China TransInfo Technology Corp. Reports Operating Results (10-Q)

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May 13, 2009
China TransInfo Technology Corp. (CTFO, Financial) filed Quarterly Report for the period ended 2009-03-31.

CHINA TRANSINFO through its subsidiary Beijing PKU ChinaFront High Technology Co. Ltd. is primarily focused on providing transportation information services. The Company aims to become the largest transportation information product and comprehensive solutions provider as well as the largest integrated transportation information platform and commuter traffic media platform builder and operator in China. China TransInfo is involved in developing multiple applications in transportation digital city land and resource filling system based on GIS technologies which is used to serve the public sector. In addition the Company is also developing its transportation system to include ETC technology. China TransInfo Technology Corp. has a market cap of $88.8 million; its shares were traded at around $4 with a P/E ratio of 7.6 and P/S ratio of 3.

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U.S. dollar, $ and US$ refer to the legal currency of the United States.

Revenues: Our revenues were approximately $6.51 million for the first quarter of 2009, an increase of 40.34% from the same quarter of last year. Gross Margin: Gross margin was 51.01% for the first quarter of 2009, as compared to 51.25% for the same period in 2008. Operating Profit: Operating profit was approximately $1.46 million for the first quarter of 2009, a decrease of 15.81% from $1.73 million of the same period last year. Net Income: Net income was approximately $1.45 million for the first quarter of 2009, a decrease of 15.64% from the same period of last year. Fully diluted earnings per share were $0.06 for the first quarter of 2009. RESULTS OF OPERATIONS

Revenues. Revenues increased approximately $1.87 million, or 40.34%, to approximately $6.51 million for the three months ended March 31, 2009, from approximately $4.64 million for the same period in 2008. This increase was mainly attributable to the increased sales of our products and the applications of our products in the Transportation sector during the first quarter of 2009 compared to 2008. We believe that such sales increased as a result of the growing recognition of our brand name and technology as well as the rapidly developing market opportunities in the transportation information sector in China.

Cost of Goods Sold. Our cost of goods sold increased approximately $0.93 million, or 41.04%, to approximately $3.19 million for the three months ended March 31, 2009, from approximately $2.26 million during the same period in 2008. This increase was mainly due to the increase in our hardware raw materials, which was generally in line with the increase in our sales. As a percentage of revenues, the cost of goods sold slightly increased to 48.99% during the three moths ended March 31, 2009 from 48.75% in the same period in 2008.

Selling and marketing expenses, including sales representative commissions, promotion fees and marketing expenses increased approximately $0.19 million, or 112.74%, to approximately $0.36 million for the three months ended March 31, 2009 from approximately $ 0.17 million during the same period in 2008. As a percentage of revenues, selling expenses increased to 5.54% for the three months ended March 31, 2009 from 3.65% for the same period in 2008. Such dollar and percentage increase of selling and marketing expenses was mainly attributable to our expanded operations and sales volume as well as the enhanced marketing activities for the three months ended March 31, 2008.

Net cash used in investing activities for the three-month period ended March 31, 2009 was approximately $1.39 million, which is a decrease of approximately $1.13 million from net cash used in investing activities of approximately $2.52 million for the same period of 2008. This change was mainly due to the fact that we acquired less equipment for our taxi media business during the first quarter of 2009 as compared to the same period of 2008.

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