Bodisen Biotech Announces Record Earnings for the First Quarter of 2005.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Bodisen Biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. , Inc., (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BBOI, website: (www.bodisen.com) announced today that it recorded substantial growth in sales from the production and sale of its organic fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. and pesticide pesticide, biological, physical, or chemical agent used to kill plants or animals that are harmful to people; in practice, the term pesticide is often applied only to chemical agents. products for the first quarter of 2005. The following are some of the key financial highlights for the period ended Mar. 31, 2005 from the company's quarterly report filed with the SEC today: --Revenues of $4,701,675, an increase of 115% compared to the three month period ended Mar. 31, 2004 --Net Income of $796,733, an increase of 89% compared to the three month period ended Mar. 31, 2004 --Gross Profit $1,654,178, an increase of 90% compared to the three month period ended Mar. 31, 2004 --Earnings Per Share of $0.05, an increase of 67% compared to the three month period ended Mar. 31, 2004 Revenue. For the three month period ended March 31, 2005 as compared to the three month period ended March 31, 2004, the Company generated net revenues of $4,701,675 and $2,186,089, respectively, reflecting an increase of $2,515,586 or 115%. The increase in revenues was primarily attributable to increased marketing efforts, which resulted in an increase in our customer base and related volume of recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. and new customer sales. Net Income. The Company's net income was $796,733 for the three months ended March 31, 2005, an increase of $375,759 or 89% compared to $420,974 for the three months ended March 31, 2004. The increase is attributed to the substantial growth in the demand for the Company's products throughout China. The net income reflects a one-time charge of $416,703 associated with the aggregate fair value of the warrants which were issued in connection with the $3 million convertible financing which we completed on March 16, 2005. The net income would have been $1,213,436 in the absence of this one-time charge, reflecting the substantial increase in the demand for our products in the markets in which we operate. Gross Profit. The Company achieved a gross profit of $1,654,178 for the three months ended March 31, 2005, an increase of $781,393 or 90%, compared to $872,785 for the three months ended March 31, 2004. Gross margin, as a percentage of revenues, decreased from 40% for the three months ended March 31, 2004, to 35% for the three months ended March 31, 2005. The decrease in gross margin is primarily attributable to an increase in sales of lower margin fertilizer products. Ms. Qiong Wang (Wang Laboratories, Inc., Lowell, MA) A computer services and network integration company. Wang was one of the major early contributors to the computing industry from its founder's invention that made core memory possible, to leadership in desktop calculators and word processors. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Bodisen, commented "In the long term, 2005 will prove to be a significant year for Bodisen in respect to the company's development. The completion of our state of the art manufacturing facility has allowed us to increase our production capacity significantly in the first quarter of 2005. Also our aggressive marketing campaign in China will further our endeavor to increase our brand awareness throughout China. I am also satisfied with the significant strategic investment that Bodisen completed in March 2005, which will assist us in executing our growth and expansion plans for the future. For all these reasons, I am confident about our capability to become a leading national player in the organic fertilizer industry in China in 2005 and beyond." Utilizing proprietary technologies, Bodisen sells over 60 packaged products in 3 product categories: Organic Compound Fertilizer; Organic Liquid Fertilizer; and Pesticides & Insecticides insecticides, chemical, biological, or other agents used to destroy insect pests; the term commonly refers to chemical agents only. Chemical Insecticides . Bodisen's organic fertilizers can be absorbed by plants within 48 hours while enriching soil conditions without the damaging effects associated with chemical fertilizers. About Bodisen Biotech, Inc. Bodisen is headquartered in Shaanxi, China, an agricultural hub of China and the economic gateway to the western regions of China. The Bodisen brand is a highly respected organic brand in China. Its "green" products support the mandate of the Chinese national government to increase crop yields for the purpose of decreasing China's dependency on food imports. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the current expectations or beliefs of Bodisen Biotech, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. |
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