JINGDE,
Second-Quarter 2010 Highlights -- Revenue increased 99.5% to $9.4 million in the second quarter of 2010 as compared to $4.7 million in the second quarter of 2009 -- Gross profit increased 72.0% to $3.0 million in the second quarter of 2010 from $1.7 million in the second quarter of 2009 -- Operating income increased 37.3% to $2.1 million in the second quarter of 2010 from $1.6 million in the second quarter of 2009 -- Net income was $1.8 million, or $0.08 per basic and diluted share, in the second quarter of 2010, a 64.5% increase from $1.1 million, or $0.06 per basic and diluted share, in the second quarter of 2009
"In the second quarter of 2010, we experienced a revenue increase, with
sales nearly doubling versus the same period in the prior year, as well as
solid net-income growth. We maintained our market position in both the
communication and power transmission sectors," commented Mr.
Financial Results for the Second Quarter of 2010
Revenues for the second quarter of 2010 were
Gross profit increased by 72.0% to
Selling, general and administrative expenses increased to
Income tax expense totaled
Net income was
First-Half 2010 Results
Revenue for the six months ended
Financial Condition
Cash and cash equivalents were
Cash flow from operations was
Business Outlook
The Company expects major electrical utilities and telecommunication
service providers, in both
About TEC
TEC Technology, Inc., founded in 2006, is a leader in the design,
production and sale of transmission towers and related products used in
high-voltage electric power transmission and wireless communications in
fast-growing Chinese and international markets. The Company's headquarters are
located in
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond our control that could cause actual events and results to differ materially from these statements. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which are relevant as of the date of the given press release and should not be relied upon as of any subsequent date. The Company undertakes no obligation to update publicly any forward-looking statements.
For more information, please contact: Company Contact: Mr. Kai Sun Vice President of Investor Relations Email: info@tecgroup.cn Tel: +1-408-429-9345 Investor Relations Contact: Mr. John Harmon Sr. Account Manager, CCG Investor Relations Email: john.harmon@ccgir.com Tel: +1-646-833-3424 - Financial Tables Follow - TEC Technology, Inc. Consolidated Balance Sheets June 30, December 31, 2010 2009 Assets Current Assets Cash and equivalents $1,708,052 $164,927 Accounts receivable, net of allowance for doubtful accounts 17,359,204 8,791,842 Inventory 9,783,133 7,066,787 Deposits and prepaid expenses 2,080,886 2,716,237 Other receivables 1,683,344 3,802,358 Taxes recoverable -- 4,889 Total current assets 32,614,619 22,547,040 Property, plant and equipment, net of accumulated depreciation 3,714,259 3,353,841 Land use rights, net of accumulated amortization 2,039,015 2,051,837 Long-term accounts receivable, net of allowance for doubtful accounts 136,068 -- Total Assets 38,503,961 27,952,718 Liabilities and Shareholders' Equity Current Liabilities Accounts payable 12,422,388 5,012,224 Other payables and accrued expenses 5,137,663 3,251,687 Taxes payable 387,549 1,306,915 Customer deposits 62,156 113,867 Short-term borrowings 12,557,325 12,733,709 Total current liabilities 30,567,081 22,418,402 Commitments and contingencies -- -- Total liabilities 30,567,081 22,418,402 Shareholders' equity Common stock 30,182 19,195 Additional paid-in capital 962,126 951,605 Retained earnings 6,576,576 4,235,616 Accumulated other comprehensive loss 367,996 327,900 Total shareholders' equity 7,936,880 5,534,316 Total Liabilities and Shareholders' Equity 38,503,961 27,952,718 TEC Technology, Inc. Consolidated Statements of Income and Other Comprehensive Income Three Months Ended Six Months Ended June 30, June 30, 2010 2009 2010 2009 Net sales $9,427,220 $4,725,600 $14,606,979 $6,407,520 Total cost of sales 6,443,918 2,990,817 9,957,895 4,211,649 Gross Profit 2,983,302 1,734,783 4,649,084 2,195,871 Selling and marketing expenses (486,367) (21,779) (789,867) (95,229) General and administrative expenses (363,402) (158,828) (644,948) (356,708) Total operating expenses (849,769) (180,607) (1,434,815) (451,937) Income (loss) from operations 2,133,533 1,554,176 3,214,269 1,743,934 Government grant 179,417 63,010 179,417 63,010 Other income 13,694 29,414 13,695 29,338 Interest expense (292,217) (170,159) (679,560) (255,452) Net other income (expenses) (99,106) (77,735) (486,448) (163,104) Net income before provision for income taxes 2,034,427 1,476,441 2,727,821 1,580,830 Provision for income taxes (209,868) (367,027) (386,861) (396,811) Net income (loss) 1,824,559 1,109,414 2,340,960 1,184,019 Foreign currency translation gain 20,048 (12,813) 40,096 (16,747) Comprehensive income 1,844,607 1,096,601 2,381,056 1,167,272 Basic EPS $0.08 $0.06 $0.10 $0.06 Diluted EPS $0.08 $0.06 $0.10 $0.06 Basic shares outstanding 22,856,798 19,194,421 22,856,798 19,194,421 Diluted weighted shares outstanding 22,856,798 19,194,421 22,856,798 19,194,421 TEC Technology, Inc. Consolidated Statements of Cash Flows Six Months Ended June 30, 2010 2009 Cash Flows from Operating Activities Net Income $2,340,960 $1,184,019 Adjustments to Net Income Depreciation 129,824 73,445 Amortization of intangible assets 21,127 21,110 Changes in Operating Assets and Liabilities Decrease (increase) in inventory (2,716,346) (1,217,770) Decrease in deposits and prepaid expenses 635,351 (1,817,596) Decrease (increase) in accounts receivable (8,703,430) (3,414,988) Increase in other receivables 2,119,014 (1,304,119) Decrease in taxes recoverable 4,889 92,151 Increase in taxes payable (919,366) 105,034 Increase in accounts payable 7,410,164 1,346,905 Decrease in customer deposits (51,711) (28,811) Increase in other payables and accrued expenses 1,885,976 1,841,442 Net cash provided by operating activities 2,156,452 (3,119,178) Cash Flows from Investing Activities Purchases of property and equipment (455,446) (334,335) Purchases of land rights -- (1,643,546) Net cash (used in) provided by investing activities (455,446) (1,977,881) Cash Flows from Financing Activities Common stock issued 10,987 -- Additional paid-in capital issued 10,521 290,276 Proceeds from short-term borrowings -- 4,860,390 Repayment of short-term borrowings (176,384) -- Net cash used in financing activities (154,876) 5,150,666 Effect of exchange rate changes on cash and cash equivalents (3,005) 3,125 Net increase in cash and cash equivalents 1,543,125 56,732 Cash and cash equivalents at beginning of period 164,927 704,854 Cash and cash equivalents at end of period $1,708,052 $761,586
SOURCE TEC Technology, Inc.