TELIDYNE INC. 
By JINGDE,
Second-Quarter 2010 Highlights
-- Revenue increased 99.5% to $9.4 million in the second quarter of 2010
as compared to $4.7 million in the second quarter of 2009
-- Gross profit increased 72.0% to $3.0 million in the second quarter of
2010 from $1.7 million in the second quarter of 2009
-- Operating income increased 37.3% to $2.1 million in the second quarter
of 2010 from $1.6 million in the second quarter of 2009
-- Net income was $1.8 million, or $0.08 per basic and diluted share, in
the second quarter of 2010, a 64.5% increase from $1.1 million, or
$0.06 per basic and diluted share, in the second quarter of 2009
"In the second quarter of 2010, we experienced a revenue increase, with
sales nearly doubling versus the same period in the prior year, as well as
solid net-income growth. We maintained our market position in both the
communication and power transmission sectors," commented Mr.
Financial Results for the Second Quarter of 2010
Revenues for the second quarter of 2010 were
Gross profit increased by 72.0% to
Selling, general and administrative expenses increased to
Income tax expense totaled
Net income was
First-Half 2010 Results
Revenue for the six months ended
Financial Condition
Cash and cash equivalents were
Cash flow from operations was
Business Outlook
The Company expects major electrical utilities and telecommunication
service providers, in both
About TEC
TEC Technology, Inc., founded in 2006, is a leader in the design,
production and sale of transmission towers and related products used in
high-voltage electric power transmission and wireless communications in
fast-growing Chinese and international markets. The Company's headquarters are
located in
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond our control that could cause actual events and results to differ materially from these statements. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which are relevant as of the date of the given press release and should not be relied upon as of any subsequent date. The Company undertakes no obligation to update publicly any forward-looking statements.
For more information, please contact:
Company Contact:
Mr. Kai Sun
Vice President of Investor Relations
Email: info@tecgroup.cn
Tel: +1-408-429-9345
Investor Relations Contact:
Mr. John Harmon
Sr. Account Manager, CCG Investor Relations
Email: john.harmon@ccgir.com
Tel: +1-646-833-3424
- Financial Tables Follow -
TEC Technology, Inc.
Consolidated Balance Sheets
June 30, December 31,
2010 2009
Assets
Current Assets
Cash and equivalents $1,708,052 $164,927
Accounts receivable, net of allowance for
doubtful accounts 17,359,204 8,791,842
Inventory 9,783,133 7,066,787
Deposits and prepaid expenses 2,080,886 2,716,237
Other receivables 1,683,344 3,802,358
Taxes recoverable -- 4,889
Total current assets 32,614,619 22,547,040
Property, plant and equipment, net of
accumulated depreciation 3,714,259 3,353,841
Land use rights, net of accumulated
amortization 2,039,015 2,051,837
Long-term accounts receivable, net of
allowance for doubtful accounts 136,068 --
Total Assets 38,503,961 27,952,718
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable 12,422,388 5,012,224
Other payables and accrued expenses 5,137,663 3,251,687
Taxes payable 387,549 1,306,915
Customer deposits 62,156 113,867
Short-term borrowings 12,557,325 12,733,709
Total current liabilities 30,567,081 22,418,402
Commitments and contingencies -- --
Total liabilities 30,567,081 22,418,402
Shareholders' equity
Common stock 30,182 19,195
Additional paid-in capital 962,126 951,605
Retained earnings 6,576,576 4,235,616
Accumulated other comprehensive loss 367,996 327,900
Total shareholders' equity 7,936,880 5,534,316
Total Liabilities and Shareholders' Equity 38,503,961 27,952,718
TEC Technology, Inc.
Consolidated Statements of Income and Other Comprehensive Income
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
Net sales $9,427,220 $4,725,600 $14,606,979 $6,407,520
Total cost of sales 6,443,918 2,990,817 9,957,895 4,211,649
Gross Profit 2,983,302 1,734,783 4,649,084 2,195,871
Selling and marketing
expenses (486,367) (21,779) (789,867) (95,229)
General and administrative
expenses (363,402) (158,828) (644,948) (356,708)
Total operating expenses (849,769) (180,607) (1,434,815) (451,937)
Income (loss) from
operations 2,133,533 1,554,176 3,214,269 1,743,934
Government grant 179,417 63,010 179,417 63,010
Other income 13,694 29,414 13,695 29,338
Interest expense (292,217) (170,159) (679,560) (255,452)
Net other income (expenses) (99,106) (77,735) (486,448) (163,104)
Net income before provision
for income taxes 2,034,427 1,476,441 2,727,821 1,580,830
Provision for income taxes (209,868) (367,027) (386,861) (396,811)
Net income (loss) 1,824,559 1,109,414 2,340,960 1,184,019
Foreign currency translation
gain 20,048 (12,813) 40,096 (16,747)
Comprehensive income 1,844,607 1,096,601 2,381,056 1,167,272
Basic EPS $0.08 $0.06 $0.10 $0.06
Diluted EPS $0.08 $0.06 $0.10 $0.06
Basic shares outstanding 22,856,798 19,194,421 22,856,798 19,194,421
Diluted weighted shares
outstanding 22,856,798 19,194,421 22,856,798 19,194,421
TEC Technology, Inc.
Consolidated Statements of Cash Flows
Six Months Ended June 30,
2010 2009
Cash Flows from Operating Activities
Net Income $2,340,960 $1,184,019
Adjustments to Net Income
Depreciation 129,824 73,445
Amortization of intangible assets 21,127 21,110
Changes in Operating Assets and Liabilities
Decrease (increase) in inventory (2,716,346) (1,217,770)
Decrease in deposits and prepaid expenses 635,351 (1,817,596)
Decrease (increase) in accounts receivable (8,703,430) (3,414,988)
Increase in other receivables 2,119,014 (1,304,119)
Decrease in taxes recoverable 4,889 92,151
Increase in taxes payable (919,366) 105,034
Increase in accounts payable 7,410,164 1,346,905
Decrease in customer deposits (51,711) (28,811)
Increase in other payables and accrued
expenses 1,885,976 1,841,442
Net cash provided by operating activities 2,156,452 (3,119,178)
Cash Flows from Investing Activities
Purchases of property and equipment (455,446) (334,335)
Purchases of land rights -- (1,643,546)
Net cash (used in) provided by investing
activities (455,446) (1,977,881)
Cash Flows from Financing Activities
Common stock issued 10,987 --
Additional paid-in capital issued 10,521 290,276
Proceeds from short-term borrowings -- 4,860,390
Repayment of short-term borrowings (176,384) --
Net cash used in financing activities (154,876) 5,150,666
Effect of exchange rate changes on cash and
cash
equivalents (3,005) 3,125
Net increase in cash and cash equivalents 1,543,125 56,732
Cash and cash equivalents at beginning of
period 164,927 704,854
Cash and cash equivalents at end of period $1,708,052 $761,586
SOURCE TEC Technology, Inc.
