Revenue during the quarter dropped 17.82 percent to $2.21 million from $2.69 million in the previous year period. Gross margin for the quarter contracted 645 basis points over the previous year period to 55.06 percent. Total expenses were 94.63 percent of quarterly revenues, up from 82.89 percent for the same period last year. That has resulted in a contraction of 1174 basis points in operating margin to 5.37 percent.

Operating income for the quarter was $0.12 million, compared with $0.46 million in the previous year period.

"Our groundbreaking product innovation is unlike all other antibiotic treatments on the market today that are used subject to milk discard requirements," commented Michael F. Brigham, President and Chief executive officer. "Currently, mastitis, which costs the dairy industry about $2 billion per year, is treated with traditional antibiotic products, and treatment is generally reserved for clinical infections when the cow produces non-saleable milk. The "zero milk discard" product feature of Mast Out would make earlier treatment of sick cows economically feasible, while these cows are still producing saleable milk. No other product can provide this kind of value proposition."