China Digital Expects to Net $5.3mm+ in 2009
China Digital Communications (CMTP) shares surged more than 25 percent after projecting 2009 revenues of $23 to $25 million and net income of $5.3 to $6.0 million, exceeding prior estimates.
China Digital Communications [[CMTP.OB]], a battery component manufacturer and distributor in China, announced higher-than-expected revenue and earnings guidance for 2009, sending shares sharply higher on the day. The company expects to see revenues jump 17% to 27% and net income to increase 8% to 22%.
Notably, China Digital has indicated that these estimates do not include the possibility of additional purchase orders due to new customers or future acquisitions. As a result, there remains a lot of upside if the company continues to successfully execute on its strategies as it has in the past.
“We are announcing 2009 earnings guidance as part of our enhanced financial communications initiatives,” said CEO Fushun Li. “These strong results are a testament to China Digital’s commitment to improving efficiencies, as well as our decision to enter the finished battery distribution business.
“We believe that our management team’s ability to sign large contracts, like our recent $4.1 million agreement with China Electronics Shenzhen Company, and make proactive adjustments as well as diversify our product lines will serve to drive revenues, earnings and, ultimately, shareholder value.”
China Digital, through its wholly owned subsidiary Shenzhen E’Jenie Science and Technology Co., Ltd., is a manufacturer and developer of advanced telecommunications equipment in China. Specifically, the company sells high-quality lithium-ion battery shell and cap products to all major manufacturers in China.
CONTACT: 888-288-5215 · Please read our Full Disclaimer pertaining to this article.