China Information Security Technology, Inc. Announces Second Quarter 2010 Results
Security Technology, Inc. (Nasdaq: CPBY) (“China Information Security,” or the
“Company”), a leading total solutions provider of Geographic Information
Systems (GIS), digital public security and hospital information systems in
China, today announced its financial results for the second quarter ended
30, 2010
Second Quarter 2010 Financial Highlights
-- Revenues increased 30% YoY to $33.52 million
-- Gross Margin expanded 250 basis points
-- Operating Margin expanded 290 basis points
-- Attributable Net Income increased 19.9% YoY to $9.35 million
-- Non-GAAP Fully Diluted EPS was $0.19 vs. $0.17 a year ago
-- Cash flow from operations reached $14.80 million
-- New Record High Backlog of $52.27 million representing 50.7% YoY growth
-- Reaffirms FY2010 Revenue and Adjusted Net Income Guidance
“We continued to effectively execute on our business strategy which
resulted in another promising quarter,” commented Mr.
and CEO. “New contracts signed in the second quarter reached
49% from a year ago and our backlog once again hit a new record high of
million
“We believe that contract wins this quarter continue to demonstrate our
ability to penetrate new markets nationally and expand in key cities outside
manage public security at the 41st World Expo which we believe positions us
well to further expand into
integrating different technologies in our portfolio to create innovative and
sophisticated solutions. One specific example is our win of the intelligent
traffic management system for the 16th Asian Games in
delivers highly efficient solutions to improve the quality of our day-to-day
lives. Meanwhile, we continue to collaborate with the State Grid Corporation
of China on the smart grid project, which is currently in the planning stage.”
“We believe that the future of our industry remains bright as the Chinese
government continues to demonstrate a long-term commitment to investing in
public security, public healthcare and the management of natural resources and
disaster-relief.”
Revenues
For the three months ended
compared to
representing an increase of
Huipu, which was acquired in
revenues. Excluding the impact from Huipu’s revenues, organic revenue growth
was 13.5% as the Company continued to focus on profitability and the reduction
of lower-margin businesses primarily in product and system integration
categories.
Software sales increased by 40.7% to
ended
2009
from 61.7% during the same period in the prior year, reflecting the Company’s
continued commitment to the core competency in software. Excluding the impact
of Huipu’s sales, software sales were 76.6% of organic revenues.
Product sales increased by
ended
Product sales constituted 22.3% of total revenue during the current period as
compared with 14.7% during the same period in the prior year. Product sales
excluding Huipu’s product sales declined by 22.01% from the same period in the
prior year to 10.1% of organic revenues. This reflects the Company’s focus on
higher value-added product sales with the Huipu acquisition.
Sales of system integration services decreased by 37.4% for the three
months ended
percentage of revenue, it declined from 21.6% during the three months ended
Huipu, system integration was 11.9% of organic revenues. The steady decline in
weight of system integration business, which carries lower margin, reflects
the Company’s strategy of growing businesses with higher profitability.
Other revenue decreased by 69.6%, from
ended
mainly derived from maintenance services in the three months ended
2009
the Company also generated
of its HPC trademark to other manufacturers. The Company believes this was an
effective way to monetize Huipu’s valuable intellectual property.
Regarding segment breakdown, for the three months ended
approximately
compared with
the DIST segment and
2009. The DIST segment decreased by 8.3% compared with the same period of 2009,
while the year-over-year growth ratios for the GIS and DHIS segments were
96.6% and 49.7%, respectively.
