China Security & Surveillance Q2 net income up 72 pct yr-on-yr

China Security & Surveillance Q2 net income up 72 pct yr-on-yr

	Published : Tue, 14 Aug 2007 05:51 By : Agencies Print this Story

BEIJING (XFN-ASIA) - China Security & Surveillance Technology Inc, a provider of digital surveillance technology in China, said its net income for the second quarter of 2007 was 4.3 mln usd, up 72 pct from a year ago, driven by 59 new contracts during the period.

Net income included around 5.7 mln usd in non-cash expenses.

The OTC Bulletin Board-traded company recorded income of 0.11 usd per diluted share compared with 0.10 usd per diluted share in the same period last year.

China Security also reported GAAP earnings per diluted share of 0.11usd for the second quarter of 2007 compared with 0.10 usd in the second quarter of 2006.

Revenue increased 551.3 pct to 52.1 mln usd as a result of increased demand among both new and existing customers for security and surveillance products within various industries and organizations in China as well as the increase in government-initiated programs to install security systems.

The company said revenue also benefited from an increase in the visibility of its brand in China, as well as from recent acquisitions.

The company's cash position in the quarter increased to 91.8 mln usd from 71.9 mln usd at the end of the previous quarter, largely due to the receipt of net proceeds from a 50 mln usd convertible note financing with Citadel that closed in April.

For the third quarter, China Security expects revenue of 65-70 mln usd, including revenue from completed acquisitions.

The acquisitions completed by the company since the beginning of fiscal 2007 include Shenzhen Hongtianzhi Electronics Co Ltd, HiEasy Electronic Technology Development Co Ltd, Changzhou Mingking Electronics Co Ltd and Hangzhou Tsingvision Intelligence System Co Ltd.

(1 usd = 7.56 yuan)

joshua.lipes@xfn.com

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