Key Developments For China Information Security Technology, Inc.
China Information Security Technology, Inc. (CPBY.O) (Nasdaq)
China Information Security Technology, Inc. Raises FY 2009 Outlook; Issues FY 2010 Mixed Outlook
China Information Security Technology, Inc. raised its fiscal 2009 outlook and expects revenue of $96-$100 million and pro-forma net income projection to the range of $28.5-$30.0 million, excluding any non-cash expenses as a result of employee stock awards and amortization of intangible assets associated with recent acquisitions. This compares to the previous outlook of $94-$98 million in revenue and $26.8-$28.0 million in pro-forma net income. For fiscal 2010, it expects revenue to be $133-$138 million and pro forma net income to be $33.5-$37.5 million. According to Reuters Estimates, analysts were expecting the Company to report revenues of $98 million and net profit of $27.0 million for fiscal 2009 and revenues of $141 million and net profit of $33.4 million for fiscal 2010.
China Information Security Technology, Inc. Announces $11 Million Contract
China Information Security Technology, Inc. announced that it has been awarded an $11 million contract for Phase I of the Shenzhen Emergency Command Digital Trunking Mobile Communications System Project (the Project). The Company anticipates completing this contract within the next 12 months and will recognize revenue over that period of time. According to the contract, the Company will serve as general contractor and systems integrator for the Project and will construct an emergency response communications system based on EADS Secure Network's TETRA (Terrestrial Trunked Radio) two-way transceiver technology.
China Information Security Technology, Inc. Announces Agreement To Acquire Topwell Treasure Ltd And Huipu Electronics (Shenzhen) Co., Ltd; Plans To Dispose Huipu's Low End Business Lines
China Information Security Technology, Inc announced that it has entered into a definitive agreement to acquire Topwell Treasure Ltd., a Hong Kong limited company and its wholly owned Chinese subsidiary, Huipu Electronics (Shenzhen) Co., Ltd(Huipu). The transaction is expected to close on or about October 1, 2009. Under the terms of the purchase agreement, the Company will pay up to $16.0 million in cash and stock for 100% of the equity interests in Topwell. The purchase price will be comprised of $8.0 million in cash, payable on or before November 28, 2009, and 1,101,930 shares of the Company's common stock (valued at approximately $4.0 million at $3.63 per share) payable within 90 days of the closing of the transaction. The Company also agreed to issue and deliver to the Topwell sellers another 1,101,930 shares of the Company's common stock if Huipu achieves certain target after tax net income thresholds in the years 2010 through 2012. Subsequent to the completion of the acquisition, the Company plans to dispose of Huipu's low end business lines and focus on Huipu's high end and innovative products while integrating Huipu into its overall business.
China Information Security Technology, Inc. Announces New Chief Financial Officer
China Information Security Technology, Inc. announced that the Company has appointed Ms. Jackie You Kazmerzak as its Chief Financial Officer (CFO), effective August 17, 2009. Ms. Kazmerzak's appointment as CFO was occasioned by the resignation of Ms. Wendy Wang from the post on August 7, 2009, for personal reasons, however, Ms. Wang will remain with the Company for an interim period in order to assist with the transition.
China Information Security Technology, Inc. Reaffirms FY 2009 Guidance
China Information Security Technology, Inc. reaffirmed its fiscal 2009 guidance and expects revenue to be in the range of $94-$98 million and pro-forma net income of $26.8-$28.0 million. According to Reuters Estimates, analysts were expecting the Company to report net profit of $27.3 million on revenue of $96 million for fiscal; 2009.