GIS accounted for 46.8% of the total revenue while DIST and DHIS
represented 41.6% and 11.6% respectively. Excluding the impact of Huipu, each
of the GIS, DIST and DHIS segment represented 46.3%, 40.4% and 13.3% of total
revenue, respectively, as compared to 30.9%, 59.0% and 10.1% of the total
revenue, respectively, for the three months ended
time, the GIS segment exceeded that of the DIST segment and became the
Company’s largest business segment in the second quarter of 2010. As the
Company’s technologies continue to evolve, it will be able to integrate more
and more DIST functions with those of GIS to create brand new capabilities for
customers. Such new offerings contributed to the GIS segment, instead of to
DIST, which explains the negative growth rate in the DIST segment. The shifts
in segment weights also ultimately reflect the growth momentum in the GIS and
DHIS segments outpacing that of the DIST as a result of the Company’s focus in
the last few years on targeting areas with the highest barriers-to-entry and
developing sustainable competitive advantages in the GIS and DHIS segments, in
anticipation of accelerating market growth in the coming years. The Company
believes it will be well positioned to capture the growth opportunities as
this expectation materializes.
Gross Profit and Gross Margin
Gross profit was
million
47.6% in the same period of 2009. Huipu yielded a gross margin of 18.5%.
Excluding the impact of Huipu’s gross margin, the gross margin of the
Company’s organic business was 54.7%.
The improvement in gross margin resulted from several factors. During the
quarter, the Company cut down on lower-margin product sales while benefiting
from Huipu’s higher-margin product contribution. As a result, the gross margin
of products improved by 157 basis points. During the quarter, the Company
continued to reduce the weight of the system integration business which
typically carries a lower margin. The gross margin for this segment during the
quarter was as high as 83.63% primarily due to the progress of certain
projects. Meanwhile, the Company continued to increase the weight of its
software business, which carries a higher gross margin. However, the gross
margin of its software business declined to 54.22% from 62.36% a year ago
primarily due to the Company’s outsourcing of portions of its software
projects commending in the first quarter of 2010. The Company believes that by
outsourcing some of the non-essential and labor-intensive portions of software
projects, it will be able to focus resources on the higher value-added
components of the software business. This practice should enable more
effective revenue growth and save operating expenses, which, overtime, will be
accretive to long-term shareholder value.
Income from Operations
Income from operations increased
million
corresponding period in 2009. Income from operations as a percentage of
revenue increased to 36.2% during the three months ended
33.3% in 2009.
Income Tax Expense
Income tax expense for the three months ended
million
The Company’s subsidiaries, ISS, Zhongtian and Huipu are all governed by
the Income Tax Laws of the PRC and are subject to the PRC’s enterprises income
tax, or EIT, at a rate of 22% of assessable profits in 2010, compared to 20%
for the same period in 2009, an increase of 2%.
Bocom, and the Company’s VIE, iASPEC (inclusive of Geo), as High-Tech
Enterprises, are subject to EIT at a rate of 15% of assessable profits. After
offsetting accumulated losses from prior years, Geo had no assessable profit
subject to EIT for the three months ended
software company, IST was entitled to a two-year exemption from EIT followed
by a 50% tax exemption for the next 3 years. Year 2010 is the fourth year that
IST is entitled to the tax holiday and will be subject to a favorable tax rate
of 11%.
Net Income Attributable to the Company
As a result of the factors described above, net income increased
million
2010
Cash and Cash Equivalents
As of
cash, as compared to
During the three months ended
operating activities improved significantly to
with
accounts receivable balance increased by
increase of
Recent Developments
-- May 18, 2010 - China Information Security Technology PGIS System Plays
Critical Role in Public Security Management at the Shanghai World Expo
-- June 14, 2010 - China Information Security Technology Wins Intelligent
Traffic Management Contract for the 16th Asian Games in Guangzhou,
China
2010 Outlook
For fiscal year 2010, the Company reaffirms its guidance with projected
revenue to
excluding any non-cash expenses as a result of employee stock awards,
amortization of intangible assets associated with acquisitions, and changes in
fair value of contingent considerations.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for earnings that
exclude non-cash charges. China Information Security believes that these non-
GAAP financial measures are useful to investors because they exclude non-cash
charges that China Information Security’s management excludes when it
internally evaluates the performance of the Company’s business and makes
operating decisions, including internal budgeting, and performance measurement,
because these measures provide a consistent method of comparison to historical
periods. Moreover, management believes these non-GAAP measures reflect the
essential operating activities of China Information Security. Accordingly,
management excludes the expense arising from certain non-cash charges when
making operational decisions. China Information Security believes that
providing the non-GAAP measures that management uses to its investors is
useful to investors for a number of reasons. The non-GAAP measures provide a
consistent basis for investors to understand China Information Security’s
financial performance in comparison to historical periods. In addition, it
allows investors to evaluate China Information Security’s performance using
the same methodology and information as that used by China Information
Security’s management. Non-GAAP measures are subject to inherent limitations
because they do not include all of the expenses included under GAAP and
because they involve the exercise of judgment of which charges are excluded
from the non-GAAP financial measure. However, China Information Security’s
management compensates for these limitations by providing the relevant
disclosure of the items excluded.
