Archive for January, 2011

Denison (DNN) Outlines 2011 Operating Plans and Releases Final 2010 Production and Sales Volumes

TORONTO, ONTARIO — (Marketwire) — 01/31/11 — Denison Mines Corp. (TSX: DML) (NYSE Amex: DNN) (“Denison” or the “Company”) announces that its 2011 operating plan forecasts production of 1.2 million pounds U3O8 and 2.2 million pounds V2O5 from its operations in the United States. “The 2011 plan and budget is focused on the growth of the Company with the largest exploration program ever undertaken on our Wheeler River project, the recommencement of drilling on our Zambian project and the development of our second mine on the Arizona Strip” said Ron Hochstein, President and CEO of Denison. Unless otherwise stated all figures are in U.S. dollars.

2011 Operating Plans

Production

Denison’s uranium production is expected to total 1.2 million pounds of U3O8 from ore in stockpile and from the Beaver, Pandora and Arizona 1 mines and production from the alternate feed circuit at the White Mesa Mill in the United States. Vanadium production is projected to total approximately 2.2 million pounds of V2O5. The White Mesa mill is anticipated to continue processing conventional ore during most of 2011, except for scheduled maintenance shutdowns. Production of alternate feed material will continue throughout 2011. The cash cost of production is expected to average approximately $43.50 per pound of U3O8 net of vanadium credits, excluding sales royalties. The cash cost per pound reflects the impact of an increase of over 200% of the cost of sulphuric acid as compared to 2010. Capital expenditures on the mines and mill facilities are estimated at $9.7 million.

Sales

Uranium sales are forecast to be approximately 1.3 million pounds of U3O8 of which just over 500,000 pounds will be sold into long term contracts and the remainder will be sold on the spot market. Vanadium sales are projected to be 2.8 million pounds V2O5 in 2011.

Business Development

Denison’s business development activities include advancement of its existing development stage projects and exploration projects and the search for new potential acquisitions. These activities, as part of its Five Year Business Development Plan, are aimed at increasing Denison’s sustainable uranium production to at least 10 million pounds per year by 2020.

In 2011, Denison will participate in exploration programs in Canada and the United States. The total budget for these programs will be $15.0 million of which Denison’s share will be $8.8 million. The Wheeler River program at a total cost of $10.0 million (Denison’s share $6.0 million) represents the most significant of these programs. A 35,000 metre drilling program has begun to test additional areas with known uranium mineralization along the same mineralized trend hosting the Phoenix deposit.

Exploration work in Canada will also be carried out on the Moore Lake, Hatchet Lake, Murphy Lake, Bell Lake, McClean Lake and Wolly projects at a total cost of $3.8 million (Denison’s share $1.6 million). In the United States, drilling is planned on the Beaver mine trend and at the Sunday Complex to outline potential resources which could extend the life of existing operations on these properties. In Arizona, an exploration program on the Company’s DB1 breccia pipe is planned. The total cost of the U.S. exploration program is $1.3 million.

The Company is pleased to announce that exploration and development activities will be restarted at its Mutanga project in Zambia. A 17,000 metre exploration drill program will follow up on positive drilling results obtained in 2009 and metallurgical test work will be undertaken to further define process design criteria and operating costs. The Zambian program will total an estimated $6.2 million.

In Mongolia, a $7.4 million exploration and development program is projected. A $3.0 million, 38,000 metre exploration program is anticipated to be undertaken on license areas that currently do not have defined resources in order to confirm resources and support future work on these license areas. Development activities on license areas which are more advanced will include drilling of initial test patterns and pilot plant design. The implementation of the Mongolian program is contingent upon resolution of outstanding issues with the Mongolian Government regarding the Nuclear Energy Law and the structure of the Gurvan Saihan Joint Venture. The Company remains hopeful that these issues will be resolved early in 2011 such that the planned programs can be completed.

In Canada and the U.S., a total of $6.4 million will be spent by Denison on development stage projects in 2011. In the United States, development of the Pinenut mine is moving forward with initial production anticipated in early 2012, and permitting will be advanced for the EZ1/EZ2 and Canyon deposits. The cost of these programs is estimated at $5.6 million. In Canada, the McClean North underground development feasibility study will be advanced along with continued evaluation of the Midwest development project under the operatorship of majority owner AREVA Resources Canada Inc.

2010 PRODUCTION AND SALES

Denison’s uranium production in 2010 was 1.4 million pounds U3O8 from its U.S. operations and its 22.5% share of production from the McClean Lake operation in the Athabasca basin in Canada. Vanadium production totalled 2.3 million pounds V2O5 from its White Mesa mill in Utah.

Uranium sales in 2010 totalled 1.8 million pounds U3O8 at an average realized price of $47.67 per pound U3O8. Vanadium sales in 2010 sales were 2.4 million pounds V2O5 equivalent, at an average realized price of $6.33 per pound V2O5.

About Denison

Denison Mines Corp. is a mid-sized uranium producer in North America, with mining assets in the Athabasca Basin region of Saskatchewan, Canada and the southwest United States including Colorado, Utah, and Arizona. The Company has ownership interests in two conventional uranium mills in North America. Denison also has a strong exploration and development portfolio including the Phoenix discovery in the Athabasca Basin as well as large land positions in the United States, Canada, Mongolia and Zambia.

Cautionary Statements Regarding Forward Looking Information

Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison.

Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” and “has the potential to”.

Forward looking statements are based on the assumptions noted in this press release and on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison believes that the expectations reflected in this forward-looking information is reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this press release should not be unduly relied upon. This information speaks only as of the date of this press release. In particular, this press release may contain forward-looking information pertaining to the following: the estimates of Denison’s mineral reserves and mineral resources; uranium and vanadium production and sales volumes; capital expenditure programs, estimated production costs, exploration and development expenditures and reclamation costs; expectations of market prices and costs; supply and demand for uranium and vanadium; possible impacts of litigation on Denison; exploration, development, production and expansion plans and objectives; Denison’s expectations regarding raising capital and adding to its mineral reserves through acquisitions and development; and receipt of regulatory approvals and permits and treatment under governmental regulatory regimes.

There can be no assurance that such statements will prove to be accurate, as Denison’s actual results and future events could differ materially from those anticipated in this forward-looking information as a result of those factors discussed in or referred to under the heading “Risk Factors” in Denison’s Annual Information Form dated March 19, 2010, available at http://www.sedar.com and its Form 40-F for the financial year ended December 31, 2009, available at http://www.sec.gov, as well as the following: global financial conditions; volatility in market prices for uranium and vanadium; changes in foreign currency exchange rates and interest rates; the market price of Denison’s securities; the ability to access capital; the ability of Denison to meet its obligations to its creditors; liabilities inherent in mining operations; uncertainties associated with estimating mineral reserves and resources; failure to obtain industry partner and other third party consents and approvals, when required; delays in obtaining permits and licenses for development properties; competition for, among other things, capital, acquisitions of mineral reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; geological, technical and processing problems; and, the potential influence of, or reliance upon, a business partner.

Accordingly, readers should not place undue reliance on forward-looking statements. These factors are not, and should not be construed as being, exhaustive. Statements relating to “mineral reserves” or “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral reserves and mineral resources described can be profitably produced in the future. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in Denison’s expectations, except as otherwise required by applicable legislation.

Contacts:
Denison Mines Corp.
Ron Hochstein
President and Chief Executive Officer
(416) 979-1991 Extension 232

Denison Mines Corp.
Jim Anderson
Executive Vice President and CFO
(416) 979-1991 Extension 372

Monday, January 31st, 2011 Uncategorized Comments Off on Denison (DNN) Outlines 2011 Operating Plans and Releases Final 2010 Production and Sales Volumes

DEG Disburses American Lorain (ALN) the Second Tranche of $15 Million Loan

JUNAN COUNTY, China, Jan. 31, 2011 /PRNewswire-Asia-FirstCall/ — American Lorain Corporation (NYSE Amex: ALN) (“American Lorain” or the “Company”), an international processed snack foods, convenience foods, and frozen foods company based in the Shandong Province, China, today announced that on January 28th, 2011, DEG has disbursed the second tranche of its loan to American Lorain in the amount of $10 million.

American Lorain signed the loan agreement with DEG on May 31, 2010. The total amount of the loan with DEG is $15 million, the first tranche of $5 million has been disbursed on December 13, 2010. The loan has a term of 5 years and commencing from the full disbursement, the interest rate will be fixed at 5.51% per annum.

Mr. Si Chen, Chairman and CEO of American Lorain commented: “We are very pleased to see the loan with DEG finally approved and disbursed. DEG is a German financial institution dedicated to providing debt and equity financing for quality enterprises in developing counties. The final approval of the loan reflected the trust and support this rigorous German institution has in American Lorain. The loan also comes in very attractive rate, which we believe will well serve to support American Lorain’s business and thus maximize shareholder value.”

About DEG

DEG (Deutsche Investitions- und Entwicklungsgesellschaft) translates into German Investment Corporation. Founded in 1962, DEG is headquartered in Cologne, Germany and is a member of KfW Bank Group (KfW Bankengruppe), a German government-owned development bank based in Frankfurt. It finances investments of private companies in developing and emerging economies. As one of Europe’s largest development finance institutions, it promotes private business structures to contribute to sustainable economic growth and improved living conditions in these countries. For more information, please visit http://www.deginvest.de/EN_Home/index.jsp or www.kfw.de.

About American Lorain Corporation

American Lorain Corporation products include chestnut products, convenience food products and frozen food products. The Company currently sells over 234 products to 26 provinces and administrative regions in China as well as to 42 foreign countries. The Company operates through its five direct and indirect subsidiaries and one leased factory located in China. For further information about American Lorain Corporation, please visit the Company’s website at http://www.americanlorain.com.

For more information, please contact:

At the company:

American Lorain Corporation

Mr. David She, CFO

Tel:   +86-10 8411 3393

Email: david.she@americanlorain.com

Web:   http://www.americanlorain.com

SOURCE American Lorain Corporation

Monday, January 31st, 2011 Uncategorized Comments Off on DEG Disburses American Lorain (ALN) the Second Tranche of $15 Million Loan

Sky-mobi (MOBI) and Leading Chinese Portal Tencent Form Strategic Partnership

HANGZHOU, China, Jan. 31, 2011 (GLOBE NEWSWIRE) — Sky-mobi Limited (Nasdaq:MOBI) (“Sky-mobi” or the “Company”), the leading mobile application store in China, today announced that the Company and Tencent, one of China’s most popular Internet portals, have formed a strategic partnership. This strategic partnership is to promote Tencent’s QQ Mobile Browser on Sky-mobi’s Maopao application store and make Sky-mobi a preferred partner for a series of Tencent’s mobile software, including mobile security software and Tencent miniblog.

Under the terms of the collaboration agreement between the two companies, Tencent will pay Sky-mobi a commission for each of its users that become an active Tencent QQ Mobile Browser user. Sky-mobi estimates that this partnership will make a meaningful contribution to its top- and bottom-line results in the quarters ahead, driven by Sky-mobi’s large user base and access to the Maopao application store.

“The collaboration we have announced today represents another step in establishing Maopao as the leading application store in China,” commented Michael Song, Chairman and CEO of Sky-Mobi. “Our large user base will have access to Tencent’s QQ browser, which adds to the range of fun and useful Tencent services available on Maopao. In return, Tencent will have the opportunity to introduce its services to mobile phone users across China. We look forward to a successful collaboration for both parties.”

Sky-mobi’s Maopao store is accessed by hundreds of millions of Chinese mobile phone users and includes a variety of utilities, games and entertainment options. Sky-mobi collaborates with mobile service providers and handset vendors who pre-install the Sky-mobi’s Maopao platform on their mobile phones. The Maopao store offers a large number of applications and content titles that extends the usability of low-to-mid range mobile phones, or feature phones, by giving them many of the capabilities of more expensive smart phones, with such features as leading-edge user interfaces and Internet access. The partnership with Tencent is another important step in extending the range of applications available to Maopao users to make their phones smarter.

About Tencent:

Tencent Holdings Limited (SEHK 700) was founded in November, 1998, and has since grown into one of China’s largest and most widely used Internet portal.  Presently, Tencent is providing value-added Internet, mobile and telecom services as well as online advertising with the goal of providing users with “one-stop online lifestyle services”. Tencent’s leading Internet platforms in China — QQ (QQ Instant Messenger), QQ.com, QQ Games, Qzone, 3g.QQ.com, SoSo, PaiPai and Tenpay — have brought together China’s largest Internet community, to meet the various needs of Internet users including communication, information, entertainment, e-commerce and others. As of September 30, 2010, active QQ user accounts for QQ IM totaled 636.6 million while peak concurrent users reached 118.7 million.

About Sky-mobi Limited:

Sky-mobi Limited (Nasdaq:MOBI) operates the leading mobile application store in China.  Sky-mobi works with handset companies to pre-install its Maopao mobile application store on handsets and with content developers to provide users with high quality applications and content titles.  Users of the Maopao store can browse, download and purchase a wide range of applications and content such as single-player games, mobile music and books. In addition, Sky-mobi has established a leading mobile social network community in China, the Maopao Community, where it offers popular localized mobile social games as well as applications and content with social network functions to its registered members. The Maopao store enables mobile applications and content to be downloaded and run on a variety of mobile handsets with different hardware and operating system configurations.

The Sky-mobi Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8458

Safe Harbor Statement

This press release contains forward-looking statements that reflect the Company’s current expectations and views of future events that involve known and unknown risks, uncertainties and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs.  You should understand that the Company’s actual future results may be materially different from and worse than what  the Company expects. Information regarding these risks, uncertainties and other factors is included in the Company’s registration statement on Form F-1 and other filings with the SEC.

CONTACT: Sky-mobi Limited
         Mr. Carl Yeung, CFO
         Phone: +(86) 571-87770978 (Hangzhou)
         Email: ir@sky-mobi.com

         CCG Investor Relations
         Mr. Ed Job, Account Manager
         Phone: +(86) 21-3133-5075 (Shanghai)
         Email: ed.job@ccgir.com
         Ms. Kristin Knies, Sr. MI Executive (New York)
         Phone: + (1) 646-833-3401

Sky-mobi Limited Logo

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GATTEX(R) (teduglutide) Meets Primary Efficacy Endpoint in Phase 3 Pivotal Study

Jan. 31, 2011 (Business Wire) — NPS Pharmaceuticals, Inc. (NASDAQ: NPSP), a specialty pharmaceutical company developing innovative therapeutics for rare gastrointestinal and endocrine disorders, today announced that its Phase 3 pivotal study of GATTEX® (teduglutide) met the primary efficacy endpoint of reducing parenteral nutrition (PN) dependence in patients with adult short bowel syndrome (SBS). The 24-week randomized, double-blind study, known as STEPS, was designed to compare the efficacy, safety and tolerability of GATTEX to placebo.

The study reached statistical significance for the primary efficacy endpoint, defined as the percentage of patients who achieved a 20 percent or greater reduction in weekly PN volume at Weeks 20 and 24, compared to baseline. In an intent-to-treat analysis, 63 percent (27/43) of GATTEX-treated patients responded versus 30 percent (13/43) of placebo-treated patients (p=0.002). Patients treated with GATTEX for 24 weeks also achieved significantly greater reductions in weekly PN volume versus placebo. On average, patients who received GATTEX experienced a 4.4 liter reduction in weekly PN volume from a pre-treatment baseline of 12.9 liters; patients who received placebo experienced a 2.3 liter reduction from a pre-treatment baseline of 13.2 liters (p less than or equal to 0.001).

“SBS patients who receive their nutrients and fluids intravenously due to malabsorption and diarrhea are prone to a number of serious complications including life-threatening infections, blood clots and liver and kidney damage. The STEPS results suggest teduglutide helps restore normal intestinal function in patients with short bowel syndrome, thereby reducing dependence on parenteral nutrition and potentially improving their quality of life,” said Palle Bekker Jeppesen, M.D., associate professor, department of medical gastroenterology, Rigshospitalet, University Hospital of Copenhagen, Denmark. “These findings bring us closer to an important new therapeutic option for patients with this debilitating condition.”

