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American Oriental Bioengineering Reports First Quarter 2010 Financial Results
Date:5/10/2010

eriod, reflecting increased sales of our Boke and CCXA products as a result of improved recognition of those products. -- Nutraceutical products generated revenue of approximately $9.7 million in the first quarter of 2010, up 8.5% from $8.9 million in the prior year period, reflecting increased sales of new beverage products launched in the second quarter of 2009. -- The Company generated $3.2 million from its distribution business, Nuo Hua, in the first quarter of 2010. An increase of 29.5% was mainly attributed to the Nuo Hua's expanding market coverage.

Gross profit in the first quarter of 2010 was $28.2 million, compared to $28.4 million in the first quarter of 2009. Gross margin was 52.5%, compared to 61.7% in the prior year period, reflecting continued revenue mix shift to CCXA's generic product sales as well as increasing raw material prices.

Operating income in the first quarter of 2010 was $6.4 million, compared to $10.9 million in the prior year period. Selling and marketing expenses increased 14.7% to $6.0 million from $5.2 million in the prior year period, and advertising expense increased 21.2% to $6.7 million in the first quarter of 2010 from $5.6 million in the prior year period. General and administrative expenses increased 8.6% to $4.8 million from $4.4 million in the prior year period. Research and development expenses increased to $2.8 million from $0.7 million in the prior year period. This reflects the Company's continuing efforts to invest in the centralized R&am
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SOURCE American Oriental Bioengineering, Inc.
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