China Electric Motor Announces Third Quarter EPS of $.13

China Electric Motor, Inc. CELM today announced its unaudited financial results for the third quarter ended September 30, 2010 and the first nine months of fiscal year 2010.

Third Quarter 2010 Financial Highlights

• Total revenue increased by 48.9% year-over-year to $32.9 million.
  • 61.0% of revenue was from sales to original equipment manufacturers ("OEMs").
• Gross profit increased by 44.9% year-over-year to $9.4 million.
• The Company granted 1.2 million shares to employees on August 31, 2010. $2.4 million of the total grant-date fair value of $5.5 million was recorded as a non-cash expense in the third quarter of 2010.
• Operating income, including the stock-based compensation expense, was $4.2 million, a 3.8% year-over-year increase. Non-GAAP operating income, which excludes a stock-based compensation expense of $2.4 million, was $6.7 million.
• Net income, including the stock-based compensation expense of $2.4 million, was $2.7 million, a 15.6% year-over-year decrease. Non-GAAP net income, which excludes a stock-based compensation expense of $2.4 million, was $5.1 million, a 61.0% increase.
• Basic and diluted earnings per share were $0.13 each, based on 20,908,863 and 20,947,303 weighted average shares outstanding, respectively. Non-GAAP basic and diluted earnings per share, which excludes a stock-based compensation expense of $2.4 million, were $0.25 each, based on 20,908,863 and 20,947,303 weighted average shares outstanding, respectively. In the third quarter of 2009, basic and diluted earnings per share were $0.25 and $0.24, respectively, based on 12,926,571 and 13,553,465 weighted average shares outstanding, respectively.