Recon Technology, Ltd. (Nasdaq:RCON), a leading Chinese non-state-owned oil and gas automation services provider, today reported its financial results for the fiscal year ended June 30, 2009.
FY 2009 Highlights
- Revenue for FY 2009 increased 15% to $11.1 million from $9.6 million in FY 2008.
- Gross profit increased 15% to $4.4 million for FY 2009 from $3.8 million in FY 2008.
- FY 2009 gross margins remained strong at 40%, the same as reported for FY 2008.
- Income from operations increased 12% to $2.7 million in FY 2009 from $2.4 million in FY 2008.
- Provision for income taxes in FY 2009 decreased to approximately $538,000, an effective tax rate of 18%, from approximately $683,000, an effective tax rate of 27% in FY 2008.
- Net income increased 31% to $2.2 million from $1.7 million in FY 2008.
- Diluted earnings per share increased to $0.99, from $0.77 in FY 2008.
- Weighted average number of diluted shares outstanding was 2.25 million as of June 30, 2009, compared to 2.21 million as of June 30, 2008.
The company has filed its financial statements with financial notes as part of its 10-K with SEC, which are available for public viewing at http://www.sec.gov .
Shenping Yin, Recon’s Chief Executive Officer, said, “We are pleased with our FY 2009 financial results and our first annual financial report as a public company. We believe our growth in revenue and our operational performance in FY 2009 demonstrated the strength of our business model and our competitive position in increasing efficiency and profitability for China’s petroleum companies. Our patented automation technology, our low cost high-tech system, and our extensive network with leading Chinese oil and gas companies all contributed to our strong yearly financial results.”
Initial Public Offering
On July 30, 2009, Recon completed an initial public offering of 1,700,000 ordinary shares at a price of $6.00 per share. The net proceeds from the initial public offering, after deducting underwriting discounts, commissions and offering expenses, totaled $8.9 million.
Shenping Yin continued, “We are excited to move forward into the first half of our fiscal year in a highly flexible financial position. We are sufficiently capitalized to operate in China’s oil and gas automation services sector and expect to take advantage of the long-term opportunities driven by China’s surging oil demand. We intend to use our proceeds from the IPO to reinforce our competitive position. We plan to undertake new projects in both oil and natural gas fields, focus our research and development on improved automated systems to maximize extraction at a lower cost and increase marketing and trade conference participation to enhance our brand in China.”
Shenping Yin concluded, “Based on continued demand from our existing and newly engaged oilfields, we are targeting revenue for the 2010 fiscal year between $12.7 million and $13.3 million, net income between $2.5 million and $2.7 million and diluted earnings per share for FY 2010 between $0.65 and $0.68. The increased share count associated with our July IPO accounts for the difference in EPS growth projected.”
The above statements regarding targets for the full year are forward-looking and actual results may differ materially. These are the company’s targets and not predictions of actual performance.
Recon CEO Mr. Shenping Yin and CFO Ms. Jia Liu will host a conference call at 10:00 AM Eastern Time on September 29, 2009 (10:00 PM Beijing/Hong Kong Time on September 29) to review the company’s financial results and respond to questions and comments.
To participate, call U.S. toll free 1-877-941-4775 approximately 10 minutes before the call. International callers, please dial 1-480-629-9761 . The conference ID number is 4163157. An MP3 file will be available after the call for 90 days via http://www.hawkassociates.com .
About Recon Technology, Ltd.
Recon Technology, Ltd. has been providing leading Chinese oil and gas companies with automation services that increase efficiency and profitability in exploring, extracting, producing, processing, refining and transporting petroleum products for over 10 years. The company’s proprietary computerized process control system manages oil production in real-time to increase extraction levels, reduce impurities in extracted petroleum and lower production costs. In addition, as one of only two acoustic system providers in the world, Recon’s acoustic pipeline monitoring system is widely used to prevent gas leakage in the transport pipeline. Recon’s technology is based on three software copyrights, eight product patents and four pending patents. Recon Technology is the first Chinese non-state-owned oil and gas service company to go public in the U.S. More information may be found at http://www.recon.cn or e-mail: firstname.lastname@example.org .
Recon’s online investor kit, including an investment profile, press releases, current price quotes, stock charts and more is available at http://www.hawkassociates.com/profile/rcon.cfm . To receive notification of future releases via e-mail, subscribe at http://www.hawkassociates.com/about/alert/ .