Key Developments For ShengdaTech, Inc.
ShengdaTech, Inc. (SDTH.O) (Nasdaq)
ShengdaTech Inc. Q3 2009 Misses Estimates, Shares Down-Reuters
Reuters reported that shares of ShengdaTech Inc. fell as it posted a lower-than-expected quarterly profit as sales nearly halved, partly hurt by lower selling prices. For the third quarter, the Company posted a net income of $4.6 million, or $0.09 a share, down from $9.2 million, or $0.17 a share, in the same period last year. Revenue declined about 49% to $25.4 million.
ShengdaTech Inc. Acquires NPCC Facility in Anhui Province
ShengdaTech Inc. announced the acquisition of Anhui Chaodong Nanomaterials Science and Technology Co., Ltd. (Chaodong), an inactive NPCC facility in Hanshan County in the Yangtze River Delta region of Anhui Province with 10,000 metric tons of annual NPCC production capacity. Pursuant to the agreement with Chaodong, the Company will pay approximately $3.8 million in cash to acquire 100% of Chaodong, including mining rights to approximately 14.25 million tons of limestone reserves and existing buildings and equipment. The Company will not assume any of Chaodong's liabilities as of the date of the agreement. The Company plans to invest an additional $2.9 million to upgrade Chaodong's technology and production facility before beginning production by the end of 2009. In addition to the investment agreement, the Company also separately agreed to purchase the land-use rights for approximately 66,767 square meters (16.5 acres) of land from the local government for the existing Chaodong facility at an estimated cost of approximately $4.4 million.
ShengdaTech Inc. Reaffirms FY 2009 Outlook
ShengdaTech Inc. announced that for fiscal 2009, it expects revenue and net income to be in the range of $92.0 million to $94.0 million and $18.0 million to $19.0 million, respectively, for diluted earnings per share of $0.32-$0.34. This re-affirmed guidance excludes the impact of any acquisitions, the impact of the adoption of FSP APB 14-1, and gains related to the repurchase of its convertible notes.
ShengdaTech Inc. Appoints New Chief Financial Officer and New Chief Operating Officer
ShengdaTech Inc. announced that its Board of Directors appointed Mr. Andrew Weiwen Chen as ShengdaTech's new Chief Financial Officer effective April 15, 2009. The Company also announced that Ms. Anhui Guo resigned from her position as Chief Financial Officer and was appointed Chief Operating Officer, effective April 15, 2009. Ms. Guo will also continue to serve on the Company's Board of Directors.
ShengdaTech Inc. Terminates Efforts To Acquire Jinan Fertilizer Co., Ltd.; To File Notification Of Late Filing Of Form 10-K
ShengdaTech Inc. announced that its Board of Directors has decided that the Company will no longer pursue the acquisition of Jinan Fertilizer Co., Ltd. (Jinan Fertilizer) and to direct its resources to continue to grow their NPCC business. The Company also announced that it will file a Form 12b-25 (Notice of Late Fling) with the Securities and Exchange Commission (SEC) in lieu of its Form 10-K for the fiscal year ended December 31, 2008. The Company expects to file its Form 10-K no later than the fifteenth calendar day following the March 16, 2009 filing deadline. The extension is necessary in order to provide the Company additional time to evaluate the impact on its financial statements of the closing of its Tai'an City facility on October 31, 2008.
