Jingwei International Reports 2010 First Quarter Financial Results
SHENZHEN, China, May 17 /PRNewswire-Asia-FirstCall/ -- Jingwei International Limited (OTC Bulletin Board: JNGW; "Jingwei" or the "Company"), a leading provider of data mining, interactive marketing and software services in China, today reported financial results for the first quarter ended March 31, 2010.
FIRST QUARTER 2010 RESULTS
Net revenue for Q1 2010 increased 30% to $5.1 million compared to $3.9 million in the same quarter last year. Net revenues from both data mining and software services segments saw significant improvement in performance over Q1 2009.
In the quarter, the Company's gross margin improved to 53% from 39% in Q1 2009, while its net profit margin improved to 20% from 16% for the same period.
Net income for the quarter increased 64% to $1.0 million with diluted earnings per share of $0.06, compared to net income of $0.6 million with diluted earnings per share of $0.04 a year ago.
The Company ended the quarter with approximately $9.9 million in cash and equivalents. The Company had no bank debt as of March 31, 2010.
Key financial results for first quarter 2010 versus first quarter 2009 are as follows:
=============================
Q1 2010 Q1 2009
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Data Mining Net Revenue $3.1 million $2.2 million
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Software Services Net Revenue $2.0 million $1.7 million
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Net Revenue $5.1 million $3.9 million
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Gross Profit $2.7 million $1.5 million
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Net Income $1.0 million $0.6 million
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Earnings per Diluted Share $0.06 $0.04
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Rick Luk, Chief Executive Officer of Jingwei International commented, "We are encouraged with our improvement in revenue and earnings this quarter compared to last year. The strategic agreement with Shenzhen Newway Digital S&T Co., Ltd. in 2009 has helped the Group expand its offering into 3G related value-added services ("VAS"). In the quarter, the Group successfully opened a call center in Jiangsu Province. This serves as an outsourced 'e-Contact' center with integrated telemarketing and customer care capabilities to support the telecom operators. In software services, we continue to see strong demand in the telecom sector as operators are expanding their deployment of internet protocol TV ("IPTV") and digital TV ("DTV") network nationwide. Moreover, the Company has developed and deployed a pilot 'APP Store' application in the province of Sichuan for a major telecom operator for trial in March; and expects to launch a second system in Shanghai in the second half of 2010."
BUSINESS OUTLOOK
The Company confirmed its previous guidance that for fiscal 2010, it is forecasting to achieve total revenue of between $37.5 million and $42.0 million, net income of between $7.3 million and $8.2 million, and earnings per basic share of between $0.43 and $0.48. This guidance assumes an effective tax rate of 20%. The range of anticipated revenues takes into account both organic growth and the possibility of acquisition related growth within the context of current economic conditions
About Jingwei International
Jingwei International Limited ("Jingwei") is a leading provider of data-mining, Interactive Marketing Services and Mobile Internet marketing solutions in the fast growing Chinese market. Powered by advanced data mining technology and a proprietary database of over 400 million Chinese consumers, Jingwei enables leading Chinese companies as well as international brands to reach their target audiences. The Company's products and services include software services and system integration, data mining and business intelligence services, interactive marketing, mobile internet marketing, wireless VAS and Mobile Products. Jingwei is evolving into a dominant player in interactive marketing services and mobile internet marketing solutions in China.
