China Sky One Increases 2008 Guidance

China Sky One Medical (CSKI) increased its full-year 2008 revenue and income guidance. The company upped its expectations for 2008 revenue by 9%, rising from $82 million to $89 million. Net income is now predicted to jump 5% higher. Instead of $26.3 million, the company expects to earn approximately $27.5 million.

China Sky One’s gross margin was the only negative in its latest guidance. The company said gross margins are expected to equal 77%, a decline from the previous expectation of 78.5%.

China Sky One attributed the improvements in its outlook to a robust advertising campaign and recent acquisitions, including the start of production at Peng Lai Jin Chuang Company, which China Sky One acquired in June. Jin Chuang is a new company, so its production facilities are just now getting under way. China Sky One predicts Jin Chuang will marginally increase 2008 results, but the full effect of the acquisition will wait until Jin Chuang’s production levels ramp up closer to full capacity.

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