Nano precipitated calcium carbonate maker Shengdatech Inc. (SDTH) Monday said its second quarter profit declined 33.5% from last year, hurt by lower revenues as it ceased production at its Bangsheng Chemical Facility. However, the company's quarterly earnings exceeded the Street expectations by 5 cents. Following the news, the company's shares gained more than 17% in the after-hours trading.
Net income for the second quarter was $6.5 million, down 33.5% from $9.8 million in the prior year quarter. Earnings per share decreased to $0.12 from $0.18 in the previous year quarter. On average, 5 analysts polled by Thomson Reuters expected the company to earn $0.07 per share for the second quarter. Analysts' estimates typically exclude one-time items.
Second quarter total revenue declined 34% to $26.3 million from $39.8 million in the second quarter of 2008, due to the ceased production at the company's Bangsheng Chemical Facility on October 31, 2008. Five analysts had a consensus revenue estimate of $22.29 million for the second quarter.
As a percentage of sales, total gross margin improved 6.5 percentage points to 43.3% from 36.8% in the second quarter of 2008.
The average selling price of the company's NPCC products rose 12.2% to $479 per metric ton from $427 per metric ton in the year-ago quarter.
Total operating expenses for the quarter grew to $2.03 million from $1.80 million in the prior year quarter.
On August 3, Shengdatech said that it completed relocating its headquarters to Shanghai, China. The company's president and CEO, Xiangzhi Chen, chief financial officer, Andrew Chen, chief operating officer, Anhui Guo, and other executives are now based at the new Shanghai office.
For the first six months of 2009, net income fell to $11.5 million or $0.20 per share from $17.2 million or $0.32 per share in the previous year period.
Total revenue for the year-to-date period decreased 31.3% to $47.0 million from $68.4 million in the year-ago period.
SDTH closed Monday's regular trading session at $5.57, up 8 cents or 1.46%. In after-hours, the shares further gained 90 cents or 16.16%.
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