The STEPS study showed that GATTEX was well tolerated. Four of the 86 randomized patients discontinued the study due to adverse events, of which one was GATTEX-treated and three were placebo-treated. Adverse events appear to be consistent with the pharmacological effects of the drug.

“We are very pleased with these findings as they confirm our belief that GATTEX provides meaningful clinical benefits to adult patients with short bowel syndrome,” said Francois Nader, MD, president and chief executive officer of NPS Pharmaceuticals. “Based on these results, we expect to file for FDA approval of GATTEX in the second half of this year as a first-in-class treatment for SBS. We thank the patients, clinical investigators, and study coordinators who participated in this landmark study, as well as our ex-North American partner Nycomed who co-managed and co-funded the study. We look forward to reporting additional results from the STEPS study at upcoming medical meetings.”

More than 97 percent of eligible patients who participated in STEPS elected to roll into STEPS 2, an open-label continuation study in which all participants receive up to an additional 24 months of GATTEX therapy.

STEPS study design

STEPS was an international, double-blind, placebo-controlled Phase 3 pivotal study designed to provide additional evidence of safety and efficacy of GATTEX in reducing PN dependence in adult SBS patients.

Twenty-nine centers in North America and Europe enrolled patients in the STEPS study. Eighty-six patients were randomized and analyzed for efficacy and safety. The trial included an initial PN optimization and stabilization period, after which patients were randomized 1:1 to compare daily subcutaneous dosing of 0.05 mg/kg of GATTEX to placebo over a 24-week treatment period. A total of 78 patients completed the study.

The primary efficacy endpoint was the percentage of patients who achieved a 20 percent or greater reduction in weekly PN volume at Week 20 and maintained that response at Week 24, compared to baseline. The study’s secondary endpoints included reductions in PN volume and the direct effects of improved intestinal absorption of fluid.

NPS conducted STEPS with the support of its partner, Nycomed, a global pharmaceutical company, headquartered in Switzerland, which holds the rights to develop and commercialize teduglutide outside of North America. Nycomed expects to submit a Marketing Authorization Application (MAA) to the European Medicines Agency (EMA) for teduglutide in the first half of 2011. The two companies share certain external costs for the teduglutide development program.

Conference Call Information

NPS will host a conference call today at 9:00 a.m. Eastern Time to discuss these findings. To participate in the conference call, dial (888) 396-2356 and use pass code 22757353. International callers may dial (617) 847-8709, using the same pass code. In addition, a live audio of the conference call will be available over the Internet. Interested parties can access the event through the NPS website, http://www.npsp.com.

For those unable to participate in the live call, a replay will be available at (888) 286-8010, with pass code 24296023, until midnight Eastern Time, February 14, 2011. International callers may access the replay by dialing (617) 801-6888, using the same pass code. The webcast will also be available through the NPS website for the same period.

About Short Bowel Syndrome

Short bowel syndrome, or SBS, is a highly disabling condition that can impair a patient’s quality-of-life and lead to serious life-threatening complications. SBS typically arises after extensive resection of the bowel due to Crohn’s disease, ischemia or other conditions. SBS patients often suffer from malnutrition, severe diarrhea, dehydration, fatigue, osteopenia, and weight loss due to the reduced intestinal capacity to absorb nutrients, water, and electrolytes. The usual treatment for short bowel syndrome is nutritional support, including parenteral nutrition (PN) or intravenous feeding to supplement and stabilize nutritional needs.

Although PN can provide nutritional support for short bowel syndrome patients, it does not improve the body’s own ability to absorb nutrients. PN is also associated with serious complications, such as infections, blood clots or liver damage, and the risks increase the longer patients are on PN. Patients on PN often experience a poor quality-of-life with difficulty sleeping, frequent urination and loss of independence.

There are an estimated 10,000 to 15,000 SBS patients in the U.S. who are dependent on PN, the direct cost of which can exceed $100,000 annually per patient.

About GATTEX® (teduglutide)

GATTEX (teduglutide) is a novel, recombinant analog of human glucagon-like peptide 2, a protein involved in the rehabilitation of the intestinal lining. GATTEX is in Phase 3 development to reduce dependence on parenteral nutrition (PN) in adult patients with short bowel syndrome (SBS). NPS has reported findings from completed studies in which GATTEX demonstrated a favorable safety profile and reductions in mean PN volume from pretreatment baseline were observed. NPS is also advancing preclinical studies to evaluate teduglutide in additional intestinal failure related conditions.

Teduglutide has received orphan drug designation for the treatment of SBS from the U.S. Food and Drug Administration and the European Medicines Agency.

In 2007, NPS granted Nycomed the rights to develop and commercialize teduglutide outside the United States, Canada and Mexico. NPS retains all rights to teduglutide in North America.

About NPS Pharmaceuticals

NPS Pharmaceuticals is developing new treatment options for patients with rare gastrointestinal and endocrine disorders. The company is currently advancing two Phase 3 registration programs. Teduglutide, a proprietary analog of GLP-2, is in Phase 3 development for parenteral nutrition dependent adult short bowel syndrome and is in preclinical development for additional intestinal failure related conditions. NPSP558 (parathyroid hormone 1-84 [rDNA origin] injection) is in Phase 3 development as a hormone replacement therapy for hypoparathyroidism. NPS complements its proprietary programs with a royalty-based portfolio of products and product candidates that includes agreements with Amgen, Kyowa Hakko Kirin, Nycomed, and Ortho-McNeil Pharmaceutical.

“NPS”, “NPS Pharmaceuticals”, and “GATTEX” are the company’s registered trademarks. All other trademarks, trade names or service marks appearing in this press release are the property of their respective owners.

Statements made in this press release, which are not historical in nature, constitute forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the company’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Risks associated to the company’s business include, but are not limited to, the risks associated with any failure by the company to successfully complete its preclinical and clinical studies within the projected time frames or not at all, the risk of not gaining marketing approvals for GATTEX and NPSP558, the risks associated with the company’s strategy, as well as other risk factors described in the company’s periodic filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Form 10-Qs. All information in this press release is as of the date of this release and NPS undertakes no duty to update this information.

NPS:

Susan M. Mesco

NPS Investor Relations

908-450-5516

smesco@npsp.com

or

Tony Plohoros

6 Degrees PR

908-591-2839

tplohoros@6degreespr.com

or

Nycomed:

Beatrix Benz

Nycomed Media Relations

+41 44 555 1508

beatrix.benz@nycomed.com

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Material Sciences Corp. (MASC) Announces Stock Repurchase Program

ELK GROVE VILLAGE, Ill., Jan. 28, 2011 /PRNewswire/ — Material Sciences Corporation (Nasdaq: MASC), a leading provider of material-based solutions for acoustical and coated applications, today announced that the company’s board of directors has authorized the repurchase of up to one million shares of common stock.  These one million shares are in addition to the 114,081 shares remaining available for repurchase under the Board’s January 7, 2008 authorization.  The share repurchases will be made from time to time at MSC’s discretion, subject to market conditions and other factors, and will be funded with internally generated cash.  As of January 27, 2011, MSC had 12,909,133 shares outstanding.

About Material Sciences

Material Sciences Corporation is a leading provider of material-based solutions for acoustical and coated applications. MSC uses its expertise in materials, which it leverages through relationships and a network of partners, to solve customer-specific problems. The company’s stock is traded on the NASDAQ Capital Market under the symbol MASC.

SOURCE Material Sciences Corporation

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Destination Maternity (DEST) Reports Q1 Earnings Significantly Higher Than Prior Guidance and Last Year

PHILADELPHIA, Jan. 27, 2011 /PRNewswire/ — Destination Maternity Corporation (Nasdaq: DEST), the world’s leading maternity apparel retailer, today announced operating results for the first quarter of fiscal 2011, which ended December 31, 2010, with its first quarter diluted earnings per share significantly exceeding both its prior earnings guidance and its prior year first quarter earnings results.  The Company also increased its earnings guidance for the full year fiscal 2011.  In addition, yesterday the Company announced that its Board of Directors has initiated a regular quarterly cash dividend and approved a two-for-one split of its common stock in the form of a stock dividend.

First Quarter Fiscal 2011 Financial Results

  • GAAP net income for the first quarter of fiscal 2011 was $5.2 million, or $0.81 per share (diluted), a significant improvement compared to GAAP net income of $1.3 million, or $0.20 per share (diluted) for the first quarter of fiscal 2010.  This first quarter fiscal 2011 GAAP earnings performance was better than the Company’s guidance, provided in its November 18, 2010 press release, of GAAP diluted earnings per share of between $0.51 and $0.66.
  • Non-GAAP adjusted net income (before restructuring and other charges, stock compensation expense, and loss on extinguishment of debt) for the first quarter of fiscal 2011 was $5.7 million, or $0.88 per share (diluted), an increase of 49% over the comparably adjusted non-GAAP net income for the first quarter of fiscal 2010 of $3.8 million, or $0.62 per share (diluted).  This first quarter fiscal 2011 non-GAAP adjusted earnings performance was better than the Company’s guidance, provided in its November 18, 2010 press release, of non-GAAP adjusted diluted earnings per share of between $0.56 and $0.71.
  • Adjusted EBITDA was $13.3 million for the first quarter of fiscal 2011, an increase of 69% over the $7.9 million of Adjusted EBITDA for the first quarter of fiscal 2010.
  • Adjusted EBITDA before restructuring and other charges was $13.3 million for the first quarter of fiscal 2011, an increase of 14% over the $11.6 million of Adjusted EBITDA before restructuring and other charges for the first quarter of fiscal 2010.
  • Net sales for the first quarter of fiscal 2011 increased 1.2% to $135.4 million from $133.8 million for the first quarter of fiscal 2010 and were at the top end of the Company’s guidance range of $132.5 to $135.5 million provided in November.  The increase in sales for the first quarter of fiscal 2011 compared to fiscal 2010 resulted primarily from an increase in comparable store sales, increased sales due to the opening of an additional 217 Sears® and Kmart® leased department locations in September and October 2010, and increased Internet sales, partially offset by decreased sales related to the Company’s continued efforts to close underperforming stores and decreased sales from the Company’s licensed relationship.
  • Comparable retail sales (which consists of comparable store sales and Internet sales) for the first quarter of fiscal 2011 increased 2.1% versus a comparable retail sales decrease of 4.4% for the first quarter of fiscal 2010.  During the first quarter of fiscal 2011, comparable store sales increased 1.2%, and Internet sales increased 17.9%.  The comparable store sales increase of 1.2% during the first quarter of fiscal 2011 exceeded the top end of the Company’s guidance range of down 1.5% to up 0.5% provided in November.

Cash Dividend and Stock Split

  • Yesterday the Company announced that its Board of Directors has initiated a regular quarterly cash dividend and approved a two-for-one split of the Company’s common stock in the form of a stock dividend.  The first quarterly cash dividend of $0.35 per share pre-split (equivalent to $0.175 per share post-split) is payable March 11, 2011 to stockholders of record at the close of business on February 16, 2011.  As a result of the stock split, on March 1, 2011 stockholders of record at the close of business on February 16, 2011 will receive one additional common share for every share held.  Upon completion of the split, the number of common shares outstanding will be approximately 12.7 million.  All share and per share amounts included in this first quarter fiscal 2011 earnings release are presented on a pre-split basis unless otherwise specifically stated.

Restructuring and Other Charges

  • Beginning in late fiscal 2008, the Company implemented a significant restructuring and cost reduction program, with the objectives of simplifying its merchandise brand and store nameplate structure, improving and simplifying critical processes, and reducing its expense structure.  The Company has substantially completed the planned activities of the initiative and incurred $3.9 million of pretax expense related to this initiative in fiscal 2010, of which $2.5 million was incurred in the first quarter of fiscal 2010.  This initiative resulted in pretax savings of approximately $12 million in fiscal 2009, with incremental pretax savings of approximately $11 million in fiscal 2010.  The Company projects total annualized pretax savings of approximately $27 to $30 million in fiscal 2011 as a result of this initiative, which includes the savings realized in fiscal 2009 and fiscal 2010.
  • In addition, the Company recorded pretax charges of $1.3 million in the first quarter of fiscal 2010 associated with the retirement of the Company’s President and Chief Creative Officer in September 2010 and the retirement of the Company’s non-executive Chairman of the Board in January 2010.

Retail Locations

The table below summarizes store opening and closing activity for the first quarter of fiscal 2011 and 2010, as well as the Company’s store, total retail location and total international franchised location count at the end of each fiscal period.  The increase in leased department locations at December 31, 2010 versus December 31, 2009 predominantly reflects the opening of an additional 217 Sears and Kmart leased department locations in September and October 2010.

First Quarter Ended

12/31/10

12/31/09

Store Openings (1)

Total

1

2

Multi-Brand Store Openings

1

1

Store Closings (1)

Total

9

5

Closings Related to Multi-Brand Store Openings

1

2

Period End Retail Location Count (1)

Stores

690

721

Leased Department Locations

1,192

980

Total Retail Locations (1)

1,882

1,701

(1)  Excludes international franchised locations.

First Quarter Ended

12/31/10

12/31/09

International Franchised Location Openings

Stores

1

Shop-in-Shop Locations

13

Total International Franchised Location Openings

13

1

Period End International Franchised Location Count

Stores

8

2

Shop-in-Shop Locations

36

7

Total International Franchised Locations

44

9

Commentary

Ed Krell, Chief Executive Officer and President of Destination Maternity Corporation, noted, “We are pleased with the continued increase in the profitability of our business, as well as the improvement of our sales performance for the first quarter of fiscal 2011.  Our GAAP diluted earnings per share of $0.81 for the first quarter exceeded the top end of our prior earnings guidance range of $0.51 to $0.66 per share that we provided in our November 18, 2010 press release, and was significantly higher than last year’s first quarter GAAP diluted earnings of $0.20 per share.  Our sales performance for the first quarter was at the high end of our sales guidance, with our comparable retail sales increasing 2.1% and our comparable store sales increasing 1.2% for the quarter.

“As we have indicated previously, we are keenly focused on initiatives to drive profitable sales growth, including increasing our comparable store sales, and we are pleased that our comparable store sales and comparable retail sales were positive for the first quarter.  Among our other initiatives, the significant expansion of our maternity apparel leased department relationship with Macy’s® will occur in February 2011, through which we will expand from our current 115 Macy’s locations to over 615 Macy’s locations throughout the United States, offering a mix of Motherhood Maternity® and A Pea in the Pod® branded merchandise.  This expansion with Macy’s will deepen our position as the leading maternity apparel retailer in the world.  In addition, we are focused on continuing to enhance our merchandise assortments, merchandise presentation and customer experience.”

Cash Dividend and Stock Split

“Yesterday we announced that our Board of Directors has initiated a regular quarterly cash dividend and approved a two-for-one split of our common stock.  Initiating a regular quarterly cash dividend demonstrates the Board’s confidence in our Company’s financial strength and our prospects for the future, and highlights our strong earnings and cash flow generation and our commitment to continue to drive shareholder value.  In addition, we believe that the stock split, combined with the regular quarterly cash dividend, will make our stock even more attractive to a broader range of investors and may increase the trading liquidity of our stock.

“Over the past several years, we have used our free cash flow predominantly to pre-pay debt and, as a result, we have significantly reduced our financial leverage and our interest expense, as reflected by our total debt decreasing from $128.9 million at the end of fiscal 2005 to $45.2 million at the end of fiscal 2010, and our interest expense decreasing from $15.3 million in fiscal 2005 to $3.3 million in fiscal 2010.  With this significant reduction in our financial leverage and interest expense, we believe it is now appropriate for us to use a portion of our earnings and cash flow to return cash to our stockholders through a regular quarterly cash dividend which can enhance the total return to our stockholders, while also potentially broadening our investor base.”

