SHANGRI-LA COUNTY, China, May 16, 2011 /PRNewswire/ -- Tibet Pharmaceuticals, Inc. (NASDAQ: TBET), an emerging specialty pharmaceutical company engaged in the development, manufacturing and marketing of traditional Tibetan medicine in China, today reported its financial results for the first quarter ended March 31, 2011. Summary of First Quarter Ended March 31, 2011 Financial Results:
Revenue of $8.2 million, an increase of 17% from $7.0 million in Q1 2010
Gross profit of $3.5 million compared to $3.5 million in Q1 2010
Net income of $2.6 million compared to $2.8 million in Q1 2010
Fully diluted EPS of $0.18
"Tibet Pharmaceuticals is pleased to report our financial results for the first quarter of 2011," said Taylor Guo, Chief Executive Officer at Tibet Pharmaceuticals. "We demonstrated a steady 17% increase in revenue in the first quarter of 2011, as well as maintaining net income margins upwards of 30%. Although our net income decreased slightly compared to the first quarter of 2010, this was due primarily to the rising cost of raw materials, and our management team believes this will begin to improve going forward as we initiate efforts to increase the prices of our products accordingly. Subsequent to the end of the first quarter, on May 1 we initiated our first price increase since becoming a public company and we believe this will have a positive impact on our margins going forward." All of Tibet Pharmaceuticals' current products are offered and derived from Tibetan-based traditional medicines with natural herbs and minerals found in the high-latitude, low-temperature, and pollution-free environment of Qinghai-Tibet Plateau. Tibet Pharmaceuticals currently sells 5 prescription and over-the-counter Tibetan medicine products, with each having been approved by the State Food and Drug Administration of China, also known as the SFDA. Tibet Pharmaceuticals expects to continue to grow in China's fragmented pharmaceutical and traditional Tibetan medicine industries. The company is committed to establishing itself as a leading manufacturer and distributor of Tibetan medicine in China. Mr. Guo added, "Tibet Pharmaceuticals is looking to leverage its proceeds from its IPO earlier this year toward potential accretive acquisitions to help the company expand within the highly fragmented traditional Tibetan medicine industry. Tibet's management team has already identified several targets and looks forward to relaying more details over the coming weeks and months."