Kingtone Reports FY 2011 Net Loss of USD 1 Mln
PR Newswire Asia, 1/05/12
Chinese wireless software solutions provider Kingtone Wirelessinfo Solution Holding (Nasdaq: KONE) today announced financial results for its fiscal year ended September 30, 2011, with revenue down 56.3% YoY to USD 6.3 mln.
Kingtone reported a net loss of USD 1 mln in FY 2011, compared to a net profit of USD 8.2 mln in FY 2010.
Revenue from software solution sales decreased by 78.6% YoY to approximately USD 2.4 mln in FY 2011, from approximately USD 11.3 mln in FY 2010. As a percentage of total revenue, software solution sales decreased from 77.7% to 38.0%. The significant decrease in software solution revenue was mainly due to increased competition from a number of smaller competitors in the industry, which resulted in the company's inability to continue to win large projects. Another contributing factor was that the company's new contracts were of substantially smaller value than contracts in the prior year.
Revenue from wireless system solution sales increased by 21.5% to approximately USD 3.9 mln in FY 2011, from approximately USD 3.2 mln in FY 2010. As a percentage of total revenue, wireless system solution sales increased from 22.3% to 62% of the company's total revenue. Given the competitive circumstances in the software solution industry during the period, Kingtone devoted more resources to wireless system solution sales and continually provided wireless system solution services to certain major customers, including Shaanxi Yanchang Petroleum.
For FY 2012, management expects revenues of USD 12 mln to USD 15 mln and net income of USD 0.85 mln to USD 2.13 mln. This guidance reflects the company's anticipated increase in sales resulting from Kingtone's existing solution offerings and the increasing demand driven by the on-going adoption of 3G mobile networks in the PRC.
To view Kingtone's complete financial report please click here.
Keywords: telecom software 2011 guidance loss profit revenue software wireless Kingtone KONE fiscal report