CNIT Signs $1 Million Cloud-based Ad Terminal Contract for Yunnan Province; Sixth Ad Terminal Contract in Ten Weeks
SHENZHEN, China, August 8, 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 has entered into a contract for the sale of 3,000 CNIT cloud-based ad terminals to be installed in office buildings, residential communities, shopping malls and various outdoor locations by year-end throughout Yunnan, a key province of China's southwest frontier.
Signed with advertising agency Yunnan Taoping IoT Limited, the contract is expected to generate sales and service revenue to CNIT of about $1 million by the end of this year.
The 3,000 terminals will include a built-in module, Property Management Assistant, a value-added service allowing property management companies to publicize certain information to specific blocks of ad terminals and receive feedback via the terminals from local residents.
Today's news is the sixth announcement in approximately ten weeks on CNIT's sales of its cloud-based ad terminals. Each of the contracts is also expected to generate additional revenue from customers' use of Yunfa Net (www.cnitiot.com), CNIT's cloud-based system allowing an advertiser to create reduced-cost ads on a PC or mobile app, 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 CNIT's ad terminals will also be invited to subscribe to Yunti Guard, the company's IoT safety solution comprising a series of state-of-the-art features not previously available in a single elevator maintenance system.
"This sale - our first major ad terminal sale in Yunnan - is a breakthrough for our strategic market expansion in the southwest of China," said chairman and CEO Mr. Jianghuai Lin. "As projected, we are steadily progressing toward our goal of selling at least 60,000 of our cloud-based ad terminals with market coverage of approximately 100 million people in 20 major Chinese provinces or municipalities this year."
The CEO confirmed that the company expects to generate 2017 revenue of $17 to $19 million and net income of $3.2 to $3.6 million, excluding depreciation, amortization of intangible assets, stock-based compensation and other non-cash items.
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.
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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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08/08/2017 Dissemination of a Financial Press Release, transmitted by EQS Group.
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