Operating income in the first quarter was $11.2 million compared with $12.0 million in the prior year period, reflecting a 20.2% increase in operating expenses to $17.2 million in the first quarter of 2009 from $14.3 million in the prior year period. General and administration expenses as well as selling and marketing expenses increased 9.3% to $9.8 million from $8.9 million in the prior year period. The increase primarily reflects marketing and promotional initiatives related to Jinji and Boke products. Advertising expense increased 26.7% to $5.6 million in the first quarter of 2009, compared to $4.4 million in the prior year period.
Net income for the first quarter of 2009 was $7.9 million, compared to $9.4 million in the prior year period. Excluding the $1.7 million of interest expense related to the Company's outstanding convertible notes in the first quarter of 2009, which did not occur in the first quarter of 2008, net income performance was roughly flat on a year over year basis. Net income per diluted share was $0.11 in the first quarter of 2009 compared to $0.12 per diluted share in the first quarter of 2008.
As of March 31, 2009, the Company had $73.9 million in cash and generated approximately $3.6 million of operating cashflow during the quarter.
Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental
Bioengineering, commented, "We are pleased with our first quarter performance
and have met our key near-term objective to foster a dynamic business model
that is diversified across prescription, OTC and nutraceutical products.
Notably, our distribution business began to strengthen overall performance
this quarter, contributing to net income as anticipated, and enlarging our
distribution reach, particularly for our prescription pharmaceutical products.
We are more flexible today than
|SOURCE American Oriental Bioengineering, Inc.|
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