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Winner Medical Reports Second Quarter Fiscal 2009 Results
Date:5/13/2009

Results

Revenue: Winner Medical reported net sales revenue of $20.63 million, a 15.31% increase over the second quarter of fiscal 2008. Healthy revenue growth was mainly due to strong demand, particularly in North and South America; revenue from North and South America was approximately $4.03 million for the second quarter of fiscal 2009, an increase of 158.37% compared to the same period in 2008. The North and South American market accounted for 19.53% of total revenue for the quarter ended March 31, 2009.

Gross Profit: For the second quarter of fiscal 2009, gross profit was $5.80 million, an increase of 46.81% over $3.95 million in the same period of fiscal 2008. Gross margin was 28.13%, versus 22.09% achieved in the second quarter of fiscal 2008. The increase in gross margin was mainly due to the unit product cost decrease as a result of better economies of scale; the improvement of the Company's cost control, equipment technical improvement and lean production management that increased production efficiency and reduced production waste; and the decrease of material purchasing price as the Company combined individual purchases by each subsidiary into larger scale orders to create more bargaining power.

Operating Expenses: Selling, general and administrative expenses increased by 15.68% to $3.87 million in the second quarter of fiscal 2009, from $3.34 million in the first quarter of fiscal 2008. During this quarter, the increase in operating expenses was mainly due to the increased provision for decline in value of inventory, increase in reserve for fixed assets impairment and bad debts, increase in salary and welfare for the management and administrative staff, increase in research and development expenses, and increase in related administrative expenses such as depreciation and amortization for Winner Medical (Huanggang) Co., Ltd.

Operating Income: During the period, operating income
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SOURCE Winner Medical Group Inc.
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