Recon Technology Q1 FY ’10 Revenue up 119% to $3.3M, Net Income $62K
November 16 2009 - 9:20AM
Business Wire
Recon Technology, Ltd. (Nasdaq: RCON), a leading Chinese
non-state-owned oil and gas automation services provider, today
reported its financial results for its FY ’10 first quarter ended
September 30, 2009.
Q1 FY ‘10 Highlights
- Revenue for Q1 FY ‘10 increased
119% to $3.3 million from $1.5 million in Q1 FY ‘09.
- Gross profit increased 337% to
$937K for Q1 FY ‘10 from $214K in Q1 FY ‘09.
- Q1 FY ‘10 gross margin increased
to 28% from 14% in Q1 FY ‘09.
- Income from operations was $190K
compared to loss from operations of ($124K) in Q1 FY ‘09.
- Net income was $62K, compared to
net loss of ($110K) in Q1 FY ‘09.
- Earnings per diluted share were
$0.02 compared to a loss of ($0.05) per diluted share in Q1 FY
‘09.
- Weighted average number of
diluted shares outstanding was 3.46 million as of September 30,
2009, compared to 2.25 million as of September 30, 2008.
- The company has filed its
financial statements with financial notes as part of its 10-Q with
SEC, which are available for public viewing at
http://www.sec.gov.
Shenping Yin, Recon's Chief Executive Officer, said, "We are
happy to report over triple digit growth in first quarter revenue
and a positive bottom line compared with a net loss in the
comparable quarter a year ago. Net income in what is traditionally
our weakest quarter was in line with our internal forecasts. Our
revenue is subject to high seasonality fluctuations due to our oil
clients’ budgeting and planning schedules. Nevertheless, we
continued to experience steady demand for our services that we
expect will be positively reflected in our quarterly reports over
the next three fiscal quarters.”
“There has been some discussion among shareholders about our
mention in the last quarterly conference call of a possible future
$30 million funding. I wish to clarify that we have no specific
plans at this time for any sort of additional funding. That number
surfaced in response to a theoretical question about potential
acquisitions that would grow the company’s business. We believe
there are some outstanding acquisition possibilities available to
us. In the event that we have an opportunity to make a valuable
acquisition that would immediately add value for our shareholders,
it is conceivable that some sort of funding would be required. But
there is nothing specifically planned at this point and, in any
case, we have no intention of taking any action that would be
inappropriately dilutive or harmful in any way to our
shareholders.”
Financial Outlook
Shenping Yin concluded, "Based on stronger demand from our
existing and new clients, we are raising our previous forecast for
full fiscal year 2010 revenue to a range of $15 million to $16
million, a 40% to 45% increase over FY 2009 revenue, and net income
to a range of $2.8 million to $2.9 million, a 25% to 30% increase
over FY 2009 net income. We previously forecasted our revenue to be
between $12.7 million and $13.3 million, net income between $2.5
million and $2.7 million.”
The above statements regarding forecast are forward-looking and
actual results may differ materially. These are the company’s
targets and not predictions of actual performance.
Conference Call
Recon CEO, Mr. Shenping Yin and CFO Ms. Jia Liu will host a
conference call at 10:00 AM Eastern Time on Tuesday, November 17,
2009 (11:00 PM Beijing/Hong Kong Time on November 17) to review the
company's financial results and respond to questions and
comments.
To participate, call U.S. Toll Free Number 1-877-941-8602
approximately 10 minutes before the call. International callers,
please dial 1-480-629-9811. The conference ID number is
4183979. An MP3 file will be available after the call for 90 days
via http://www.hawkassociates.com.
About Recon Technology,
Ltd.
Recon Technology, Ltd. has been providing leading Chinese oil
and gas companies with automation services that increase efficiency
and profitability in exploring, extracting, producing, processing,
refining and transporting petroleum products for over 10 years. The
company’s proprietary computerized process control system manages
oil production in real-time to increase extraction levels, reduce
impurities in extracted petroleum and lower production costs. In
addition, as one of only two acoustic system providers in the
world, Recon’s acoustic pipeline monitoring system is widely used
to prevent gas leakage in the transport pipeline. Recon's
technology is based on three software copyrights, eight product
patents and four pending patents. Recon Technology is the first
Chinese non-state-owned oil and gas service company to go public in
the U.S. More information may be found at http://www.recon.cn or
e-mail: recon@hawkassociates.com.
Recon's online investor kit, including an investment profile,
press releases, current price quotes, stock charts and more is
available at http://www.hawkassociates.com/profile/rcon.cfm. To
receive notification of future releases via e-mail, subscribe at
http://www.hawkassociates.com/about/alert/.
This news release contains forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulation, and other risks contained in reports filed by the
company with the Securities and Exchange Commission.
All such forward-looking statements, whether written or oral,
and whether made by or on behalf of the company, are expressly
qualified by the cautionary statements and any other cautionary
statements which may accompany the forward-looking statements. In
addition, the company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date hereof.
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