China Sky One Medical, Inc. Announces Record First Quarter 20...(nostic human urinary albumin and elisa a...)

First Quarter 2008 Results

China Sky One's total revenues in the first quarter were $12.4 million, an increase of 140% on year-over-year basis. This was primarily the result of strong performance associated with the Company's continued efforts to develop its sales distribution channels. Product sales increased 174% year-over-year to $9.5 million, or 76.2% of total revenues. Contract sales increased 71% year-over-year to $2.9 million and accounted for 23.8% of revenues in the first quarter of 2008.

Gross profit in the first quarter of 2008 was $9.6 million, an increase of 136% on year-over-year basis. Gross margin was 77% of total revenues, in line with a gross margin of 78% for the first quarter of 2007.

Operating expenses in the first quarter of 2008 were $4.7 million, up 120% from $2.1 million in the first quarter of 2007. This increase was less than the increase in sales, and was primarily the result of higher selling, general and administrative expenses associated with the Company's sales growth. Research and development expenses were $0.7 million in the first quarter, compared with $15,210 in the first quarter of 2007. Operating expenses were 37.9% of total revenues in the first quarter of 2008, improved from 41.2% in the first quarter of 2007, due to efficiencies as the Company grows in scale.

Operating income was $4.8 million, compared with $4.9 million in the first quarter of 2007. Operating margin was 39%, compared to 37% in the first quarter of 2007.

Provision for income taxes was $1.0 million in the first quarter of 2008, compared to $0.3 million in the same quarter of the previous year.

Net income for the first quarter of 2008 was $3.9 million, or $0.26 per diluted share, compared to $1.5 million, or $0.12 per diluted share, in the first quarter of 2007. '/>"/>