Telestone Technologies Announces Preliminary, Unaudited 2010 Annual Results

BEIJING, Jan. 24, 2011 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation (Nasdaq: TSTC) ("Telestone" or the "Company"), a leading developer and provider of telecommunications local access networks in China, today announced preliminary, unaudited results indicating strong revenue and net-income growth for the year ended December 31, 2010.

Based on unaudited, preliminary results, Telestone expects to report 2010 annual revenues of $130.5 to $132.5 million and non-GAAP net income of $30.0 to $31.5 million. These results exceed guidance of $129.4 million in revenue and $22.9 million in net income for the 2010 business year.  The non-GAAP results exclude stock payments related to acquisitions and employee stock-based compensation expense.  Telestone expects to report audited GAAP and non-GAAP results in late March 2011.

"We are pleased that 2010 was such a stellar year for Telestone, with our preliminary financial results exceeding our guidance," commented Mr. Daqing Han, Chairman and Chief Executive Officer of Telestone. "In 2011, we look forward to further growth in revenues and net income as we expand our business, in particular from the deployment of our proprietary Wireless Fiber-Optic Distribution System (WFDS) technology in China and internationally."

Separately, Telestone will host an investor conference call at 9:00 a.m. EST on Monday, January 24, 2011 to address preliminary 2010 results and answer recent investor questions regarding the Company's accounting practices and other issues.

Mr. Daqing Han, Chairman and Chief Executive Officer, and Mr. Richard Wu, Vice President of Finance, will host the call.

To participate in the conference call, please dial one of the following numbers five to ten minutes prior to the scheduled conference call time:

About Telestone Technologies Corporation

Telestone is a leader and innovator in wireless local-access network technologies and solutions. The company has a global presence, with 30 sales offices throughout China and a network of international branch offices and sales agents. For more than 10 years, Telestone has installed radio-frequency (RF)-based 1G and 2G systems throughout China for its leading telecommunications companies. After intensive research on the needs of carriers in the 3G age, Telestone developed and commercialized its proprietary third-generation local-access network technology, WFDS(TM) (Wireless Fiber-optic Distribution System), which provides a scalable, multi-access local access network solution for China's three cellular protocols. Telestone also offers services including project design, manufacturing, installation, maintenance and after-sales support. The Company has approximately 1,200 employees.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of Telestone Technologies Corporation and its subsidiary companies. Forward looking statements can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. Telestone Technologies is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.