Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). And our first question comes from [Bruce Zipper with Dakota Securities]. Please go ahead.
Bruce Zipper - Dakota Securities
Yes good morning. My question is regarding the year 2007. Can you give the shareholders a forecast of how you think -- at least the first quarter or two would be as far as profitability is concerned?
Peter Mak
Are you referring to a net income guidance?
Bruce Zipper - Dakota Securities
Yeah, net income would be fine. If you want to expand into a different type, then that's fine. But just talk about what kind of bottom-line profits the company thinks it can achieve as you start '07?
Peter Mak
Okay. You probably understand that in the year 2006, we have experienced a net loss position because of the two non-cash charges. One of them is the stock-based compensation, which I don't think will happen again in the year 2007. But the second one, the one that relates to loss on fair value adjustments to embedded derivatives, I just cannot tell because it is correlated to the stock price.
Okay. So, assuming everything is unchanged and there would not be that loss again in the first quarter, assuming there is no change in stock price. But this is unlikely. But anyway, given that our continuous growth of business and the continuous cost control on the G&A expenses, I am very sure that if we take away these non-cash charges, we definitely will achieve a very reasonable return on the net income level.
As I explained just now, if we put these, what we call the non-GAAP income as the basis, our net income percentage for the past three years are the same, 13%.
So, if we continue to grow our business in term of revenue, like for example. If we can achieve another 20% growth in revenue, assuming we maintain the net income percentage of 13%, then you can roughly calculate the bottom-line on the first quarter and the second quarter. That's my answer.
Bruce Zipper - Dakota Securities
Okay. Also one other question, I noticed you people went into the ginger business, in other words producing ginger?
Peter Mak
It's ginger powder, not ginger.
Bruce Zipper - Dakota Securities
Yeah, ginger powder, I'm sorry. Can you discuss that and how that's going and if you think that's going to be a strong product for you guys in '07?
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