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SHENZHEN, China, Nov. 13 /Xinhua-PRNewswire-FirstCall/ -- Jingwei International Limited (OTC Bulletin Board: JNGW - News; "Jingwei" or the ¡°Company¡±), one of the leading providers of data mining and customer relationship marketing services in China, today announced financial results for the three month and nine month periods ended September 30, 2009. The Company plans to file its 10-Q on Monday November 16, 2009.
Recent Financial Highlights:
- Net Income increased 85% to $1.5 million in the third quarter compared to the second quarter in 2009;
- Revenue increased 114% to $8.8 million in the third quarter compared to the second quarter in 2009;
- Net income decreased 62% to $2.9 million in the nine months of 2009 compared to the same period last year
- Revenue decreased 27% to $16.8 million in the nine months of 2009 compared to the same period last year
- Gross margin in the nine months of 2009 was 38% compared to 52 % in the same period last year
- Third quarter 2009 net income decreased 21% to $1.5 million compared to the third quarter last year
- Third quarter 2009 gross margin was 39% compared to 40% in the third quarter last year
Rick Luk, Chief Executive Officer of Jingwei International stated, ¡± We are very excited about the significant improvement of revenue and earnings in the third quarter of 2009 compared to the previous two quarters. Based on the results, we believe management actions taken in the third quarter are on track; and we expect this momentum to continue as the global economy continues to recover. In the quarter, we enjoyed a significant increase of demand for our services as result of our added capabilities driven by the full deployment of 3G in the telecom sector and the increased subscriber base in the PRC. For the full year, while we still expect our results to trail behind 2008, we are forecasting a strong growth of revenue and earnings in the second half compared to the first half of 2009.¡±
Third Quarter Ended September 30, 2009
Revenue for the third quarter increased 2% to $8.8 million from $8.6 million in the third quarter of 2008.
Gross profit decreased 1% to $3.39 million from $3.44 million in the third quarter of 2008. Gross margin in the quarter was 39% compared to 40% in the same period in 2008.
Income from operations was $1.4 million, down 30% from $2.0 million in the third quarter of 2008. Operating margin was 16% in the third quarter of 2009 compared to 23% during the third quarter of last year.
Net income decreased 21% to $1.5 million, or $0.09 per diluted share in the third quarter of 2009 from $1.9 million, or $0.11 per diluted share in the third quarter of 2008.
Please refer to the table below for the breakdown of segment performance in the three month periods ended September 30, 2009 and 2008.
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Three Months Ended September 30 |
|
|
2009 |
|
2008 |
|
|
Datamining Services |
|
Software Services |
|
Total |
|
Datamining Services |
|
Software Services |
|
Total |
Net Revenue |
$ |
5,451,796 |
$ |
3,311,371 |
$ |
8,763,167 |
$ |
5,959,194 |
$ |
2,609,166 |
$ |
8,568,360 |
Gross Profit |
|
2,271,341 |
|
1,122,582 |
|
3,393,923 |
|
2,433,045 |
|
1,008,099 |
|
3,441,144 |
Gross Margin |
|
42% |
|
34% |
|
39% |
|
41% |
|
39% |
|
40% |
Nine Months Ended September 30, 2009
For the nine months ended September 30, 2009, revenue decreased 27% to $16.8 million from $23.1 million in the nine months of 2008. During this same time period, gross profit decreased 47% to $6.4 million from $12.0 million. Gross margin is 38% compared to 52% in the same period last year. Income from operations decreased 66% to $2.8 million from $8.3 million in the nine months of 2008, and net income decreased 62% to $2.9 million, or $0.17 per diluted share, from $7.7 million, or $0.45 per diluted share, in the nine months of 2008.
Please refer to the table below for the breakdown of segment performance in the nine month periods ended September 30, 2009 and 2008.
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|
Nine Months Ended September 30 |
|
|
2009 |
¡¡ |
2008 |
|
|
Datamining Services |
|
Software Services |
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Total |
|
Datamining Services |
|
Software Services |
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Total |
Net Revenue |
$ |
10,221,720 |
$ |
6,571,960 |
$ |
16,793,680 |
$ |
15,622,288 |
$ |
7,487,938 |
$ |
23,110,226 |
Gross Profit |
|
4,229,834 |
|
2,160,905 |
|
6,390,739 |
|
7,769,835 |
|
4,274,655 |
|
12,044,490 |
Gross Margin |
|
41% |
|
33% |
|
38% |
|
50% |
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57% |
|
52% |
Balance Sheet
As of September 30, 2009, the Company had approximately $2.9 million of cash and no long-term debt.
Business Update
In the data mining segment, while Jingwei has achieved marginal improvement in the existing market sector, its acquisition of the value added service and channel sales business of Newway Technology in July 2009 has contributed to a solid growth in revenue and earnings in Q3 for the 3G related value added service offerings. This growth is expected to accelerate as Jingwei begins to integrate the acquired capabilities into its mainstream offerings. Also, building on the momentum to become an integrated marketing solutions provider through multi-media channels, on October 22, 2009, the Company signed a framework agreement with Jiangsu province (Suqian municipal government Industrial Park) to collaborate with the telecom operators to leverage our data mining and software services expertise to build an outsourced e-Contact center with integrated tele-marketing and customer support capabilities to support the business promotion and customer care programs for the telecom operators nation-wide.
In the Software Services segment, operation analysis and billing software continued to enjoy moderate growth in revenue and earnings. In addition, following full deployment of 3G nation-wide in China, Jingwei delivered several major application service solutions to the telecom operators, resulting in strong growth in revenue over Q2. One major customer win was to provide a total system solution to the Henan Telecom Bureau of China Telecom for their security monitoring and operation control systems in their switching centers in the province
About Jingwei International
Jingwei International Limited ("Jingwei") is a leading provider of data mining and customer relationship marketing services in the fast growing Chinese market. Powered by advanced data mining technology and a proprietary database of over 300 million Chinese consumers, Jingwei enables leading Chinese companies as well as international brands to reach their target audiences. The Company's services include market segmentation, customer trend, revenue analysis and direct marketing. Jingwei is evolving into an integrated marketing service provider with targeted campaigns via multi media channels including: interactive mobile, telemarketing, direct mail and new media.
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 the global financial crisis, effects of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and 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:
Rick Luk or Vanessa Bao
Tel: 86-755 86319436
Email: vanessa@jingweicom.com
Source: Jingwei International Limited
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