FQ3 2011 ending March 31 st 2011 financial highlights – Revenue increased 56.3% year over year to $24.9 million from $15.9 million the year earlier.
Operating income increased 39.9% year over year to $5 million from $3.6 million a year earlier.
Net Income increased 27.7% to $3.7 million year over year from $2.9 million a year earlier.
Earnings per share of $.13 per basic share, or $.12 per diluted share, up from $.11 per basic share or $.09 per diluted share a year earlier. A gain of 19.3% and 35.5% respectively.Cash and cash equivalents totaled $31.1 million on March 31 st 2011 or $1.10 per basic share in cash. Sales for the quarter ended March 31 st 2011 was $24.9 million, up 56.3% as compared to $15.9 million for the quarter ended March 31 st 2010. Although our generic pharmaceutical sales have been under pricing pressure at the beginning of this third quarter, the channel expansion, optimized production facility usage, and the continuous stream of Tianyin Medicine Trading, TMT, distribution revenue supported the quarterly sales growth. With the current hospital coverage at 880 hospitals up from 850 hospitals from the beginning of fiscal year 2011, we are targeting to reach 900 hospitals by the end of fiscal year 2011 ending June 30 th 2011. Revenues from the top selling products are Gingko Mihuan Oral Liquid, GMOL, $5.6 million. Apu Shuangxin Benorylate Granules, APU, $1.8 million. Azithromycin Tablets, AZI, $.98 million. Xuellian Chongcao Oral Liquid, XLCC, $1.1 million. Qing Re Jie Du Oral Liquid, $.77 million. These products totaled $10.2 million in sales, representing 41.2% of the quarterly revenue. Cost of Sales for FQ3 was $14 million or 56.2% of sales as compared to $7.5 million or 47.2% of sales a year earlier. Our cost of sales consists of the raw material cost, labor, depreciation and amortization of manufacturing equipment and facilities and other overhead.