission revenue.
Gross profit for the first quarter increased 624 percent to $431,000 compared to gross profit of approximately $59,000 for the comparable quarter of last year. The increase in gross profit was due to the decrease in the company’s cost of sales, which decreased $882,000 from $1.2 million for the same period a year ago, as a result of less non-traditional sales incentives used to attract and retain consultants, and for the reason that the company had a greater product offering with increased margins. Gross margin for the fiscal first quarter ended October 31, 2010, increased to 33 percent versus 5 percent for the three months ended October 31, 2010.
Zurvita reported operating expenses for the fiscal first quarter at approximately $1.6 million, up from $1.4 million reported one year earlier.
For the first quarter of fiscal 2011, the company recorded a net income of $1.8 million, or $0.02 per diluted share, versus a loss of $5.6 million, or $0.10 per diluted share for the same period last year.
As of October 31, 2010, the company had cash and cash equivalents of $621,000.
“As demonstrated by our first quarter performance, Zurvita continues to make excellent progress in revenue and margin enhancement, further positioning Zurvita to deliver on its goals for growth,” Jay Shafer, Zurvita co-CEO stated in the press release.
Shafer noted Zurvita’s expectations for 2011 based on new product offerings and marketing efforts.
“To support our growth, we continued to recruit the best talent and strengthened our leadership team during the quarter to take advantage of the tremendous opportunities we see ahead,” Shafer stated. “We see a strong upside to our business for 2011 as we bring to market unique products in steady industries such as financial services, online advertising and energy markets, and by providing our consultants the best tools and the expertise needed to create financial freedom.”
The company also offered 2011 guidance and its recent agreement with OmniReliant that catapulted the company into the booming online advertising market.
“We are extremely confident about Zurvita’s prospects in 2011, as we look at the introduction of dynamic new products and divisions based on the essential services that businesses and individuals use every day,” Mark Jarvis, Zurvita co-CEO stated. “With the recent completion of our technology transfer agreement with OmniReliant, we have now fully secured the technology to power ‘ZLinked,’ Zurvita’s proprietary local search advertising and search engine directory. This technology has launched us into the trillion dollar online advertising and search directory services market. It is an exciting time for us as we look to fine-tune ZLinked, a platform which allows small- and medium-sized businesses to effectively connect with consumers on the internet by combining a suite of effective turn-key advertising solutions, including geo-targeted advertising placements. We believe providing our consultants with innovative and essential products such as these will allow us to continue our momentum of growth.”
For more information, visit www.zurvita.com