Guidance for Fiscal 2011

“Looking forward, we are confident that we can continue to drive significant growth in earnings, while also growing our sales and positioning our company for continued future growth, by continuing to improve our product and customer experience, and continuing to focus on our strategic plan as summarized in our five key goals and strategic objectives discussed later under “Company Strategy.”  For fiscal 2011, we look forward to:  the expansion into over 500 additional Macy’s locations in February 2011; the continued growth of our Internet and international sales; the continued rollout of our multi-brand Destination Maternity stores; and the continued enhancement of our merchandise assortments, merchandise presentation and customer experience.  Given the continued uncertainty as to the timing and extent of a recovery in consumer spending, we continue to plan our sales and inventory conservatively.

“Our financial guidance for the full year fiscal 2011 is as follows:

  • Net sales in the $560 to $570 million range, representing a projected sales increase of between 5.4% and 7.3% versus fiscal 2010 net sales of $531.2 million.  The planned increase in net sales for fiscal 2011 versus fiscal 2010 is driven primarily from the expansion into over 500 additional Macy’s locations in February 2011; the expansion of the Sears and K-Mart relationships, with 217 additional Sears and K-Mart maternity locations added in September and October 2010; and the continued planned growth of our Internet and international sales.
  • We are planning continued improvement in our comparable store sales performance, especially in the second half of fiscal 2011.  However, it is important to note that our comparable store sales and comparable retail sales will be negatively impacted by our significant Macy’s leased department expansion in February 2011.  The following table provides guidance for our projected full year fiscal 2011 comparable store sales and comparable retail sales, both before and after the projected impact of this leased department expansion.  Included in the guidance range for comparable retail sales (which consists of comparable store sales and Internet sales) is a projected increase in Internet sales of between 15% and 20% for fiscal 2011.

Comparable Store Sales

Comparable Retail Sales

Including projected

cannibalization impact of

leased department expansion

Down 1.5% to Up 0.5%

Down 0.5% to Up 1.5%

Excluding projected

cannibalization impact of

leased department expansion

Up 0.5% to Up 2.5%

Up 1.5% to Up 3.5%

  • Gross margin for fiscal 2011 is expected to increase modestly versus fiscal 2010, primarily driven by leveraging product overhead expenses over a larger planned sales volume, with product cost reductions expected to be recognized for much of the year being partially offset by the expected impact of upward product cost pressures for Summer 2011 and Fall 2011 merchandise to be recognized later in fiscal 2011.
  • Total selling, general and administrative (SG&A) expenses are planned to be higher than fiscal 2010 in dollar terms and comparable to fiscal 2010 as a percentage of net sales.  The projected SG&A expense increase for the full year primarily results from additional operating expenses resulting from the Macy’s leased department expansion in February 2011 and certain other projected expense increases, including increased marketing expenses, partially offset by expense savings from the Company’s restructuring and cost reduction initiatives.
  • Operating income in the $40.9 to $44.9 million range, a projected increase of between 30% and 43% compared to fiscal 2010 operating income of $31.4 million.  Operating income before restructuring and other charges is projected in the $41.2 to $45.2 million range, a projected increase of between 11% and 22% compared to fiscal 2010 operating income, before restructuring and other charges, of $37.1 million.
  • GAAP diluted earnings per share of between $3.62 and $3.98 per share for fiscal 2011, a projected increase of between 37% and 50% compared to earnings of $2.65 per share (diluted) for fiscal 2010.  This guidance range for fiscal 2011 GAAP diluted earnings per share of $3.62 to $3.98 is higher than the prior guidance range of $3.52 to $3.87 provided by the Company in its November 18, 2010 press release.
  • Non-GAAP adjusted diluted earnings per common share (before restructuring and other charges, stock compensation expense, and loss on extinguishment of debt) is projected to be between $3.89 and $4.24 per share for fiscal 2011, a projected increase of between 14% and 25% versus non-GAAP adjusted diluted earnings per share of $3.40 per share for fiscal 2010, and higher than the Company’s prior guidance range of $3.76 to $4.10.
  • Adjusted EBITDA in the $58.0 to $62.0 million range, a projected increase of between 20% and 28% compared to the fiscal 2010 Adjusted EBITDA of $48.3 million.  Adjusted EBITDA before restructuring and other charges is projected in the $58.3 to $62.3 million range, a projected increase of between 8% and 15% versus the fiscal 2010 figure of $54.0 million.
  • Open approximately 12 to 19 new stores during the year, including approximately 6 to 12 new multi-brand Destination Maternity stores, and close approximately 45 to 62 stores, with approximately 12 to 24 of these planned store closings related to openings of new Destination Maternity stores.
  • Capital expenditures planned at between $15 and $18 million compared to fiscal 2010 capital expenditures of $10.4 million.  After deducting projected tenant construction allowance payments to us from store landlords, the Company expects net cash outlay for capital projects to be between $10 million and $12 million, compared to $7.4 million in fiscal 2010.
  • Inventory at fiscal 2011 year end planned to be approximately 4-8% higher (approximately $3 to $6 million higher) than fiscal 2010 year end, primarily due to inventory increases related to the Macy’s expansion.
  • Given these assumptions, the Company plans to generate free cash flow (defined as net cash provided by operating activities minus capital expenditures) of approximately $13 to $19 million for the full year fiscal 2011.

“We expect our comparable store sales for the full month of January to decrease between 0.5% and 3.0% on a reported basis, and to be between a decrease of 2.0% and an increase of 0.5% after adjusting for the “days adjustment calendar shift,” reflecting one less Friday in January 2011 compared to January 2010.  We expect our comparable retail sales for the full month of January to be between a decrease of 1.0% and an increase of 2.0% after adjusting for the “days adjustment calendar shift.”

“Our financial guidance for the second quarter of fiscal 2011 is as follows:

  • Net sales in the $134 to $137 million range.
  • Comparable store sales decrease of between 0.5% and 2.5% on a reported basis (including the projected cannibalization impact of the Macy’s leased department expansion) and an increase in Internet sales of between 15% and 20%.  Excluding the projected cannibalization impact of the Macy’s leased department expansion, comparable store sales are projected to be between a decrease of 1.0% and an increase of 1.0%, with comparable retail sales projected to be between flat and an increase of 2.0%.
  • GAAP diluted earnings per common share of between $0.60 and $0.71 per share, a significant projected improvement versus GAAP diluted earnings per share of $0.42 for the second quarter of fiscal 2010.
  • Non-GAAP adjusted diluted earnings per common share (before restructuring and other charges, stock compensation expense, and loss on extinguishment of debt) of between $0.64 and $0.75 per share, versus comparably adjusted non-GAAP diluted earnings per share of $0.61 for the second quarter of fiscal 2010.

Company Strategy

Mr. Krell added, “As we plan and execute our business for both the coming year and beyond, we continue to be guided by our five key goals and strategic objectives:

  1. Be a profitable global leader in the maternity apparel business, treating all our partners and stakeholders with respect and fairness.
  2. Increase the profitability of our U.S. business, focusing on the following:
    1. Increase comparable store sales, through continued improvement of merchandise assortments, merchandise presentation and customer experience, providing a more shoppable store environment for our customers, and through enhanced marketing and advertising.
    2. Reduce our expenditures and continue to be more efficient in operating our business—streamline, simplify and focus.
    3. Continue to expand our multi-brand Destination Maternity store chain where ROI hurdles are met, with the goal of operating fewer but larger stores over time.
    4. Continue to close underperforming stores.
  3. In addition to achieving increased comparable store sales, we aim to grow our sales where we can do so profitably, including the following areas of focus:
    1. International expansion
    2. Potential growth of our leased department and licensed relationships
    3. Increased utilization of the Internet to drive sales, targeting both increased direct Internet sales and enhanced web marketing initiatives to drive store sales
    4. Selective new store openings and relocations in the U.S. and Canada
    5. Continued focus on enhancing our overall customer relationship, including our marketing partnership programs.
  4. Focus on generating free cash flow to drive increased shareholder value.
  5. Maintain and intensify our primary focus on delivering great maternity apparel product and service in each of our brands and store formats, to serve the maternity apparel customer like no one else can.”

Mr. Krell concluded, “We feel very good about our Company’s position and the actions we have taken to improve the profitability of our business and generate increased shareholder value, even in the face of a challenging sales environment, while also making investments and pursuing targeted initiatives for profitable future sales growth.  We are proud of what we have accomplished in the past two years to significantly improve our operating results, our financial position, and our outlook.  At the same time, we have not been satisfied with our sales performance, although we recognize that over the past two to three years we have faced the dual challenges of a deep recession and a 6.0% decrease in births in the United States.  We are focused on turning around our sales performance through initiatives to continue to enhance our merchandise assortments, merchandise presentation and customer experience, and we are cautiously optimistic that we may be starting to see some initial signs of this turnaround, as evidenced by our positive comparable store sales for the first quarter.  We are confident in our ability to continue to manage our business through this uncertain consumer environment and to continue to drive near term improvements while also making progress towards our longer term goals.”

Conference Call Information

As announced previously, the Company will hold a conference call today at 9:00 a.m. Eastern Time, regarding the Company’s first quarter fiscal 2011 earnings and future financial guidance.  You can participate in this conference call by calling (800) 901-5231.  Please call ten minutes prior to 9:00 a.m. Eastern Time.  The conference call (listen only) will also be available on the investor section of our website at http://investor.destinationmaternity.com.  The passcode for the conference call is “79373208.”  In the event that you are unable to participate in the call, a replay will be available through Thursday, February 10, 2011 by calling (888) 286-8010.  The passcode for the replay is “94896169.”

Destination Maternity Corporation is the world’s largest designer and retailer of maternity apparel.   In the United States and Canada, as of December 31, 2010, Destination Maternity operates 1,882 retail locations, including 690 stores, predominantly under the tradenames Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and sells on the web through its DestinationMaternity.com and brand-specific websites.  Destination Maternity also distributes its Oh Baby by Motherhood™ collection through a licensed arrangement at Kohl’s® stores throughout the United States and on Kohls.com.  In addition, Destination Maternity is expanding internationally and has exclusive store franchise and product supply relationships in India and the Middle East.

The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding the continuation of the regular quarterly cash dividend, the trading liquidity of our common stock, earnings, net sales, comparable retail sales, comparable store sales, Internet sales, other results of operations, liquidity and financial condition, and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors.  The following factors, among others, in some cases have affected and in the future could affect the Company’s financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: the continuation of the economic recovery of the retail industry in general and on apparel purchases in particular, our ability to successfully manage our various business initiatives, our ability to successfully implement our merchandise brand and retail nameplate restructuring, the success of our international expansion, our ability to successfully manage and retain our leased department and licensed relationships and marketing partnerships, future sales trends in our existing store base, unusual weather patterns, changes in consumer preferences, raw material price increases, overall economic conditions and other factors affecting consumer confidence, demographics and other macroeconomic factors that may impact the level of spending for maternity apparel, expense savings initiatives, our ability to anticipate and respond to fashion trends and consumer preferences, anticipated fluctuations in our operating results, the impact of competition and fluctuations in the price, availability and quality of raw materials and contracted products, availability of suitable store locations, continued availability of capital and financing, our ability to hire and develop senior management and sales associates, our ability to develop and source merchandise, our ability to receive production from foreign sources on a timely basis, potential stock repurchases, potential debt prepayments, changes in market interest rates, war or acts of terrorism and other factors set forth in the Company’s periodic filings with the Securities and Exchange Commission, or in materials incorporated therein by reference.

DESTINATION MATERNITY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

First Quarter Ended

12/31/10

12/31/09

Net sales

$

135,435

$

133,771

Cost of goods sold

62,502

62,077

Gross profit

72,933

71,694

Gross margin

53.9

%

53.6

%

Selling, general and administrative expenses (SG&A)

63,504

63,933

SG&A expenses as a percentage of net sales

46.9

%

47.8

%

Store closing, asset impairment and asset disposal expenses

243

688

Restructuring and other charges

3,777

Operating income

9,186

3,296

Interest expense, net

644

955

Loss on extinguishment of debt

9

30

Income before income taxes

8,533

2,311

Income tax provision

3,285

1,055

Net income

$

5,248

$

1,256

Net income per share – basic (1)

$

0.84

$

0.21

Average shares outstanding – basic (1)

6,254

6,048

Net income per share – diluted (1)

$

0.81

$

0.20

Average shares outstanding – diluted (1)

6,497

6,223

Supplemental information:

Net income, as reported

$

5,248

$

1,256

Add: restructuring and other charges, net of tax

2,304

Add: stock compensation expense, net of tax

465

269

Add: loss on extinguishment of debt, net of tax

6

18

Adjusted net income, before restructuring and

other charges, stock compensation expense,

and loss on extinguishment of debt

$

5,719

$

3,847

Adjusted net income per share – diluted, before

restructuring and other charges, stock compensation

expense, and loss on extinguishment of debt (1)

$

0.88

$

0.62

(1)  Does not reflect the effect of the two-for-one stock split payable March 1, 2011.

DESTINATION MATERNITY CORPORATION AND SUBSIDIARIES

Selected Consolidated Balance Sheet Data

(in thousands)

(unaudited)

December 31,
2010

September 30,
2010

December 31,
2009

Cash and cash equivalents

$             35,976

$             24,633

$             14,273

Inventories

72,287

80,735

74,161

Property, plant and equipment, net

58,255

58,702

62,642

Line of credit borrowings

Total debt

42,266

45,161

51,138

Net debt (1)

6,290

20,528

36,865

Stockholders’ equity

77,717

71,598

51,988

(1)  Net debt represents total debt minus cash and cash equivalents and short-term investments.

DESTINATION MATERNITY CORPORATION AND SUBSIDIARIES

Supplemental Financial Information

Reconciliation of Operating Income to Adjusted EBITDA(1)
and Adjusted EBITDA Before Restructuring and Other Charges,
and Operating Income Margin to Adjusted EBITDA Margin
and Adjusted EBITDA Margin Before Restructuring and Other Charges
(in thousands, except percentages)

(unaudited)

First Quarter Ended

12/31/10

12/31/09

Operating income

$

9,186

$

3,296

Add: depreciation and amortization expense

3,144

3,441

Add: loss on impairment of long-lived assets

129

675

Add: loss on disposal of assets

70

3

Add: stock compensation expense

745

441

Adjusted EBITDA (1)

13,274

7,856

Add: restructuring and other charges

3,777

Adjusted EBITDA before restructuring and other charges

$

13,274

$

11,633

Net sales

$

135,435

$

133,771

Operating income margin (operating income as

a percentage of net sales)

6.8%

2.5%

Adjusted EBITDA margin (Adjusted EBITDA as a

percentage of net sales)

9.8%

5.9%

Adjusted EBITDA margin before restructuring and other

charges (Adjusted EBITDA before restructuring and other

charges as a percentage of net sales)

9.8%

8.7%

(1)  Adjusted EBITDA represents operating income before deduction for the following non-cash charges: (i) depreciation and amortization expense; (ii) loss on impairment of tangible and intangible assets; (iii) loss on disposal of assets; and (iv) stock compensation expense.

Consolidated Statement of Income

For the Twelve Months Ended December 31, 2010

(in thousands, except percentages and per share data)

(unaudited)

Net sales

$

532,856

Cost of goods sold

240,591

Gross profit

292,265

Gross margin

54.8

%

Selling, general and administrative

expenses (SG&A)

251,224

SG&A expenses as a percentage of net sales

47.1

%

Store closing, asset impairment and asset

disposal expenses

1,837

Restructuring and other charges

1,881

Operating income

37,323

Interest expense, net

2,989

Loss on extinguishment of debt

30

Income before income taxes

34,304

Income tax provision

13,483

Net income

$

20,821

Net income per share – basic (1)

$

3.36

Average shares outstanding – basic (1)

6,204

Net income per share – diluted (1)

$

3.25

Average shares outstanding – diluted (1)

6,415

Supplemental information:

Net income, as reported

$

20,821

Add: restructuring and other charges, net of tax

1,168

Add: stock compensation expense, net of tax

1,400

Add: loss on extinguishment of debt, net of tax

19

Adjusted net income, before restructuring and other

charges, stock compensation expense, and loss on

extinguishment of debt

$

23,408

Adjusted net income per share – diluted, before

restructuring and other charges, stock compensation

expense, and loss on extinguishment of debt (1)

$

3.65

(1)  Does not reflect the effect of the two-for-one stock split payable March 1, 2011.

