875 South Industrial
• Parkway
• Heber
• Utah
• 84032
• USA
• www.diatect.com
Investor Contact: Frank N. Hawkins, Jr. or Julie Marshall · Hawk Associates Inc. · (305) 451-1888 · www.hawkassociates.com
Investor Contact: Frank N. Hawkins, Jr. or Julie Marshall · Hawk Associates Inc. · (305) 451-1888 · www.hawkassociates.com
Diatect To Launch Integrated Marketing Campaign; Q1 '09 Revenue $188K vs $373K in Q1 '08, Due to Decrease in Internet Based Sales; Net Loss ($478K) or ($0.00) per diluted share vs ($750K) in Q1 '08.
The company markets products under two brands: DIATECT® and RESULTS. Diatect products are geared towards the agriculture, commercial, and food production markets, while the RESULTS line of products is the company’s retail and end consumer products line. Diatect V®, the company’s commercial flagship product, was listed by Washington State for insect control use in organic food production, opening the door for product sales in the organic and sustainable-farming industry. Focusing on the fire ant, bedbugs and indoor pests markets, Diatect’s RESULTS line of are not only environmentally friendly, but also pet- and human-safe.
Diatect believes its products have a clear advantage over the competition. The company says that Diatect ® and RESULTS brand of products are one the fastest-acting products in the market, requiring only minutes after application to see results. The products are odorless, safe for humans and other mammals, and leave no residual contamination. Diatect products are also versatile enough that they can be applied both in powder and liquid forms. Products are sold into the multi-billion dollar agriculture, commercial, industrial, organic food production and home and garden markets worldwide. The U.S. market for agricultural pesticides alone is estimated to exceed $320 billion.
In Nov. 08, Diatect entered into a distributor agreement with Source Direct (SODH.OB). Source Direct manufactures and markets a proprietary line of green, all-purpose, all-surface, highly effective, nontoxic, biodegradable cleaning products.
Differentiators
Nine EPA-Approved Labels
The company’s nine fully registered product labels from the U.S. Environmental Protection Agency grant federal clearance to manufacture, market and sell specified insect control products. EPA labels are difficult and expensive to obtain, but represent an invaluable asset for the marketing and sale of the products. Diatect believes its ability to obtain EPA labels is a validation of their product and a major competitive advantage for the company since they act as barriers for the entry into this market space.
The Non-Toxic Technology
Diatect products are made from a combination of Pyrethrum and Diatomaceous Earth (DE), both officially labeled as less toxic than table salt. Pyrethrum, a lethal nerve irritant to insects refined from the African Daisy, paralyzes insects on contact. Once exposed to the natural environment, however, Pyretrhum decomposes into harmless by-products that do not accumulate in food, water, or soil.
DE, also known as Silicon Dioxide, is a nonpoisonous mineral derived from the dry beds of ancient freshwater lakes. It consists of sharp-edged microscopic blades and spikes that cut insects' skin and shells, damaging their watertight seal and thus dehydrating the animal. DE is EPA-labeled as Generally Recognized as Safe (GRAS) in food production, water and the environment, but the powder is lethal to insects. After Pyrethrum decomposes, DE persists, controlling possible future infestations.
Recent News
Diatect To Launch Integrated Marketing Campaign
Chip Beck To Play in Allianz Golf Championship as Diatect "Green" Pesticide Endorser
PGA Champion Chip Beck Goes Green With Endorsement Of Diatect “Results” Products
Diatect Announces Record Sales for Call Center and 2009 Retail Initiatives
Diatect International Shareholder Update from Chairman and CEO Patrick Carr
Company requires infusions of capital to continue growth
Competition by large, well-established and better-funded companies.
The Outlook Diatect has successfully completed a strategic restructuring and turn around, which involved a reevaluation and change to the company’s internal structure and a renewed sales effort. On January 2, 2008, Diatect filed all periodic and annual SEC financial reports required to bring the company to its current status with filings.
As part of the restructuring, Diatect successfully cleared away old debts, recapitalized the company and began an aggressive push in new marketing activities and sales efforts. Diatect successfully settled litigation involving an involuntary Chapter 7 filing initiated by three note holders in June 2005. The three note holders have forgiven the notes and the interest associated with the notes, have returned stock that they held and made a contribution to the company’s legal costs. Diatect has also settled with other parties that had filed claims against the company. On September 2007, the company received notice of an SEC investigation. On February 2008 an initial ruling dismissed the SEC’s administrative proceedings.
For FY 2007, Diatect nearly doubled its year-overyear sales, up 95% from $1.03 mil. reported in FY’06 to $2 mil in FY’07. Gross profit for the year was $1.24 million, or 61.5% of sales, compared to a gross profit of $623,364 or 60.4% of sales for 2006. Loss from operations decreased 29.6% to $1.5 million in 2007 from $2.18 million in 2006. Net loss for FY 2007 was $1.16 million or $0.01 per diluted share, a 34.9% decrease from a net loss of $1.7 million or $0.01 pe diluted share in 2006.
Management believes that the financial data has demonstrated encouraging year over year growth in sales and improvement in Diatect's financial situation. Operational cost reduction is particularly of note. The increase in sales, management feels, points to Diatect's successful investments in its marketing and sales program. Diatect has outlined an ongoing initiatives to increase the presence of our RESULTS products in retail outlets and improve the distribution of the DIATECT® products domestically and internationally.
Diatect has recently made a series of key personnel appointments. Patrick Carr, a veteran marketer, was appointed CEO, and Robert Rudman, who has had lengthy public company experience, was named CFO. The company said these are the begining of a series of strategic appointments to help Diatect assemble a board of advisors and qualified personnel to finish the restructuring and gear for growth.
For Q1 2009, Diatect reported $188,427 in sales, compared with sales of $372,964 for Q1 2008. The revenue decreased of $184,537 is primarily due to a decrease in internet based sales. Q1 2009 net loss was ($477,711) or ($0.00) per diluted share, vs ($750,279) in Q1, 2008.
The company said it is currently focused on marketing initiatives in its three divisions, Internet, Agricultural and Retail. Management
CEO-
Patrick
Carr
Chief Financial Officer-
Robert
Rudman
Director-
Francisco
Sanchez
Director-
Phil
Ellett
Director-
David
Carlile
Director-
Dale
Timothy "Tim"
White
