China Crescent Enterprises, Inc. Signs First Outsourcing Customer to Three Year Agreement Anticipated to Add $30 M in Revenue to
27 Maggio 2009 - 3:00PM
Marketwired
China Crescent Enterprises, Inc. (OTCBB: CCTR) today announced a
three year outsourcing services agreement with Beijing
Chuangzhitongda Technology Development Co., Ltd. The three year
agreement is expected to add approximately $30 million in revenue
to China Crescent's more than $40 million in existing profitable
annual sales.
China Crescent recently announced launching a technology
outsourcing offering. The new offering is part of the Company's
overall strategy to increase margins and the percentage of its
overall revenue generated from recurring contracts. Beijing
Chuangzhitongda Technology Development is China Crescent's first
outsourcing customer. China Crescent anticipates engaging
additional outsourcing customers over the course of the year.
The initiation of outsourcing services under the agreement
announced today is expected to commence within the current fiscal
quarter. The agreement announced today is a general agreement
outlining the overall terms and conditions of the outsourcing
services. Complete details of the agreement will encompass a series
of supporting contracts and the anticipated $30 million in contract
revenue is expected to be earned over the three year contract
period.
First Quarter 2009 Results
Last week, China Crescent filed SEC Form 10-Q reporting the
Company's performance for the first three months of 2009. Notably,
net income increased 15% for the first three months of 2009,
$112,000 compared to $97,000 for the same period last year.
Management anticipates continued revenue and net income growth
throughout 2009 to exceed the overall revenue and net income
reported in 2008.
The Company reported an overall increase in revenue and net
income in 2008 compared to 2007. With the net income increase in
the first quarter of 2009, management is optimistic that the
Company will continue to not only weather the global economic
challenges, but continue to realize organic growth in spite of the
challenges. The Company's sales are historically seasonal,
increasing throughout the year and usually reporting the largest
sales and profits in the 4th quarter. Management believes the
decrease in first quarter sales compared to the previous period can
be attributed to the overall economic slowdown and can be offset by
the anticipated increase in sales throughout the year.
Additional Financial Highlights
-- Net income (before currency translation) for 1st quarter 2009 was
$112k compared to $97k for 1st quarter 2008
-- Revenue for 1st quarter 2009 decreased 13% from 1st quarter 2008
($7.4m v. $8.5m)
-- Stockholders' equity increased 54% from same quarter last year ($5m v.
$3.3m)
-- Working capital increased 54% from same quarter last year ($6.9m v.
4.5m)
-- Cash increased 213% from same quarter last year (2.2m v. 701k)
-- Total Assets increased 31% from the same quarter last year ($11m v.
$8.4m)
-- Cost of Sales decreased 13% from the same quarter last year ($7m v.
$8m)
-- Operation expenses decreased 23% from the same quarter last year (215k
v. 281k)
First Quarter 2009 Financial Webcast
A Webcast is now available for review on the Company website. A
link to the Webcast titled 'China Crescent 1st Quarter 2009 Review
Webcast (May 22, 2009)' is available on the Company website under
Webcasts at:
http://www.newmarkettechnology.com/about-newmarket-china.htm.
For assistance accessing or listening to the Webcast, please
email ir@chinacrescent.com or call 214-722-3065
Corporate E-mail Updates
To be added to China Crescent's e-mail database to receive
company updates or to obtain more information on the Company,
please send an e-mail to ir@chinacrescent.com or call
214-722-3065.
About China Crescent Enterprises, Inc.
(http://www.chinacrescent.com/)
China Crescent Enterprises, Inc. is a technology leader in the
rapidly developing Chinese market specializing today in software
engineering, high quality software development and digital
multimedia outsourcing services delivered to customers globally. At
the same time, the firm is a systems integrator and value added
reseller of major global hardware brands in the Chinese domestic
market.
Headquartered in Dallas with operations in Shanghai and Beijing,
China Crescent bridges the gap between Western and Eastern business
cultures to assist western clients in realizing the advantages of
the high quality, low cost technology products and services
available from China. China Crescent also assists Western clients
in localizing products and services to realize the tremendous
growth potential available by expanding into the Chinese
Market.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This press release contains forward-looking statements that
involve risks and uncertainties. The statements in this release are
forward-looking statements that are made pursuant to safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
Actual results, events and performance could vary materially from
those contemplated by these forward-looking statements. These
statements involve known and unknown risks and uncertainties, which
may cause China Crescent's actual results in future periods to
differ materially from results expressed or implied by
forward-looking statements. These risks and uncertainties include,
among other things, product demand and market competition. You
should independently investigate and fully understand all risks
before making investment decisions.
Contact: China Crescent Enterprises, Inc. ir@chinacrescent.com
214-722-3065
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