HANGZHOU, China, Nov. 15 /PRNewswire-FirstCall/ -- Aida Pharmaceuticals, Inc. , one of mainland China's leading pharmaceutical companies, today announced the Company's financial results for the third quarter ended September 30, 2006. The Company reported its EPS doubled, its net income more than doubled and its gross margins improved sequentially during the third quarter. Management believes this positive trend in performance will remain intact in future quarters. Full details of the Company's quarterly financial results are available in the Company's Form 10-QSB at http://www.sec.gov.
Aida Pharmaceuticals Third Quarter 2006 Financial Highlights: * Revenues for the third quarter ended September 30, 2006 totaled $7,023,891, a 12.4% increase from revenues of $6,249,343 for the quarter ended September 30, 2005 and a sequential decrease of 3.6% from revenues of $7,284,888 for the quarter ended June 30, 2006. * Gross profit totaled $3,920,375 in the third quarter of 2006, an increase of 5.8% sequentially versus gross profit of $3,705,188 in the second quarter of 2006, and a decrease of 16.7% versus gross profit of $4,706,164 in the third quarter of 2005. The gross profit margin for the third quarter of 2006 increased to 55.8% from 50.9% in the second quarter of 2006. * Net income totaled $919,285, increasing 130.4% sequentially versus net income of $398,888 in the second quarter of 2006 and increasing 25.8% versus net income of $730,540 in the third quarter of 2005. The Company reported earnings per share of $0.04 in the third quarter of 2006, versus $0.02 in the second quarter of 2006 and $0.03 in the third quarter of 2005. * Cash and equivalents totaled $4,934,553 and shareholders' equity totaled $8,854,118 at the end of the third quarter of 2006. Weighted average shares outstanding were 26,782,609 for the third quarter of 2006. Financial Performance:
Revenues in the third quarter of 2006 increased by 12.4%, to $7,023,891, versus revenues of $6,249,343 in the third quarter of 2005 and decreased sequentially by 3.6% from revenues of $7,284,888 in the second quarter of 2006. The sequential decrease reflects the fact that the Company is refining its sales system to offer more flexible choices for customers among the different forms of the Company's antibiotic, Etimicin Sulfate (powder, transfusion and injection). This change resulted in a moderate rebalancing in the sales mix in the third quarter of 2006 versus that of the second quarter of 2006, with powder revenues up approximately 1%, transfusion revenues down 23.1% and injection revenues up 66.5%.
Gross profit in the third quarter of 2006 increased 5.8% sequentially to $3,920,375, versus gross profit of $3,705,188 in the second quarter of 2006. Gross margins increased sequentially to 55.8% from 50.9% in the second quarter of 2006. The sequential increase in the gross profit margin was due to the stabilization of higher margin Etimicin Sulfate powder sales in the third quarter versus the decline in powder sales seen in the second quarter.
Net income increased 130.4% to $919,285 in the third quarter of 2006 from net income of $398,888 in the second quarter of 2006 and increased 25.8% versus net income of $730,540 in the third quarter of 2005. Selling and distribution expenses continued to decline significantly, following the Company's rationalization of its sales force structure and costs in the second quarter of 2006. Sales and distribution expenses declined from $2,517,041 in the third quarter of 2005, to $1,863,507 in the second quarter of 2006 and to $1,175,000 in the third quarter of 2006.
Aida Pharmaceuticals' Chairman, Jin Biao, stated, "The modifications to our sales process that have changed our revenue mix over the near-term will ensure that we positively meet our customers' needs over the long-term. These sales-mix changes, along with an increase in the cost of Etimicin Sulfate raw materials, first appeared in our financial results in early 2006. We will have cycled through this period of change shortly, with comparisons becoming normalized again in the first quarter of 2007. With our gross margins stabilizing, our sales costs down and future revenues continuing to grow, I believe we're positioned to see strong earnings growth over the near-term. We continue to expect our revenue and earnings growth to average 30% per year over the next five years, as a result of strong growth in Etimicin Sulfate consumption, along with our pipeline of new drugs for cancer, hepatitis and stroke and our focus on selective acquisitions."
COMPARATIVE RESULTS For Quarter Ended 9/30/06 9/30/05 6/30/06 Revenue $7,023,891 $6,249,343 $7,284,888 Cost of Goods Sold (3,103,516) (1,543,179) (3,579,700) Gross Profit 3,920,375 4,706,164 3,705,188 Gross profit margin (%) 55.8% 75.3% 50.9% Net Income 919,285 730,540 398,888 Income (loss) per share 0.04 0.03 0.02 Weighted avg shs 26,782,609 23,375,000 25,000,000 outstanding About Aida Pharmaceuticals:
Aida Pharmaceuticals is a product-focused pharmaceuticals company engaged in the formulation, clinical testing, registration, manufacture, sales and marketing of advanced pharmaceutical and genetic products in mainland China. The Company's mission is to discover, develop and market meaningful new therapies that improve human health. Aida, in operation since March 1999, is headquartered in Hangzhou, China with manufacturing, distribution and sales points throughout mainland China. Aida is GMP certified in China and ISO9002 certified for quality assurance and ISO14000 certified for ecologically-friendly practices. Aida is now producing and marketing a patented prescription drug in China, Etimicin Sulfate. It is the first antibiotic developed in China and is regarded as a category "A" drug by the State Food and Drug Administration of China.
Contact Information: Aida Pharmaceuticals, Inc. 31 Dingjiang Road Jianggan District Hangzhou, China 310016 http://www.aidapharma.com Investor Relations: Equity Performance Group Gary Geraci (617) 723-2373 gary@equityperfgp.comhttp://www.equityperformancegroup.com Safe Harbor Statement: Under the Private Securities Litigation Reform Act of 1995:
This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on Aida Pharmaceuticals, Inc.'s management's current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to Aida Pharmaceuticals, Inc. as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. These forward-looking statements may relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Further information on risks or other factors that could affect Aida Pharmaceuticals, Inc.'s results of operations is detailed in its filings with the United States Securities and Exchange Commission available at http://www.sec.gov.
Aida Pharmaceuticals, Inc.CONTACT: Investor Relations: Gary Geraci of Equity Performance Group,+1-617-723-2373, gary@equityperfgp.com
Web site: http://www.aidapharma.com/
