China Power Equipment, Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2012
May 14, 2012 at 04:00 pm
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China Power Equipment, Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2012. For the quarter, the company's net revenue was $7.3 million compared with $7.7 million a year ago, primarily attributable to lower average selling prices of amorphous alloy cores and transformers and lower sales of amorphous alloy transformers, partly offset by higher tonnage of amorphous alloy cores sold. Net income from operations was $1.3 million compared with $1.4 million a year ago. Net income before income taxes was $1.3 million compared with $1.4 million a year ago. Net income was $1.0 million or $0.04 per diluted share compared with $1.1 million or $0.05 per diluted share a year ago, primarily attributable to higher SG&A expenses. Net cash provided by operating activities was $1.3 million compared with $1.2 million a year ago, primarily attributable to the net income plus noncash expenses including depreciation, amortization and stock-based compensation, partially offset by cash used for working capital needs. Addition in plant and equipment was $0.85 million compared with $2.1 million a year ago.
China Power Equipment, Inc. (China Power) is a China-based company engaged in designing, manufacturing, and distributing amorphous alloy transformer cores and amorphous alloy transformers. The Companyâs devices are used to step down voltage at the final phase of the distribution of electricity to consumers, businesses, and industry. The Company conducts its business through its operating company, Xiâan Amorphous Alloy Zhongxi Transformer Co., Ltd. (Zhongxi), a Peopleâs Republic of China (PRC) Company that is controlled through its wholly owned PRC-based subsidiary An Sen (Xi'an) Power Science & Technology Co., Ltd. (An Sen), a wholly foreign-owned enterprise (WOFE). The Companyâs transformers consume 70% less electricity to operate than traditional transformers. Its products generate fewer pollutants, while retaining more electricity.