Nov 27 2009
Chai-Na-Ta Corp. (OTCBB:CCCFF), one of the world's largest suppliers of North American ginseng, today announced a third quarter 2009 net loss of $136,000, or less than $0.01 per basic share, compared to a net loss of $2.0 million, or $0.06 per basic share, in the same period last year.
Revenue increased to $1.3 million in the third quarter of 2009 from $866,000 in the prior year period. The company has a gross loss of 7% of sales revenue in the 2009 third quarter compared to no gross margin in the same period last year.
"We had sold 56% of our 2008 harvest root by September 30, 2009 with the entire remaining root committed to customers," said Derek Zen, Chairman of the Company, "Chai-Na-Ta's average selling price decreased to $8.80 per pound in the first nine months of 2009 from $9.54 per pound in 2008.
"While 2009 will remain challenging, we are on track with our efforts to reduce operating and overhead costs," added Mr. Zen, "Selling, general and administrative expenses fell to $704,000 in the first nine months of 2009, a decrease of 3.4% from the same period last year."
In the nine months ended September 30, 2009, revenue decreased to $6.0 million from $7.6 million in the first nine months of 2008. Net earnings in the first nine months of 2009 was $654,000, or $0.02 per basic share, compared to a net loss of $2.6 million, or $0.08 per basic share in the same period last year.
The working capital position as at September 30, 2009 was a surplus of $4.9 million compared to a surplus of $5.5 million at December 31, 2008.