Jingwei International Reports Third Quarter 2009 Financial Results

2009年11月14日 00:48美通社 】 【打印共有评论0

Net Income Increased by 85% Over Second Quarter of 2009

SHENZHEN, China, Nov. 14 /PRNewswire-Asia/ -- Jingwei International Limited (OTC Bulletin Board: JNGW; "Jingwei" or the "Company"), one of the leading providers of data MINIng and customer relationship marketing services in China, today announced financial results for the three month and nine month periods ended September 30, 2009. The Company plans to file its 10-Q on Monday November 16, 2009.

Recent Financial Highlights:

-- Net Income increased 85% to $1.5 million in the third quarter compared

to the second quarter in 2009;

-- Revenue increased 114% to $8.8 million in the third quarter compared to

the second quarter in 2009;

-- Net income decreased 62% to $2.9 million in the nine montHS of 2009

compared to the same period last year;

-- Revenue decreased 27% to $16.8 million in the nine months of 2009

compared to the same period last year;

-- Gross margin in the nine months of 2009 was 38% compared to 52 % in the

same period last year;

-- Third quarter 2009 net income decreased 21% to $1.5 million compared to

the third quarter last year;

-- Third quarter 2009 gross margin was 39% compared to 40% in the third

quarter last year.

Rick Luk, Chief Executive Officer of Jingwei International stated, "We are very excited about the significant improvement of revenue and earninGS in the third quarter of 2009 compared to the previous two quarters. Based on the results, we believe management actions taken in the third quarter are on track; and we expect thIS momentum to continue as the global economy continues to recover. In the quarter, we enjoyed a significant increase of demand for our services as result of our added capabilities driven by the full deployment of 3G in the telecom sector and the increased subSCriber base in the PRC. For the full year, while we still expect our results to trail behind 2008, we are forecasting a strong growth of revenue and earnings in the second half compared to the first half of 2009."

Third Quarter Ended September 30, 2009

Revenue for the third quarter increased 2% to $8.8 million from $8.6 million in the third quarter of 2008.

Gross profit decreased 1% to $3.39 million from $3.44 million in the third quarter of 2008. Gross margin in the quarter was 39% compared to 40% in the same period in 2008.

Income from operations was $1.4 million, down 30% from $2.0 million in the third quarter of 2008. Operating margin was 16% in the third quarter of 2009 compared to 23% during the third quarter of last year.

Net income decreased 21% to $1.5 million, or $0.09 per diluted share in the third quarter of 2009 from $1.9 million, or $0.11 per diluted share in the third quarter of 2008.

Please refer to the table below for the breakdown of segment performance in the three month periods ended September 30, 2009 and 2008.

Three Months Ended September 30

2009

Datamining Software

Services Services Total

Net Revenue$5,451,796$3,311,371$8,763,167

Gross Profit 2,271,341 1,122,582 3,393,923

Gross Margin 42%34%39%

Three Months Ended September 30

2008

Datamining Software

Services Services Total

Net Revenue$5,959,194$2,609,166$8,568,360

Gross Profit 2,433,045 1,008,099 3,441,144

Gross Margin 41%39%40%

Nine Months Ended September 30, 2009

For the nine months ended September 30, 2009, revenue decreased 27% to $16.8 million from $23.1 million in the nine months of 2008. During this same time period, gross profit decreased 47% to $6.4 million from $12.0 million. Gross margin is 38% compared to 52% in the same period last year. Income from operations decreased 66% to $2.8 million from $8.3 million in the nine months of 2008, and net income decreased 62% to $2.9 million, or $0.17 per diluted share, from $7.7 million, or $0.45 per diluted share, in the nine months of 2008.

Please refer to the table below for the breakdown of segment performance in the nine month periods ended September 30, 2009 and 2008.

