MissionIR's  Instablog

ChinaNet Online Holdings, a leading B2B Internet technology company providing online-to-offline sales channel expansion services for small and medium-sized enterprises as well as entrepreneurial management and networking services for entrepreneurs in the People's Republic of China, today reported its financial results for the first quarter 2012.

Revenues for the three month period increased by 113% to $14.9 million from the $7.0 million reported for the same period a year earlier. The company attributed the increase primarily to the sale of TV and internet advertising and marketing services on the company's web portals. TV advertising revenue skyrocketed to $10.4 million for the three months ended March 31, 2012, from $0.7 million in the same period in 2011. TV advertising revenues were generated by selling approximately 10,396 minutes of advertising time purchased from provincial TV stations as compared with approximately 835 minutes of advertising time that we sold in the same period in 2011. Revenue from internet advertising and marketing increased by 50% to $4.3 million, as compared to the first quarter of 2011 due to the addition of Sooe.cn and increasing the number of clients on Liansuo.com.

Total cost of sales for the first quarter of 2012 was reported at $12.5 million, compared to $2.0 million a year earlier. Gross profit was $2.4 million for the first quarter, representing gross margin of 16.0%, compared to $5.0 million of gross profit and gross margin of 71% in the first quarter of 2011. The decrease in gross margin was attributed to the percentage of sales from the company's lower margin TV advertising revenue, which accounted for approximately 69% of total revenues as well as increased resource costs.

Operating expenses for the three months ended March 31, 2012, were approximately $2.3 million, up 15.7% from $2.0 million in the comparable period of 2011. General and administrative expenses increased $0.4 million to $1.2 million. Research and development expenses dropped 6.2% year-over-year to $0.3 million.

The company had an operating income of $0.13 million in the first quarter of 2012 compared to $3.0 million operating income in the first quarter of 2011.

Net loss attributable to common stockholders for the first quarter of 2012 was $0.4 million and loss per share was $0.02 compared to $2.6 million net income attributable to common stockholders and $0.14 earnings per share in the first quarter of 2011, respectively. Total shareholders' equity of ChinaNet was $41.6 million at March 31, 2012, compared to $41.7 million at December 31, 2011.

In a press release issued earlier today, management provided guidance for the current fiscal year. Full year 2012 revenues are expected to be at least $42 million and net income should be at minimum $2.8 million.

ChinaNet said it's committed to strategically expanding its client base of over 6,000 current customers by continuing to grow its internet advertising and marketing services business. Currently, 28.com, which connects SME franchisors with new franchisees, generates the majority of revenues. ChinaNet will continue to invest in new technology and expects to increase its market share to over 55% by the end of the third quarter 2012.

As announced previously, management is focused on several new growth and management initiatives to help offset short-term economic challenges on 28.com. Additional initiatives are outlined below:

• Improving internal management with cost reduction plan, expect to increase net profit margin by 2%-5%;
• Addition of Sooe.cn with commercialization expected in Q3 2012;
• Sales campaign with China Business Journal to attract better quality and larger clients in Q3 2012, further extending Liansuo.com's client base by 20% or more;
• Launching Weibo (like Twister) related value-added marketing service to existing or larger branded customers in Q3 2012 with 3rd party alliance;
• Launching of Zhifuwan.com, an integrated SEM and e-Commerce marketing service as additional value-added services to all other web portals, helping SMEs to further market their Taobao B2C sites by means of technology in Q3 2012.
• With the complexity of additional features, the commercial launch of flying cloud (www.feitengyun.com) has been re-scheduled to occur by the end of October 2012.

With these initiatives, management expects ChinaNet to return to profitability in Q2 2012 based on current and improving economic conditions.

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Misonix is a surgical device company that designs, manufactures, and markets innovative therapeutic ultrasonic products worldwide. The company's products are used for spine surgery, skull-based surgery, neurosurgery, cosmetic surgery, laparoscopic surgery, and other surgical applications. The combined market that the company serves is estimated to be $3 billion annually.

The company announced today that it has entered into a new, three-year, exclusive distribution agreement with Apex Medicus, which is based in Vilnius, Lithuania, for the distribution of the company's SonaStar Ultrasonic Surgical Aspirator and the BoneScapel Ultrasonic Bone Cutter. The agreement grants Apex with the right to sell products throughout the Baltic countries of Lithuania, Latvia, and Estonia.

Apex Medicus is well established in neurosurgery and skull-based surgery and has earned a reputation for successfully introducing high-tech products to the Baltic countries. The agreement between Misonix and Apex Medicus calls for Apex to purchase certain minimum amounts of SonaStar and BoneScapel annually.

The SonaStar is used by neurosurgeons and general surgeons for quick and efficient removal of both hard and soft tumors while sparing most vessels. The BoneScapel is a tissue specific osteotomy device capable of making precise cuts through bone and hard tissue while largely preserving delicate soft tissue structures.

This agreement is another step in Misonix's plan to become a leading global provider of surgical instruments. The partnership with Apex Medicus, in the words of its CEO Michael A. McManus Jr., "fills one of our remaining coverage gaps [in Europe]."

For additional information about Misonix and all of its products, please visit the company's website at www.misonix.com

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Iteris, Inc. (ITI) Receives $2.45 Million Contract from Abu Dhabi DoT for Middle East's First Integrated Travel Information & Navigation

Iteris, the industry leader for intelligent management information solutions, has received the prime, $2.45 million dollar contract for the design, implementation, operation, and maintenance of the first integrated travel information and navigation services in the Middle East from the Abu Dhabi Department of Transport (DoT).

The design and implementation stages of the contract will commence immediately and be followed by a 2 year operations and maintenance agreement. The travel information and navigation service system is projected to be operational in early 2013. Iteris will be managing the project from its Abu Dhabi office with support from its U.S. based staff.

Iteris will lead an international team of Intelligent Transportation Systems experts from several firms, including TrafQuest, Open Roads Consulting, and Mygistics. This team will focus on generating a groundbreaking traveler information system and establishing standards for accuracy and reliability of travel status and real-time routing options for the DoT operations staff, as well as private users. Reaching these milestones requires an incredibly diverse skill set, including expertise in traffic engineering, traveler information applications, central system software, traffic modeling, performance management, GIS, telematics and in-vehicle systems, system implementation, and hands-on operations.

"We are very pleased to embark on the first advanced multi-modal traveler information system in the MENA Region," said Engineer Salah Al-Marzouqi, Abu Dhabi's DoT ITS Division Director. "This project will provide transport network users dynamic information relating to congestion, prevailing conditions, incidents, route guidance and travel times, among others, via the web, smart phones and in-car navigation devices. The Iteris team won this tender based on their qualifications to provide an innovative solution for supporting our commitment to improve transport in the Emirate of Abu Dhabi."

Abbas Mohaddes, president and CEO of Iteris, commented, "We are honored to have been selected by Abu Dhabi DoT for this prestigious program. This project provides us with an excellent platform to provide our services and expertise in the United Arab Emirates and Middle East, enabling us to broaden our international experience in traveler information systems. We look forward to assisting Abu Dhabi DoT in tailoring our Advanced Traveler Information System offerings to their needs and providing a state-of-the-art traveler information resource to Abu Dhabi residents and travelers."

For more information, please visit www.iteris.com

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