Advertisement
China Sky One Medical, Inc. estimated that second quarter gross revenuewould climb 57% over the first quarter of 2008 to $19.5 million and that grossmargin for the quarter is expected to be approximately 78%. Net income wouldreach an estimated $6.4 million, or $0.43 per fully diluted share based on14,888,310 quarterly diluted shares outstanding as of March 31, 2008, and netmargin would be approximately 32.8%. The sharp increase is mainly due to thefollowing factors: First, products introduced from Heilongjiang TianlongPharmaceutical, Inc., which China Sky One Medical acquired in March, enteredthe markets rapidly and have had strong sales. Second, China Sky One haslaunched advertising promotions for its popular external use products,including Slim Patch Body-Beauty Plaster, Hemorrhoid Ointment, CompoundCamphor Cream and Blood Pressure Depress Patches, which have stimulated sales.Finally, the second and third quarters are historically seasonally strongsales periods in the pharmaceutical market.
Advertisement
China Sky One also updated guidance for its full-year 2008 gross revenueand provided guidance for net income and earnings per share. The companyexpects 2008 gross revenue in the range of $81 million to $83 million andgross margin to be approximately 78.5%. Net income for 2008 is estimated to bebetween $25.9 million and $26.6 million, or $1.74 to $1.79 per fully dilutedshare based on 14,888,310 quarterly diluted shares outstanding as of March 31,2008, and net margin is expected to be approximately 32%. Previously, thecompany had expected gross revenue in 2008 of approximately $80 million andgross margin to be approximately 78.5%.
''We are confident that we will achieve significant revenue growth goingforward as we continue to implement our strategy of hiring direct territorymanagers and sales agents to further strengthen our distribution channels,''said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical, Inc. "Inaddition, we plan to continue with our research and development efforts and tomake strategic acquisitions.''
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding companywhose principal operations are through its subsidiaries, which are engaged inthe manufacturing, marketing and distribution of pharmaceutical, medicinal anddiagnostic kit products. Through its wholly-owned subsidiaries, Harbin Tian DiRen Medical Science and Technology Company (''TDR'') and Harbin FirstBio-Engineering Company Limited ("First"), the Company manufactures anddistributes over-the-counter pharmaceutical products as its primary revenuesource. For more information, visit http://www.skyonemedical.com .
Safe Harbor Statement
Certain of the statements made in the press release constituteforward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995. These statements can be identified by the useof forward- looking terminology such as "believe," "expect," "may," "will,""should," "project," "plan," "seek," "intend," or "anticipate" or the negativethereof or comparable terminology. Such statements typically involve risks anduncertainties and may include financial projections or information regardingour future plans, objectives or performance. Actual results could differmaterially from the expectations reflected in such forward-looking statementsas a result of a variety of factors, including the risks associated with theeffect of changing economic conditions in The People's Republic of China,variations in cash flow, reliance on collaborative retail partners and on newproduct
