Nano precipitated calcium carbonate maker ShengdaTech, Inc. (SDTH) Tuesday reported a decrease in earnings for the fourth quarter ended 31 December 2009, reflecting the absence of gain related to repurchasing of convertible notes recorded last year. However, revenue for the period increased 23.3% on increase in demand for NPCC products.
Fourth-quarter net income dipped to $6.66 million from $9.63 million in the same period last year. On a per share basis, earnings were flat with last year. The company noted that prior-year results included a one-time gain of $5.5 million related to repurchasing of convertible notes.
On average, four analysts polled by Thomson Reuters expected the company to earn $0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were up 23.3% to $30.05 million from $24.37 million in the comparable period last year, reflecting increasing demand for the company's NPCC products. Analysts expected revenues of $28.35 million for the fourth quarter.
Gross margin for the quarter dropped to 39.8% from 41.1% in the comparable period last year, primarily due to production startup costs at the new Zibo facility.
Average selling price of the company's NPCC products decreased 2.6% to $484 per metric ton from $497 per metric ton in the prior-year period.
Total operating expenses grew to $2.39 million from $1.89 million in the corresponding period of last year.
For the full year, net income dipped to $23.10 million or $0.43 per share from $36.03 million or $0.60 per share in the previous year, meanwhile revenues rose 23.9% to $102.12 million from $82.42 million a year ago. Analysts were looking for earnings of $0.37 per share on revenues of $100.15 million for the full year.
Looking ahead to fiscal 2010, ShengdaTech expects revenue and net income from nano-precipitated calcium carbonate to be in the range of $123.0 million to $126.0 million, and $25.0 million to $27.0 million, respectively.
SDTH is currently trading at $6.98 per share, up $0.08 or 1.16% on the Nasdaq.
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