CHINA SKYRISE DIGITAL SERVICE, INC. 
By Fiscal 2009 Results
Revenue totaled approximately
"We are delighted to see that demand for our digital intercom products and
solutions continued to experience robust growth in 2009 despite a challenging
business environment," said Mr.
"In
Cost of goods sold climbed by 157.6% to
Gross profit for 2009 totaled
Operating expenses totaled approximately
Operating income was
The Company's net income in 2009 was
Financial Condition
As of
Business Outlook
China Skyrise maintains a positive outlook for
While the Company continues to gain market share with its low-end digital
solutions displacing competitors' high-end analog solutions, China Skyrise
also stands to benefit from analog-to-digital upgrades of existing residential
neighborhoods, a huge market. The Company is also developing a new cost-saving
system-on-chip, and has initiated projects with two of
"With continuous product innovation and strong brand recognition, we are
optimistic about our financial performance in 2010 and beyond. We believe our
current backlog of approximately
The Company will continue to enjoy preferential tax treatment for the next three years starting in 2010, with an applicable tax rate of 11%.
About China Skyrise Digital Service Inc.
China Skyrise Digital Service Inc. ("China Skyrise" or the "Company")
develops, sells, installs and maintains digital residential and video-
surveillance products, as well as related software. The Company's customers
are primarily urban and suburban residential communities and real-estate
developers in
Safe Harbor Statements
This press release contains forward-looking statements made under the
"safe harbor" provisions of the U.S. Private Securities Litigation Reform Act
of 1995. Forward looking statements are based upon the current plans,
estimates and projections of China Skyrise's management and are subject to
risks and uncertainties, which could cause actual results to differ from the
forward looking statements. Such statements include, among others, those
concerning market and industry segment growth and demand and acceptance of new
and existing products; any projections of sales, earnings, revenue, margins or
other financial items; any statements of the plans, strategies and objectives
of management for future operations; any statements regarding future economic
conditions or performance; uncertainties related to conducting business in
For more information, please contact:
Company Contact:
Dustin Han, Vice President, Investor Relations
China Skyrise Digital Service Inc.
Email: xin.han@gmail.com
Tel: +1-408-857-8897
Web: http://www.szskyrise.com
Investor Relations Contact:
John Harmon, Senior Account Manager
CCG Investor Relations
Email: john.harmon@ccgir.com
Tel: +1-646-833-3424
Web: http://www.ccgir.com
(financial tables follow)
CHINA SKYRISE DIGITAL SERVICE INC.
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2009 AND DECEMBER 31, 2008
2009 2008
Revenues $6,856,198 $4,140,682
Cost of goods sold 4,698,295 1,824,163
Gross profit 2,157,903 2,316,519
Selling and marketing
expenses (532,492) (546,846)
General and administrative
expenses (792,001) (778,515)
Net income from operations 833,410 991,158
Other Income (Expense)
Other income 3,672 76,665
Government grant 242,948 201,562
Interest expense (22,638) (39,511)
Total Other Income
(Expense) 223,982 238,716
Income before provision for
income taxes $1,057,392 $1,229,874
Provision for income taxes (4,301) (312)
Net income 1,053,091 1,229,562
Other comprehensive income 656 32,682
Foreign currency
translation gain -- --
Comprehensive income 1,053,747 1,262,244
Earnings Per Share
Basic $0.0541 $0.0723
Diluted $0.0541 $0.0723
Weighted Average Number of
Shares Outstanding
Basic $19,448,304 $17,004,800
Diluted $19,448,304 $17,004,800
CHINA SKYRISE DIGITAL SERVICE INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2009 AND DECEMBER 31, 2008
2009 2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents $409,718 $508,272
Accounts receivable, net of allowance
for doubtful accounts 3,089,672 2,049,356
Inventory 1,373,733 1,336,615
Deposit and prepaid expense 558,068 313,978
Other receivables 536,013 727,612
Tax recoverable -- 31,132
Total current assets 5,967,204 4,966,965
Property, plant and equipment, net of
accumulated depreciation 340,616 188,867
Other assets
Intangible assets, net of accumulated
amortization 122,650 103,115
Goodwill 193,754 193,754
Total other assets 316,404 296,869
TOTAL ASSETS $6,624,224 $5,452,701
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $1,005,679 $720,400
Unearned Revenue 81,009 58,692
Other payables and accrued expenses 541,767 1,309,071
Short term debt 440,100 623,475
Tax payable 73,160 --
2,141,715 2,711,638
Commitments and contingencies -- --
SHAREHOLDERS' EQUITY
Common stock: 0.001 par value
Authorized: 75,000,000 common shares
Issued and outstanding: 21,110,550
(2008: 17,004,800) common shares 21,111 17,005
Additional paid-in capital 2,207,072 1,523,479
Statutory reserves 2,791 2,791
Retained earnings 2,218,197 1,165,106
Accumulated other comprehensive income 33,338 32,682
Total shareholders' equity 4,482,509 2,741,063
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $6,624,224 $5,452,701
CHINA SKYRISE DIGITAL SERVICE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND
DECEMBER 31, 2008
2009 2008
Cash flows from operating activities:
Net income for the period $1,053,091 $1,229,562
Adjustments to reconcile net loss to net
cash from operations:
Depreciation 65,896 64,012
Amortization of intangible assets 32,310 23,326
Changes in operating assets and
liabilities:
Increase in inventory (74,070) (1,336,615)
Increase in deposits and prepaid
expenses (207,138) (313,978)
Increase in accounts receivable (1,040,316) (2,049,356)
Decrease (increase) in other receivable 191,599 (727,612)
Increase in tax payable 73,160 --
Decrease (increase) in tax recoverable 31,132 (31,132)
Increase in accounts payable 285,279 720,400
Increase in unearned revenue 22,317 58,692
Increase in other payable and accruals (767,305) 1,310,403
Net cash generated from (provided by)
operating activities (334,045) (1,052,298)
Cash flows from investing activities
Purchases of property, plant and
equipment (217,685) (254,011)
Purchases of goodwill -- (193,754)
Net payment from acquisition of
subsidiary -- 295,395
Purchases of intangible assets (51,864) (126,854)
Net cash provided by investing
activities (269,549) (279,224)
Cash flows from financing activities
Proceeds from short term debt 440,100 1,114,920
Repayment of short term debt (623,475) (491,445)
Statutory reserve -- 2,791
Capital contributed by stockholders 683,593 1,472,739
Net cash (provided by) generated from
financing activities 500,218 2,099,005
Effects of exchange rate changes on cash 4,822 (259,211)
(Decrease) increase in cash and cash
equivalents (98,554) 508,272
Cash and cash equivalents, beginning of
period 508,272 --
Cash and cash equivalents, end of period $409,718 $508,272
Supplementary disclosures of cash flow
information:
Cash paid for interest $22,638 $39,511
Cash paid for income taxes $4,301 $312
Non cash transaction: shareholder
forgiveness of debts $-- $30,365
Common stock issued for services $4,106 $--
SOURCE China Skyrise Digital Service Inc.
