Kingtone Wirelessinfo Shares Jump Following H1 Results
Shares of Kingtone Wirelessinfo Solutions Hldg Ltd (NASDAQ: KONE) jumped around 60 percent in pre-market trading after the company reported financial results for the six months ended March 31, 2015 and reaffirmed its FY 2015 revenue forecast.
The company posted net income of $2.6 million, or $1.87 per share, for the six months ended March 31, 2015, versus a year-ago net loss of $0.7 million, or $0.49 per share.
Its revenue for the six months climbed 132.9 percent to $8.5 million, versus $3.6 million for the six months ended March 31, 2014.
Revenue from software solutions slipped 75.4 percent to $0.04 million, versus $0.18 million in the year-ago period. Revenue from wireless system solutions surged 143.7 percent to $8.4 million from $3.5 million.
Kingtone Wirelessinfo had operations income of $1.0 million, versus loss from operations of $0.8 million.
Cost of sales climbed 49.0 percent to around $4.1 million for the six months ended March 31, versus around $2.8 million in the year-ago period.
Total operating expenses increased to $3.4 million, versus $1.6 million. Research and development expenses jumped 191.5 percent year-over-year to $0.17 million from $0.06 million.
Its gross profit rose 395.7 percent to $4.4 million from $0.9 million, while gross margin widened to 51.5 percent from 24.2 percent.
As of March 31, 2015, Kingtone Wirelessinfo had cash and cash equivalents of $1.9 million, versus $4.2 million as of September 30, 2014.
Mr. Peng Zhang, Chief Executive Officer of the Company, said, "We are very pleased with our performance on business operation, which generated $2.6 million net income in the first six months ended March 31, 2015…We are confident in accomplishing our goals at the end of fiscal year 2015."
For the fiscal year 2015, Kingtone Wirelessinfo projects net income of $0.5 million to $1.0 million, and revenue of $12.0 million to $15.0 million.
Kingtone Wirelessinfo shares jumped 59.82 percent to $7.00 in pre-market trading.
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