SHENZHEN, China , Oct. 28 /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 third quarter ending September 30, 2008 .
Third Quarter 2008
For the third quarter 2008, the Company reported GAAP earnings per diluted
Third quarter revenue increased 82.3% to
In the third quarter gross profits increased
Income from operations in the third quarter increased 17.8% to
The company's cash position at the end of the quarter was
Mr. Guo Shen Tu , Chief Executive Officer of China Security, commented, "We are excited by the revenue growth we have generated in the quarter. Even in today's challenging global economic environment, we continue to see sustained demand for our security and surveillance products and services. We believe we have the right foundation and the financial strength to continue to grow our revenues and to weather short term cost increases, which have returned to normal following the end of the Olympics. Our corporate and Safe City products and services continue to show strong demand, and we are beginning to realize benefits from our global outreach. We are excited about our stock listing on the Dubai International Financial Exchange, and the increased visibility we believe it will bring us. We anticipate continued growth in our existing markets within China , and believe that international exposure will soon realize benefits."
For the full year 2008, the company is reiterating its financial forecast
and expects to achieve revenues between
The company estimates that for the fourth quarter, non-cash interest
expenses associated with the redemption amount payable on convertible notes,
the accrual of performance based employee compensation and the amortization of
intangible assets related to the company's recent acquisitions, will be
For the full year 2009, the Company expects to achieve revenues between
Mr. Tu concluded, "We remain focused on our goal of becoming the premiere security product and service provider in China , and believe that with our strong balance sheet and access to capital through our bank lines, we are well positioned to continue our growth trajectory, not only here in China but also globally. Despite the current global economic environment, we continue to believe that this is an ideal time to begin to increase our visibility and brand awareness overseas. Our management expertise, our solid strategic plan, and our strong capital structure give us the infrastructure to continue to leverage the growing opportunities and demand for security and surveillance products and services on a global scale."
Explanation of Redemption Accrual
The Company raised
As of September 30, 2008 the Company accrued a cumulative
The Company will hold a conference call to discuss the financial results at 8:00 a.m. ET today. The Company invites you to join the call by dialing 1-913-312-1468. A live webcast of the conference call will be available at http://www.csst.com . A replay of the call will be available from October 28, 2008 to November 4, 2008 . Listeners may access the replay by dialing 1-719-457-0820, passcode: 4870794.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China , China Security manufactures, distributes, installs and services security and surveillance products and systems as well as develops security and surveillance related software in China . Its customers are mainly comprised of commercial and government entities and non-profit organizations. China Security has built a diversified customer base through its extensive sales and service network that includes over 150 branch offices and distribution points 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.
In addition, please note that in Q3, 2007, the company recorded a one-time
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) at www.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.
(Financial Tables to Follow)
SOURCE China Security & Surveillance Technology, Inc.