China Skyrise Digital Service Inc., a China-based developer and installer of video-surveillance products, recently announced financial results for the three months ended March 31, 2010, posting solid increases in revenue and net income.
For the first quarter of 2010, China Skyrise reported revenues at approximately $1.3 million, a strong increase of 231.9 percent versus $0.4 million for the first quarter of 2009. The company attributes the recovery of the Chinese real-estate market and significant increases in spending by real-estate developers. The company also launched a conservative strategy in marketing and sales and declined to take on projects that required large upfront funding.
“We are delighted to see a continuing recovery of demand for our digital intercom products and solutions amid a broad turnaround in the China real- estate development market, as well as an acceleration in the rate of upgrades from analog to digital solutions,” Mingchun Zhou, chairman and CEO of China Skyrise stated in the press release. “Revenues more than tripled in the first quarter, and our market share continued to expand.”
China Skyrise’s gross profit for the first quarter of 2010 totaled $0.6 million, or 46.6 percent of sales, compared with $0.4 million, or 46.2 percent of sales, for the same period of 2009.
Operating income for the first quarter of 2010 was $0.3 million compared to an operating loss of $77,872 in the first quarter of 2009.
Net income in the first quarter of 2010 was $0.3 million, or $0.01 per basic and diluted share, a significant improvement from a net loss of $9,490, or ($0.01) per basic and diluted share in the first quarter of 2009.
The company also offered a business outlook for 2010, noting its confidence in the growth of China’s security surveillance sector, which is estimated at growing at an annual rate of 15 percent or greater. Zhou also said the company is confident in its product offering and financial position.
“With continuous product innovation and strong brand recognition, we are optimistic about our financial performance in 2010. The first quarter is usually the seasonally slowest due to a slowdown in residential construction around the Chinese Spring Festival. We are confident that our operating results and operating cash flows will continue to improve throughout the remainder 2010. Therefore, we reaffirm our previous guidance of revenues of approximately $10.2 million and net income of approximately $1.8 million in 2010,” Zhou stated.
For more information visit www.chinaskyrise.com