ZST Digital Networks Inc., a major developer, manufacturer and supplier of cable systems and commercial GPS products and services in China, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2010.
“Our strong financial results were driven by the rapid growth of our GPS products and services and the continued growth in our core IPTV market and cable TV equipment. Moreover, the growth in sales of our high margin GPS products and services and Standard Definition IPTV set-top boxes has helped to drive our bottom-line, resulting in a 117 percent year-over-year increase in net income for the full year. In addition, we continue to maintain a strict focus on cost controls to maximize the efficiency of our operations. We believe our impressive financial results and healthy balance sheet position us well to continue to deliver sustained growth in the year ahead,” John Chen, CFO of ZST stated in the press release.
Revenue for the fourth quarter of 2010 increased 51 percent to US$46.0 million compared to US$30.3 million reported in the fourth quarter of 2009. Revenue for fiscal 2010 increased 34 percent to US$134.6 million compared to US$100.4 million in fiscal 2009.
ZST’s gross profit for the fourth quarter of 2010 was US$12.4 million, a 113 percent year-over-year increase. Gross profit margin for the fourth quarter of 2010 was 27 percent, up from 19 percent in the fourth quarter of 2009. For fiscal 2010, gross profit increased by 104 percent to US$34.8 million compared to US$17.1 million in fiscal 2009. Gross margin for fiscal 2010 was 26 percent, up from 17 percent in fiscal 2009.
Total operating expenses for the fourth quarter of 2010 were US$1.4 million, a decrease of 13 percent from US$1.6 million in the fourth quarter of 2009. For fiscal 2010, total operating expenses increased 58 percent to US$4.8 million from US$3.1 million in fiscal 2009.
Fourth-quarter income from operations was US$11.0 million, an increase of 161 percent compared to operating income of US$4.2 million in the fourth quarter of 2009. For fiscal 2010, income from operations rose 114 percent to US$30.0 million, from US$14.0 million in fiscal 2009.
Net income for the fourth quarter of 2010 was US$8.5 million, or US$0.73 per share, a year-over-year increase of 176 percent from US$3.1 million, or US$0.28 per share, in the fourth quarter of 2009. For fiscal 2010, net income increased 117 percent to US$22.1 million, or US$1.90 per share, compared to US$10.2 million, or US$1.16 per share, for fiscal 2009.
As of December 31, 2010, the company reported cash and cash equivalents at US$23.7 million.
For the full year 2011, the company estimates that revenues ranging between US$160 million and US$175 million; and net income ranging between US$28 million and US$30 million.
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