Company Reiterates Comfort with 2Q08 and FY08 Financial Guidance
SHENZHEN, China, June 16 /Xinhua-PRNewswire-FirstCall/ -- FUQI International, Inc. (Nasdaq: FUQI) today released the following statement regarding last month’s earthquake in China and the impact it has had on its business.
“Our deepest sympathies to those suffering from the tragedy of last month’s earthquake and our thoughts go out to the victims and families impacted by this terrible event,” commented Mr. Yu Kwai Chong, Chairman of Fuqi International. “The Sichuan province, which experienced the most damage from the earthquake’s impact, is an area in which FUQI conducts business. While we have experienced slower wholesale demand for our jewelry products from this region because of the earthquake, this region represents less than 5% of our wholesale jewelry sales. Additionally, from a seasonality standpoint, the second quarter is one of the slower quarters for our business and we do not anticipate any long-term slowdown in sales from this region. We reiterate comfort with our second quarter wholesale revenue estimate of approximately $62 - $64 million, which represents a year-over-year increase of approximately 136% to 144%, and net income in the range of $4.5 - $4.6 million, or $0.20 - $0.21 per diluted share, based on a weighted average share count of 22.2 million shares. For the full year 2008, we reiterate comfort with wholesale revenue, net income and diluted earnings per share estimates of approximately $305 - $315 million, net income of $21.9 - $23.0 million, and diluted EPS of $0.98 - $1.04, based on a weighted average share count of 22.2 million shares.”
About FUQI International
Based in Shenzhen, China, FUQI International, Inc. is a leading designer of high quality precious metal jewelry in China, developing, promoting, and selling a broad range of products in the large and rapidly expanding Chinese luxury goods market.
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as “will” “believes”, “expects” or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect.
All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC’s electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
