Any statements set forward in this conference call that are not historical facts or forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include but are not limited to such factors as unanticipated changes in the product demand, increased competition, failure to obtain or maintain intellectual property protection, fluctuation in the economy, results of research and development, failure to obtain regulatory approvals and other information detailed from time to time in obtaining pharmaceutical's finance and future filings recognized at United States Security Exchange Commission. The forward-looking statements contained in the conference call are made only for the date and Tianyin Pharmaceutical is under no obligation to revise or update these forward-looking statements.Now, I'll turn the call over to Tianyin CEO, Dr. Jiang Guoqing his opening remark. [Foreign Language]. Jiang Guoqing [Foreign Language] James Jiayuan Tong This is James Tong, let me translate for Dr. Jiang. Good morning, hello to everyone. We just had another successful quarter and demand has been hit their target and we worked very hard to meet our goals for the third quarter and also set a good foundation to complete and hit our financial guidance for 2010. And thanks to our shareholders' support and we're working very hard to create value for our shareholders and thanks. Okay. This is James Tong; I will be reviewing some of the financial highlights of third quarter fiscal year 2010. Our third quarter fiscal year 2010 revenue increased 60% year-over-year to $15.9 million, net income increased 63% to $2.9 million with earning per share basic $0.11 per share or a $0.09 per share diluted. The cash and cash equivalents were $23.3 million on March 31, 2010. Nine months 2010 cash flows were in operating and increased 95% year-over-year to $8.6 million.
And also an update on Sichuan Jiangchuan joint venture on macrolide facility progress is on schedule. The sales for third quarter was $15.9 million up 60% and this was driven by continued channel expansion market penetration optimized usage over expanded production facility especially revenue from our top selling products Ginkgo Mihuan Oral Liquid, Apu Shuangxin, Xuelian Chongcao and Azithromycin Dispersible Tablet altogether were $8.8 million, representing 62.9% of the total quarterly revenue.Gross margin also increased to 53% as compared to 49% a year earlier. This was achieved by optimizing portfolio with higher margin products, such as Ginkgo Mihuan and Apu Shuangxin, while reducing the production of the lower margin product. And our net income was $2.9 million for the three months ended March 31, 2010, as compared to net income of $1.9 million for the three months ended March 31, 2009, and the net income gain was primary the result of increase of the revenue along with increase included the high gross margin. Diluted earnings per share of the three months ended March 31, 2010 were $0.09, compared to $0.08 in the same period of 2009, based on 31.6 million shares for this quarter and 24.8 million shares in 2009. The balance sheet item. As of March 31, 2010, we had a cash and cash equivalent of $23.3 million. Net cash generated from operating activities were $8.6 million for the nine month and the strong cash flow was primarily the result of the revenue growth which led to an increased net income. We believe that Tianyin is adequately funded to meet all of our working capital and capital expenditure needs for 2010. The net cash used in investing activities for the nine months was $5.5 million versus $5.2 million last year. The increase was mainly due to our new drug development and the construction of Jiangchuan production facility.
Here's an update for business development and outlooks. The progress update on Sichuan Jiangchuan Pharmaceutical. Since our announcement of the Jiangchuan JV on October 29, 2009 focusing on the production of macrolide antibiotics, such as Azithromycin, one of the world's best-selling antibiotics. Jiangchuan holds the license from China's SFDA to produce macrolide antibiotics and a related business license from the Industry and Commerce Bureau and Tax department.Read the rest of this transcript for free on seekingalpha.com