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8-K - TELESTONE TECHNOLOGIES CORP | v194136_8k.htm |
EX-99.2 - TELESTONE TECHNOLOGIES CORP | v194136_ex99-2.htm |
EX-99.1 - TELESTONE TECHNOLOGIES CORP | v194136_ex99-1.htm |
Telestone
Provides Estimated Backlog Figure of $106.0 million for
FY2010 on Second Quarter Earnings Conference Call
FY2010 on Second Quarter Earnings Conference Call
BEIJING, August 16 — Telestone
Technologies Corporation ("Telestone" or the "Company") (Nasdaq:TSTC - News), a
leading developer and provider of telecommunications local access networks in
China, provided a backlog figure of $106.0 million on their second quarter
conference call hosted on Friday, August 13, 2010. The Company expects to bill
out their backlog before December 31, 2010.
“After
consolidating our contracts and project schedules from our offices throughout
China, we announced on our second quarter conference call an estimated backlog
of $106.0 million which we expect to bill out during our 2010 fiscal year,”
stated Han Daqing, Chairman and CEO of Telestone Technologies. “Our backlog
represents our list of projects that have been secured and engineered for
installation in building sites throughout China by the end of
2010. Based on our six month revenue of $27.8 million and our
backlog, we are confident that we will meet our guidance of $129.4 million in
revenue for the year.”
Telestone
Technologies is also clarifying a question posed during the call regarding the
Company’s sales and marketing expense of $4.2 million in the second quarter of
2010. As explained on the call, the increase in the Company’s sales
and market expenses for the quarter were 126.1% year over year and part of an
aggressive training and outreach program to secure more high-margin, WFDS™
contracts from the branch offices of the Big 3 carriers and the building owners
of sites slated for installations.
“The
second quarter of the year is known as a ‘tender season’ amongst our sales teams
at Telestone,” added Chairman Han. “The difference this year over previous years
is our focus in selling our high-margin 3/G and WFDS™ systems only and the
distancing of ourselves from the lower margin, 2/G business. We
believe that the time, effort and expense we put into this program and the
additional expenses spent by our sales teams as they worked to secure higher
margin sales for us will pay off in the 3rd and 4th quarters of
2010. In those quarters, we bill more than 70% of yearly revenues and
a majority of our backlog. In the 3rd and 4th quarters and after
peaks in sales and marking expenses during the tender season, we believe that
our sales and marketing expenses are likely to decrease significantly, thus
providing higher operating and net margin returns.”
For the
year, the Company has guided $22.9 million in net income, which will equate to
$2.18 in EPS per 10.5 million fully-diluted shares the company expects to report
on December 31, 2010.
About
Telestone Technologies Corporation
Telestone
is a leading innovator in local access network technologies and solutions.
Telestone is a global company with 30 sales offices throughout China and a
network of international branch offices and sales agents. For more than 10
years, Telestone has been installing radio-frequency based 1G and 2G systems
throughout China for China's leading telecommunications companies. After
intensive research on the demands of carriers in the 3G age, Telestone developed
and commercialized its third generation technology for the local access network,
WFDS(TM) (Wireless Fiber-Optics Distribution System), which provides a scalable,
multi-access local access network solution for China's three cellular protocols.
Telestone offers services that include project design, project manufacturing,
installation, maintenance and after-sales support. Telestone Technologies has
approximately 1,200 employees.
Safe
Harbor Statement
This
release contains certain "forward-looking statements" relating to the business
of Telestone Technologies Corporation and its subsidiary companies. Forward
looking statements can be identified by the use of forward-looking terminology
such as "believes, expects" or similar expressions. Such forward looking
statements involve known and unknown risks and uncertainties, including all
business uncertainties relating to product development, marketing, concentration
in a single customer, raw material costs, market acceptance, future
capital requirements, competition in general and other factors that may cause
actual results to be materially different from those described herein as
anticipated, believed, estimated or expected. Certain of these risks and
uncertainties are or will be described in greater detail in our filings with the
Securities and Exchange Commission. Telestone Technologies is under no
obligation to (and expressly disclaims any such obligation to) update or alter
its forward-looking statements whether as a result of new information, future
events or otherwise. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of these
securities in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of such state or jurisdiction.
For
further information, contact:
Company:
Liping
Zhang, Board Secretary
Tel:
+86-10-8367-0088 x1003
Email:
zhangliping@telestone.com
Feng Dan,
Assistant Secretary of the Board
Tel: +86-10-8367-0088
x1232
Email:
fengdan@telestone.com
Investor
Relations:
John
Mattio
HC
International Inc.
Tel: +1-203-616-5144
Email:
john.mattio@hcinternational.net