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Winner Medical Reports First Quarter of Fiscal 2012 Results
1Q12 Revenues up 22.6% YoY to $41.3 million
1Q12 Net Income down 23.7% YoY to $2.5 million
SHENZHEN, China, February 9, 2012 -- Winner Medical Group Inc. (Nasdaq: WWIN) (“Winner Medical” or the “Company”), a leading China-based exporter and retailer of high-quality medical dressings and consumer products made from 100% cotton, today reported consolidated financial results for the first quarter of fiscal 2012, which ended December 31, 2011.
First Quarter of Fiscal 2012 Financial Highlights
|·||Revenues increased by 22.6% to $41.3 million from $33.7 million in the same quarter of fiscal 2011.|
|·||Gross Profit increased by 8.6% to $10.3 million from $9.5 million in the same quarter of the previous fiscal year.|
|·||Gross Margin decreased to 24.9% from 28.1% in the same quarter of fiscal 2011.|
|·||Net Income attributable to Winner Medical decreased by 23.7% to $2.5 million from $3.3 million in the same quarter of the previous fiscal year.|
|·||Both Basic and Diluted Net Income per Share were $0.10.|
Mr. Jianquan Li, chairman of the board of directors and chief executive officer of Winner Medical, commented, “During the past quarter, we achieved revenue growth in both our medical and PurCotton businesses. Sales in Europe, our largest market, increased by 45.8% to $13.1 million in the first quarter of fiscal year 2012, despite the lower selling prices of certain products due to a challenging macro environment brought on by the European debt crisis and tightening budgets at hospitals. We are particularly encouraged by increasingly strong domestic sales in China, which reached $12.1 million in the three-month period ended December 31, 2011. As a percentage of revenue, sales in China increased to 29.3%, second only to Europe.”
Mr. Li continued, “For the medical business in China, we have been actively expanding our sales channels by increasing the number of local distributors covering more hospitals and penetrating deeper into existing hospital customer bases, drug store retail chains and other sales channels. In the first quarter of fiscal 2012, we opened two more of our self-branded PurCotton retail stores. As of December 31, 2011, the Company operated 41 retail stores in China, compared to 28 at the end of the same quarter of the previous fiscal year. As more customers come to appreciate our “PurCotton” brand, we have seen our customer loyalty program membership rapidly increase to approximately 40,000 members in February 2012. Meanwhile, the repurchase rate for members of our customer loyalty program is more than 60%.”
Mr. Xiuyuan Fang, chief financial officer of Winner Medical, added, “We are pleased to have maintained positive gross profit growth in the first quarter of the 2012 fiscal year. Our gross margin declined somewhat to 24.9% from 28.1% in the same quarter of the previous fiscal year, mainly due to lower selling prices for certain long-term customers in Europe and the U.S. and a higher average purchase price for cotton, which we had purchased in previous quarters. During this time of tough macroeconomic conditions and business expansion into the Chinese market, our operating and net margins will be under some pressure. Yet, we believe that we are acting in strategically prudent ways that will better position the Company for enhanced profitability in the future.”
The following information was filed by Winner Medical Group Inc on Friday, February 10, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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