omniture

Jingwei International Reports 2010 First Quarter Financial Results

2010-05-17 22:27 651

SHENZHEN, China, May 17 /PRNewswire-Asia/ -- 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 Services and Mobile Internet marketing solutions 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 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: +86-755-8631-9436

Email: vanessa@jingweicom.com

Jingwei International Limited and Subsidiaries

Consolidated Balance Sheets

(Stated in US Dollars)

March 31, 2010 December 31, 2009

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents $ 9,908,282 $ 10,238,930

Inventories 4,471,802 2,316,043

Accounts receivable, less

allowance for doubtful

accounts of $972,500 and

$1,266,293, respectively 23,586,226 23,456,704

Other receivables, prepayments

and deposits, less allowance

for doubtful accounts of

$175,740 and $175,712, respectively 1,914,575 3,219,008

Deferred tax assets 224,115 257,837

Total current assets 40,105,000 39,488,522

Non-current assets

Property and equipment, net 1,445,278 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 19,406,416

Total assets $ 58,810,060 $ 58,894,938

Jingwei International Limited and Subsidiaries

Consolidated Balance Sheets (Continued)

(Stated in US Dollars)

March 31, 2010 December 31, 2009

(Unaudited)

LIABILITIES AND EQUITY

Current liabilities

Accounts payable $ 2,961,446 $ 4,152,787

Accruals and other payables 1,175,089 1,279,474

Income tax payable 1,770,229 1,718,786

Loan from a stockholder 369,462 369,462

Total current liabilities 6,276,226 7,520,509

Non-current liabilities

Other liabilities 2,990,832 2,930,257

Total liabilities 9,267,058 10,450,766

Equity

Common stock, $0.001 par value;

75,000,000 shares authorized,

17,049,000 shares issued

and outstanding 17,049 17,049

Additional paid-in capital 15,708,374 15,643,139

Statutory and other reserves 2,916,292 2,916,292

Retained earnings 20,753,968 19,734,935

Accumulated other comprehensive

income 2,667,909 2,654,550

Total Company's stockholders'

equity 42,063,592 40,965,965

Noncontrolling interest 7,479,410 7,478,207

Total equity 49,543,002 48,444,172

Total liabilities and equity $ 58,810,060 $ 58,894,938

Jingwei International Limited and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

(Stated in US Dollars)

Three Months Ended March 31,

2010 2009

(Unaudited) (Unaudited)

Sales $ 5,119,752 $ 3,943,718

Cost of sales 2,421,935 2,422,306

Gross margin 2,697,817 1,521,412

Operating expenses

Selling, general and administrative

expenses 1,013,875 403,377

Research and development costs 733,202 253,857

1,747,077 657,234

Income from operations 950,740 864,178

Other income (expense)

Subsidy income 309,249 121,216

Interest income 23,008 4,024

Interest expense (1,728) --

Other expense (46,105) (14,066)

284,424 111,174

Income before income taxes 1,235,164 975,352

Income tax expense 216,131 354,654

Net income 1,019,033 620,698

Less: net income attributable to

noncontrolling interest -- --

Net income attributable to the

Company's stockholders 1,019,033 620,698

Foreign currency translation

adjustment 13,359 43,520

Comprehensive income $ 1,032,392 $ 664,218

Comprehensive income attributable to

noncontrolling interest 1,203 18,547

Comprehensive income attributable to

the Company's stockholders 1,031,189 645,671

Basic earnings per share $ 0.06 $ 0.04

Diluted earnings per share $ 0.06 $ 0.04

Weighted average number of shares

outstanding

Basic 17,049,000 17,049,000

Diluted 17,218,712 17,049,000

Jingwei International Limited and Subsidiaries

Consolidated Statements of Cash Flows

(Stated in US Dollars)

Three Months Ended March 31,

2010 2009

(Unaudited) (Unaudited)

Cash flows from operating activities

Net income $ 1,019,033 $ 620,698

Adjustments to reconcile net income to net

cash provided by (used in) operating

activities:

Depreciation and amortization 856,078 527,181

Share-based compensation expense 65,235 39,303

Change in operating assets and liabilities:

Accounts receivable, net (129,522) 281,895

Other receivables, prepayments and

deposits 1,304,404 353,547

Inventories (2,155,758) 390,073

Deferred tax assets 33,722 --

Accounts payable (1,191,341) (830,274)

Accruals and other payables (104,385) (410,779)

Income tax payable 51,443 179,347

Net cash (used in) provided by operating

activities (251,091) 1,150,991

Cash flows from investing activities

Acquisition of property and equipment (152,828) (10,289)

Acquisition of intangible assets -- (3,433)

Long-term investment -- (49,520)

Net cash used in investing activities (152,828) (63,242)

Cash flows from financing activities

Repayment of loan from a stockholder -- (71,579)

Net cash used in financing activities -- (71,579)

Effect of foreign currency fluctuation on

cash and cash equivalents 73,271 6,883

`

Net (decrease) increase in cash and cash

equivalents (330,648) 1,023,053

Cash and cash equivalents - beginning of

period 10,238,930 5,472,408

Cash and cash equivalents - end of period $ 9,908,282 $ 6,495,461

Cash paid during the year for:

Income tax paid $ 131,220 $ 175,317

Interest paid $ -- $ --

Source: Jingwei International Limited
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