Benda Pharmaceutical, Inc. Reports First Quarter 2008 Financial Results
HUBEI PROVINCE, China, May 21 /Xinhua-PRNewswire-FirstCall/ -- Benda Pharmaceutical, Inc. , a China-based pharmaceutical company producing both Gendicine(R), a commercialized gene therapy medicine for the treatment of cancer, and traditional Chinese and conventional medicines, today announced financial results for the quarter ended March 31, 2008. The Company filed its Form 10Q with the SEC on May 20, 2008.
Three Months Ended March 31, 2008
Revenue in the first quarter of 2008 increased 96.3% to $5.9 million from $3.0 million in the first quarter of 2007, primarily reflecting increased sales at Benda Ebei.
Gross profit in the first quarter of 2008 increased 89.5% to $2.0 million from $1.1 million in the first quarter of 2007. Gross margin was 33.8%, compared with 35.0% in the same period of 2007.
Charles Wan, Chief Executive Officer of Benda Pharmaceutical, stated, "We are very pleased with the net revenue from Benda Ebei, which increased 136% year over year to $5.9 million. We believe the market opportunity for our products is extremely compelling and we look forward to further increasing our long-term revenue growth and profitability."
Operating expenses in the first quarter were approximately $3.1 million, compared with $0.6 million in the first quarter of 2007. The increase in operating expense is primarily due to increased administrative expenses including a penalty payment paid to investors, a bad debt provision and increased consulting and professional fees.
Wan continued, "We remain very focused on enhancing our revenue performance at SiBiono as well as our gross margin performance across the organization."
Operating loss in the first quarter 2008 was $1.1 million, compared with an operating income of $0.5 million in the first quarter of 2007. This loss was primarily due to a significant increase in general and administrative expenses.
In the first quarter of 2008, Benda realized interest expense of $1.2 million related to the Company's convertible note issued in March 2007.
Net loss in the first quarter of 2008 was $2.2 million, or $0.02 per diluted share, compared to net income of $0.4 million, or approximately breakeven on a diluted share basis, in the first quarter of 2007.
About Benda Pharmaceutical, Inc.
Benda Pharmaceutical, Inc. ( http://www.bendapharma.com ), a China-based pharmaceutical company, produces traditional Chinese and conventional medicines, as well as Gendicine(R), a commercialized gene therapy medicine for the treatment of cancer.
Safe Harbor Statement
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward- looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.
CONTACT: In the U.S.: Christine Duan of Integrated Corporate Relations,
Inc., +1-203-682-8200 (Investor Relations)