Winner Medical sees healthy growth in Q2
Winner Medical Group Inc reported unaudited financial results for the second quarter ended March 31, 2009. The Company's results are detailed in its form 10-Q, filed today with the United States Securities and Exchange Commission.
Second Quarter 2009 Highlights
• Total net sales revenue increased by 15.31% over the second quarter of fiscal 2008 to $20.63 million
• Gross profit increased by 46.81% over the second quarter of fiscal 2008 to $5.80 million
• Operating income increased by 356.30% over the second quarter of fiscal 2008 to $2.10 million
• Net income increased by 188.42% over the second quarter of fiscal 2008 to $1.64 million
• Net income per share for the second quarter of 2009 was $0.04 per basic and diluted share, compared to $0.01 per basic and diluted share for the second quarter of fiscal 2008
Jianquan Li, Chairman and Chief Executive Officer of Winner Medical, commented, "We are pleased to announce a strong quarter of increases in sales and net profit. The sales growth was driven by increased orders of our products, particularly from customers in the US. We also improved gross margin and net margin in the second quarter through implementing cost control measures and equipment technical improvements that optimize production efficiency."
Mr. Li continued, "However, looking into the future, the current economic crisis has created great uncertainties on the future market demand and the price level of our products. Thus, considering the related risks, we think the second half of fiscal year 2009 will be tough, and we decide to lower our fiscal year 2009 guidance to an estimate of 15% to 18% increase in net sales from last fiscal year."
Second Quarter 2009 Unaudited Financial Results
Revenue: Winner Medical reported net sales revenue of $20.63 million, a 15.31% increase over the second quarter of fiscal 2008. Healthy revenue growth was mainly due to strong demand, particularly in North and South America; revenue from North and South America was approximately $4.03 million for the second quarter of fiscal 2009, an increase of 158.37% compared to the same period in 2008. The North and South American market accounted for 19.53% of total revenue for the quarter ended March 31, 2009.
Gross Profit: For the second quarter of fiscal 2009, gross profit was $5.80 million, an increase of 46.81% over $3.95 million in the same period of fiscal 2008. Gross margin was 28.13%, versus 22.09% achieved in the second quarter of fiscal 2008.
The increase in gross margin was mainly due to the unit product cost decrease as a result of better economies of scale; the improvement of the Company's cost control, equipment technical improvement and lean production management that increased production efficiency and reduced production waste; and the decrease of material purchasing price as the Company combined individual purchases by each subsidiary into larger scale orders to create more bargaining power.