Reconciliation of Operating Income to Adjusted EBITDA

and Adjusted EBITDA Before Restructuring and Other Charges,

and Operating Income Margin to Adjusted EBITDA Margin

and Adjusted EBITDA Margin Before Restructuring and Other Charges

For the Twelve Months Ended December 31, 2010

(in thousands, except percentages)

(unaudited)

Operating income

$

37,323

Add: depreciation and amortization expense

12,619

Add: loss on impairment of long-lived assets

1,319

Add: loss on disposal of assets

263

Add: stock compensation expense

2,240

Adjusted EBITDA

53,764

Add: restructuring and other charges

1,881

Adjusted EBITDA before restructuring and other charges

$

55,645

Net sales

$

532,856

Operating income margin

7.0

%

Adjusted EBITDA margin

10.1

%

Adjusted EBITDA margin before restructuring and other

charges

10.4

%

Reconciliation of Net Income Per Share – Diluted

to Adjusted Net Income Per Share – Diluted,

Before Restructuring and Other Charges, Stock Compensation

Expense, and Loss on Extinguishment of Debt

(unaudited)

Projected for the

Year Ending

Actual for the

Year Ended

9/30/11 (1) (2)

9/30/10 (2)

Net income per share – diluted (3)

$

3.62 to 3.98

$

2.65

Add: per share effect of restructuring and other charges

0.03

0.55

Add: per share effect of stock compensation expense

0.23

0.19

Add: per share effect of loss on extinguishment of debt

0.01

0.01

Adjusted net income per share – diluted, before restructuring

and other charges, stock compensation expense, and loss

on extinguishment of debt (3)

$

3.89 to 4.24

$

3.40

(1)  Components do not add to total due to rounding.

(2)  Does not reflect the effect of the two-for-one stock split payable March 1, 2011.

(3)   Projected net income and projected adjusted net income per share – diluted for the year ending September 30, 2011 are based on approximately 6,535,000 to 6,571,000 projected average diluted shares outstanding.

Reconciliation of Net Income Per Share – Diluted

to Adjusted Net Income Per Share – Diluted,

Before Restructuring and Other Charges, Stock Compensation

Expense, and Loss on Extinguishment of Debt

(unaudited)

Projected for the

Second Quarter Ending

Actual for the

Second Quarter Ended

3/31/11 (1)

3/31/10 (1)

Net income per share – diluted (2)

$

0.60 to 0.71

$

0.42

Add: per share effect of restructuring and other charges

0.14

Add: per share effect of stock compensation expense

0.04

0.05

Adjusted net income per share – diluted, before restructuring

and other charges, stock compensation expense, and loss

on extinguishment of debt (2)

$

0.64 to 0.75

$

0.61

(1)  Does not reflect the effect of the two-for-one stock split payable March 1, 2011.

(2)   Projected net income and projected adjusted net income per share – diluted for the second quarter ending March 31, 2011 are based on approximately 6,497,000 to 6,546,000 projected average diluted shares outstanding.

Reconciliation of Operating Income to Adjusted EBITDA

and Adjusted EBITDA Before Restructuring and Other Charges

(in millions, unaudited)

Projected for the

Year Ending

Actual for the

Year Ended

9/30/11

9/30/10

Operating income

$

40.9 to 44.9

$

31.4

Add: depreciation and amortization expense

12.9

12.9

Add: loss on impairment of long-lived assets and loss on

disposal of assets

1.7

2.1

Add: stock compensation expense

2.5

1.9

Adjusted EBITDA

58.0 to 62.0

48.3

Add: restructuring and other charges

0.3

5.7

Adjusted EBITDA before restructuring and other charges

$

58.3 to 62.3

$

54.0

Thursday, January 27th, 2011 Uncategorized Comments Off on Destination Maternity (DEST) Reports Q1 Earnings Significantly Higher Than Prior Guidance and Last Year

Cirrus Logic (CRUS) Reports Fiscal Third Quarter Revenue of $95.6 Million

Jan. 27, 2011 (Business Wire) — Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high-precision analog and digital signal processing components, today announced financial results for the third quarter of fiscal year 2011, which ended Dec. 25, 2010.

Revenue for the quarter was $95.6 million, up 47 percent compared to the same quarter a year ago, and down five percent sequentially from the previous quarter. Gross margin for the quarter was 55 percent, up slightly from 54 percent in the third quarter a year ago, and down slightly from 56 percent for the previous quarter.

Total GAAP operating expenses for the quarter were approximately $29.4 million, compared to $27.7 million in the previous quarter. Non-GAAP operating expenses for the quarter were approximately $28.0 million compared to $27.6 million in the previous quarter.

Income from operations on a GAAP basis was approximately $23.1 million, representing an operating margin of 24 percent. Income from operations on a non-GAAP basis was $24.5 million, representing a non-GAAP operating margin of 26 percent

GAAP net income for the quarter was approximately $24.6 million, or $0.34 per share, based on 71.7 million average diluted shares outstanding. Non-GAAP net income was $24.2 million, or $0.34 per diluted share.

A reconciliation of the non-GAAP charges is included in a table below.

“Revenue from portable audio products exceeded our expectations, helping to drive overall Q3 revenue growth of 47 percent year over year,” said Jason Rhode, president and chief executive officer, Cirrus Logic. “Looking at both the fourth quarter and the next fiscal year, we believe we will continue to grow revenue at a faster rate than the semiconductor industry as a whole. With the production ramps continuing this next year in portable audio, new design wins in other audio markets, and ongoing design activity with our strategic energy initiatives, we are very excited about the opportunities ahead.”

Outlook for Fourth Quarter FY 2011 (ending Mar. 26, 2011):

  • Revenue is expected to range between $88 million and $94 million;
  • Gross margin is expected to be between 54 percent and 56 percent; and
  • Combined R&D and SG&A expenses are expected to range between $31 million and $33 million, which include approximately $2.5 million in share-based compensation and amortization of acquisition-related intangibles expenses.

Other Highlights and Company News

  • The company repurchased and retired approximately 1.76 million shares during the quarter, at an average price of $12.94, while cash and cash equivalents grew by approximately $8 million during the quarter.
  • Total employee headcount during the quarter increased to 549 employees, a net increase of 15 employees.
  • In January, the company began construction on its new headquarters facility at 800 W. Sixth Street in downtown Austin that is expected to be completed in the summer of 2012.
  • Thurman Case, chief financial officer, will be presenting at the Stifel Nicolaus Technology Conference in San Francisco on February 11, at 11:00 a.m. ET. A live webcast will be available in the investor relations section of cirrus website.

Conference Call

Cirrus Logic management will hold a conference call to discuss the company’s results for the third quarter fiscal year 2011, on January 27, at 10:30 a.m. ET. The conference call will be simulcast over the internet in the investor relations section of the company website at http://investor.cirrus.com. A replay of the conference call will be available on the website listed above beginning one hour following the completion of the call, or by calling (303) 590-3030, or toll-free at (800) 406-7325 (Access Code: 4398706).

Shareholders who would like to submit a question to be addressed during the call are requested to email investor.relations@cirrus.com.

Cirrus Logic, Inc.

Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of innovative customers. Building on its diverse analog and signal-processing patent portfolio, Cirrus Logic delivers highly optimized products for a variety of audio and energy-related applications. The company operates from headquarters in Austin, Texas, with offices in Tucson, Ariz., Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.

Use of non-GAAP Financial Information

To supplement Cirrus Logic’s financial statements presented on a GAAP basis, Cirrus has provided non-GAAP financial information, including non-GAAP operating expenses, non-GAAP net income, non-GAAP income from operations, non-GAAP operating margin and non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements, including our estimates of fourth quarter fiscal year 2011 revenue, our future growth rate, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense, and amortization of acquired intangible expenses. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “opportunity,” “estimates,” “intend,” and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, the following: the level of orders and shipments during the fourth quarter of fiscal year 2011, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; the loss of a key customer; and the risk factors listed in our Form 10-K for the year ended March 27, 2010, and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc.

CRUS-F

Summary financial data follows:

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
Dec. 25, Sep. 25, Dec. 26, Dec. 25, Dec. 26,
2010 2010 2009 2010 2009
Q3’11 Q2’11 Q3’10 Q3’11 Q3’10
Audio products $ 72,716 $ 71,171 $ 47,063 $ 197,875 $ 113,121
Energy products 22,909 29,427 18,099 80,263 45,229
Net revenue 95,625 100,598 65,162 278,138 158,350
Cost of sales 43,163 43,818 30,276 122,161 74,903
Gross Profit 52,462 56,780 34,886 155,977 83,447
Operating expenses:
Research and development 16,348 15,450 12,834 46,890 37,697
Selling, general and administrative 13,431 15,372 11,428 42,814 33,245
Restructuring and other costs, net (395 ) 401 86 6 (79 )
Charge (proceeds) from non-marketable securities 500 (500 ) 500 (500 )
Provision for (proceeds from) litigation expenses and settlements (30 ) 135 105 (2,610 )
Patent purchase agreement, net (4,000 ) (4,000 ) (1,400 )
Total operating expenses 29,354 27,723 23,983 86,315 66,353
Operating income 23,108 29,057 10,903 69,662 17,094
Interest income, net 212 233 269 673 1,108
Other expense, net (31 ) (14 ) (7 ) (13 ) (46 )
Income before income taxes 23,289 29,276 11,165 70,322 18,156
Provision (benefit) for income taxes (1,332 ) (1,598 ) 110 (2,775 ) 116
Net income $ 24,621 $ 30,874 $ 11,055 $ 73,097 $ 18,040
Basic income per share: $ 0.36 $ 0.45 $ 0.17 $ 1.08 $ 0.28
Diluted income per share: $ 0.34 $ 0.42 $ 0.17 $ 1.02 $ 0.28
Weighted average number of shares:
Basic 68,074 68,513 65,302 67,731 65,279
Diluted 71,695 72,878 65,632 71,868 65,452
Prepared in accordance with Generally Accepted Accounting Principles
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands)
Dec. 25, Mar. 27, Dec. 26,
2010 2010 2009
(unaudited) (unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 28,491 $ 16,109 $ 24,831
Restricted investments 5,755 5,855 5,755
Marketable securities 156,052 85,384 77,636
Accounts receivable, net 37,266 23,963 25,131
Inventories 40,196 35,396 30,408
Other current assets 22,612 18,148 6,318
Total Current Assets 290,372 184,855 170,079
Long-term marketable securities 34,278 25,235
Property and equipment, net 32,919 18,674 18,499
Intangibles, net 20,688 21,896 22,654
Goodwill 6,027 6,027 6,027
Other assets 1,978 1,880 1,906
Total Assets $ 351,984 $ 267,610 $ 244,400
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 25,371 $ 20,340 $ 25,172
Accrued salaries and benefits 9,509 9,962 7,609
Other accrued liabilities 5,034 5,100 5,047
Deferred income on shipments to distributors 7,108 6,488 4,033
Total Current Liabilities 47,022 41,890 41,861
Long-term restructuring accrual 179 596 492
Other long-term obligations 6,113 6,523 6,555
Stockholders’ equity:
Capital stock 982,610 952,803 950,023
Accumulated deficit (683,220 ) (733,553 ) (753,911 )
Accumulated other comprehensive loss (720 ) (649 ) (620 )
Total Stockholders’ Equity 298,670 218,601 195,492
Total Liabilities and Stockholders’ Equity $ 351,984 $ 267,610 $ 244,400
Prepared in accordance with Generally Accepted Accounting Principles
CIRRUS LOGIC, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(unaudited, in thousands, except per share data)
(not prepared in accordance with GAAP)

Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Three Months Ended Nine Months Ended
Dec. 25, Sep. 25, Dec. 26, Dec. 25, Dec. 26,
2010 2010 2009 2010 2009
Net Income Reconciliation Q3’11 Q2’11 Q3’10 Q3’11 Q3’10
GAAP Net Income $ 24,621 $ 30,874 $ 11,055 $ 73,097 $ 18,040
Amortization of acquisition intangibles 353 353 404 1,076 1,212
Stock based compensation expense 1,467 3,025 1,397 5,848 4,133
Facility Related adjustments (100 ) (375 ) (96 ) (397 )
International sales reorganization charges 790
Provision for (proceeds from) litigation expenses and settlements (30 ) 135 105 (2,610 )
Restructuring and other costs, net (395 ) 401 86 6 (79 )
Charge (proceeds) from non-marketable securities 500 (500 ) 500 (500 )
Patent purchase agreement, net (4,000 ) (4,000 ) (1,400 )
Provision (benefit) for income taxes (1,847 ) (2,229 ) (4,076 )
Non-GAAP Net Income $ 24,169 $ 28,824 $ 12,202 $ 73,250 $ 18,399
Earnings Per Share Reconciliation
GAAP Diluted income per share $ 0.34 $ 0.42 $ 0.17 $ 1.02 $ 0.28
Effect of Amortization of acquisition intangibles 0.01 0.02 0.02
Effect of Stock based compensation expense 0.02 0.04 0.02 0.08 0.06
Effect of Facility Related adjustments (0.01 )
Effect of International sales reorganization charges 0.01
Effect of Provision for (proceeds from) litigation expenses and settlements (0.04 )
Effect of Restructuring and other costs, net 0.01
Effect of Charge (proceeds) from non-marketable securities 0.01 (0.01 ) 0.01 (0.01 )
Effect of Patent purchase agreement, net (0.05 ) (0.06 ) (0.02 )
Effect of Provision (benefit) for income taxes (0.02 ) (0.03 ) (0.06 )
Non-GAAP Diluted income per share $ 0.34 $ 0.40 $ 0.19 $ 1.02 $ 0.28
Operating Income Reconciliation
GAAP Operating Income (Loss) $ 23,108 $ 29,057 $ 10,903 $ 69,662 $ 17,094
GAAP Operating Margin 24 % 29 % 17 % 25 % 11 %
Amortization of acquisition intangibles 353 353 404 1,076 1,212
Stock compensation expense – COGS 46 64 55 165 150
Stock compensation expense – R&D 579 617 438 1,717 1,380
Stock compensation expense – SG&A 842 2,344 904 3,966 2,603
Facility Related adjustments (100 ) (375 ) (96 ) (397 )
International sales reorganization charges 790
Provision for (proceeds from) litigation expenses and settlements (30 ) 135 105 (2,610 )
Restructuring and other costs, net (395 ) 401 86 6 (79 )
Charge (proceeds) from non-marketable securities 500 (500 ) 500 (500 )
Patent purchase agreement, net (4,000 ) (4,000 ) (1,400 )
Non-GAAP Operating Income (Loss) $ 24,503 $ 29,236 $ 12,050 $ 73,891 $ 17,453
Non-GAAP Operating Margin 26 % 29 % 18 % 27 % 11 %
Operating Expense Reconciliation
GAAP Operating Expenses $ 29,354 $ 27,723 $ 23,983 $ 86,315 $ 66,353
Amortization of acquisition intangibles (353 ) (353 ) (404 ) (1,076 ) (1,212 )
Stock compensation expense – R&D (579 ) (617 ) (438 ) (1,717 ) (1,380 )
Stock compensation expense – SG&A (842 ) (2,344 ) (904 ) (3,966 ) (2,603 )
Facility Related adjustments 100 375 96 397
International sales reorganization charges (790 )
Provision for (proceeds from) litigation expenses and settlements 30 (135 ) (105 ) 2,610
Restructuring and other costs, net 395 (401 ) (86 ) (6 ) 79
Charge (proceeds) from non-marketable securities (500 ) 500 (500 ) 500
Patent purchase agreement, net 4,000 4,000 1,400
Non-GAAP Operating Expenses $ 28,005 $ 27,608 $ 22,891 $ 82,251 $ 66,144

Cirrus Logic, Inc.

