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Telestone Technologies (TSTC) – Comments & Business Outlook
- Revenues were $17.4 million, a decrease of 41.2%, as compared to $29.6 million in the year-ago quarter
- Gross profit was $6.8 million, as compared to $12.9 million in the year-ago quarter
- Net loss was $13.1 million, or $0.92 per diluted share. Non-GAAP net income, which excluded stock-based compensation and allowance for doubtful accounts, was $1.3 million, or $0.09 per diluted share
Business Outlook
For the full-year 2012, Telestone now expects revenues of approximately $ 71-79 million, as compared to its previous estimate of approximately $117 million.
“While we are disappointed in reporting a decline in sales and a loss in the second quarter, the loss was largely due to an allowance for doubtful accounts. This year, we have deliberately moderated our top-line growth in order to improve collections so that we can position Telestone for a return to growth and a renewed focus on our U-DAS (WFDS) and TIPS technologies next year. Our updated guidance reflects the slow start of the carriers’ large-scale 4G network construction in China and some unexpected headwinds in the US, and therefore we have adjusted our business-development strategies there to focus on large orders from U.S. carriers. The Company is currently successfully navigating a technology cycle, as investment in certain wireless technologies wanes and new technologies such as TIPS start to draw customer interest,” commented Mr. Daqing Han, Telestone’s Chairman and CEO.
“While we are disappointed in reporting a decline in sales and a loss in the second quarter, the loss was largely due to an allowance for doubtful accounts. This year, we have deliberately moderated our top-line growth in order to improve collections so that we can position Telestone for a return to growth and a renewed focus on our U-DAS (WFDS) and TIPS technologies next year. Our updated guidance reflects the slow start of the carriers’ large-scale 4G network construction in China and some unexpected headwinds in the US, and therefore we have adjusted our business-development strategies there to focus on large orders from U.S. carriers. We are currently soliciting bids for projects in Houston and Dallas, TX, as well as in Mexico and Chile and we believe these initiatives will improve orders in the near future,” commented Mr. Daqing Han, Telestone’s Chairman and CEO.
2012-11-19 19:00:43
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