The following table provides the non-GAAP financial measure and the
related GAAP measure and provides a reconciliation of the non-GAAP measure to
the equivalent GAAP measure.
Q2 2010 Reconciliation of Operating, Net Income and EPS
to Exclude SBC, Amortization of Intangible Assets and Contingent
Consideration
3 Mos. 3 Mos. 6 Mos. 6 Mos.
Ended Ended Ended Ended
30-Jun-10 30-Jun-09 30-Jun-10 30-Jun-09
Operating income 12,126,944 8,597,615 18,690,373 12,766,965
Stock based compensation
(SBC) -- -- -- 183,600
Amortization 427,391 437,704 927,048 865,710
Operating income (without
SBC and amortization) 12,554,335 9,035,319 19,617,421 13,816,275
Net income Attributable to
the Company 9,352,069 7,797,830 15,633,177 11,554,823
Stock based compensation
(SBC) -- -- -- 183,600
Amortization 427,391 437,704 927,048 865,710
Change in fair value of
contingent consideration* 94,829 -- (700,268) --
Net income (without SBC,
amortization and
contingent consideration) 9,874,289 8,235,534 15,859,957 12,604,133
Weighted Average Number of
Shares Outstanding
Basic 51,450,623 47,536,883 51,332,698 47,528,503
Diluted 51,450,623 47,536,883 51,332,698 47,528,503
Earnings per hare (without
SBC, amortization and
contingent consideration) $0.19 $0.17 $0.31 $0.27
Basic $0.19 $0.17 $0.31 $0.27
* Represents a gain from the change of fair value of the contingent
consideration for the acquisition of Huipu as at 06/30/2010, according
to FASB ASC 805 - Business Combinations
Conference Call
China Information Security will host a corresponding conference call and
live webcast at
The dial-in details for the live conference call are as follows:
-- U.S. Toll Free Number: 1-866-519-4004
-- International Dial-in Number: +65-6723-9381
-- Mainland China Toll Free Number: 10-800-819-0121
-- Hong Kong Toll Free Number: 80-093-0346
Conference ID: 90844727
A live and archived webcast of the conference call will be available on
the Investor Relations section of China Information Security’s website
athttp://www.chinacpby.com .
A telephone replay of the call will be available from
through
The dial-in details for the replay are as follows:
-- U.S. Toll Free Number 1-866-214-5335
-- International Dial-in Number +61-2-8235-5000
Conference ID: 90844727
About China Information Security Technology, Inc.
China Information Security Technology, Inc., together with its
subsidiaries, specializes in Geographic Information Systems (GIS), digital
public security and hospital information systems, with the goal of being the
largest GIS software provider in
in
hardware, systems integration, and related services organized into three
business segments – Geographic Information Systems, Digital Information
Security Technology (DIST), and Digital Hospital Information Systems (DHIS).
To learn more about the Company, please visit its corporate website at
http://www.chinacpby.com .
