-- Expects Revenue of $88 to $90 Million and Net Income of $27 to $28 Million
HARBIN, China, Sept. 26 /Xinhua-PRNewswire/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company producing over-the-counter drugs in the People's Republic of China ("PRC"), today announced that it has increased its revenue and earnings guidance for the full-year 2008 period.
China Sky One Medical raised its full-year 2008 revenue guidance to $88-$90 million, up from its prior guidance of $81-$83 million, previously announced on August 12, 2008. In addition, the Company now estimates that full-year 2008 net income will be in the range of $27-$28 million, up from its previous estimate of $25.9-$26.6 million. China Sky One Medical expects 2008 gross margin to be approximately 77%. The Company's previous estimate for 2008 gross margin was 78.5%.
The increase in the Company's 2008 financial estimates is primarily due to strong results from an advertising campaign for its products that was launched in the second quarter, as well as expected contributions from acquisitions made in 2008. The Company recently started production at Peng Lai Jin Chuang Company ("Jin Chuang"), a newly established pharmaceutical company acquired in June. While Jin Chuang is expected to have a positive impact on 2008 results, it will take time for the Company to ramp up its manufacturing capacity and optimize efficiency in order to achieve large scale production. The Company is also increasing its level of R&D spending in the second half of 2008 to support its growing new product pipeline.
"Our business continues to perform well, and our recent acquisitions and the success of a large advertising campaign for our products that we launched in the second quarter are helping to drive our sales," said Mr. Yan-Qing Liu, Chairman, President, and CEO of China Sky One Medicine Inc. "We believe that we will see strong future growth as we continue our strategy of hiring direct territory managers and sales agents to strengthen our distribution channels, as well as increase our R&D to develop a wider range of new and exciting products."
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company. The Company engages in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company, Harbin First Bio- Engineering Company Limited, and Heilongjiang Tianlong Pharmaceutical, Inc., the Company manufactures and distributes over-the-counter pharmaceutical products, which make up its major revenue source. For more information, visit http://www.skyonemedical.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.