Coolbrands Reports Big Third-Quarter Losses
Coolbrands International, Inc., Ontario, last month reported losses of $6.9 million for its third quarter, saying that the conclusion of an important contract with Weight Watchers and costs relating to the development of new brands were the major factors.
Revenues in the quarter totaled $119.7 million, showing a decline of 14% from the third-quarter in the previous year. In the same period, net losses were down eight-cents to $0.12 per basic and diluted share.
The decline in revenues and earnings during the third-quarter were primarily due to the non-renewal of the company's license for the Weight Watchers Smart Ones frozen snacks, as well as declining sales of the once lucrative Atkins Endulge frozen snacks-reflecting the waning popularity of low-carbohydrate products.