Shengkai Innovations, Inc. Announces Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2011; Provides Financial Guidance for the Third Quarter Ending March 31, 2012
February 09, 2012 at 04:02 pm EST
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Shengkai Innovations, Inc. announced consolidated earnings results for the second quarter and six months ended December 31, 2011. For the quarter, the company's revenues were approximately $10.3 million compared with approximately $22.4 million in the second quarter of fiscal year 2011. Operating income in the quarter was approximately $1.3 million compared with approximately $8.8 million for the comparable period in fiscal 2011. Non-GAAP operating income was approximately $2.3 million, compared with non-GAAP operating income of approximately $10.0 million for the comparable period in fiscal 2011. GAAP net income was approximately $1.8 million compared with approximately $14.9 million in the second quarter of fiscal 2011. Diluted earnings per share were $0.05 compared to diluted earnings per share of $0.42 in the second quarter of fiscal 2011. Non-GAAP net income was $1.97 million or $0.05 per diluted share compared with $8.5 million or $0.24 per diluted share a year ago. Income before income taxes was $2.3 million compared with $16.4 million a year ago.
For the six months, the company's revenues were approximately $21.3 million compared with $39.5 million in the first six months in fiscal 2011. The decrease in revenue was due to loss of business resulting from unsolicited investigations and the subsequent transition into the petrochemical and chemical segment. Net income for the period was approximately $2.7 million, or diluted earnings per share of $0.08, compared with a net income of approximately $41.8 million, or diluted net income per share of $1.18 during the first six months of fiscal 2011. Non-GAAP net income for the period was approximately $4.1 million compared with a non-GAAP net income of approximately $14.7 million for the comparable period in fiscal 2011. The decrease was primarily due to the decline in revenues resulting from operational transition and higher costs associated with depreciation and raw material expenses. Non-GAAP diluted earnings were $0.11 per diluted share, compared to non-GAAP earnings of $0.42 per diluted share for the comparable period in fiscal 2011. Net cash flow provided by operating activities was approximately $7.7 million for the period compared with $10.1 million in the first six months of fiscal 2011. The decrease was primarily attributable to the lower adjusted net income. Income from operations was $1.6 million compared with $15.1 million a year ago. Income before income taxes was $3.8 million compared with $44.5 million a year ago. The company reported purchase of property, plant and equipment of $0.044 million compared with $0.054 million a year ago.
The company expects the total revenue for the quarter ending March 31, 2012 to be approximately $5.5 million. The company expects the company to continue to run with positive but significantly reduced cash flow from operations.
Shengkai Innovations, Inc. (SKII), through its subsidiaries and affiliates, is in the business of manufacturing and sale of industrial ceramic valves and components in the Peopleâs Republic of China (PRC). The Company is a holding company of Shen Kun International Limited (Shen Kun). Shen Kun holds 100% of the equity interests in Shengkai (Tianjin) Limited (SK WFOE), a wholly foreign owned enterprise organized under the laws of the PRC, which, in turn, through contractual relationships, controls the business of Tianjin Shengkai Industrial Technology Development Co., Ltd. (Tianjin Shengkai), a PRC company that designs, manufactures and sells ceramic valves. Shengkai (Tianjin) Trading Ltd. is primarily engaged in the international trading of non-valve products to serve the Companyâs international customers.
Shengkai Innovations, Inc. Announces Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2011; Provides Financial Guidance for the Third Quarter Ending March 31, 2012