Highway Holdings Ltd., a producer of various electronic products for blue chip original equipment manufacturers, today reported solid results for its third fiscal quarter and nine months ended December 31, 2010, driven by continued sales momentum and increased profitability.
The company reported a 59 percent increase in net income for the fiscal 2011 third quarter to $407,000, or $0.11 per diluted share, from $256,000, or $0.07 per diluted share, in the third quarter of 2009. Net sales for the same period increased 51.4 percent to $9.0 million from $5.9 million a year ago.
For the nine-month period of fiscal 2011, net income more than tripled to $861,000, or $0.23 per diluted share, from $259,000, or $0.07 per diluted share, a year earlier. Net sales for the nine months ended December 31, 2010, increased 48 percent to $23.3 million from $15.8 million in the comparable period a year earlier.
“Results for the quarter reflect the benefits of an improving business environment, as our major customers have become more confident in the sustainability of the global economic recovery and have increased their production orders,” Roland Kohl, chairman, president and CEO of Highway Holdings stated in the press release.
Gross profit for the nine-month period ended December 31, 2010, was 20.5 percent compared with 20.9 percent for the year prior, reflecting higher labor costs, higher raw material costs and the overtime charges incurred to accommodate the manufacture of the protective phone cases. Because of the substantial increase in net sales, the company reported operating income for the third quarter at $481,000 compared to $306,000 in the prior year; nine-month operating income in 2010 increased to a profit of $951,000 from a loss of $33,000 in 2009.
Selling, general and administrative expenses increased by $341,000 for the fiscal third quarter and $502,000 for the nine-month period, impacted by increased salaries and higher levels of manpower.
The company increased its cash and restricted cash position to $8.2 million from $7.1 million at December 31, 2010, or $2.18 per share.
For more information visit www.highwayholdings.com