For the second quarter of 2009, net income was approximately $3.9 million, a 119.3% increase, compared to approximately $1.8 million for the second quarter of 2008. Diluted earnings per share were $0.16 compared to $0.08 for the second quarter of 2009 and 2008 respectively, based up on 23.7 million and 23.2 million shares. The increase in net income during the second quarter of 2009 was a result of increased revenues and improved profitability.
The Company had an effective tax rate of 26.1% and 12.3%, for the second quarter of 2009 and 2008, respectively. The increase was primarily due to the expiration of the 50% income tax reduction on December 31, 2008.
"We are very pleased to report strong revenue and net income growth and
further improvement in our gross margins which benefited from the success of
our overall marketing strategy and solid sales increases, especially in Xin
Aoxing Capsule. We anticipate that our strategy will increase sales and that
allocating incremental dollars to our marketing budget will improve our brand
while allowing us to successfully penetrate new target markets which
eventually translate into both strong top and bottom-line growth," commented
Mr. Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "The
Chinese government recently announced a new health care reform plan and will
invest $123 billion between 2009 and 2011 with a stated goal of covering 90%
of the urban and rural residents with basic medical insurance. With continued
marketing efforts, an expanding product portfolio and strong demand for our
hepatitis-B product, we are ideally positioned to capitalize on the long-term
|SOURCE Biostar Pharmaceuticals, Inc.|
Copyright©2009 PR Newswire.
All rights reserved