SHENZHEN, China, April 15 /PRNewswire-Asia/ -- China Information Security Technology, Inc. (Nasdaq: CPBY) ("China Information Security," "CIST" or the "Company"), a leading total solutions provider of digital security, GIS and digital hospital information systems in China, today announced that its newly signed contracts in the first quarter of 2010 were valued at $30.6 million, an increase of 65% compared to the first quarter of 2009.
During the first quarter of 2010, the Company won contracts from clients in 23 provinces and provincial cities in China. Some important contracts secured in the first quarter included:
-- $2.1 million contract for the Wuhan Digital City Project;
-- $1.1 million contract for the Maoming City Police-use GIS Project;
-- $1.0 million contract for the Chengdu City Railway GIS Project;
-- $0.5 million contract for the Dongguan Fenggang Hospital PACS Project.
Of this quarter's contracts, 60% were for the Company's Digital Information Security Technology ("DIST") products, 33% were for its Geographic Information Systems ("GIS") products and 7% related to its Digital Hospital Information Systems ("DHIS") products. Management expects that the majority of these contracts will be recognized as revenue in 2010.
Mr. Jiang Huai Lin, Chairman and CEO of the Company, commented, "Despite the first quarter historically being the slowest season in terms of both revenues and contract volumes, we are highly encouraged by the 65% increase in contract value from the first quarter of 2009. We continue to see strong momentum from both new and existing local governmental customers, which we believe reflects the strong reputation of our product solutions in the market. We also believe that the relatively sizable contracts mentioned above demonstrate our success in further expanding our business beyond the Guangdong region. We are confident in the future of our business as we continue to benefit from an increase in high priority public spending in China, which we believe is a network effect of our consistent repeat customer base."
About China Information Security Technology, Inc.
China Information Security Technology, Inc., together with its subsidiaries, is a total solution provider of digital security, geographic information, and hospital information systems in the People's Republic of China. Headquartered in Shenzhen, China, the Company's total solutions include specialized software, hardware, systems integration, and related services organized into three business segments - Digital Information Security Technology ("DIST"), Geographic Information Systems ("GIS"), and Digital Hospital Information System ("DHIS"). To learn more about the Company, please visit its corporate website at http://www.chinacpby.com .
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the first quarter 2010 contract wins on the Company's business and operations; the ability of the Company to specifically fulfill its obligations under the contracts and to continuously benefit from an increase in high priority public spending; the general ability of the Company to achieve its commercial objectives including further expansion of its business beyond the Guangdong region; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For further information, please contact:
China Information Security Technology, Inc.
Iris Yan
Tel: +86-755-8370-4767
Email: ir@chinacpby.com
Web: http://www.chinacpby.com
Christensen
Kathy Li
Tel: +1-480-614-3036
Email: kli@christensenir.com
Roger Hu
Tel: +86-158-1049-5326
Email: rhu@christensenir.com
