The total operating expenses were $10.9 million in 2007 as compared to $7.7 million in 2006. The increase reflects an increase of the non-cash stock-based compensation expense and consulting fees related to Sarbanes-Oxley compliance and increased selling expenses due to an increase in sales in both the Chemical and Pharma Divisions.
As a result of the strong sales growth as well as the improved margins for both divisions, the Company realized an after-tax income from continuing operations of $4.9 million for 2007 as compared to an after-tax loss from continuing operation of $0.9 million for the year of 2006. The Company also recognized an after-tax loss from discontinued operations of $2.40 million, which was mainly due to the impact of a non-cash write-off of $3.11 million of intangible assets and goodwill with the sales of the Biotech Division. The net income was $2.50 million or $0.04 per share, which was the net of $4.9 million or $0.08 per share net income from continuing operations and $2.40 million or $0.04 per share net loss from discontinued operations.
"2007 has been an extremely positive year for Dragon Pharma," said
Dragon's Chairman and CEO Mr. Yanlin Han. "The Company's solid
year-over-year growth demonstrates our effectiveness and capabilities in
executing our core business strategy. To achieve our goal to become a
leading vertically integrated antibiotic drugs manufacturer, we will
continuously broaden our product portfolio, expand market share, lower
production cost by incorporating innovative technology, improve
manufacturing process and efficiencies, strengthen our management team and
enhance R&D capability. In early 2008, the Company has successfully
launched two new products ceflazidime and cefalexin. With the expansion of
our product portfolio alongside increased annual production capacity for
our core products 7-ACA and Clavulanic Acid, we are confident in our
|SOURCE Dragon Pharmaceutical Inc.|
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