For more information, please visit the Company's web site: http://www.jingweicom.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with effects of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact:
Yong Xu or Vanessa Bao
Tel: +86-755-8631-9436
Email: [email protected]
Jingwei International Limited and Subsidiaries
Consolidated Balance Sheets
(Stated in US Dollars)
March 31, 2010 December 31, 2009
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 9,908,282 $ 10,238,930
Inventories 4,471,802 2,316,043
Accounts receivable, less
allowance for doubtful
accounts of $972,500 and
$1,266,293, respectively 23,586,226 23,456,704
Other receivables, prepayments
and deposits, less allowance
for doubtful accounts of
$175,740 and $175,712, respectively 1,914,575 3,219,008
Deferred tax assets 224,115 257,837
Total current assets 40,105,000 39,488,522
Non-current assets
Property and equipment, net 1,445,278 1,385,438
Intangible assets, net 15,521,949 16,283,425
Long-term investment 1,737,833 1,737,553
Total non-current assets 18,705,060 19,406,416
Total assets $ 58,810,060 $ 58,894,938
Jingwei International Limited and Subsidiaries
Consolidated Balance Sheets (Continued)
(Stated in US Dollars)
March 31, 2010 December 31, 2009
(Unaudited)
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 2,961,446 $ 4,152,787
Accruals and other payables 1,175,089 1,279,474
Income tax payable 1,770,229 1,718,786
Loan from a stockholder 369,462 369,462
Total current liabilities 6,276,226 7,520,509
Non-current liabilities
Other liabilities 2,990,832 2,930,257
Total liabilities 9,267,058 10,450,766
Equity
Common stock, $0.001 par value;
75,000,000 shares authorized,
17,049,000 shares issued
and outstanding 17,049 17,049
Additional paid-in capital 15,708,374 15,643,139
Statutory and other reserves 2,916,292 2,916,292
Retained earnings 20,753,968 19,734,935
Accumulated other comprehensive
income 2,667,909 2,654,550
Total Company's stockholders'
equity 42,063,592 40,965,965
Noncontrolling interest 7,479,410 7,478,207
Total equity 49,543,002 48,444,172
Total liabilities and equity $ 58,810,060 $ 58,894,938
Jingwei International Limited and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
(Stated in US Dollars)
Three Months Ended March 31,
2010 2009
(Unaudited) (Unaudited)
Sales $ 5,119,752 $ 3,943,718
Cost of sales 2,421,935 2,422,306
Gross margin 2,697,817 1,521,412
Operating expenses
Selling, general and administrative
expenses 1,013,875 403,377
Research and development costs 733,202 253,857
1,747,077 657,234
Income from operations 950,740 864,178
Other income (expense)
Subsidy income 309,249 121,216
Interest income 23,008 4,024
Interest expense (1,728) --
Other expense (46,105) (14,066)
284,424 111,174
Income before income taxes 1,235,164 975,352
Income tax expense 216,131 354,654
Net income 1,019,033 620,698
Less: net income attributable to
noncontrolling interest -- --
Net income attributable to the
Company's stockholders 1,019,033 620,698
Foreign currency translation
adjustment 13,359 43,520
Comprehensive income $ 1,032,392 $ 664,218
Comprehensive income attributable to
noncontrolling interest 1,203 18,547
Comprehensive income attributable to
the Company's stockholders 1,031,189 645,671
Basic earnings per share $ 0.06 $ 0.04
Diluted earnings per share $ 0.06 $ 0.04
Weighted average number of shares
outstanding
Basic 17,049,000 17,049,000
Diluted 17,218,712 17,049,000
Jingwei International Limited and Subsidiaries
Consolidated Statements of Cash Flows
(Stated in US Dollars)
Three Months Ended March 31,
2010 2009
(Unaudited) (Unaudited)
Cash flows from operating activities
Net income $ 1,019,033 $ 620,698
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation and amortization 856,078 527,181
Share-based compensation expense 65,235 39,303
Change in operating assets and liabilities:
Accounts receivable, net (129,522) 281,895
Other receivables, prepayments and
deposits 1,304,404 353,547
Inventories (2,155,758) 390,073
Deferred tax assets 33,722 --
Accounts payable (1,191,341) (830,274)
Accruals and other payables (104,385) (410,779)
Income tax payable 51,443 179,347
Net cash (used in) provided by operating
activities (251,091) 1,150,991
Cash flows from investing activities
Acquisition of property and equipment (152,828) (10,289)
Acquisition of intangible assets -- (3,433)
Long-term investment -- (49,520)
Net cash used in investing activities (152,828) (63,242)
Cash flows from financing activities
Repayment of loan from a stockholder -- (71,579)
Net cash used in financing activities -- (71,579)
Effect of foreign currency fluctuation on
cash and cash equivalents 73,271 6,883
`
Net (decrease) increase in cash and cash
equivalents (330,648) 1,023,053
Cash and cash equivalents - beginning of
period 10,238,930 5,472,408
Cash and cash equivalents - end of period $ 9,908,282 $ 6,495,461
Cash paid during the year for:
Income tax paid $ 131,220 $ 175,317
Interest paid $ -- $ --
SOURCE Jingwei International Limited
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