Safe Harbor Statement
This press release may contain certain “forward-looking statements”
relating to the business of China Information Security Technology, Inc., and
its subsidiary companies. All statements, other than statements of historical
fact included herein are “forward-looking statements” including statements
regarding: the significance of the Company’s new contract wins during the
quarter; the ability of the Company to continue to strengthen its position in
the industry by winning and successfully performing under national contracts;
the ability of the Company to secure future opportunities in the market by
leveraging its R&D capabilities and reputation; the continued support of the
Chinese government for domestic GIS products; the general ability of the
Company to achieve its commercial objectives, including the Company’s plan to
sustain the growth while creating shareholder value; the business strategy,
plans and objectives of the Company and its subsidiaries; and any other
statements of non-historical information. These forward-looking statements are
often identified by the use of forward-looking terminology 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 or persons acting on its 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.
For further information, please contact:
China Information Security Technology, Inc.
Iris Yan
Tel: +86-755-8370-4767
Email: ir@chinacpby.com
Web: http://www.chinacpby.com
Christensen
Kathy Li
Tel: +1-480-614-3036
Email: kli@christensenir.com
Roger Hu
Tel: +86-158-1049-5326
Email: rhu@christensenir.com
CHINA INFORMATION SECURITY TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2010 AND DECEMBER 31, 2009
Expressed in U.S. dollars
(Except for share and per share amounts)
June 30 December 31
2010 2009
ASSETS (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $17,745,272 $ 13,478,633
Restricted cash 5,795,203 5,859,910
Accounts receivable:
Billed, net of allowance for doubtful
accounts of $2,944,000 and
$3,123,000, respectively 24,114,664 23,907,035
Unbilled 58,149,465 47,851,638
Bills receivable 218,622 --
Advances to suppliers 4,084,692 6,924,035
Amount due from related parties, net
of allowance for doubtful accounts
of $0 and $73,000, respectively 158,467 129,937
Inventories, net of provision of
$183,000 and $184,000, respectively 20,985,556 10,936,004
Other receivables and prepaid
expenses 14,751,936 15,405,089
Deferred tax assets 1,622,613 1,719,327
TOTAL CURRENT ASSETS 147,626,490 126,211,608
Deposit for software purchase 4,797,561 1,426,452
Deposit for purchase of land use
rights 925,912 --
Long-term investments 2,873,722 2,862,016
Property, plant and equipment, net 62,612,136 53,586,514
Land use rights, net 2,123,702 1,907,611
Intangible assets, net 13,138,669 13,556,141
Goodwill 50,067,871 50,609,866
Deferred tax assets 428,336 668,730
TOTAL ASSETS $284,594,399 $ 250,828,938
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term bank loans $22,121,740 $ 15,927,780
Accounts payable 17,115,384 20,159,317
Bills payable 10,605,305 12,658,029
Advances from customers 3,266,171 3,950,744
Amount due to related parties,
current portion 667,138 583,736
Accrued payroll and benefits 1,609,966 3,142,240
Other payables and accrued expenses 14,969,739 14,252,918
Contingent consideration, current
portion 1,568,437 1,857,994
Income tax payable 3,875,563 3,290,245
TOTAL CURRENT LIABILITIES 75,799,443 75,823,003
Long-term bank loans 4,036,020 1,907,100
Amount due to related parties, long-
term portion 5,015,528 --
Contingent consideration, net of
current portion 2,224,685 2,635,397
Deferred tax liabilities 1,896,337 2,564,604
TOTAL LIABILITIES 88,972,013 82,930,104
COMMITMENTS AND CONTINGENCIES -- --
CHINA INFORMATION SECURITY TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2010 AND DECEMBER 31, 2009 (CONTINUED)
