CNIT PROJECTS 2017 REVENUE AT $17-$19 MILLION, ADJUSTED NET INCOME OF $3.2- $3.6 MILLION
SHENZHEN, China, July 10, 2017 - China Information Technology, Inc. (Nasdaq:CNIT), a provider of cloud-app technologies for internet-based ad distribution and ad screen sharing systems in China, today said it expects to generate revenue in the range of $17 to $19 million in calendar 2017, a significant increase on the $10.2 million in revenue the company reported for 2016.
About 85 percent of the company's 2017 revenue is expected to come from sales of CNIT's cloud-based ad terminals. Most of the remaining revenue will likely result from customers' use of Yunfa Net (www.cnitiot.com), CNIT's cloud-based system allowing an advertiser to create and distribute reduced-cost ads on a PC or mobile app, and Yunti Guard, the company's IoT elevator safety solution.
The company expects to generate 2017 adjusted net income of from $3.2 to $3.6 million, excluding depreciation, amortization of intangible assets, stock-based compensation and other non-cash items.
Net income for 2017 is expected to be moderately profitable.
"We are thrilled to make such significant progress compared to our results from last year," said CEO Mr. Jianghuai Lin. "Month by month, we are seeing our revenue and gross margins improve and our new products find expanding market acceptance."
Going forward, he added, an increasing percentage of the company's revenue will likely be derived from its cloud-based software solutions, including Yunfa Net and Yunti Guard - both of which produce considerably higher margins than do the company's cloud-based ad terminal units.
As a result, CNIT is expected to improve its bottom line performance in 2018 and beyond, he said.
The company also believes that its current cash and cash equivalents, anticipated cash flows from operations in 2017, and additional availability under its borrowing facilities will be sufficient to meet CNIT's operating and financial obligations through April 2018.
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, including statements about the Company's beliefs and expectations regarding the growth of its business and its revenue, the business outlook and quotations from management in this announcement, 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 "will", "anticipates", "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.
For further information, please contact:
China Information Technology, Inc.
10/07/2017 Dissemination of a Financial Press Release, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Media archive at www.todayir.com