China-based pharmaceutical firm American Oriental Bioengineering, Inc. (AOB: News ), reported Monday a decline in its first-quarter profit that missed Street estimates by a penny. The results were hurt by interest expense and higher operating costs.
For the first quarter, net income came down to $7.9 million or $0.11 per share from $9.4 million or $0.12 per share in the previous year.
The results of the latest quarter included $1.7 million of interest expense related to the company's outstanding convertible notes.
On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share in the first quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter grew 18.9% to $46.1 million from $38.8 million, reflecting continued demand for the core pharmaceutical and nutraceutical products.
Five analysts expected the company to report revenue of $48.37 million in the first quarter.
Revenue from pharmaceutical products increased 8.9% year-over-year to $34.7 million from $31.9 million, as prescription pharmaceutical products revenue increased 14.5% to $16.2 million and Over The Counter pharmaceutical products generated $18.5 million, roughly flat to the prior year period.
Revenue from Nutraceutical segment increased 29% to $8.9 million from the prior year period.
Selling and marketing expenses increased to $5.2 million from $5.0 million, while general and administration costs rose to $4.6 million from $3.9 million, mainly due to marketing and promotional initiatives related to Jinji and Boke products. Advertising expense increased 26.7% to $5.6 million from $4.4 million in the prior year period.
Total operating expenses increased to $17.20 million from $14.31 million in the prior year.
AOB is currently trading at $4.89, down $0.56 or 10.28%, on the NYSE.
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