CNIT SIGNS $1.5 MILLION CLOUD-BASED AD TERMINAL CONTRACT FOR SHANGHAI
Company Projects Total 2017 Cloud-based Ad Terminal Revenue of $17.5 Million
SHENZHEN, China, May 22, 2017 - China Information Technology, Inc. (Nasdaq: CNIT), a provider of cloud-app technologies for Internet-of-Things (IoT) platforms and internet-based ad distribution and ad screen sharing systems in China, today said it has entered into contract with an advertising agency in Shanghai for the sale of 5,000 CNIT cloud-based elevator ad terminals to be installed in that city by the end of the year.
The contract, signed with Shanghai Liangyu Communications Technology Limited, is expected to produce combined 2017 sales and service revenue to CNIT of over $1.5 million.
In addition, said CNIT, the sale should help generate recurring revenue arising from customers' use of the company's Yunfa Net system (www.cnitiot.com), which permits an advertiser to create reduced-cost ads on a PC or mobile app, instantly transmit these ads to the elevator ad terminals of their choice and receive feedback from the terminals on how viewers are responding to the ads.
Purchasers of the company's elevator ad terminals may also opt to subscribe to Yunti Guard, CNIT's recently introduced IoT elevator safety solution that delivers a wide selection of state-of-the-art safety features never available together in a single elevator maintenance product.
"We are very excited to have signed this sales agreement," said CEO Mr. Jianghuai Lin. "Shanghai is one of China's Tier-1 cities and has a very productive market demonstration effect throughout our country." Mr. Lin said he expects CNIT to sell a minimum of 60,000 cloud-based ad terminals in 2017. Besides Shanghai, these installations are expected to cover Beijing, Guangzhou, Shenzhen, and 16 major cities in eastern and southern China, he said.
Revenue on the expected sales of 60,000 ad terminals should be at least $17.5 million in 2017, said Mr. Lin. CNIT had total company revenue in 2016 of $10.2 million.
"As of today, CNIT has established an innovative new-media eco-system comprised of a cloud platform, numerous apps and cloud-based terminals, all of which combine to enable internet-based ad delivery and management and exchange of available screen time," said Mr. Lin. "We expect this eco-system to bring many advertising customers considerably more revenue while significantly cutting their costs. These advantages, we believe, will help to change the competitive landscape of the advertising market in China."
About China Information Technology, Inc.
China Information Technology, Inc. (CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, elevator safety management, education, etc. Through continuous innovation, CNIT is aiming to leverage its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community. To learn more, please visit http://www.chinacnit.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Technology, Inc., and its subsidiaries and other consolidated entities. All statements, other than statements of historical fact included herein, are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminologies such as "believes", "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company and its subsidiaries and other consolidated entities or persons acting on their behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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