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SHOUGUANG, China, May 9, 2013 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced its financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Highlights
Revenue was $22.5 million, a year-over-year decrease of 5%
Gross profit was $4.5 million, a year-over-year decrease of 33%
Gross margin decreased to 20 % as compared to 28% in the first quarter of 2012
Income from operations was $2.6 million as compared to $4.6 million in the first quarter of 2012
Operating margin was 12% compared to 19% for the first quarter of 2012
Net income was $1.9 million or $0.05 per basic and diluted share, versus $3.3 million, or $0.10 per basic and diluted share a year ago, respectively.
Cash totaled $78.5 million as of March 31, 2013
"Due to the lower demand of bromine as influenced by continuing macroeconomic tightening policy imposed by the Chinese government, the average selling price of bromine decreased from $3,569 per tonne for the first quarter in 2012 to $3,053 per tonne for the same period this year , we reported lower operating performance in this quarter in comparison to the same period of last year as we were unable to offset the deceasing revenue of bromine segment by those increasing from crude salt and chemical products segments," said Mr. Xiaobin Liu, CEO of the Company.
First Quarter 2013 Results
Gulf Resources' net revenue was $22,502,580 for three-month period ended March 31, 2013, a decrease of approximately $1.3 million (or 5%) as compared to the same period in 2012. This decrease was primarily attributable to the reduction of our bromine segment products, which decreased from $13,453,882 for the three-month period ended March 31, 2012 to $11,734,367 for the same period in 2013, a decrease of approximately 13%.