Expressed in U.S. dollars
(Except for share and per share amounts)
EQUITY
Common stock, par $0.01; authorized
capital 200,000,000 shares; shares
issued and outstanding 2010:
51,811,787: 2009: 49,905,141 shares $ 252,615 $233,548
Treasury stock, 6,000 shares, at cost (11,468) (11,468)
Additional paid-in capital 89,128,945 78,495,062
Reserve 8,345,371 8,345,371
Retained earnings 76,095,452 60,462,275
Accumulated other comprehensive income 6,020,572 5,016,575
Total equity of the Company 179,831,487 152,541,363
Non-controlling interest 15,790,899 15,357,471
Total equity 195,622,386 167,898,834
TOTAL LIABILITIES AND EQUITY 284,594,399 250,828,938
CHINA INFORMATION SECURITY TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (Unaudited)
Expressed in U.S. dollars
(Except for share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
Revenue - Products $7,471,511 $ 3,789,288 $13,819,481 $6,610,416
Revenue - Software 22,406,236 15,921,487 37,584,868 24,932,952
Revenue - System
integration 3,485,523 5,571,619 6,269,406 8,527,076
Revenue - Others 153,618 505,525 1,148,240 697,659
TOTAL REVENUE 33,516,888 25,787,919 58,821,995 40,768,103
Cost - Products sold 5,813,701 3,007,849 11,054,123 5,620,640
Cost - Software sold 10,257,690 5,993,637 16,659,101 8,694,577
Cost - System
integration 570,721 4,395,011 3,046,531 6,540,763
Cost - Others 76,470 124,671 146,481 162,108
TOTAL COST 16,718,582 13,521,168 30,906,236 21,018,088
GROSS PROFIT 16,798,306 12,266,751 27,915,759 19,750,015
Administrative expenses (2,621,501) (2,304,376) (5,391,532) (4,520,723)
Research and development
expenses (560,649) (720,411) (1,130,080) (1,224,263)
Selling expenses (1,489,212) (644,349) (2,703,774) (1,238,064)
INCOME FROM OPERATIONS 12,126,944 8,597,615 18,690,373 12,766,965
Subsidy income 268,898 318,071 431,680 515,860
Other (loss)/income, net (324,700) (16,845) 642,099 164,521
Interest income 10,403 120,627 29,294 197,544
Interest expense (263,756) (56,443) (412,647) (116,653)
INCOME BEFORE INCOME
TAXES 11,817,789 8,963,025 19,380,799 13,528,237
Income tax expense (2,163,609) (1,091,800) (3,334,692) (1,680,196)
NET INCOME 9,654,180 7,871,225 16,046,107 11,848,041
Less: Net income
attributable to the
non-controlling
interest (302,111) (73,395) (412,930) (293,218)
NET INCOME ATTRIBUTABLE
TO THE COMPANY
$9,352,069 $7,797,830 $15,633,177 $11,554,823
Weighted average number
of shares
Basic 51,450,623 47,536,883 51,332,698 47,528,503
Diluted 51,450,623 47,536,883 51,332,698 47,528,503
Earnings per share -
Basic and Diluted
Basic - Net income
attributable to the
Company's common
stockholders $0.18 $0.16 $0.30 $0.24
Diluted - Net income
attributable to the
Company's common
stockholders $0.18 $0.16 $0.30 $0.24
CHINA INFORMATION SECURITY TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (Unaudited)
Expressed in U.S. dollars
(Except for share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
Net income $9,654,180 $7,871,225 16,046,107 $11,848,041
Other comprehensive
income:
Foreign currency
translation gain 787,465 (16,365) 1,024,495 435,377
Comprehensive income 10,441,645 7,854,860 17,070,602 12,283,418
Comprehensive income
attributable to the non-
controlling interest
(322,572) (73,310) (433,428) (293,133)
Comprehensive income
attributable to the
Company $10,119,073 $7,781,550 16,637,174 $11,990,285
CHINA INFORMATION SECURITY TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (Unaudited)
Expressed in U.S. dollars
(Except for share and per share amounts)
Six Months Ended
June 30, 2010 June 30, 2009
OPERATING ACTIVITIES
Net income $16,046,107 $11,848,041
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 3,441,071 1,852,357
Amortization of intangible assets 927,048 865,710
Stock-based compensation -- 183,600
Loss on disposal of property and
equipment 320,957 31,764
Change in allowance for accounts
