Operating expenses, which include selling, general and administration expenses for fiscal year 2008, were $6.1 million, up 57.7% compared to the same period in 2007. Selling expenses for the period increased to approximately $3.6 million from $2.6 million in 2007, which is a result of increased marketing efforts. General and administrative expenses increased to $2.6 million in 2008 from $1.3 million in 2007. The increase was mainly due to the increased expenses related to the public market.
Operating income totaled approximately $5.8 million, a 40.5% increase from the $4.1 million reported for fiscal year 2007. Operating margins were 9.8% and 8.6% for the fiscal year 2008 and 2007, respectively.
For fiscal 2008, net income was approximately $4.1 million, an increase of 13.7% from $3.6 million recorded for fiscal 2007. The provision for income taxes was $1.0 million and $17,888, yielding an effective tax rate of 16% and 0.4% for 2008 and 2007 respectively and thus impacted the year-over-year net income comparison.
Fully diluted earnings per share for 2008 and 2007 were $0.13 and $0.16 respectively, based on 31.2 million and 22.4 million shares for 2008 and 2007, respectively. This increase in outstanding shares was related to recapitalization on reverse merger. The share count does not include 5 million shares of preferred stock owned by the management, which is convertible to up to 30 million shares of common stock.
"We are very pleased with our strong financial performance in 2008 despite
the global recession as growth emanated from increased sales through our
pharmaceutical wholesale business to a larger base of customers complemented
by higher margin products in addition to contributions from our retail chain
drugstores where we launched 14 new locations during 2008," commented Mr.
|SOURCE China Yongxin Pharmaceuticals, Inc.|
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