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Skystar Bio-Pharmaceutical Announces Second Quarter 2007 Results
Date:8/19/2007

XI'AN, China, Aug. 15 /Xinhua-PRNewswire-FirstCall/ -- Skystar Bio- Pharmaceutical Co., (OTC Bulletin Board: SKBI) ("Skystar"), a leading bio- pharmaceutical company in the People's Republic of China ("PRC"), announced its financial results for the quarter ended June 30, 2007.

Second Quarter 2007 Highlights

-- Revenue increased 22% year-over-year to $3.4 million

-- Gross margin increased to 58.2% from 45.5% in Q2 2006

-- Operating income increased 90% year-over-year to $1.2 million

-- Adjusted non-GAAP net income increased 59.5% to $771,041

-- Gained approval for 49 new veterinary medicines and opened 150 Skystar

franchise stores

"Our commitment this year to enhancing our production, marketing and R&D efforts are validated through our strong financial results in the second quarter," commented Mr. Weibing Lu, Chairman and Chief Executive Officer of Skystar Bio-Pharmaceutical. "We have dedicated significant resources this year to broadening our product offering and building a solid distribution network supported by an in-depth customer training and education program. We believe this strategy will support continued revenue and net income growth in the future."

Revenue for the second quarter of 2007 was $3.4 million, up 22% from $2.8 million in the second quarter of 2006. The increase in revenue was due to the launching of ten new veterinary medicines and enhanced marketing and advertising efforts. For the second quarter of 2007, revenue from veterinary medicine grew 34% to $1.5 million from $1.1 million in the same period a year ago. Veterinary medicines and microorganisms represented the majority of revenue accounting for 45% and 39% of total revenue, respectively. Vaccines contributed approximately 5% of revenue and feed additives represented the remaining 11%.

Gross profit for the second quarter of 2007 was $2.0 million, up 56% from $1.3 million in the second quarter of 2006. Gross margin in the s
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SOURCE Skystar Bio-Pharmaceutical Co.

Copyright©2007 PR Newswire.

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