Gross margins for the quarter ended December 31st, 2010, was 44.7%, compared to 51.9% for the quarter ended December 31st, 2009. The gross margins were attributable to the addition of the revenues from Tianyin Medicine Trading, TMT, the distribution arm of TPI, in the current year. TMT related gross margins average approximately 15%. While in this quarter, our organic portfolio delivered approximately 55% gross margins, an increase of 3% over the 52% gross margins recognized for the quarter ended December 31st, 2009.

Operating Expenses for the quarter ended December 31st, 2010, were $6 million, compared with $4.6 million a year earlier. The increase was due to continuing sales expansion-related sales payroll and marketing expenses and the remaining cost of $0.5 million financial cost on the previous restricted stock compensation.

Net Income was $4.4 million for the quarter ended December 31st, 2010, as compared to net income of $2.6 million for the quarter ended December 31st, 2009, a net increase of $1.8 million or 69.2% year-over-year. Net profit margins rose to 17.4% from 17.2% for the quarter ended December 31st, 2009, as the leverage in the TPI’s business operation further drives the revenue while keeping the operating expenses in-line with the sales expansion.

Diluted earnings per share for the three months ended December 30, 2010 were $0.14, up 70.9% from the earnings of $0.08 per diluted share for the three months ended December 31st, 2009, based on 30.5 million shares and 30.4 million shares, respectively.

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