RICHMOND, British Columbia— Chai-Na-Ta Corp. (OTCBB:CCCFF), a leading supplier of North American ginseng, released its first quarter 2010 (1Q10) financials, improving on the comparable 2009 period, but still down for the quarter. Its net loss of $142,000 for 1Q10 compared to a net loss of $0.7 million in 1Q09; however, revenue decreased to $825,000 in 1Q10 from $2.9 million in the comparable 2009 period. Gross profit was 4.0 percent of sales revenue for the 2010 quarter, compared to a gross loss of 0.5 percent in 1Q09.
“We sold 8 percent of our 2009 harvest root by March 31, 2010 with 98 percent of the remaining root committed to customers,” said Derek Zen, chairman. “Chai-Na-Ta’s average selling price increased to $8.41 per pound in the first quarter of 2010 from $7.67 per pound in the first quarter of 2009. While 2010 will remain challenging, we are on track with our efforts to reduce operating and overhead costs. Selling, general and administrative expenses fell to $203,000 in the first quarter of 2010, a decrease of 17.8 percent from the same period last year.”