receivable 267,716 573,881
Reversal of write-down of inventories (1,362) --
Change in deferred income tax 215,192 (29,517)
Change in fair value of contingent
consideration (700,268) --
Changes in operating assets and
liabilities, net of effects of
business acquisitions:
Decrease in restricted cash 457,202 --
Increase in accounts receivable (10,656,507) (14,665,591)
Decrease / (increase) in advances to
suppliers 2,091,453 (3,028,042)
Decrease / (increase) in other
receivables and prepaid expenses 313,302 (1,540,531)
Increase in inventories (10,164,333) (1,657,773)
(Decrease) / increase in accounts
payable (5,209,216) 4,643,442
(Decrease) / increase in advances
from customers (695,808) 4,469,480
Increase in amount due to related
parties 5,311,077 177,621
Increase / (decrease) in other
payables and accrued expenses 921,098 (432,401)
Increase in income tax payable 569,611 695,912
Net cash provided by operating
activities 3,454,340 3,987,953
INVESTING ACTIVITIES
Increase in restricted cash related
to bank borrowings (368,895) --
Proceeds from sales of property and
equipment 44,007 100,225
Proceeds from sale of short-term
investments -- 5,862,800
Refund of investment in former Joint
Venture -- 4,397,100
Purchase of land-use-rights (230,970) --
Purchases of property and equipment (11,038,575) (630,478)
Capitalized and purchased software
development costs (432,547) (308,484)
Deposit for software purchase (4,777,693) (4,781,846)
Deposit for purchase of land-use-
rights (165,093) --
Net cash (used in) / provided by
investing activities (16,969,766) 4,639,317
FINANCING ACTIVITIES
Borrowing of short-term loans 21,003,299 1,898,082
Borrowing of long-term loans 4,019,306 --
Repayment of short-term loans (14,887,816) (732,850)
Repayment of long-term loans (1,906,970) --
Issued common stock 9,383,440 --
Repurchase of common stock -- (11,468)
Net cash provided by financing
activities 17,611,259 1,153,764
CHINA INFORMATION SECURITY TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009 (CONTINUED) (Unaudited)
Expressed in U.S. dollars
(Except for share and per share amounts)
Six Months Ended
June 30, June 30,
2010 2009
Effect of exchange rate changes on
cash and cash equivalents 170,806 30,757
NET INCREASE IN CASH AND CASH EQUIVALENTS 4,266,639 9,811,791
CASH AND CASH EQUIVALENTS, BEGINNING 13,478,633 9,565,252
CASH AND CASH EQUIVALENTS, ENDING $17,745,272 $19,377,043
Supplemental disclosure of cash
flow information:
Six Months Ended
June 30, June 30,
2010 2009
Cash paid during the period
Income taxes $2,547,020 $1,013,801
Interest paid $449,494 $117,327
Supplemental disclosure
of significant non-cash
transactions:
On
213,363 shares of the Company’s common stock as compensation under the China
Information Security Technology, Inc. 2007 Equity Incentive Plan (“The Plan”).
The fair value of these shares of approximately
quoted market price, was accrued as of
was for services provided in 2009.
On
60,000 shares of the Company’s common stock as compensation under the Plan.
The fair value of these shares of
recognized as stock-based compensation for the six months ended
Selected information by segment is presented in the following tables for
the three and six months ended
Three months ended Six months ended
June 30 June 30
2010 2009 2010 2009
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues(1)
GIS Segment $15,677,977 $7,974,312 $26,315,057 $13,833,978
DIST Segment 13,957,662 15,221,482 26,055,086 22,741,939
DHIS Segment 3,881,249 2,592,125 6,451,852 4,192,186
$33,516,888 $25,787,919 $58,821,995 $40,768,103
(1) Revenues by operating segments exclude intercompany transactions.
Percentage to Revenue
GIS Segment 46.8% 30.9% 44.7% 33.9%
DIST Segment 41.6% 59.0% 44.3% 55.8%
DHIS Segment 11.6% 10.1% 11.0% 10.3%
SOURCE China Information Security Technology, Inc.
