Tianyin Pharmaceutical announces fiscal 2009 financial results

Q4 FY 2009 Revenues increased 43.2% to $13.3 Million, Net Income increased 41.8% to $2.2 Million with diluted EPS of $0.08 -- FY 2009 Revenues increased 28.2% to $42.9 Million and Net Income Increased 32.4% to $7.9 Million vs. FY08 with diluted EPS of $0.32 -- FY 2009 Cash flow from operations increased 124.8% to $8.3 Million -- June 30, 2009 Cash and equivalents of $12.4 million, working capital of $19.3 million and current ration of 5.4 to 1 -- Completed construction and received GMP approval for its new manufacturing facility -- Company successfully launched 9 products during FY09 -- Reaffirms Fiscal 2010 Guidance: Revenues Expected to Exceed $59 Million with a Net Income of at Least $10.5 million

Tianyin Pharmaceutical Co., Inc., (NYSE Amex: TPI), a developer, manufacturer and supplier of modernized traditional Chinese medicine ("TCM") and generic pharmaceuticals in China, today announced Annual 2009 financial results ended June 30, 2009.

Fourth Quarter Ending June 30, 2009 Financial Results

Fourth quarter 2009 revenues were $13.3 million, representing a 43.2% increase from $9.3 million recorded in the fourth quarter of fiscal 2008. The increase was driven by enhanced marketing and advertising programs supporting a broader product portfolio and improvements in the Company's sales channels which led to increased market penetration. Revenues in the fourth quarter generated by the top three selling products, Ginkgo Mihuan Oral Liquid, Arpu Shuangxin Oral Liquid, and Azithromycin Dispersible Tablets, were collectively $7.8 million and represented approximately 58.6% of total revenues for the quarter. During the fourth quarter of fiscal 2008 sales of top three products were approximately $5.9 million which represented 63.4% of total revenue.

Cost of sales in the fourth quarter 2009 increased 41.6% to $6.8 million, from $4.8 million in the fourth quarter of 2008. Gross profit in the fourth quarter 2009 was $6.5 million, a 44.9% increase from $4.5 million in the fourth quarter of 2008.

Gross margins were 48.7% in the fourth quarter of 2009, compared to 48.9% in the third quarter of 2009 and 48.2% in the fourth quarter of 2008.

Operating expenses were $3.7 million and operating income was $2.8 million in the fourth quarter of 2009, representing a 45.2% increase from $1.9 million reported in the fourth quarter of 2008.

Net income for the quarter was $2.2 million, up 41.8% from net income of $1.5 million in the same period a year ago. Income taxes were approximately $0.5 million representing an effective tax rate of 18.5%.

Fully diluted earnings per share were $0.08 for the last quarter of 2009, compared to fully diluted earnings per share of $0.05 in the fourth quarter of 2008.

Tianyin incurred a one time impairment loss on intangible assets of $0.4 million related to Huganning Tablets, Qianbai Biyan Tablets and Xiaoyan Lidan Tablets. Without this charge net income would have been $2.6 million with diluted EPS of $0.10 based on 26.3 million shares.

Dr. Guoqing Jiang, Chief Executive Officer of Tianyin, commented, "We are very pleased with our financial results. Several factors contributed to our strong performance for the fiscal year as growth accelerated in the fourth quarter. These included our ability to achieve SFDA approvals and launch several new products, an expanded marketing strategy focused on branding key products, and our ability to gain market share by leveraging a large internal sales team with key distributors. We met a significant milestone by completing the construction of our new production facility which greatly improves our capacity to support growth during fiscal 2010 and beyond. While the past year was challenging for the global marketplace, we took decisive corporate actions which included issuing a cash dividend and buying back stock to reward our loyal shareholders."

http://www.tianyinpharma.com