AXM Pharma Announces Record Revenue and Profit Monday August 15, 4:00 pm ET
LAS VEGAS, NV--(MARKET WIRE)--Aug 15, 2005 -- AXM Pharma, Inc. (AMEX:AXJ - News) announced today financial results for the quarter ended June 30, 2005. ADVERTISEMENT
During the three-month period ended June 30, 2005 AXM entered into the Company's first three international markets for its line of Sunkist labeled products. The new markets where products were launched were Hong Kong, Taiwan and Shanghai. This -- combined with the ramp up of AXM's new factory in Shenyang, China -- enabled the Company to record the best sales quarter in its history. Sales for the three months ended June 30, 2005 were $3,220,978, representing a sales increase of $2,242,315 or 229%, from the three-month period ended June 30, 2004. Sales for the six-month period ended June 30, 2005 were $3,249,238 compared to $2,097,628 for the six months ended June 30, 2004. This represents an increase of $1,151,610 or 54%.
Gross profit for the three months ended June 30, 2005 was $1,707,838 compared to $513,228 for the three-month period ended June 30, 2004, an increase of $1,194,610 and 232%. This tripling of the gross profit is attributable to the record sales reported for the quarter. For the six months ended June 30, 2005, the gross profit was $1,712,623 or an increase of $660,767, 62% greater than the comparable six-month period last year. Operating income for the three months ended June 30, 2005 was $678,348 compared to an operating loss of $4,353,251.
During the quarter ended June 30, 2005, AXM had total general and administrative expense of $1,029,490 compared to $4,866,479 for the comparable period in 2004, a decrease of $3,836,989. This general and administrative expense included $301,266 in non-cash general and administrative expense. For the sixth month period ended June 30, 2005, we had total general and administrative expenses of $4,136,568 compared to $7,900,493, a decrease of $3,763,925. This general and administrative expense included approximately $1,600,000 in non-cash general administrative expense.
The reason for the significant improvement in both cash and non-cash general and administrative expenses was the lack of significant consulting expense as compared to the prior year while AXM's new factory was undergoing construction and the Company was establishing infrastructure to enter various markets.
During the quarter the Company incurred $498,939 in interest expense with $126,755 in interest on bank loans in AXM's subsidiary in Shenyang China and $372,184 in interest charges relating to the debt discount on notes payable financing in April 2005.
AXM generated its first quarterly net profit two quarters ahead of management expectations. For the three months ended June 30, 2005 AXM had net income of $179,409 compared to a loss of $4,353,251 for the three months ended June 30, 2004. This represents an improvement of $4,532,660.
This significant improvement in operating results was the result of large increases in sales and corresponding gross profit improvements coupled with reductions in general and administrative expense as well as the reduction of costs associated with completion of our factory and resultant reductions in outside consulting expense.
"We are extremely pleased with the progress we have made as a company in 2005," said Chet Howard, CEO, AXM Pharma Inc. "We have spent a considerable amount of time, capital, and effort to build a new factory and establish ourselves as a strong, independent player in both China and the broader Asian marketplace and we're proud of how far we have come."
AXM Pharma Inc., http://www.axmpharma.com, through its wholly owned subsidiary, Werke Pharmaceuticals, Inc., is the 100% owner of AXM Pharma Shenyang, Inc. ("AXM Shenyang"), a Wholly Foreign Owned Enterprise ("WFOE") under the laws of the People's Republic of China. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang and its predecessor company Shenyang Tianwei Pharmaceutical Factory, Ltd. ("STPF"), has an operating history of approximately 10 years. AXM Shenyang historically has been a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. For additional information on AXM Pharma Inc, please visit http://www.iccinfo.com or call Investor Communications Company, LLC at 866 562 0134.
Should be good for a nice run tomorrow IMO
-------------------- ......in Psychiatry circles it's known as a "warning sign"
IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
