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China Sky One Medical Announces Fourth Quarter and Fiscal Year 2010 Results
Date:3/15/2011

The increase was primarily due to increased revenues generated from Compound Camphor Cream.

Revenues generated from patch products decreased $5.5 million, or 55.9%, year-over-year to $4.4 million in the fourth quarter of 2010, which account for 16.3% of total revenue. The decrease in revenues was primarily due to certain regulations and restrictions the Chinese government launched in the fourth quarter of 2009, which prohibit television advertising of weight loss products in the PRC.

Revenues generated from spray products decreased $1.7 million, or 42.5%, year-over-year to $2.3 million in the fourth quarter of 2010, which account for 8.6% of total revenue. The decrease was primarily due to decreased sales of several spray products due to the loss in the third quarter of 2010 of a key domestic distributor.

Revenues generated from drops products increased $0.8 million, or 32.5%, year-over-year to $3.4 million in the fourth quarter of 2010, which account for 12.6% of total revenue. The increase was primarily due to increased revenues from six additional Drops products launched by the Company in 2010.

Revenues generated from suppositories products increased $0.6 million, or 50.2%, year-over-year to $1.8 million in the fourth quarter of 2010, which account for 6.8% of total revenue. The increase was primarily due to the increase sales of original products and two additional Suppositories products launched by the Company in 2010.

Revenues generated from diagnostic kits products increased $0.2 million, or 25.5%, year-over-year to $1.0 million in the fourth quarter of 2010, which account for 3.9% of total revenue.

Revenues generated from other products increased $0.5 million, or 8.4%, year-over-year to $6.5 million in the fourth quarter of 2010, which account for 24.3% of total revenue.

Gross profit decreased 16.6% to $19.1 million in the fourth quarter of 2010. Gross margin was 71.2%, as compared to 76.6% in the fourth
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SOURCE China Sky One Medical, Inc.
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