Pansoft Co. Ltd. (PSOF), an ERP software service provider for the oil and gas industry in China, posted a 94% rise in second-quarter profit, on 47% rise in revenues.
Net income for the quarter rose 94% to $1.9 million from year-ago $0.995 million, and earnings per share rose 64% to $0.36 from $0.22.
Revenues rose 47% to $4.9 million from $3.3 million last year, mainly due to a significant increase in the number and value of contracts.
The company has two major long-term clients, Sinopec and PetroChina -- major oil corporations in China. The company has in fact, dedicated two business units called Sinopec services and PetroChina services to cater to these oil giants, as part of a recent corporate restructuring effort.
To be more consistent with the purchasing cycle of its major customers, the company has changed its fiscal year end to June 30 from December 31.
China has now become a sought-after destination for the multinational companies looking to expand operations. The increasing global operations in China are prompting the country's businesses to upgrade IT systems, especially the ERP or Enterprise Resource Planning platforms, positioning companies like Pansoft for growth.
Looking ahead, Pansoft expects to achieve 40% organic growth in revenue year-over-year for the fiscal year ending in June 30, 2010.
With about $14.7 million in cash or cash equivalent on its balance sheet, the company also plans to focus aggressively on potential acquisitions to expand into additional industries.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.