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China Sky One Medical Announces Second Quarter 2011 Results
Date:8/9/2011

HARBIN, China, Aug. 9, 2011 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One" or "the Company") (NASDAQ: CSKI), a leading fully integrated pharmaceutical company producing over-the-counter drugs in the People's Republic of China ("PRC"), today announced financial results for the second quarter of 2011.

SecondQuarter 2011Financial Highlights

  • Total revenues decreased 7.6% year-over-year to $37.7 million
  • The Company marketed 101 products, compared with 114 products in the quarter ended June 30, 2010
  • Gross profit fell 15.7% to $24.9 million
  • Operating income declined 39.6% to $8.3 million
  • GAAP net income, including a non-cash gain from change in the fair value of derivative warrant liability, decreased 50.2% year-over-year to $6.1 million, or $0.36 per diluted share
  • Excluding the non-cash gain, non-GAAP adjusted net income declined 42.0% to $5.9 million, or $0.35 per diluted share

  • "Our second quarter revenue declined 7.6% year-over-year, primarily reflecting the loss of two distribution relationships in the third quarter of 2010. We continue to aggressively pursue new customers to distribute our broad portfolio of pharmaceutical products, while investing in China Sky One's future, as exemplified by our winning bid on land use rights for land in Harbin's Song Bei District. We intend to build a research and development center, an injection manufacturing facility, a logistics center and an office building on the land during the first phase of development, which we expect to complete by mid-2012," said Mr. Yan-Qing Liu, Chairman and CEO of China One Medical, Inc. "Despite the challenges of the past year, we are optimistic that we can reestablish robust revenue and earnings growth at China Sky One Medical by continuing to invest in R&D, securing new
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    SOURCE China Sky One Medical, Inc.
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