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

distributor relationships and identifying uses for our strong balance sheet and cash flow."

Second Quarter 2011esultsIn the second quarter of 2011, China Sky One's total revenues decreased 7.6% to $37.7 million from $40.8 million in the same quarter last year, largely reflecting the continuing impact of terminated business relationships with a domestic distributor and an overseas sales agent during the third quarter of 2010, which negatively impacted the sales of the Company's Ointments, Patches, Sprays and Diagnostic Kits categories. These two distributors accounted for 0% and 17.4% of the Company's overall revenue in the second quarter of 2011 and second quarter of 2010, respectively.

By product category, lower sales from Ointments, Patches, Sprays and Drops contributed to the Company's overall year-over-year revenue decline, offset somewhat by top-line growth in Wash Fluids, Dignostic Kits, Suppositories and the Others category.

Sales of ointments declined 28.5% year-over-year to $8.3 million in the second quarter of 2011, primarily due to a $2.6 million year-over-year decline in the Company's Hemorrhoids Ointment product.

Sales of patches declined 34.2% year-over-year to $6.4 million in the second quarter of 2011. The decrease in patch product sales was primarily due to a 63.3% decrease in Slim Patch sales, along with sales declines of several other Patch products, primarily due the termination of a key distributor relationship in the third quarter of 2010.

Sales of wash fluids increased 133.5% year-over-year to $4.3 million in the second quarter of 2011, driven by strong sales of Metronidazole and Chlorhexidine wash fluids.

Sales of spray products decreased 22.6% year-over-year to $4.0 million in the second quarter of 2011, primarily due to lower sales of YinKe Spray and JieYin Spray.

Revenue from drops decreased 33.6% year-over-year to $1.9 million in the second quarter of 2011, primaril
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SOURCE China Sky One Medical, Inc.
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