Jingwei Reports Fourth Quarter and Record Full Year 2010 Results

SHENZHEN, China, March 31, 2011 /PRNewswire-Asia-FirstCall/ -- Jingwei International Limited (Nasdaq: JNGW), or Jingwei, a leading provider of data mining, interactive marketing and software services in China, today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2010.

Fourth Quarter 2010 Financial Results

Net revenue for the fourth quarter of 2010 increased 4% to $14.0 million, as compared to $13.5 million in the same quarter last year.  The moderate increase was attributed to a continued strong growth of the software service segment, while revenues from the data mining segment trailed the results in the same quarter in 2009. Gross profit increased 24% to $6.1 million in the fourth quarter of 2010, as compared to $4.9 million in the previous year. Gross margin was 44%, as compared to 37% in the same quarter last year. Net income increased 16% to $3.7 million from $3.2 million. Diluted earnings per share increased 6% to $0.18 in the fourth quarter of 2010 from $0.17 in the same quarter in 2009.

Key financial results for the fourth quarter of 2010 versus the fourth quarter of 2009 are summarized as follows:

Full Year 2010 Financial Results

Net revenue increased 24% year over year to $37.6 million in 2010 from $30.3 million in 2009, primarily driven by continuous robust demand for our software and system integration solutions in the telecommunications and power sectors, offset by a small decline in revenues from the data mining segment. Gross profit increased 61% to $18.1 million in 2010 from $11.3 million in 2009. Gross margin was 48% in 2010, as compared with 38% in 2009. Net income increased 66% year over year to $9.9 million in 2010 from $6.0 million in the previous year. Diluted earnings per share increased 54% to $0.52 in 2010 from $0.34 in 2009.

Key financial results for 2010 versus 2009 are summarized as follows:

Rick Luk, Chief Executive Officer of Jingwei stated, "I am happy to report that we had another good quarter in the fourth quarter of 2010, which added a nice finishing touch to the best ever year for the Company in terms of revenue and net income performance. We have not only met our aggressive revenue projection, to finish the year at $37.6 million, but also beaten our revised net income guidance of $9.8 million to reach a record $9.9 million, an increase of 66% compared to $6.0 million in 2009. In addition, we have significantly improved gross and net profit margin due to better product mix, higher operating efficiencies and preferential income tax treatment in 2010. In the quarter, we completed the acquisition of a 100% equity interest in Shanghai Haicom Limited, a provider of internet and mobile value added service platforms to telecom carriers in more than 10 provinces.  This acquisition significantly broadened our mobile VAS portfolio, and extended our reach to a dozen of strategically important regional subsidiaries of China Unicom and China Telecom."

"Looking ahead, we expect the strong growth of 3G user base, 3G related value-added services and mobile internet marketing should continue to drive our business", said Rick Luk. "In these areas, we will keep a sharp focus to leverage our assets and core competences to design, build and operate enhanced mobile value-added service platforms for the regional mobile operators to strengthen our recurring revenue stream to grow our business.  In Software Services, apart from 3G opportunities, we will continue to capitalize on the business opportunity brought on by the 3-Network Convergence program, and expect to see robust demand for our solutions in both the telecom and cable TV sectors as well as for other countries outside China.

BUSINESS OUTLOOK

The Company confirmed that for fiscal 2011, it is forecasting to achieve total revenue of between $45.2 million and $49.2 million, net income of between $11.8 million and $13.0 million, and dilutive earnings per basic share of between $0.58 and $0.64 assuming 20.4 million weighted average common shares outstanding on a dilutive basis.

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" or the "Company") is a leading provider of data mining, interactive marketing and software services in China. By leveraging its proprietary database of over 400 million consumer profiles, Jingwei helps companies to more effectively reach their target audiences. To capitalize on China's rapid growth in mobile, Internet and e-Commerce applications, Jingwei has focused on enhanced data mining offerings that encompass interactive marketing, bundled mobility solutions and mobile value added services.  The Company's software services include business intelligence ("BI"), billing and operations support ("BSS/OSS"), and customer relationship management ("CRM") solutions for Chinese telecom operators and power companies. 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.

-Financial Tables Follow-

SOURCE Jingwei International Limited