Thurman K. Case, 512-851-4125

Chief Financial Officer

Investor.Relations@cirrus.com

Thursday, January 27th, 2011 Uncategorized Comments Off on Cirrus Logic (CRUS) Reports Fiscal Third Quarter Revenue of $95.6 Million

Arctic Cat (ACAT) Reports Fiscal 2011 Third Quarter Results

Jan. 27, 2011 (Business Wire) — Arctic Cat Inc. (NASDAQ:ACAT) today reported net earnings of $9.3 million, or $0.50 per diluted share, on net sales of $152.0 million for the fiscal 2011 third quarter ended December 31, 2010. Arctic Cat reported net earnings in the prior-year third quarter of $2.6 million, or $0.14 per diluted share, on net sales of $131.0 million.

For the nine months ended December 31, 2010, Arctic Cat’s net earnings were $22.6 million, or $1.22 per diluted share, on net sales of $391.2 million. In the first nine months of last fiscal year, the company reported net earnings of $11.4 million, or $0.63 per diluted share, on net sales of $366.7 million.

Commented Arctic Cat’s president and chief executive officer Claude Jordan: “We are very pleased with the company’s strong third-quarter and year-to-date performance. Our results were fueled by higher sales across all product lines, including double-digit gains in our snowmobile business. The combination of increased volume, product mix, product cost-reduction efforts, higher selling prices and a continued focus on efficiency led to another quarter of significantly improved gross margins and profitability.”

Among the highlights of Arctic Cat’s 2011 third quarter and year-to-date financial results versus the same periods last year:

  • Gross margins improved 430 basis points in the quarter and 370 basis points year to date;
  • Operating profit for the quarter rose to $12.2 million from $0.6 million, and year to date increased to $32.7 million from $13.9 million;
  • Factory inventory declined 27 percent to $77.2 million from $106.3 million;
  • Total cash and short-term investments rose to $107.1 million from $50.4 million; and
  • The company has no short- or long-term debt.

“We are excited by the traction and momentum we’ve achieved year to date,” said Jordan. “We continued to successfully execute against our objectives to reduce dealer and factory inventory, improve gross margins and keep operating expenses flat as a percent of sales.”

Business Line Results

Snowmobile sales grew 33 percent to $77.8 million in the third quarter compared to $58.7 million in the prior-year quarter, led by increases in both North American dealer sales and international sales to distributors. Year-to-date snowmobile sales increased 15 percent to $186.5 million versus $162.3 million in the same period last year, led by higher international sales to distributors.

All-terrain vehicle (ATV) sales rose 1 percent to $48.6 million in the third quarter versus $48.2 million in the prior-year quarter, chiefly driven by sales of the company’s new Prowler HDX heavy duty utility vehicle. During the quarter, Arctic Cat announced the launch of three all-new 2011 ATV models: the full-featured, value-priced 350 4X4 automatic; the valued-priced 425 EFI 4X4 automatic; and the XC450i 4X4, a crossover model for consumers seeking four-wheel-drive capabilities in a sport ATV. Arctic Cat’s year-to-date ATV sales were up 1 percent to $133.0 million compared to $132.1 million in the first nine months of fiscal 2010.

Sales of parts, garments and accessories (PG&A) in the third quarter grew 6 percent to $25.6 million versus $24.2 million in the prior-year quarter, primarily driven by stronger garments sales including the new Drift garment line. Year-to-date PG&A sales totaled $71.7 million, down 1 percent from $72.3 million in the year-ago period.

Outlook

“We remain confident that the company is on track to deliver improved operating results, increased profitability and enhanced shareholder value again this fiscal year,” Jordan said.

Arctic Cat is focused on improving its profitability in a continued low-demand recreational vehicle market, which remains well below pre-recession industry sales levels. The company’s fiscal 2011 outlook includes the following assumptions: ATV industry retail sales declining approximately 15 to 20 percent; snowmobile industry retail sales increasing 5 to 10 percent; Arctic Cat dealer inventories declining 20 to 30 percent; improving gross margins between 200 to 300 basis points; achieving flat to slightly down operating expense levels as a percent of sales; increasing cash flow from operations; and ending the year with more cash on the balance sheet.

Based on its year-to-date results and expectations of future performance, Arctic Cat is raising and narrowing its estimated full-year earnings for the current fiscal year ending March 31, 2011. The company now anticipates that fiscal 2011 earnings will be in the range of $0.57 to $0.65 per diluted share, driven by increased international revenue, as well as higher gross margins resulting from higher volume, product mix and cost reduction efforts. The company’s previous guidance anticipated fiscal 2011 earnings of $0.40 to $0.55 per diluted share. The company continues to estimate fiscal 2011 net sales of $453 million to $463 million.

Conference Call

A conference call is scheduled for 11:00 a.m. CT (12:00 p.m. ET) today. To listen to the live webcast or replay of this call via the Internet, go to the corporate portion of the company’s website at www.arcticcat.com. To listen to a telephone replay of the conference call, dial 800-406-7325 and enter conference call passcode 4403970. The telephone replay will be available through Thursday, February 3, 2011.

About Arctic Cat

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat® brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq Global Select Market under the ticker symbol “ACAT.” More information about Arctic Cat and its products is available at www.arcticcat.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company’s Annual Report, as well as the Report on Form 10-K and future filings with the Securities and Exchange Commission, the Company’s press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales and pricing; cost and availability of financing for the Company, our dealers and our suppliers; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of snowmobile engines from Suzuki; warranty expenses; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of insured amounts; environmental and product safety regulatory activity; effects of the weather; overall economic conditions; and consumer demand and confidence. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

ARCTIC CAT INC.

Financial Highlights

(000s omitted, except per share amounts) (Unaudited)

Three Months Ended Nine Months Ended
December 31, December 31,
2010 2009 2010 2009
Net Sales
Snowmobile & ATV Units $ 126,381 $ 106,879 $ 319,485 $ 294,433
Parts Garments & Accessories 25,595 24,161 71,709 72,277
Total Net Sales 151,976 131,040 391,194 366,710
Cost of Goods Sold
Snowmobile & ATV Units 104,723 95,025 254,252 249,115
Parts Garments & Accessories 14,521 13,434 42,193 42,255
Cost of Goods Sold 119,244 108,459 296,445 291,370
Gross Profit 32,732 22,581 94,749 75,340
Operating Expenses
Selling & Marketing 8,502 8,941 24,973 24,982
Research & Development 3,418 2,979 9,828 9,177
General & Administrative 8,595 10,037 27,255 27,323
Total Operating Expenses 20,515 21,957 62,056 61,482
Operating Profit 12,217 624 32,693 13,858
Other Income (Expense)
Interest Income 28 72 4
Interest Expense (1 ) (2 ) (11 ) (249 )
Total Other Income (Expense) 27 (2 ) 61 (245 )
Earnings Before Income Taxes 12,244 622 32,754 13,613
Income Tax Expense (Benefit) 2,982 (1,980 ) 10,161 2,178
Net Earnings $ 9,262 $ 2,602 $ 22,593 $ 11,435
Net Earnings Per Share
Basic $ 0.51 $ 0.14 $ 1.24 $ 0.63
Diluted $ 0.50 $ 0.14 $ 1.22 $ 0.63
Weighted Average Shares
Outstanding:
Basic 18,236 18,228 18,214 18,217
Diluted 18,644 18,297 18,484 18,249
December 31,
Selected Balance Sheet Data: 2010 2009
Cash and Short-term Investments $ 107,070 $ 50,356
Accounts Receivable, net 50,301 43,008
Inventories 77,150 106,264
Total Assets 296,505 267,077
Short-term Bank Borrowings 0 0
Total Current Liabilities 102,984 82,788
Long-term Debt 0 0
Shareholders’ Equity 190,953 179,710
Three Months Ended Nine Months Ended
December 31 December 31
Product Line Data: 2010 2009 Change 2010 2009 Change
Snowmobiles $ 77,822 $ 58,665 33% $ 186,452 $ 162,321 15%
All-terrain Vehicles 48,559 48,214 1% 133,033 132,112 1%
Parts, Garments & Accessories 25,595 24,161 6% 71,709 72,277 -1%
Total Sales $ 151,976 $ 131,040 16% $ 391,194 $ 366,710 7%

Arctic Cat Inc.

Timothy C. Delmore, 763-354-1800

Chief Financial Officer

or

Padilla Speer Beardsley Inc.

Shawn Brumbaugh, 612-455-1754

Thursday, January 27th, 2011 Uncategorized Comments Off on Arctic Cat (ACAT) Reports Fiscal 2011 Third Quarter Results

Hanmi Financial Corp. (HAFC) Fourth Quarter 2010 Nets First Quarterly Profit of $5.3 Million in Two Years

LOS ANGELES, Jan. 27, 2011 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (Nasdaq:HAFC), the holding company for Hanmi Bank, today reported a fourth quarter profit of $5.3 million or $0.04 per diluted share, with substantial improvement in credit metrics. In the fourth quarter of 2009, Hanmi’s net loss totaled $35.9 million, or $0.70 per share. For the full year in 2010, the net loss improved to $88.0 million, or $0.93 per share, compared to $122.3 million, or $2.57 per share in 2009.

“We believe that our continuing efforts to shed problem assets through credit workouts and asset sales has improved credit quality metrics and allowed us to return to profitability,” said Jay S. Yoo, President and Chief Executive Officer. “Our successful capital raise earlier in July 2010 was an additional factor in strengthening our capital position. Hanmi Bank continued to be categorized as ‘well-capitalized’ for regulatory purposes at December 31, 2010.”

2010 Highlights

  • Hanmi’s fourth quarter results mark the first time in over two years that Hanmi Financial has earned a quarterly profit of $5.3 million.
  • Credit metrics, which began to improve at the beginning of 2010, continued improving as the year progressed. Non-performing assets (NPA), which is non-performing loans (NPLs) and other real estate owned (OREO) assets, decreased by 20% to $173.1 million, or 5.95% of total assets, from $215.3 million or 7.25% of total assets in the third quarter and $245.4 million, or 7.76% a year ago. The coverage ratio of the allowance to non-performing loans increased to 86.4% at December 31, 2010 compared to 66.2% a year ago while slightly decreased compared to 90.4% in the prior quarter.
  • During 2010, the successful deleveraging of the balance sheet reduced total assets by 8% or $256 million to $2.91 billion, with gross loans down 20%.
  • Net interest margin (NIM) was stable at 3.48% in the fourth quarter of 2010, down one basis point from 3.49% in the third quarter of 2010 and up 2 basis points from the fourth quarter a year ago. For the full year, NIM increased 71 basis points to 3.55% from 2.84% at December 31, 2009.

Capital Management

“The successful rights offering and best efforts stock offerings in July 2010 have provided the necessary capital to return our balance sheet to ‘well capitalized’ regulatory status and provided us with the capital resources to assist us in achieving profitability in this most recently completed quarter,” Mr. Yoo stated. “We understand that Woori Finance continues to work closely with regulators to achieve approval for the previously announced transaction. While this transaction is no longer exclusive, we believe it is still quite viable. In addition, we are also considering alternative capital sources to further enhance our capital position and fund balance sheet growth.”

With the profit generated from operations along with the decrease in our total assets, the Bank’s Total Risk-Based Capital Ratio at year-end increased to 12.23% compared with 11.61% in the immediate prior quarter-end and 9.07% a year ago. At December 31, 2010, Tier 1 Risk-Based Capital Ratio was 10.91% compared to 10.28% at September 30, 2010, and 7.77% a year ago. Fourth quarter Tier 1 Leverage Ratio was 8.55% compared to 8.26% in the third quarter and 6.69% in the fourth quarter of 2009. The Bank’s Tangible Common Equity to Tangible Assets at year-end increased to 8.60% compared with 8.37% in the linked quarter and 7.13% a year ago.

Asset Quality

At December 31, 2010, the allowance for loan losses was $146.1 million, or 6.44% of gross loans, compared to $176.1 million, or 7.35% of gross loans, at September 30, 2010, and $145.0 million, or 5.14% of gross loans a year ago. The ratio of Hanmi’s loan loss allowance to non-performing loans at December 31, 2010, increased to 86.41%, up from 66.19% a year ago. Fourth quarter charge-offs, net of recoveries, were $35.2 million compared to $21.3 million in the third quarter and $57.3 million in the fourth quarter of 2009. For the full year in 2010, net charge-offs were $121.9 million compared to $122.6 million in 2009.

NPLs declined 13% to $169.0 million at December 31, 2010, from $194.7 million at September 30, 2010, and are down 23% from $219.1 million at December 31, 2009. Of the total $169.0 million NPLs, $43.0 million, or 25%, were current on payments. In addition, $69.4 million, or 41%, were marked to current market value with partial charge-offs. Out of the $69.4 million, $26.6 million were categorized as available for sale. We sold 29 NPLs with carrying value of $28.6 million in the fourth quarter, which contributed to the decline of NPLs in the quarter. Year-to-date, we sold 87 loans with carrying value of $156.8 million.

Sale of OREOs, real estate acquired through foreclosures, continued during the fourth quarter, with 5 properties sold for net proceeds of $17.1 million, resulting in a $115,000 net loss. In 2010, OREO sales generated $25.9 million in net proceeds on the sale of 18 properties, resulting in a $196,000 net loss. OREOs totaled $4.1 million at December 31, 2010, down from $20.6 million at September 30, 2010 and also down from $26.3 million a year ago. Hanmi actively manages its loan portfolio and regularly sells assets prior to foreclosure, which partially accounts for the reduction of OREO. The following table shows non-performing loans by loan category:

Total Non-Performing Loans
(‘000) 12/31/2010 % of Total

NPL

9/30/2010 % of Total

NPL

12/31/2009 % of Total

NPL

Real Estate Loans:
Commercial Property 21,129 12.5% 31,103 16.0% 60,159 27.5%
Construction 19,097 11.3% 9,338 4.8% 15,166 6.9%
Land Loans 26,808 15.2% 29,701 15.2% 19 0.0%
Residential Property 2,674 1.6% 2,264 1.2% 3,662 1.7%
Commercial & Industrial Loans:
Owner Occupied Property 68,441 40.5% 90,777 46.6% 96,966 44.3%
Other C&I 30,581 18.1% 31,216 16.0% 42,405 19.4%
Consumer Loans 298 0.2% 330 0.2% 690 0.3%
TOTAL NPL 169,028 100.0% 194,729 100.0% 219,067 100.0%

The proactive approach to resolving problematic credits in 2010 helped reduce delinquent loans on accrual status, which are not included in the NPL total. Delinquent loans on accrual status decreased to $21.5 million, or 0.95% of gross loans at December 31, 2010, from $41.2 million, or 1.46% of gross loans at December 31, 2009. On a sequential quarter basis, the amount of delinquent loans on accrual status decreased from $23.9 million at September 30, 2010 due to a decrease in delinquent construction loans on accrual status. This decrease was partially offset by a minor increase in Commercial & Industrial delinquent loans on an accrual status. The following table shows delinquent loans on accrual status by loan category:

Delinquent loans on accrual status
(‘000) 12/31/2010 % of Total 9/30/2010 % of Total 12/31/2009 % of Total
Real Estate Loans:
Commercial Property 382 1.6% 3,500 8.5%
Construction 4,894 22.8% 8,714 36.5%
Land Loans 150 0.4%
Residential Property 951 4.4% 801 3.4% 1,190 2.9%
Commercial & Industrial Loans:
Owner Occupied Property 10,408 48.5% 9,261 38.7% 23,833 57.8%
Other C&I 5,004 23.3% 4,543 19.0% 11,951 29.0%
Consumer Loans 200 0.9% 195 0.8% 594 1.4%
TOTAL 21,457 100.0% 23,896 100.0% 41,218 100.0%

Balance Sheet

We believe that our deleveraging strategy in the last two years has been successful in reducing portfolio risk and preserving capital. With our enhanced capital levels, we have begun to implement plans to grow our customer base, albeit at moderate levels. With loan demand still soft, we anticipate that any growth will come from attracting new customers and capitalizing on continuing disruption in the regional banking market.

