Usana's accounting firm resigns

The accounting firm for embattled Utah vitamin maker Usana Health Sciences Inc. has resigned, and the company insisted Tuesday that no disagreement led to the departure.

That would be unusual, corporate watchdogs say. A Securities and Exchange Commission filing hints at a dustup over publicized findings by an independent fraud investigator, but Usana maintains it patched that up with accountants Grant Thornton LLP before the firm's departure.

Usana disclosed late Monday that Grant Thornton had resigned last Tuesday — then followed up two minutes later with an unexpected early announcement of record quarterly sales.

Usana said Monday it expected to post a second-quarter profit of 66 cents a share on $109.4 million in revenue, beating analysts' expectations on both counts.

The company on Tuesday confirmed net earnings of $11.3 million, or 66 cents per share, for the fiscal second quarter ended June 30. That compares with $10.3 million, or 55 cents per share, for the same quarter last year.

Net sales totaled $109.4 million, up from $92.5 million a year ago.

Analysts polled by Thomson Financial expected a profit of 63 cents per share on $104.2 million in revenue.

In Monday's SEC filing, Usana said it disagreed with Grant Thornton's recommendation to open an independent inquiry responding to repeated public attacks by a "third-party detractor."

A San Diego investigator, Barry Minkow, opened an assault on Usana in February for its network marketing business model, once-soaring share price and series of flaps involving the credentials of top executives and sales associates.

"The next worst thing to the feds breaking down your door is the auditor resigning," Minkow said Tuesday.

Minkow, who served eight years in prison for stock fraud and later started the Fraud Discovery Institute, has bought "put" options on Usana's stock in a bet the price would fall. Usana says it served Minkow with court papers for defamation on Friday.

Usana maintained it satisfied its auditor's concerns by turning to other advisers for help responding to Minkow's attacks. Grant Thornton refused comment.

Usana shares fell $8.72, or 17.4 percent, to $41.38 in Tuesday trading, prompting one analyst to suggest the shares were a bargain after trading for as high as $62 earlier this year. The company's quarterly financial results were released after markets closed Tuesday.