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Biostar Pharmaceuticals, Inc. Second Quarter Revenue Increased 46.4% to $19.4 Million
Date:8/17/2010

ty compensation charge of $0.2 million, adjusted operating income for the second quarter of 2010 was $7.8 million with operation margins of 40.1%. (Please see "About Non-GAAP Financial Measures" below.)

Net income was approximately $5.6 million for the second quarter of 2010, a 44.7% increase from the second quarter of 2009. Diluted earnings per share were $0.20 for the second quarter of 2010 compared to $0.16 for the second quarter of 2009, based upon 27.8 million and 23.7 million diluted common stocks outstanding, respectively. Adjusted Non-GAAP net income for the second quarter was $5.8 million, or $0.21 per diluted common share based on 27.8 million diluted common stocks outstanding for the second quarter of 2010. (Please see "About Non-GAAP Financial Measures" below.)

Six Month Results

For the six months ended June 30, 2010, revenue increased approximately 53.5% to $31.8 million compared to the same period in 2009. Gross profit was approximately $23.9 million for the first six months of 2010, representing an increase of 64.6% from the first six months of 2009. Gross margins improved 510 basis points to 75.3% for the first six months of 2010 compared to the year ago period.

Income from operations was $10.7 million for the first six months of 2010, representing an increase of 37.2% over the first six months of 2009. Operating margins were 33.6% for the first six months of 2010, compared to 37.6% for the first six months of 2009. Excluding the non-cash equity compensation charge of $0.4 million recorded during the first six months of 2010, adjusted operating income for the first six months is $11.1 million with operating margins of 34.8%. (Please see "About Non-GAAP Financial Measures" below.)

Net income was $7.8 million for the six months ended June 30, 2010, an increase of approximately 38.0% from the same period in 2009. Fully diluted earnings per share were $0.2
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SOURCE Biostar Pharmaceuticals, Inc.
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