Total assets decreased slightly at the end of the fourth quarter to $2.91 billion, from $2.97 billion at September 30, 2010, and down 8% from $3.16 billion at December 31, 2009. Gross loans, net of deferred loan fees, were $2.27 billion at December 31, 2010, down 5% from $2.39 billion at September 30, 2010, and down 20% from $2.82 billion at December 31, 2009.

Average gross loans decreased 20% to $2.35 billion for the fourth quarter of 2010 from $2.92 billion for the like quarter a year ago and declined 4% during the fourth quarter from $2.46 billion for the third quarter of 2010. Hanmi’s average investment securities portfolio increased 92% to $351.0 million for the fourth quarter of 2010 from $182.6 million for the fourth quarter of 2009 and increased 57% for the fourth quarter of 2010 from $223.7 million from the quarter ended September 30. 2010. The decreases in average gross loans over the past year were the direct result of the balance sheet deleveraging strategy. The Bank increased investment securities to enforce liquidity preservation strategy.

Consistent with the deleveraging strategy, average deposits also decreased 14% to $2.51 billion for the fourth quarter of 2010 from $2.91 billion for the like quarter in 2009 and declined 2% from $2.56 billion for the third quarter of 2010.

The deposit mix at year-end continues to reflect efforts to build core deposits and improve the Bank’s cost of funds. There are no brokered deposits in the deposit mix at year-end. Total deposits decreased 10% year-over-year and declined 2% from the prior quarter. The 10% year-over-year decrease in total deposits was primarily due to a $203 million decrease in brokered deposits. Total deposits were $2.47 billion at December 31, 2010, compared to $2.53 billion at September 30, 2010, and $2.75 billion at December 31, 2009.

Results of Operations

Net interest income, before the provision for credit losses, totaled $26.0 million for the fourth quarter of 2010 which was down 1% from $26.3 million in the linked quarter and down 9% from $28.4 million in the fourth quarter a year ago. Increased liquidity from the capital raise earlier in the year was deployed to cash and cash equivalent balances and investment securities which are generally lower yielding assets. The cost of funds also declined in the quarter reflecting reductions in high-cost time deposits and an increase in low-cost deposits. For the full year in 2010, net interest income before provision for credit losses increased 5% to $105.9 million compared to $101.2 million in 2009.

Loan yields increased and deposit costs decreased which benefited our net interest margin. These benefits were offset by higher balances of investment securities, which generate lower yields but allowing a strong liquidity position. The average yield on the loan portfolio increased 4 basis points to 5.48% from 5.44% from the prior quarter and decreased 6 basis points from the fourth quarter in 2009. For the full year 2010, the average yield on the loan portfolio decreased 9 basis points to 5.40% from 5.49% in 2009. In 2010, the reversal of previously recorded interest income due to the additional non-accrual loans was $3.2 million ($0.3 million in the fourth quarter), resulting in a negative impact on NIM by 11 basis points. The cost of average interest-bearing deposits in the fourth quarter was 1.55%, down 10 basis points from the prior quarter and 71 basis points from the fourth quarter of 2009. For the full year 2010, the cost of average interest bearing deposits was 1.70%, down 127 basis points from a year ago. As a result, Hanmi’s net interest margin was down just one basis point at 3.48% in the fourth quarter of 2010 from 3.49% in the third quarter and up 2 basis points compared to 3.46% in the fourth quarter of 2009. NIM improved 71 basis points to 3.55% for 2010 from 2.84% for 2009.

Despite the quarterly increase in net charge-offs, the provision for credit losses in the fourth quarter of 2010 decreased to $5.0 million, compared to $22.0 million in the prior quarter and $77.0 million in the fourth quarter a year ago, due to the decrease in classified assets, non-performing loans, and overall loan balance. For the full year, the provision for credit losses totaled $122.5 million, down from $196.4 million in 2009. The provision for loan losses has decreased steadily now for four consecutive quarters.

Total non-interest income in the fourth quarter of 2010 was $6.1 million, up 7% from $5.7 million in the third quarter of 2010 and down 23% from $7.8 million in the fourth quarter of 2009.  The year-over-year decrease in non-interest income is primarily attributable to decreases in service charges on deposit accounts and a decrease in net gain on sale of loans and securities.  Service charges on deposit accounts decreased to $3.3 million for the fourth quarter of 2010 from $3.4 million in the linked quarter and $4.0 million for the same quarter of 2009. The decrease in service charges on deposit accounts was associated with the reduction of the deposit portfolio reflecting the deleveraging strategy. The net gain on the sale of loans decreased 69% from the prior quarter and 80% from the fourth quarter a year ago. In the fourth quarter of 2009, the Bank sold accumulated inventory of SBA loans upon the recovery of the SBA secondary market.  For the year, non-interest income decreased 21%, or $6.7 million, to $25.4 million, compared to $32.1 million in 2009, primarily due to a $1.7 million decrease in net gain on sales of investment securities in addition to the aforementioned factors.

Total non-interest expense decreased 10% in the quarter and 4% year-over-year to $21.7 million for the fourth quarter, down from $24.1 million in the third quarter of 2010 and $22.7 million for the fourth quarter a year ago. The overall improvement of non-interest expense in general was across the board. For the year, non-interest expense increased 7.1%, or $6.5 million, to $96.8 million, compared to $90.4 million in 2009, primarily due to expenses related to managing and provisioning for OREO properties and the absence of reversal of a $2.5 million previously accrued liability on a post-retirement death benefit that was recognized in 2009.

Conference Call Information

Management will host a conference today at 1:30 p.m. PST (4.30 p.m. EST) to discuss these financial results. This call will also be broadcast live via the internet. Investment professionals and all others are invited to access the live call by dialing (866) 383-8108 or (617) 597-5343 for international callers at 1:30 p.m. (PST), using access code HANMI. To listen to the call online, either live or archived, visit the Investor Relations page of Hanmi Financial Corporation website at www.hanmi.com. Shortly after the call concludes, the replay will also be available at (888) 286-8010 or (617) 801-6888 for international callers, using access code #12399068 where it will be archived until February 14, 2011.

About Hanmi Financial Corporation

Headquartered in Los Angeles, Hanmi Bank, a wholly-owned subsidiary of Hanmi Financial Corporation, provides services to the multi-ethnic communities of California, with 27 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and a loan production office in Washington State. Hanmi Bank specializes in commercial, SBA and trade finance lending, and is a recognized community leader. Hanmi Bank’s mission is to provide a full range of quality products and premier services to its customers and to maximize shareholder value. Additional information is available at www.hanmi.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All statements other than statements of historical fact are “forward –looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our securities purchase agreement with Woori Finance Holdings, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statement. These factors include the following: inability to consummate the proposed transaction with Woori Finance Holdings on the terms contemplated in the Securities Purchase Agreement entered into with Woori on May 25, 2010, as amended (the “transaction”); failure to receive regulatory approval for the Transaction; inability to continue as a going concern; inability to raise additional capital on acceptable terms or at all; failure to maintain adequate levels of capital and liquidity to support our operations; the effect of regulatory orders we have entered into and potential future supervisory action against us or Hanmi Bank; general economic and business conditions internationally, nationally and in those areas in which we operate; volatility and deterioration in the credit and equity markets; changes in consumer spending, borrowing and savings habits; availability of capital from private and government sources; demographic changes; competition for loans and deposits and failure to attract or retain loans and deposits; fluctuations in interest rates and a decline in the level of our interest rate spread; risks of natural disasters related to our real estate portfolio; risks associated with Small Business Administration loans; failure to attract or retain key employees; changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums; ability to receive regulatory approval for Hanmi Bank to declare dividends to the Company; adequacy of our allowance for loan losses, credit quality and the effect of credit quality on our provision for credit losses and allowance for loan losses; changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; our ability to successfully integrate acquisitions we may make; our ability to control expenses; and changes in securities markets. In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission (“SEC”), including attached as an Exhibit to a Current Report on Form 8-K filed with the SEC on June 18, 2010, and our most recent Quarterly Report on Form 10-Q, as well as current and periodic reports filed with the U.S. Securities and Exchange Commission hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Cautionary Statements

Future issuance of any securities relating to the Woori transaction has not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or state.

HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in Thousands)
December 31, September 30, % December 31, %
2010 2010 Change 2009 Change
ASSETS
Cash and Due from Banks $ 60,983 $ 63,455 (3.9)% $ 55,263 10.4 %
Interest-Bearing Deposits in Other Banks 158,737 218,843 (27.5)% 98,847 60.6 %
Federal Funds Sold 30,000
Cash and Cash Equivalents 249,720 282,298 (11.5)% 154,110 62.0 %
Investment Securities 413,963 325,428 27.2 % 133,289 210.6 %
Loans:
Gross Loans, Net of Deferred Loan Fees 2,267,126 2,394,291 (5.3)% 2,819,060 (19.6)%
Allowance for Loan Losses (146,059) (176,063) (17.0)% (144,996) 0.7 %
Loans Receivable, Net 2,121,067 2,218,228 (4.4)% 2,674,064 (20.7)%
Due from Customers on Acceptances 711 1,375 (48.3)% 994 (28.5)%
Premises and Equipment, Net 17,599 17,639 (0.2)% 18,657 (5.7)%
Accrued Interest Receivable 8,048 8,442 (4.7)% 9,492 (15.2)%
Other Real Estate Owned, Net 4,089 20,577 (80.1)% 26,306 (84.5)%
Deferred Income Taxes, Net 3,608
Investment in FHLB and FRB Stock, at Cost 34,731 35,201 (1.3)% 30,697 13.1 %
Bank-Owned Life Insurance 27,350 27,111 0.9 % 34,286 (20.2)%
Income Taxes Receivable 9,188 9,188 56,554 (83.8)%
Other Assets 20,682 23,018 (10.1)% 20,649 0.2 %
TOTAL ASSETS $ 2,907,148 $ 2,968,505 (2.1)% $ 3,162,706 (8.1)%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-Bearing $ 546,815 $ 559,764 (2.3)% $ 556,306 (1.7)%
Interest-Bearing 1,919,906 1,967,622 (2.4)% 2,193,021 (12.5)%
Total Deposits 2,466,721 2,527,386 (2.4)% 2,749,327 (10.3)%
Accrued Interest Payable 15,966 13,727 16.3 % 12,606 26.7 %
Bank Acceptances Outstanding 711 1,375 (48.3)% 994 (28.5)%
FHLB Advances and Other Borrowings 155,220 156,292 (0.7)% 155,725 (0.3)%
Junior Subordinated Debentures 82,406 82,406 82,406
Accrued Expenses and Other Liabilities 12,868 14,687 (12.4)% 11,904 8.1 %
Total Liabilities 2,733,892 2,795,873 (2.2)% 3,012,962 (9.3)%
Stockholders’ Equity 173,256 172,632 0.4 % 149,744 15.7 %
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,907,148 $ 2,968,505 (2.1)% $ 3,162,706 (8.1)%
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
Three Months Ended
December 31, September 30, % December 31, %
2010 2010 Change 2009 Change
INTEREST AND DIVIDEND INCOME:
Interest and Fees on Loans $ 32,466 $ 33,681 (3.6)% $ 40,810 (20.4)%
Taxable Interest on Investment Securities 1,839 1,592 15.5 % 1,414 30.1 %
Tax-Exempt Interest on Investment Securities 9 62 (85.5)% 432 (97.9)%
Interest on Interest-Bearing Deposits in Other Banks 149 165 (9.7)% 70 112.9 %
Dividends on FHLB and FRB Stock 135 135 136 (0.7)%
Interest on Federal Funds Sold 15 40 (62.5)% 95 (84.2)%
Total Interest and Dividend Income 34,613 35,675 (3.0)% 42,957 (19.4)%
INTEREST EXPENSE:
Interest on Deposits 7,592 8,299 (8.5)% 13,410 (43.4)%
Interest on Junior Subordinated Debentures 711 739 (3.8)% 690 3.0 %
Interest on FHLB Advances and Other Borrowings 339 364 (6.9)% 412 (17.7)%
Total Interest Expense 8,642 9,402 (8.1)% 14,512 (40.4)%
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES 25,971 26,273 (1.1)% 28,445 (8.7)%
Provision for Credit Losses 5,000 22,000 (77.3)% 77,000 (93.5)%
NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES 20,971 4,273 390.8 % (48,555) (143.2)%
NON-INTEREST INCOME:
Service Charges on Deposit Accounts 3,279 3,442 (4.7)% 4,022 (18.5)%
Insurance Commissions 1,122 1,089 3.0 % 1,062 5.6 %
Remittance Fees 499 484 3.1 % 530 (5.8)%
Trade Finance Fees 379 381 (0.5)% 439 (13.7)%
Other Service Charges and Fees 323 409 (21.0)% 371 (12.9)%
Bank-Owned Life Insurance Income 239 237 0.8 % 237 0.8 %
Net Gain on Sales of Loans 71 229 (69.0)% 354 (79.9)%
Net Gain on Sales of Investment Securities 5 4 25.0 % 665 (99.2)%
Impairment Loss on Investment Securities (790) (100.0)%
Other Operating Income 136 186 (26.9)% 159 (14.5)%
Total Non-Interest Income 6,053 5,671 6.7 % 7,839 (22.8)%
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 9,381 9,552 (1.8)% 8,442 11.1 %
Occupancy and Equipment 2,672 2,702 (1.1)% 2,733 (2.2)%
Deposit Insurance Premiums and Regulatory Assessments 2,204 2,253 (2.2)% 2,998 (26.5)%
Data Processing 1,499 1,446 3.7 % 1,606 (6.7)%
Other Real Estate Owned Expense 681 2,580 (73.6)% 873 (22.0)%
Professional Fees 680 753 (9.7)% 1,354 (49.8)%
Directors and Officers Liability Insurance 716 716 293 144.4 %
Other Operating Expenses 3,902 4,077 (4.3)% 4,411 (11.5)%
Total Non-Interest Expense 21,735 24,079 (9.7)% 22,710 (4.3)%
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES 5,289 (14,135) (137.4)% (63,426) (108.3)%
Provision (Benefit) for Income Taxes (23) 442 (105.2)% (27,545) (99.9)%
NET INCOME (LOSS) $ 5,312 $ (14,577) (136.4)% $ (35,881) (114.8)%
EARNINGS (LOSS) PER SHARE:
Basic $ 0.04 $ (0.12) (133.3)% $ (0.70) (105.7)%
Diluted $ 0.04 $ (0.12) (133.3)% $ (0.70) (105.7)%
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 151,051,903 122,789,120 50,998,103
Diluted 151,197,503 122,789,120 50,998,103
SHARES OUTSTANDING AT PERIOD-END 151,198,390 151,198,390 51,182,390
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
Year Ended
December 31, December 31, %
2010 2009 Change
INTEREST AND DIVIDEND INCOME:
Interest and Fees on Loans $ 137,328 $ 173,318 (20.8)%
Taxable Interest on Investment Securities 5,874 5,675 3.5 %
Tax-Exempt Interest on Investment Securities 225 2,303 (90.2)%
Interest on Interest-Bearing Deposits in Other Banks 468 151 209.9 %
Dividends on FHLB and FRB Stock 532 656 (18.9)%
Interest on Federal Funds Sold 85 2,044 (95.8)%
Total Interest and Dividend Income 144,512 184,147 (21.5)%
INTEREST EXPENSE:
Interest on Deposits 34,408 76,246 (54.9)%
Interest on Junior Subordinated Debentures 2,811 3,271 (14.1)%
Interest on FHLB Advances and Other Borrowings 1,419 3,401 (58.3)%
Total Interest Expense 38,638 82,918 (53.4)%
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES 105,874 101,229 4.6 %
Provision for Credit Losses 122,496 196,387 (37.6)%
NET INTEREST INCOME (LOSS) AFTER PROVISION FOR CREDIT LOSSES (16,622) (95,158) (82.5)%
NON-INTEREST INCOME:
Service Charges on Deposit Accounts 14,049 17,054 (17.6)%
Insurance Commissions 4,695 4,492 4.5 %
Remittance Fees 1,968 2,109 (6.7)%
Trade Finance Fees 1,523 1,956 (22.1)%
Other Service Charges and Fees 1,516 1,810 (16.2)%
Bank-Owned Life Insurance Income 942 932 1.1 %
Net Gain on Sales of Loans 514 1,220 (57.9)%
Net Gain on Sales of Investment Securities 122 1,833 (93.3)%
Impairment Loss on Investment Securities (790)
Other Operating Income 867 704 23.2 %
Total Non-Interest Income 25,406 32,110 (20.9)%
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 36,730 33,101 11.0 %
Occupancy and Equipment 10,773 11,239 (4.1)%
Deposit Insurance Premiums and Regulatory Assessments 10,756 10,418 3.2 %
Data Processing 5,931 6,297 (5.8)%
Other Real Estate Owned Expense 10,679 5,890 81.3 %
Professional Fees 3,521 4,099 (14.1)%
Directors and Officers Liability Insurance 2,865 1,175 143.8 %
Other Operating Expenses 15,550 18,135 (14.3)%
Total Non-Interest Expense 96,805 90,354 7.1 %
LOSS BEFORE BENEFIT FOR INCOME TAXES (88,021) (153,402) (42.6)%
Benefit for Income Taxes (12) (31,125) (100.0)%
NET LOSS $ (88,009) $ (122,277) (28.0)%
LOSS PER SHARE:
Basic $ (0.93) $ (2.57) (63.8)%
Diluted $ (0.93) $ (2.57) (63.8)%
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 94,322,222 47,570,361
Diluted 94,322,222 47,570,361
SHARES OUTSTANDING AT PERIOD-END 151,198,390 51,182,390
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in Thousands)
Three Months Ended Year Ended
December 31, September 30, December 31, December 31, December 31,
2010 2010 2009 2010 2009
AVERAGE BALANCES:
Average Gross Loans, Net of Deferred Loan Fees $ 2,349,660 $ 2,456,883 $ 2,924,722 $ 2,544,472 $ 3,157,133
Average Investment Securities 350,954 223,709 182,635 215,280 188,325
Average Interest-Earning Assets 2,961,297 2,989,762 3,291,042 2,981,878 3,611,009
Average Total Assets 2,949,647 2,983,632 3,356,383 2,998,507 3,717,179
Average Deposits 2,512,893 2,559,116 2,914,794 2,587,686 3,109,322
Average Borrowings 237,702 239,992 244,704 243,690 341,514
Average Interest-Bearing Liabilities 2,186,920 2,238,036 2,598,520 2,268,954 2,909,014
Average Stockholders’ Equity 166,753 155,056 164,767 137,968 225,708
Average Tangible Equity 164,381 152,417 161,169 135,171 221,537
PERFORMANCE RATIOS (Annualized):
Return on Average Assets 0.71% (1.94)% (4.24)% (2.94)% (3.29)%
Return on Average Stockholders’ Equity 12.64% (37.30)% (86.40)% (63.79)% (54.17)%
Return on Average Tangible Equity 12.82% (37.94)% (88.33)% (65.11)% (55.19)%
Efficiency Ratio 67.87% 75.38% 62.59% 73.74% 67.76%
Net Interest Spread (1) 3.07% 3.07% 2.99% 3.15% 2.28%
Net Interest Margin (1) 3.48% 3.49% 3.46% 3.55% 2.84%
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $ 176,063 $ 176,667 $ 124,768 $ 144,996 $ 70,986
Provision Charged to Operating Expense 5,245 20,700 77,540 122,955 196,607
Charge-Offs, Net of Recoveries (35,249) (21,304) (57,312) (121,892) (122,597)
Balance at End of Period $ 146,059 $ 176,063 $ 144,996 $ 146,059 $ 144,996
Allowance for Loan Losses to Total Gross Loans 6.44% 7.35% 5.14% 6.44% 5.14%
Allowance for Loan Losses to Total Non-Performing Loans 86.41% 90.41% 66.19% 86.41% 66.19%
ALLOWANCE FOR OFF-BALANCE SHEET ITEMS:
Balance at Beginning of Period $ 3,662 $ 2,362 $ 4,416 $ 3,876 $ 4,096
Provision Charged to Operating Expense (245) 1,300 (540) (459) (220)
Balance at End of Period $ 3,417 $ 3,662 $ 3,876 $ 3,417 $ 3,876
(1) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED) (Continued)
(Dollars in Thousands)
December 31, September 30, December 31,
2010 2010 2009
NON-PERFORMING ASSETS:
Non-Accrual Loans $ 169,028 $ 194,729 $ 219,000
Loans 90 Days or More Past Due and Still Accruing 67
Total Non-Performing Loans 169,028 194,729 219,067
Other Real Estate Owned, Net 4,089 20,577 26,306
Total Non-Performing Assets $ 173,117 $ 215,306 $ 245,373
Total Non-Performing Loans/Total Gross Loans 7.45% 8.13% 7.77%
Total Non-Performing Assets/Total Assets 5.95% 7.25% 7.76%
Total Non-Performing Assets/Allowance for Loan Losses 118.5% 122.3% 169.2%
DELINQUENT LOANS (Accrual Status) $ 21,457 $ 23,896 $ 41,218
Delinquent Loans (Accrual Status)/Total Gross Loans 0.95% 1.00% 1.46%
LOAN PORTFOLIO:
Real Estate Loans $ 856,527 $ 885,734 $ 1,043,097
Commercial and Industrial Loans (2) 1,360,865 1,456,163 1,714,212
Consumer Loans 50,300 53,237 63,303
Total Gross Loans 2,267,692 2,395,134 2,820,612
Deferred Loan Fees (566) (843) (1,552)
Gross Loans, Net of Deferred Loan Fees 2,267,126 2,394,291 2,819,060
Allowance for Loan Losses (146,059) (176,063) (144,996)
Loans Receivable, Net $ 2,121,067 $ 2,218,228 $ 2,674,064
LOAN MIX:
Real Estate Loans 37.8% 37.0% 37.0%
Commercial and Industrial Loans 60.0% 60.8% 60.8%
Consumer Loans 2.2% 2.2% 2.2%
Total Gross Loans 100.0% 100.0% 100.0%
DEPOSIT PORTFOLIO:
Demand – Noninterest-Bearing $ 546,815 $ 559,764 $ 556,306
Savings 113,968 119,824 111,172
Money Market Checking and NOW Accounts 402,481 422,564 685,858
Time Deposits of $100,000 or More 1,118,621 1,126,760 815,190
Other Time Deposits 284,836 298,474 580,801
Total Deposits $ 2,466,721 $ 2,527,386 $ 2,749,327
DEPOSIT MIX:
Demand – Noninterest-Bearing 22.2% 22.1% 20.2%
Savings 4.6% 4.7% 4.0%
Money Market Checking and NOW Accounts 16.3% 16.7% 24.9%
Time Deposits of $100,000 or More 45.3% 44.6% 29.7%
Other Time Deposits 11.6% 11.9% 21.2%
Total Deposits 100.0% 100.0% 100.0%
CAPITAL RATIOS (Bank Only):
Total Risk-Based 12.23% 11.61% 9.07%
Tier 1 Risk-Based 10.91% 10.28% 7.77%
Tier 1 Leverage 8.55% 8.26% 6.69%
Tangible equity ratio 8.60% 8.37% 7.13%
(2) Commercial and industrial loans include owner-occupied property loans of $894.8 million, $967.9 million and $1.12 billion as of December 31, 2010, September 30, 2010, and December 31, 2009, respectively.
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED)
(Dollars in Thousands)
Three Months Ended
December 31, 2010 September 30, 2010 December 31, 2009
Average Balance Interest

