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China Sky One Medical Announces First Quarter 2010 Results
Date:5/18/2010

ificantly, reflecting the successful efforts of a new distributor since the third quarter of 2009.

Sales of Other Products grew 82.0% in the current year quarter to $8.4 million. Higher sales in this category were mainly driven by strong market demand for Naphazoline Hydrochloride eye drops, Napadil tablet and Tinea liniment.

Sales of patch products declined 9.9% year-over-year to $8.2 million in the first quarter of 2010 due to a decrease in Slim Patch sales to $1.6 million, as compared to $4.6 million in the comparable period of 2009. In late 2009, the Chinese government introduced new regulations limiting TV advertisement for weight loss products starting in 2010. As such, the Company's 2010 guidance already assumes more modest sales levels of the Slim Patch, with sales expected to increase in the second and third quarters relative to the first quarter due to seasonality. Excluding the Slim Patch, sales of other patch products, including Pain Relief Patch, Asthma Patch and Hypertension Patch, rose 46.7% to $6.6 million in the first quarter of 2010, as compared to $4.5 million in the year ago quarter.

Sales of spray products were up slightly from the prior year at $3.0 million. Diagnostic kit sales fell year-over-year to $1.5 million from $3.1 million. The Company has begun to improve training of its sales professionals to enhance cooperation with its distributors to increase marketing support and reviewing its distribution policies to provide additional sales incentives.

Gross profit rose 15.1% to $21.6 million in the first
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SOURCE China Sky One Medical, Inc.
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