Citing the costs of an advertising campaign designed to boost sales of its Today brand contraceptive sponge, VLI Corp. Friday reported a net loss for the first quarter of $750,499, more than double the $359,625 loss of a year earlier. Revenues for the quarter fell 16%, to $4.1 million from $4.9 million.
Robert A. Elliott, VLI’s president, said sales and marketing expenses increased substantially during the quarter, resulting in the increased loss.
Overall, he said, the Irvine-based company plans to spend about $5 million on advertising this year, double its 1985 advertising budget.
The quarter-to-quarter sales decline in the first three months, he said, occurred largely because sales were abnormally high in the early months of 1985, when retailers made large, initial purchases of the Today contraceptive in a newly introduced six-pack.