Telestone Technologies Corp., a leading developer and provider of telecommunications local access networks in China, today announced its financial results for the first quarter ended March 31, 2011.
First-quarter revenue increased 30 percent to $14.5 million, up from $11.1 million reported for the first quarter of 2010. Revenue from equipment sales rose 37 percent to $7.0 million, as compared to $5.1 million in the year-ago quarter. Sales of professional services increased 24 percent from $6.0 million to $7.5 million in the first quarter of 2011.
Gross profit for the quarter increased 33 percent to $6.6 million compared to $4.9 million a year ago. Gross margin increased to 45 percent, as compared to 44 percent in the same period last year.
The company reported net income of $1.6 million, or $0.13 per share, as compared to net loss of $1.1 million, or $(0.11) per share, in the same period last year.
As of March 31, 2011, Telestone had $26.5 million in cash and cash equivalents, compared to $31.0 million at the end of 2010. Inventory was $4.8 million on March 31, 2010, compared to $3.1 million on December 31, 2001. Working capital was $111.7 million at the end of March 31, 2011, versus $109.6 million at the end of 2010.
“We are off to a good start in 2011 with solid growth in revenue and net income.” Daqing Han, chairman and CEO of Telestone stated in the press release. “We saw several positive developments in the first quarter of 2011, which is normally seasonally slow for the telecommunications-equipment industry and also included the Chinese New Year holiday”
For the full-year 2011, Telestone said it expects revenues to increase by about 30 percent to approximately $171 million with full-year 2011 net income to increase by about 10 percent to approximately $27.5 million, or $2.22 per diluted share. In 2012, the company expects revenues to double to approximately $342 million.
CEO Han said the company will move forward with a focus on operations and expansion of its customer base.
“Due to our shift in focus on operations and collections rather than pure growth in 2011, we are expecting to grow at a slower pace than 2010. However, we expect these measures to position us for accelerating growth in 2012 and beyond,” Han stated.
For more information visit www.telestone.com