Income/ Expense

Average

Yield/ Rate

Average Balance Interest

Income/ Expense

Average Yield/

Rate

Average Balance Interest

Income/ Expense

Average Yield/

Rate

INTEREST-EARNING ASSETS
Loans:
Real Estate Loans:
Commercial Property $ 746,868 $ 10,144 5.39% $ 773,589 $ 10,638 5.46% $ 861,831 $ 11,872 5.47%
Construction 66,221 416 2.49% 71,545 862 4.78% 130,400 1,342 4.08%
Residential Property 63,716 747 4.65% 67,291 805 4.75% 80,257 997 4.93%
Total Real Estate Loans 876,805 11,307 5.12% 912,425 12,305 5.35% 1,072,488 14,211 5.26%
Commercial and Industrial Loans (1) 1,421,369 20,435 5.70% 1,490,811 20,611 5.49% 1,787,795 25,472 5.65%
Consumer Loans 52,251 660 5.01% 54,469 690 5.03% 66,074 965 5.79%
Total Gross Loans 2,350,425 32,402 5.47% 2,457,705 33,606 5.42% 2,926,357 40,648 5.51%
Prepayment Penalty Income 64 75 162
Unearned Income on Loans, Net of Costs (765) (823) (1,635)
Gross Loans, Net 2,349,660 32,466 5.48% 2,456,882 33,681 5.44% 2,924,722 40,810 5.54%
Investment Securities:
Municipal Bonds (2) 21,182 203 3.83% 6,301 95 6.03% 41,653 665 6.39%
U.S. Government Agency Securities 84,904 389 1.83% 92,690 620 2.68% 36,500 437 4.79%
Mortgage-Backed Securities 107,764 467 1.73% 63,439 537 3.39% 77,354 738 3.82%
Collateralized Mortgage Obligations 108,491 550 2.03% 45,747 300 2.62% 14,312 143 4.00%
Corporate Bonds 16,151 135 3.34% 3,130 30 3.83% 286 0.00%
Other Securities 12,462 110 3.53% 12,402 103 3.32% 12,530 97 3.10%
Total Investment Securities (2) 350,954 1,854 2.11% 223,709 1,685 3.01% 182,635 2,080 4.56%
Other Interest-Earning Assets:
Equity Securities 35,883 135 1.50% 36,568 135 1.48% 40,605 136 1.34%
Federal Funds Sold and Securities Purchased
Under Resale Agreements 8,239 11 0.53% 6,932 8 0.46% 51,713 65 0.50%
Term Federal Funds Sold 3,043 4 0.53% 22,880 32 0.56% 8,500 30 1.41%
Interest-Bearing Deposits in Other Banks 213,518 149 0.28% 242,790 165 0.27% 82,867 70 0.34%
Total Other Interest-Earning Assets 260,683 299 0.46% 309,170 340 0.44% 183,685 301 0.66%
TOTAL INTEREST-EARNING ASSETS (2) $ 2,961,297 $ 34,619 4.64% $ 2,989,761 $ 35,706 4.74% $ 3,291,042 $ 43,191 5.21%
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits:
Savings $ 116,220 $ 804 2.74% $ 122,122 $ 889 2.89% $ 104,068 $ 711 2.71%
Money Market Checking and NOW Accounts 414,773 1,003 0.96% 429,601 1,094 1.01% 733,063 3,508 1.90%
Time Deposits of $100,000 or More 1,127,027 4,736 1.67% 1,133,970 5,059 1.77% 835,726 4,930 2.34%
Other Time Deposits 291,198 1,049 1.43% 312,351 1,257 1.60% 680,959 4,261 2.48%
Total Interest-Bearing Deposits 1,949,218 7,592 1.55% 1,998,044 8,299 1.65% 2,353,816 13,410 2.26%
Borrowings:
FHLB Advances 153,693 339 0.88% 153,777 342 0.88% 160,754 412 1.02%
Other Borrowings 1,603 0.00% 3,809 22 2.29% 1,544 0.00%
Junior Subordinated Debentures 82,406 711 3.42% 82,406 739 3.56% 82,406 690 3.32%
Total Borrowings 237,702 1,050 1.75% 239,992 1,103 1.82% 244,704 1,102 1.79%
TOTAL INTEREST-BEARING LIABILITIES $ 2,186,920 $ 8,642 1.57% $ 2,238,036 $ 9,402 1.67% $ 2,598,520 $ 14,512 2.22%
NET INTEREST INCOME (2) $ 25,977 $ 26,304 $ 28,679
NET INTEREST SPREAD (2) 3.07% 3.07% 2.99%
NET INTEREST MARGIN (2) 3.48% 3.49% 3.46%
(1) Commercial and industrial loans include owner-occupied commercial real estate loans
(2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
HANMI FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, AVERAGE YIELDS EARNED AND AVERAGE RATES PAID (UNAUDITED)
(Dollars in Thousands)
Year Ended
December 31, 2010 December 31, 2009
Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

INTEREST-EARNING ASSETS
Loans:
Real Estate Loans:
Commercial Property $ 791,622 $ 42,507 5.37% $ 894,408 $ 49,901 5.58%
Construction 82,827 3,618 4.37% 156,619 5,947 3.80%
Residential Property 68,723 3,267 4.75% 85,228 4,329 5.08%
Total Real Estate Loans 943,172 49,392 5.24% 1,136,255 60,177 5.30%
Commercial and Industrial Loans (1) 1,546,115 84,765 5.48% 1,947,669 108,346 5.56%
Consumer Loans 56,121 2,937 5.23% 74,700 4,310 5.77%
Total Gross Loans 2,545,408 137,094 5.39% 3,158,624 172,833 5.47%
Prepayment Penalty Income 234 485
Unearned Income on Loans, Net of Costs (936) (1,491)
Gross Loans, Net 2,544,472 137,328 5.40% 3,157,133 173,318 5.49%
Investment Securities:
Municipal Bonds (2) 10,655 535 5.02% 54,448 3,543 6.51%
U.S. Government Agency Securities 69,112 1,952 2.82% 24,417 1,108 4.54%
Mortgage-Backed Securities 72,985 2,071 2.84% 77,627 3,320 4.28%
Collateralized Mortgage Obligations 45,245 1,092 2.41% 21,365 879 4.11%
Corporate Bonds 4,860 165 3.40% 271 0.00%
Other Securities 12,423 405 3.26% 10,197 369 3.62%
Total Investment Securities (2) 215,280 6,220 2.89% 188,325 9,219 4.90%
Other Interest-Earning Assets:
Equity Securities 37,437 532 1.42% 41,399 656 1.58%
Federal Funds Sold and Securities Purchased
Under Resale Agreements 10,346 52 0.50% 84,363 326 0.39%
Term Federal Funds Sold 8,342 33 0.40% 95,822 1,718 1.79%
Interest-Bearing Deposits in Other Banks 166,001 468 0.28% 43,967 151 0.34%
Total Other Interest-Earning Assets 222,126 1,085 0.49% 265,551 2,851 1.07%
TOTAL INTEREST-EARNING ASSETS (2) $ 2,981,878 $ 144,633 4.85% $ 3,611,009 $ 185,388 5.13%
INTEREST-BEARING LIABILITIES
Interest-Bearing Deposits:
Savings $ 119,754 $ 3,439 2.87% $ 91,089 $ 2,328 2.56%
Money Market Checking and NOW Accounts 464,864 4,936 1.06% 507,619 9,786 1.93%
Time Deposits of $100,000 or More 1,069,600 19,529 1.83% 1,051,994 34,807 3.31%
Other Time Deposits 371,046 6,504 1.75% 916,798 29,325 3.20%
Total Interest-Bearing Deposits 2,025,264 34,408 1.70% 2,567,500 76,246 2.97%
Borrowings:
FHLB Advances 158,531 1,366 0.86% 257,529 3,399 1.32%
Other Borrowings 2,753 53 1.93% 1,579 2 0.13%
Junior Subordinated Debentures 82,406 2,811 3.41% 82,406 3,271 3.97%
Total Borrowings 243,690 4,230 1.74% 341,514 6,672 1.95%
TOTAL INTEREST-BEARING LIABILITIES $ 2,268,954 $ 38,638 1.70% $ 2,909,014 $ 82,918 2.85%
NET INTEREST INCOME (2) $ 105,995 $ 102,470
NET INTEREST SPREAD (2) 3.15% 2.28%
NET INTEREST MARGIN (2) 3.55% 2.84%
(1) Commercial and industrial loans include owner-occupied commercial real estate loans
(2) Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
CONTACT: BRIAN E. CHO
         Chief Financial Officer
         (213) 368-3200
         DAVID YANG
         Investor Relations Officer
         (213) 637-4798
Thursday, January 27th, 2011 Uncategorized Comments Off on Hanmi Financial Corp. (HAFC) Fourth Quarter 2010 Nets First Quarterly Profit of $5.3 Million in Two Years

Bassett (BSET) Announces 11% Sales Increase for the Fourth Quarter

BASSETT, Va., Jan. 27, 2011 (GLOBE NEWSWIRE) — Bassett Furniture Industries, Inc. (Nasdaq:BSET) announced today its results of operations for its fiscal quarter ended November 27, 2010.

