Wednesday, Telestone Technologies Corp. Ltd. (TSTC), a wireless communication coverage solutions provider, announced its second quarter financial results, reporting higher earnings, helped by lower costs resulting in higher gross margins for new products, offsetting an 11.8% decline in revenues. The company also expects a 20% growth in the fiscal 2008.
The Beijing, China-based company reported net income for the second quarter of US$1.78 million or US$0.17 per share, up from US$1.40 million or US$0.14 per share in the year-ago quarter, due to higher prices and gross margins of the company's new products, which also led to the decrease of the cost of equipment sale.
Revenue for the quarter declined 11.8% to US$6.0 million from US$6.9 million in the prior-year quarter, due to the decreased network expenditures of China Unicom, China Telecom and China Netcom, which were severely affected by the China telecom restructuring plan.
Costs of equipment and services for the quarter decreased 16.60% to US$2.6 million from US$3.11 million reported in the same quarter last year.
Total operating expenses for the quarter were US$1.87 million, down from US$2.05 million for the second quarter of 2007.
For the six-month period, the company's net income was US$2.62 million or US$0.25 per share, up from US$1.85 million or US$0.19 per share last year. Revenues for the six-month period rose to US$12.54 million from US$11.65 million a year ago.
Looking ahead, the company expects a 20% growth in fiscal 2008 net income and revenue over the prior year.
TSTC closed Wednesday's trading at US$4.01, down US$0.07 or 1.72%.
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