HL Financials for Dec. 13 – Dec. 17

Nasdaq Adds WMFI to 100 Index


As part of the annual re-ranking of its Nasdaq-100 Index, the exchange has added Whole Foods Market Inc. (NasdaqNM: WFMI) along with 14 other companies, to its list of the top 100, non-financial companies on the exchange based on market value.

"The Nasdaq-100 Index uses a set of objective, transparent criteria to ensure that it accurately reflects the largest non-financial companies listed on Nasdaq. The companies in the Index are among the world's most dynamic, category-defining companies and have been added to the Nasdaq-100 because of their market capitalization and compliance with our strict rules-based criteria,” states John Jacobs, CEO of Nasdaq Financial Products Services Inc., in a Dec. 16 announcement.

In October, the Nasdaq changed its 100 Index eligibility criteria to double the minimum average daily trading volume to 200,000 shares, according to a Dec. 13 article at CBSMarketWatch.com. Nasdaq recently announced plans to remove from the index any companies that can't attest to the honesty of their financial reports. Nasdaq will monitor companies by closely tracking corporate news developments and studying financial reports, according to CBSMarketWatch.com, which says the plan is “first such move by the administrator of a major market index.”

Nutraceutical Sees FY02 Net Loss Due to Accounting Principle Change



Nutraceutical International Corp. (Nasdaq: NUTR) saw a FY02 net loss of $22.9 million or $2.03/diluted share vs. net income of $7 million or $.64/share for FY01. The company's FY02 net income before in inclusion of a change in accounting principle was $12.4 million; the cumulative effect of the change in accounting principle shaved $35.3 million from the FY02 net income, according to a Dec. 12 announcement.

The branded-supplements manufacturer and marketer's 4Q02 net income was $2.8 million or $.25/diluted share vs. 4Q01 net income of $1.9 million or $.17/share. NUTR attributes $.02/share of 4Q02 earnings to payment received in settlement of a price-fixing lawsuit in which the company was a plaintiff.

Monterey Pasta Slashes 4Q02 Profit Outlook



Salinas, Calif.-based Monterey Pasta (Nasdaq: PSTA), maker and distributor of refrigerated gourmet pasta and sauces, has sliced its 4Q02 profit outlook in half due to weak sales with its largest customer. The company expects 4Q02 sales to be from flat to up as much as 5 percent, which is off from its forecast of up 12 to 15 percent growth. Profits for 4Q02 should be in the range of $.04 - $.05/share vs. a previous forecast of $.09/share.

PSTA attributes the shortfall in part to purchasing-process changes at its two largest customers, according to a Dec. 17 Reuters article.

Martek FY02 Net Loss More Than FY01 Loss



Martek Biosciences Corp. (NasdaqNM: MATK) saw 4Q02 net income of $375,000 or $.02/share vs. a net loss of $3.6 million or a loss of $.18/share for 4Q01. The maker of microalgae products saw a FY02 net loss of $24.2 million or $1.10/share vs. a FY01 net loss of $13.7 million or $.73/share, according to a Dec. 12 announcement. FY02 figures include one-time, non-cash charges of more than $17 million related to expensing part of the purchase price for Boulder, Colo.-based OmegaTech Inc., which MATK bought in April 2002.

MATK say the restructuring of the its food and beverage sales efforts also contributed to the FY02 figures.

Nasdaq Delists Twinlab



Twinlab Corp. (NasdaqSC: TWLB) stock will be delisted from the Nasdaq Exchange as of Dec. 17, however, its common stock will be eligible for trading on the Over-the-Counter (OTC) Bulletin Board. Nasdaq took action because TWLB failed to meet its continued listing requirements under Marketplace Rule 4310(c)(2)(B).

After reporting a 3Q02 net loss of $26 million, the maker and marketer of supplements, herbs and sports nutrition products announced its plans to discontinue ephedra sales as of Mar. 31, 2003. Ephedra-products sellers often face high insurance premiums due to the controversy and health issues surrounding the ingredient.