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Medifast Inc. (MED—NYSE) recently announced second-quarter earnings that beat expectations, despite narrowly missing on revenue.

The weight-loss firm, including its largest division, direct selling arm Take Shape For Life, posted quarterly earnings of 63 cents a share from continuing operations, topping the analyst consensus estimate of 51 cents. The bottom line reflects a $6.1 million non-cash asset impairment charge, resulting from the company’s decision to abandon software in development, after an analysis found lower-cost alternatives now on the market.

In the quarter ended June 30, Medifast’s strategy of better differentiating its business segments was a key performance driver, according to Chairman and CEO Michael MacDonald. At Take Shape For Life, that strategy brought about a company-wide rebranding, which will be phased in over the next year, and the rollout of exclusive products under the new Optavia brand.

Overall revenue was $71.14 million in the period, compared to the $72.01 million expected by analysts. Revenue was down 1.5 percent from a year earlier. In the Take Shape For Life unit, revenue rose 10 percent to $57.4 million, versus $52.3 million in the second quarter of 2015.

“In Take Shape For Life, we have built a strong foundation for continued success and are pleased with the double-digit revenue growth in this business unit in the second quarter, which was the highest level of year-over-year growth in three years,” said MacDonald.

Management’s full-year revenue guidance remains in the range of $275.0 million to $282.0 million. Taking into account the impairment charge, the company now expects per-share earnings of $1.38 to $1.43, compared to its previous outlook of $1.75 to $1.80.

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