Nine Months Ended September 30

2009

Datamining Software

Services Services Total

Net Revenue$10,221,720$6,571,960$16,793,680

Gross Profit 4,229,834 2,160,905 6,390,739

Gross Margin 41%33%38%

Nine Months Ended September 30

2008

Datamining Software

Services Services Total

Net Revenue$15,622,288$7,487,938$23,110,226

Gross Profit 7,769,835 4,274,655 12,044,490

Gross Margin 50%57%52%

Balance Sheet

As of September 30, 2009, the Company had approximately $2.9 million of cash and no long-term debt.

Business update

In the data mining segment, while Jingwei has achieved marginal improvement in the existing market sector, its acquisition of the value added service and channel sales business of Newway Technology in July 2009 has contributed to a solid growth in revenue and earnings in Q3 for the 3G related value added service offerings. This growth is expected to accelerate as Jingwei begins to integrate the acquired capabilities into its mainstream offerings. ALSo, building on the momentum to become an integrated marketing solutions provider through multi-media channels, on October 22, 2009, the Company signed a framework agreement with Jiangsu province (Suqian municipal government Industrial Park) to collaborate with the telecom operators to leverage our data mining and software services expertise to build an outsourced e-Contact center with integrated telemarketing and customer support capabilities to support the business promotion and customer care programs for the telecom operators nation-wide.

In the Software Services segment, operation analysis and billing software continued to enjoy moderate growth in revenue and earnings. In addition, following full deployment of 3G nation-wide in China, Jingwei delivered several major application service solutions to the telecom operators, resulting in strong growth in revenue over Q2. One major customer win was to provide a total system solution to the Henan Telecom Bureau of China Telecom for their security monitoring and operation control systems in their switching centers in the province.

About Jingwei International Limited

Jingwei International Limited ("Jingwei") is a leading provider of data mining and customer relationship marketing services in the fast growing Chinese market. Powered by advanced data mining technology and a proprietary database of over 300 million Chinese consumers, Jingwei enables leading Chinese companies as well as international brands to reach their target audiences. The Company's services include market segmentation, customer trend, revenue analysis and direct marketing. Jingwei is evolving into an integrated marketing service provider with targeted campaigns via multi media channels including: interactive mobile, telemarketing, direct mail and new media.

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 global financial crisis, effeCTS of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and 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:

Vanessa Bao

Tel:+86-755-8631-9436

Email: vanessa@jingweicom.com / rickluk@jingweicom.com

Jingwei International Limited and Subsidiaries

Consolidated Balance Sheets

(Stated in US Dollars)

September 30,December 31,

2009 2008

(Unaudited)(Audited)

ASSETS

Current assets

Cash and equivalents$2,882,340 5,472,408

Inventories 2,338,740 2,802,037

Trade receivables, less allowance for

doubtful accounts of $907,409 and

$135,422, respectively 24,000,277 19,371,524

Other receivables, prepayments and

deposits, less allowance for

doubtful accounts of $175,701 and

$117,787, respectively 3,247,783 3,749,169

Total Current Assets 32,469,140 31,395,138

Non-current assets

Property, plant and equipment, net 1,442,624 1,305,917

Intangible assets, net 17,000,373 12,238,501

Long term investment 1,737,452 1,733,244

$52,649,589 46,672,800

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Trade payables$2,082,215 1,965,619

ACCRuals and other payables 1,105,479 1,465,571

Income tax payable 604,770 358,168

Deferred tax 347,004 192,930

Loan from a stockholder 488,006 559,286

Total Current Liabilities 4,627,474 4,541,574

Non-current liabilities

Other liabilities 2,809,904--

Total Liabilities 7,437,378 4,541,574

Equity

Common stock, $.001 par value;

75,000,000 shares authorized,

17,049,000 shares issued and

outstanding 17,049 17,049

Additional paid-in capital 15,512,405 15,403,411

Statutory and other reserves 883,936 883,936

Accumulated other comprehensive

income 2,649,840 2,564,066

Retained earnings 18,671,214 15,803,104

Total Jingwei International

Stockholders' Equity 37,734,444 34,671,566

Noncontrolling interest 7,477,767 7,459,660

Total Equity 45,212,211 42,131,226

$52,649,589$46,672,800

Jingwei International Limited and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

