SHENZHEN, China , March 10 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. (" China Security" or the "Company") (NYSE: CSR), a leading provider of digital surveillance technology in China , today reported its financial results for the fourth quarter and full year ending December 31, 2007 .
Full Year 2007
The Company reported GAAP earnings per diluted share of
Revenue increased 124% to
Full year 2007 gross profits increased
Income from operations in 2007 increased 68.8% to
Fourth Quarter 2007
For the fourth quarter 2007, the Company reported GAAP earnings per
diluted share of
Fourth quarter revenue increased 106% to
In the fourth quarter gross profits increased
Income from operations in the fourth quarter increased 63.9% to
The Company's cash position at the end of the year was
Mr. Guo Shen Tu , Chief Executive Officer of China Security, commented, "We are encouraged by the integration of our 2007 acquisitions and partnerships, which are contributing nicely to our revenue growth, while providing synergies to our overall business. In the fourth quarter we continued to see significant demand from government Safe-City contracts, and importantly, the size, duration, and potential margins of the contracts we are signing are continuing to increase. Over the next four quarters, we will continue to focus our energies on integrating our acquisitions and generating revenue from the manufacturing and systems integration businesses, while building our operating services and international products divisions to prepare them to contribute more substantially to overall revenue growth in 2009."
For the first quarter of 2008, the Company expects to achieve revenues
The Company estimates that non-cash interest expenses associated with the
redemption accretion on convertible notes, the employee stock compensation and
the depreciation and amortization of long lived assets related to the
Company's recent acquisitions for the first quarter of 2008, will be
For the full year 2008, the Company expects to achieve revenues between
Mr. Tu concluded, "We are more excited than ever about the future of China Security. We believe we have built the strongest foundation among our recent acquisitions and partnerships to make us a market leader in manufacturing and equipment. We will continue to deploy our resources and our efforts to build these segments of our business, while at the same time increasing our focus on our burgeoning operating services and international products divisions. We believe that the security expertise of our operating team will enable us to grow those businesses over time much the same way we've successfully grown the manufacturing and systems integration businesses. Demand for our products and our expertise continues to grow, and we plan to be ready with solutions to all security needs.
In the coming year, we expect to strengthen our foothold as a market leader and consolidator in our business. We believe we have the best possible strategy for growing internally and through strategic acquisitions in order to position China Security as the leader in providing turnkey security solutions. We expect that as our spectrum of products and services grows, we will become the logical choice for customers seeking comprehensive security solutions. We're confident that our focus on sophisticated security needs in the Chinese marketplace will enable us to stay ahead of demand and continue to report strong financial results."
Explanation of Redemption Accretion
The Company raised
As of December 31st , the Company accrued
The Company will hold a conference call to discuss the financial results at 5:00 p.m. ET today. The Company invites you to join the call by dialing 913-312-1235. A live webcast of the conference call will be available at http://www.csst.com . A replay of the call will be available from March 10, 2008 to March 17, 2008 . Listeners may access the replay by dialing 719-457- 0820, passcode: 4517900.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China , China Security manufactures, distributes, installs and maintains security and surveillance systems throughout China. China Security has manufacturing facilities in China and a R&D facility which maintains an exclusive collaboration agreement with Beijing University. China Security has built a diversified customer base through its extensive sales and service network throughout China . To learn more about the Company visit http://www.csst.com .
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for earnings that exclude the accrual for the redemption amount payable under certain outstanding convertible notes issued by the Company and certain other non-cash charges. China Security believes that these non-GAAP financial measures are useful to investors because they exclude non-cash charges that China Security's management excludes when it internally evaluates the performance of China Security's business and makes operating decisions, including internal budgeting, and performance measurement, because these measures provide a consistent method of comparison to historical periods. Moreover, management believes these non-GAAP measures reflect the essential operating activities of China Security. Accordingly, management excludes the expense arising from the accrual of redemption amounts payable under its outstanding convertible notes and certain other non-cash charges when making operational decisions. China Security believes that providing the non-GAAP measures that management uses to its investors is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand China Security's financial performance in comparison to historical periods. In addition, it allows investors to evaluate China Security's performance using the same methodology and information as that used by China Security's management. Non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the non- GAAP financial measure. However, China Security's management compensates for these limitations by providing the relevant disclosure of the items excluded.
The following table provides the non-GAAP financial measure and the related GAAP measure and provides a reconciliation of the non-GAAP measure to the equivalent GAAP measure.
Safe Harbor Statement
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for security and surveillance products, our expectations regarding the continued growth of the security and surveillance market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2007 , and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) atwww.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward- looking statements, except as required by law.
SOURCE China Security & Surveillance Technology, Inc.