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Dehaier Medical Announces Third Quarter 2010 Financial Results
Date:11/12/2010

$3.2 million as compared to $2.1 million for the same period in 2009. The Company's gross margin was 41.4% for the three months ended September 30, 2010 as compared to 41.4% for the same period in 2009.

Income from OperationsOperating income for the three months ended September 30, 2010 amounted to $1.6 million as compared to $1.2 million for the three months ended September 30, 2009. The increase of $0.4 million, or 30.0%, was primarily due to the increase in sales. Operating expenses for the three-month period totaled $0.71 million as compared to $0.31 million for the same period a year ago. The increase in operating expenses was largely attributable to the expansion of the Company's marketing strategy, implementation expenses associated with Sarbanes-Oxley Section 404 compliance, and an increase in R&D expenses.

Net IncomeNet income for the three months ended September 30, 2010 was $1.4 million as compared to $1.0 million for the three months ended September 30, 2009, due to the reasons set forth above. Earnings per diluted share were $0.30 for the quarter, compared with diluted EPS of $0.34 for the same period a year ago.

Nine Months Ended September 30, 2010 Results of OperationsRevenuesRevenues for the nine months ended September 30, 2010 were $12.9 million as compared to $9.4 million for the nine months ended September 30, 2009. The increase of $3.5 million, or 37.2%, was primarily due to an increase in repeat customers among hospitals and other healthcare facilities. The Company also generated revenues from exclusive medical equipment distribution agreements signed during the second quarter with Penlon, HEYER Medical, and Welch Allyn.

Gross ProfitGross profit for the nine months ended September 30, 2010 was $5.2 million, up 38.0% from $3.7 million for the nine months ended September 30, 2009. Costs of sales were $7.8 million for the nine-month period, up 36.7% from $5.7 million in th
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SOURCE Dehaier Medical Systems Ltd.
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