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China Sky One Medical Announces Third Quarter 2011 Results
Date:11/9/2011

these decisive actions will serve as the cornerstone of the Company in years to come and will enable our long-term sustainability and growth."

Third Quarter 2011 ResultsIn the third quarter of 2011, China Sky One's total revenues decreased 26.6% to $26.6 million from $36.2 million in the same quarter last year. The decrease was primarily due to the decline in sales of certain product categories due to the termination of production and sales of 32 products in the second and third quarters of 2011. In the second quarter of 2011, Management decided to temporarily discontinue the production and sales of 16 products which were less competitive and generated lower relative sales volume. In the third quarter of 2011, Management decided to discontinue the production and sales of an additional 16 products because of new regulations by China's SFDA.

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

In terms of the Company's top-selling products, revenue generated from its Metronidazole and Chlorhexidine Wash Fluids in the third quarter of 2011 increased 78.2% year-over-year to $1.6 million as a result of our successful market promotion.  Revenue generated from the Company's Cardiac Arrest Early Examination Kits and Kidney Disease Testing Kit in the third quarter of 2011 was $1.9 million, four times that of the year-ago quarter.

However, revenue generated from the Company's Hemorrhoids Ointment and Compound Camphor Cream in the third quarter of 2011 decreased 57.6% year-over-year to $3.8 million. The sales decrease of the Company's Hemorrhoids Ointment was due to the SFDA's enforcement of new regulations as concerns the advertising of certain medicinal products which negatively impacted sales to end users. The sales decrease of the Company's Compound Camphor Cream was
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SOURCE China Sky One Medical, Inc.
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