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SHENZHEN, China, May 17, 2010 /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:
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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 and Software Services 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 the 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 86319436
Email: vanessa@jingweicom.com
Source: Jingwei International Limited
Jingwei International Limited and Subsidiaries |
Consolidated Balance Sheets |
(Stated in US Dollars) |
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March 31, 2010 |
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December 31, 2009 |
ASSETS |
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(Unaudited) |
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Current assets |
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|
|
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Cash and cash equivalents |
$ |
9,908,282 |
$ |
10,238,930 |
Inventories |
|
4,471,802 |
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2,316,043 |
Accounts receivable, less allowance for doubtful accounts of $972,500 and $1,266,293, respectively |
|
23,586,226 |
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23,456,704 |
Other receivables, prepayments and deposits, less allowance for doubtful accounts of $175,740 and $175,712, respectively |
|
1,914,575 |
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3,219,008 |
Deferred tax assets |
|
224,115 |
|
257,837 |
Total current assets |
40,105,000 |
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39,488,522 |
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|
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Non-current assets |
|
|
|
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Property and equipment, net |
|
1,445,278 |
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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 |
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19,406,416 |
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|
|
|
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Total assets |
$ |
58,810,060 |
$ |
58,894,938 |
Jingwei International Limited and Subsidiaries |
Consolidated Balance Sheets (Continued) |
(Stated in US Dollars) |
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March 31, 2010 |
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December 31, 2009 |
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(Unaudited) |
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LIABILITIES AND EQUITY |
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Current liabilities |
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Accounts payable |
$ |
2,961,446 |
$ |
4,152,787 |
Accruals and other payables |
|
1,175,089 |
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1,279,474 |
Income tax payable |
|
1,770,229 |
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1,718,786 |
Loan from a stockholder |
|
369,462 |
|
369,462 |
Total current liabilities |
6,276,226 |
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7,520,509 |
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Non-current liabilities |
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Other liabilities |
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2,990,832 |
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2,930,257 |
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Total liabilities |
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9,267,058 |
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10,450,766 |
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Equity |
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Common stock, $0.001 par value; 75,000,000 shares authorized, 17,049,000 shares issued and outstanding |
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17,049 |
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17,049 |
Additional paid-in capital |
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15,708,374 |
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15,643,139 |
Statutory and other reserves |
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2,916,292 |
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2,916,292 |
Retained earnings |
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20,753,968 |
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19,734,935 |
Accumulated other comprehensive income |
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2,667,909 |
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2,654,550 |
Total Company¡¯s stockholders' equity |
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42,063,592 |
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40,965,965 |
Noncontrolling interest |
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7,479,410 |
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7,478,207 |
Total equity |
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49,543,002 |
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48,444,172 |
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Total liabilities and equity |
$ |
58,810,060 |
$ |
58,894,938 |
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Jingwei International Limited and Subsidiaries |
Consolidated Statements of Income and Comprehensive Income |
(Stated in US Dollars) |
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Three Months Ended March 31, |
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2010 |
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2009 |
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(Unaudited) |
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(Unaudited) |
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Sales |
$ |
5,119,752 |
$ |
3,943,718 |
Cost of sales |
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2,421,935 |
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2,422,306 |
Gross margin |
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2,697,817 |
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1,521,412 |
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Operating expenses |
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Selling, general and administrative expenses |
|
1,013,875 |
|
403,377 |
Research and development costs |
|
733,202 |
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253,857 |
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1,747,077 |
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657,234 |
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Income from operations |
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950,740 |
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864,178 |
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Other income (expense) |
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Subsidy income |
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309,249 |
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121,216 |
Interest income |
|
23,008 |
|
4,024 |
Interest expense |
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(1,728) |
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- |
Other expense |
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(46,105) |
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(14,066) |
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284,424 |
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111,174 |
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Income before income taxes |
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1,235,164 |
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975,352 |
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Income tax expense |
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216,131 |
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354,654 |
Net income |
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1,019,033 |
|
620,698 |
Less: net income attributable to noncontrolling interest |
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- |
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- |
Net income attributable to the Company¡¯s stockholders |
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1,019,033 |
|
620,698 |
Foreign currency translation adjustment |
|
13,359 |
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43,520 |
Comprehensive income |
$ |
1,032,392 |
$ |
664,218 |
Comprehensive income attributable to noncontrolling interest |
|
1,203 |
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18,547 |
Comprehensive income attributable to the Company¡¯s stockholders |
|
1,031,189 |
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645,671 |
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Basic earnings per share |
$ |
0.06 |
$ |
0.04 |
Diluted earnings per share |
$ |
0.06 |
$ |
0.04 |
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Weighted average number of shares outstanding |
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|
|
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Basic |
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17,049,000 |
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17,049,000 |
Diluted |
|
17,218,712 |
|
17,049,000 |
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Jingwei International Limited and Subsidiaries |
Consolidated Statements of Cash Flows |
(Stated in US Dollars) |
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Three Months Ended March 31, |
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2010 |
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2009 |
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(Unaudited) |
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(Unaudited) |
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Cash flows from operating activities |
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|
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Net income |
$ |
1,019,033 |
$ |
620,698 |
Adjustments to reconcile net income to net |
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|
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cash provided by (used in) operating activities£º |
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Depreciation and amortization |
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856,078 |
|
527,181 |
Share-based compensation expense |
|
65,235 |
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39,303 |
Change in operating assets and liabilities: |
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Accounts receivable, net |
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(129,522) |
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281,895 |
Other receivables, prepayments and deposits |
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1,304,404 |
|
353,547 |
Inventories |
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(2,155,758) |
|
390,073 |
Deferred tax assets |
|
33,722 |
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- |
Accounts payable |
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(1,191,341) |
|
(830,274) |
Accruals and other payables |
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(104,385) |
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(410,779) |
Income tax payable |
|
51,443 |
|
179,347 |
Net cash (used in) provided by operating activities |
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(251,091) |
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1,150,991 |
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Cash flows from investing activities |
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Acquisition of property and equipment |
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(152,828) |
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(10,289) |
Acquisition of intangible assets |
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- |
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(3,433) |
Long-term investment |
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- |
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(49,520) |
Net cash used in investing activities |
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(152,828) |
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(63,242) |
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Cash flows from financing activities |
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Repayment of loan from a stockholder |
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- |
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(71,579) |
Net cash used in financing activities |
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- |
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(71,579) |
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Effect of foreign currency fluctuation on cash |
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and cash equivalents |
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73,271 |
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6,883 |
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` |
Net (decrease) increase in cash and cash equivalents |
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(330,648) |
|
1,023,053 |
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Cash and cash equivalents - beginning of period |
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10,238,930 |
|
5,472,408 |
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Cash and cash equivalents - end of period |
$ |
9,908,282 |
$ |
6,495,461 |
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Cash paid during the year for: |
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Income tax paid |
$ |
131,220 |
$ |
175,317 |
Interest paid |
$ |
- |
$ |
- |
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