china information technology (CNIT) Key Developments
China Information Technology Mulls Acquisitions
Jun 13 14
China Information Technology, Inc. (NasdaqGS:CNIT) is looking for acquisitions. China Information Technology, Inc. has filed a shelf registration in the amount of $100 million and intends to use the proceeds to construct and expand manufacturing facilities and production lines, maintain existing machinery and purchase additional manufacturing equipment for new production lines, fund research and development efforts for new and existing products, for other general corporate purposes, including potential acquisitions or investments in complimentary businesses, products or technologies, and for general working capital.
China Information Technology, Inc. Announces Executive Changes
Jun 12 14
On June 6, 2014, the Board of Directors of China Information Technology, Inc. appointed the company's Chief
Executive Officer, Mr. Jiang Huai Lin as its Interim Chief Financial Officer, effective immediately. Mr. Daniel Lee resigned as the company's CFO on April 15, 2014.
China Information Technology, Inc. Wins WeMedia Platform and Public InfoCloud Contracts
May 6 14
China Information Technology, Inc. announced the company won important contracts in its core WeMedia and Public InfoCloud businesses with a total value of approximately $3.0 million, customers of which include Hunan Province Tobacco Company, Zhengzhou Dmall E-commerce and Guizhou Duogou E-commerce. As of today, customers of the Company's WeMedia platform are from various industries and areas including education, banking, tobacco, weather forecast, e-commerce, real-estate, hotel, restaurant, entertainment, train business, hospital, government and community. Under each contract, the Company would provide a comprehensive commercial-use WeMedia platform comprising of CNIT's proprietary Public InfoCloud and smart cloud display P-TV/P-Box, which enables the online exchange of advertising products and new-media resources, and promotes commodity information's smart distribution and demonstration. Moreover, the Platform facilitates commercial users' O2O (Online-to-Offline) transaction of advertising products from PCs/smart phones to display panels. In addition to initial sales of display terminal hardware (P-TV and P-Box) and software (cloud platform), CNIT WeMedia platform and Public InfoCloud will allow the Company to receive recurring annual service fees ranging from $30-$50 per terminal, depending on various customer needs. The company expects that the pervasiveness and scalability of Public InfoClould will enable its fast penetration into the sizable market of commercial terminal users throughout China, which may generate substantial recurring revenues for the company.
China Information Technology, Inc. Reports Consolidated Earnings Results for the Second Half and Full Year Ended December 31, 2013; Provides Earnings Guidance for 2014
Apr 15 14
China Information Technology, Inc. reported consolidated earnings results for the second half and full year ended December 31, 2013. For the second half, the company reported revenue was $38.9 million, compared to $56.8 million in the same period of 2012, a decrease of $18.0 million, or 31.6%. The decline in total revenue was primarily due to the company's strategic transition from the traditional IT software and product business to a more internet-focused business model which resulted in significant reduction in government projects and in low-margin IT systems integration projects. Loss from operations was $67.7 million in the second half of 2013, compared to a loss of $65.4 million in the same period of 2012. Net loss attributable to the company decreased by $1.2 million to a loss of $68.7 million from $69.9 million in the same period of 2012. Diluted per share was $2.48 compared with $2.59 for the same period last year. Adjusted loss per share was $0.21 compared with $0.50 for the same period last year.
For the full year, the company reported revenue was $76.1 million, compared to $86.4 million for FY2012, a decrease of $10.2 million, or 11.9%. The decrease was primarily due to the Company's conscious effort to transform itself into an internet-focused company, which led it to gradually exit the traditional hardware display business, to restructure its government-related businesses to embody the Smart City macro concept, and to reduce low-margin non-core IT project business. Loss from operations was $119.4 million in FY2013, comparing to a loss of $85.7 million in FY2012. Net loss attributable to the Company was $119.2 million for FY2013, as compared to a net loss of $89.6 million for FY2012. Cash used in operating activities amounted to $11.4 million, an increase from $9.3 million in net cash used in operating activities during 2012. Diluted per share was $4.36 compared with $3.32 for the same period last year. Adjusted loss per share was $0.41 compared with $0.81 for the same period last year.
The company anticipate regaining business growth in 2014, it expect its total revenue to be in the range of $100 million to $120 million for 2014, and its adjusted net income in the range of $6 million to $8 million, excluding any non-cash expenses as a result of employee stock awards, and amortization of intangible assets and land use rights. In addition, it expects to achieve 50% adjusted net income growth in 2015 and 2016.
China Information Technology, Inc. Announces Resignation of Daniel K. Lee as Chief Financial Officer
Mar 14 14
China Information Technology, Inc. announced that Mr. Daniel K. Lee, its Chief Financial Officer (CFO), has tendered his resignation as the company's CFO for personal reasons. Mr. Lee will remain with the company for a transition period till April 15, 2014. The Board of Directors of the company will initiate a search for his successor immediately.