(Stated in US Dollars)

Three months Ended Nine months Ended

September September September September

30, 2009 30, 2008 30, 2009 30, 2008

(Unaudited) (Unaudited)(Unaudited)(Unaudited)

Sales$8,763,167$8,568,360$16,793,680$23,110,226

Cost of sales(5,369,243) (5,127,216) (10,402,940) (11,065,735)

Gross Margin 3,393,924 3,441,144 6,390,740 12,044,491

Expenses

Selling, General and

Administrative

expenses(1,639,683) (1,278,613)(2,758,172)(2,988,800)

Research and

development coSTS(392,855)(202,503)(836,242)(718,646)

(2,032,538) (1,481,116)(3,594,414)(3,707,446)

Income from operations 1,361,386 1,960,028 2,796,326 8,337,045

Other income (expense)

Subsidy income 196,655--552,041 543,690

Interest income 167,154 224,673 174,918 233,433

Finance costs--(3,940)--(11,979)

Other expenses(15,290)(13,733)(41,585)(38,183)

348,519 207,000 685,374 726,961

Income before income

taxes 1,709,905 2,167,028 3,481,700 9,064,006

Income tax expense(249,973)(265,229)(613,590)(1,345,854)

Net income 1,459,932 1,901,799 2,868,110 7,718,152

Less: Net income

attributable to the

noncontrolling

interest--------

Net Income attributable

to Jingwei

International Limited

and Subsidiaries$1,459,932$1,901,799$2,868,110$7,718,152

Foreign currency

tranSLation adjustment 37,417 77,559 85,774 1,338,993

Comprehensive Income$1,497,349$1,979,358$2,953,884$9,057,145

Earnings per share

Basic and diluted$0.09$0.11$0.17$0.45

Weighted Average Common

Shares Outstanding

Basic 17,049,000 17,049,000 17,049,000 17,049,000

Jingwei International Limited and Subsidiaries

Consolidated Statements of Cash Flows

(Stated in US Dollars)

Nine Months Ended

September September

30, 2009 30, 2008

(Unaudited)(Unaudited)

Cash flows from operating activities:

Net income$2,868,110$7,718,152

Adjustments to reconcile net income

to net cash provided by (used in)

operating activities:

Depreciation & amortization 1,884,359 1,230,667

Allowance for doubtful accounts 829,901 31,821

Amortization of stock options

issued for services 108,994 300,127

Changes in operating assets and

liabilities:

Trade receivables(5,536,162)(10,031,166)

Other receivables, prepayments

and deposits 443,472(1,275,529)

Inventories 463,297(592,805)

Trade payables 116,596 78,592

Other payables and accrued

expenses(360,092)(438,628)

Deferred tax 154,074--

Income tax payable 246,602 289,598

Net cash flows provided by (used in)

operating activities 1,219,151(2,689,171)

Cash flows from investing activities:

Acquisition of property and

equipment(343,536)--

Acquisition of intangible assets(3,589,934)(494,498)

Long term Investment--(893,918)

Net cash flows used in investing

activities(3,933,470)(1,388,416)

Cash flows from financing activities:

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

Net cash flows used in financing

activities(71,579)--

Effect of foreign currency

translation on cash

and cash equivalents 195,830 452,349

Net decrease in cash and equivalents(2,590,068)(3,625,238)

Cash and cash equivalents-beginning

of period 5,472,408 10,760,020

Cash and cash equivalents-end of

period$2,882,340$7,134,782

Supplemental disclosure of cash flow

information

Income tax paid$268,536$1,101,020

Supplemental disclosure of non-cash

investing activities

Transfer of prepayment to intangible

assets$--$5,557,110

SOURCE Jingwei International Limited

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