Consolidated sales for the quarter ended November 27, 2010 were $66.0 million as compared to $59.5 million for the quarter ended November 28, 2009, an increase of 10.9%. This sales increase was primarily driven by a 10.1% increase in total wholesale shipments and increased sales at retail due primarily to additional Company-owned stores. Gross margins for the fourth quarter of 2010 and 2009 were 48.3% and 46.5%, respectively. The margin increase was primarily a result of the retail segment’s increased share of the overall sales mix, partially offset by lower margins in both the wholesale and retail segments. Selling, general and administrative expenses, excluding bad debt and notes receivable valuation charges, increased $4.8 million for the fourth quarter of 2010 as compared to the fourth quarter of 2009, primarily due to the net addition of 11 Company-owned retail stores since the fourth quarter of 2009. The Company also recorded $1.4 million of bad debt and notes receivable valuation charges during the fourth quarter of 2010 as compared to $2.2 million for the fourth quarter of 2009, a $0.8 million decrease. The Company reported net income of $1.9 million, or $0.17 per share, for the quarter ended November 27, 2010, as compared to net income of $2.6 million, or $0.22 per share, for the quarter ended November 28, 2009.

In order to better understand profitability trends related to on-going operations, the Company’s management considers the effects of certain items on results for the quarter. Accordingly, the results for the quarter ended November 27, 2010 included $0.5 million of proceeds from the Continued Dumping & Subsidy Offset Act (CDSOA), and $0.8 million of periodic costs associated with carrying idle retail facilities. The results for the quarter ended November 28, 2009 included a $1.7 million tax benefit associated with a one-time carryback of net operating losses due to a change in tax law, $1.6 million of proceeds from the CDSOA, pretax charges of $1.1 million associated with the closure of the Company’s fiberboard manufacturing facility in Bassett, Va., $0.5 million associated with the impairment of goodwill, $0.4 million associated with updates to certain assumptions concerning existing lease termination accruals, and $0.5 million of periodic costs associated with carrying idle retail facilities. Excluding these items, the net income for the quarter ended November 27, 2010 would have been $2.3 million as compared to net income of $1.7 million for the quarter ended November 28, 2009. See the attached Reconciliation of Net Income (Loss) as Reported to Net Income (Loss) as Adjusted.

“We are pleased to report an 11% sales increase for the fourth quarter of 2010,” said Robert H. Spilman Jr., President and CEO. “While we do not believe that the overall pace of sales has improved significantly on an industry-wide basis, we are making progress on several fronts to grow our top line. This includes slight improvements in sales in our Company-owned retail fleet, the addition of new accounts outside our store network, and improved service levels on our imported products by virtue of our strategy to carry higher levels of inventory on our key items. The profit that we generated during the quarter resulted from a higher level of sales enhanced by an expense structure that has been aggressively trimmed for several quarters. We are very focused on doing everything that we can to generate future growth while continuing to monitor our operating expenses.”

Wholesale Segment

Net sales for the wholesale segment were $49.3 million for the fourth quarter of 2010 as compared to $44.8 million for the fourth quarter of 2009, an increase of 10.1%. This increase is due to a 5.6% improvement in wholesale orders as compared to the fourth quarter of 2009. Furthermore, shipments were increased to bring down existing backlogs that had built up in the second and third quarters of 2010 due to delays in receiving imported product from certain of the Company’s overseas vendors. In an effort to mitigate the stock outages caused by these delays and improve service levels to customers, the Company has increased inventory levels during the second half of 2010. Approximately 55% of wholesale shipments during the fourth quarter of 2010 were imported products compared to approximately 50% for the fourth quarter of 2009. Gross margins for the wholesale segment were 31.0% for the fourth quarter of 2010 as compared to 32.5% for the fourth quarter of 2009. This decrease is primarily due to higher freight costs on imported product during the fourth quarter of 2010, while the fourth quarter of 2009 included a favorable adjustment to the last in, first out (LIFO) inventory valuation reserves due to inventory reductions in that year. Wholesale SG&A, excluding bad debt and notes receivable valuation charges, increased $1.3 million, or 12.1%, for the fourth quarter of 2010 as compared to 2009. As a percentage of net sales, SG&A increased 0.5 percentage points to 25.0% for the fourth quarter of 2010 as compared to 24.5% for the fourth quarter of 2009. The Company recorded $1.4 million of bad debt and notes receivable valuation charges for the fourth quarter of 2010, as compared with $2.2 million for the fourth quarter of 2009.

The wholesale backlog, representing orders received but not yet shipped to dealers and company stores, was $12.5 million at November 27, 2010 as compared with $10.3 million at November 28, 2009. The $2.2 million increase is primarily due to the improvement in order levels as compared to the fourth quarter of 2009.

“As noted, we were able to reduce our backlog on imported wood items during the quarter, which had a positive effect on our wholesale revenue,” continued Mr. Spilman. “We were also able to generate a 5.6% increase in wholesale written orders during the period. The introduction of our “Go To” program of promotionally priced wood products at the High Point market was well received and will be promoted aggressively in 2011. Those products will be stocked at our three U.S. distribution centers and in our Asia warehouse. The domestic upholstery product that we introduced last spring and are manufacturing at our recently re-opened facility in Newton, NC is performing very well at retail and already comprises approximately 15% of our total upholstery volume. We will expand this assortment at the next High Point show as we seek to leverage our superior U.S. value and service propositions to take market share.”

Retail Segment

At November 27, 2010, the total store network included 54 licensee-owned stores and 47 Company-owned and operated stores. During the three months ended November 27, 2010, the Company acquired certain assets of, and now operates one additional licensee store, while another store acquired during the first quarter of 2010 was closed at the end of the fourth quarter. The following table summarizes the changes in store count during the year ended November 27, 2010:

November 28, New Stores Stores November 27,
2009 Stores Acquired Closed 2010
Company-owned stores 36 2 11 (2) 47
Licensee-owned stores 68 (11) (3) 54
Total 104 2 (5) 101

The Company-owned stores had sales of $34.8 million in the fourth quarter of 2010 as compared to $27.5 million in the fourth quarter of 2009, an increase of 26.6%. The increase was comprised of a $7.1 million increase from the net addition of 11 stores since the end of the fourth quarter of 2009, and a $0.2 million, or 0.7% increase in comparable store sales (“comparable” stores include those locations that have been open and operated by the Company for all of each comparable reporting period).

While the Company does not recognize sales until goods are delivered to the customer, the Company’s management tracks written sales (the dollar value of sales orders taken, rather than delivered) as a key store performance indicator. Written sales for comparable stores decreased by 1.4% for the fourth quarter of 2010 as compared to the fourth quarter of 2009.

Gross margins for the quarter decreased 0.7 percentage points to 48.1% as compared to the fourth quarter of 2009 primarily due to lower margins in the recently acquired stores. SG&A increased $3.4 million from the fourth quarter of 2009, primarily due to increased store count. On a comparable store basis, gross margins decreased 0.1 percentage points to 48.8% and SG&A decreased 1.3 percentage points to 50.1% for the fourth quarter of 2010 as compared to the comparable 2009 period. Operating losses for the comparable stores were reduced by 48.7% to $0.3 million. In all other stores (consisting of the 14 stores which have been acquired, opened or closed during the twelve months ended November 27, 2010), the operating loss was $0.5 million or 6.5% of sales. This higher level of operating losses reflects the fact that several of the acquired stores were struggling or failing at the time of acquisition. It has generally taken six to 12 months of operations by corporate retail management to either implement the changes necessary to improve performance in the acquired stores or to make a final determination regarding the on-going viability. Refer to the accompanying schedule of Supplemental Retail Information for results of operations for the Company’s retail segment by comparable and all other stores. The dollar value of retail backlog, representing orders received but not yet shipped to customers, was $13.7 million, or an average of $291 thousand per open store, at November 27, 2010 as compared with $8.7 million, or an average of $241 thousand per open store, at November 28, 2009.

“2010 was an extremely busy year in our corporate retail network,” added Mr. Spilman. “The fact that we acquired 11 licensee stores, closed two existing locations, and opened two new facilities while operating our existing stores presented a tremendous challenge for our team. We were pleased with the 49% loss reduction in our comparable stores during the quarter. Performance at this level for the entire fleet is our goal and the fact that our 35 comparable stores achieved it during the quarter is encouraging and significant. 2011 will also be a challenge as we are currently closing four existing corporate stores and will certainly acquire additional stores over the course of the year. We are also seeking to expand our network with new stores in certain markets where we currently operate. Despite the upheaval that store acquisitions and closings have produced, our comp store operating performance improved again in 2010, giving us the confidence that our corporate store network will continue to contribute to the Company’s improving operating performance.”

Balance Sheet and Cash Flow

The Company generated $6.1 million of cash from operating activities during the fourth quarter of 2010, primarily due to improved collections from wholesale customers as order backlogs were reduced, tighter working capital management, and the receipt of a $1.7 million Federal income tax refund associated with a one-time carryback of net operating losses due to a change in tax law; the benefit from which was recognized in earnings during the fourth quarter of 2009. In addition to the $11.1 million of cash on-hand, the Company has investments of $15.1 million, primarily consisting of $14.3 million in cash, money market accounts, bond funds, and individual treasuries, and $0.8 million in a hedge fund. Although the $14.3 million is primarily cash and other liquid assets, the Company presents these as long-term assets as they are pledged as collateral for the revolving debt agreement.

The Company has four mortgages totaling approximately $9.4 million that will mature during the 12 month period following November 27, 2010. The Company expects to satisfy these obligations through a variety of means, which may include refinancing, drawing from its revolving credit facility, or paying from cash on hand or future operating cash flow. However, there can be no assurance that any of these strategies will be successful.

After having voluntarily repaid the outstanding balance of $15.0 million on its revolving credit facility during the second quarter of 2010, the Company ended the fourth quarter with no amounts outstanding. The facility, which matured on November 30, 2010, has been extended until February 28, 2011. The Company is continuing discussions with its bank regarding the amendment and extension of the facility beyond its current maturity. While there can be no assurance that these discussions will result in a favorable outcome, the Company expects to have an amended and extended facility in place prior to February 28, 2011.

Potential Sale of the International Home Furnishings Center

The Company also announced today that it is engaged in negotiations for the sale of its 46.9% interest in International Home Furnishings Center, Inc. (“IHFC”).  No definitive agreement for the sale has been reached. Any such sale would be made only as part of the simultaneous sale of 100% of the ownership interests in IHFC to the prospective purchaser. The Company is one of four shareholders of IHFC.

“The proposed sale of IHFC offers us the opportunity to unlock value in a key non-core asset that we believe is not currently fully recognized in the Company’s stock price as well as to significantly strengthen our already strong balance sheet,” said Mr. Spilman. “Although there can be no assurance that an agreement among all of the required parties will be reached, we hope to complete the sale by the end of February.”

About Bassett Furniture Industries, Inc.

Bassett Furniture Industries, Inc. (Nasdaq:BSET), is a leading manufacturer and marketer of high quality, mid-priced home furnishings. With 101 licensee- and company- owned stores, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. The most significant growth opportunity for Bassett continues to be the Company’s dedicated retail store program. Bassett’s retail strategy includes affordable custom-built furniture that is ready for delivery in the home within 30 days. The stores also feature the latest on-trend furniture styles, more than 750 upholstery fabrics, free in-home design visits, and coordinated decorating accessories. For more information, visit the Company’s website at bassettfurniture.com. (BSET-E)

Certain of the statements in this release, particularly those preceded by, followed by or including the words “believes,” “expects,” “anticipates,” “intends,” “should,” “estimates,” or similar expressions, or those relating to or anticipating financial results for periods beyond the end of the fourth quarter of fiscal 2010, constitute “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, Bassett claims the protection of the safe harbor for forward looking statements contained in the Private Securities Litigation Reform Act of 1995. In many cases, Bassett cannot predict what factors would cause actual results to differ materially from those indicated in the forward looking statements. Expectations included in the forward-looking statements are based on preliminary information as well as certain assumptions which management believes to be reasonable at this time. The following important factors affect Bassett and could cause actual results to differ materially from those indicated in the forward looking statements: the effects of national and global economic or other conditions and future events on the retail demand for home furnishings and the ability of Bassett’s customers and consumers to obtain credit; and the economic, competitive, governmental and other factors identified in Bassett’s filings with the Securities and Exchange Commission. Any forward-looking statement that Bassett makes speaks only as of the date of such statement, and Bassett undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indication of future performance, unless expressed as such, and should only be viewed as historical data.

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations – Unaudited
(In thousands, except for per share data)
Quarter Ended Quarter Ended Year Ended Year Ended
November 27, 2010 November 28, 2009 November 27, 2010 November 28, 2009
Percent of Percent of Percent of Percent of
Amount Net Sales Amount Net Sales Amount Net Sales Amount Net Sales
Net sales $ 65,991 100.0% $ 59,523 100.0% $ 235,254 100.0% $ 232,722 100.0%
Cost of sales 34,097 51.7% 31,845 53.5% 122,566 52.1% 129,882 55.8%
Gross profit 31,894 48.3% 27,678 46.5% 112,688 47.9% 102,840 44.2%
Selling, general and administrative expense

excluding bad debt and notes receivable valuation charges

29,660 44.9% 24,850 41.7% 110,808 47.1% 103,789 44.6%
Bad debt and notes receivable valuation charges 1,431 2.2% 2,241 3.8% 6,567 2.8% 15,205 6.5%
Income from Continued Dumping & Subsidy Offset Act (488) -0.7% (1,627) -2.7% (488) -0.2% (1,627) -0.7%
Restructuring and asset impairment charges 1,599 2.7% 2,987 1.3%
Lease exit costs 372 0.6% 2,434 1.0%
Income (loss) from operations 1,291 2.0% 243 0.4% (4,199) -1.8% (19,948) -8.6%
Other income (loss), net 556 0.8% 825 1.4% 1,991 0.8% (4,505) -1.9%
Income (loss) before income taxes 1,847 2.8% 1,068 1.8% (2,208) -0.9% (24,453) -10.5%
Income tax benefit 94 0.1% 1,498 2.5% 206 0.1% 1,754 0.8%
Net income (loss) $ 1,941 2.9% $ 2,566 4.3% $ (2,002) -0.9% $ (22,699) -9.8%
Basic income (loss) per share $ 0.17 $ 0.22 $ (0.17) $ (1.99)
Diluted income (loss) per share $ 0.17 $ 0.22 $ (0.17) $ (1.99)
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
Assets November 27, 2010 November 28, 2009
Current assets
Cash and cash equivalents $ 11,071 $ 23,221
Accounts receivable, net 31,621 34,605
Inventories 41,810 33,388
Other current assets 6,969 13,312
Total current assets 91,471 104,526
Property and equipment
Cost 142,362 152,153
Less accumulated depreciation 96,112 101,517
Property and equipment, net 46,250 50,636
Investments 15,111 14,931
Retail real estate 27,513 28,793
Notes receivable, net 7,508 8,309
Other 9,464 9,034
59,596 61,067
Total assets $ 197,317 $ 216,229
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 24,893 $ 14,711
Accrued compensation and benefits 6,652 6,490
Customer deposits 9,171 5,946
Other accrued liabilities 11,594 11,730
Current portion of real estate notes payable 9,521 4,393
Total current liabilities 61,831 43,270
Long-term liabilities
Post employment benefit obligations 11,004 10,841
Bank debt 15,000
Real estate notes payable 4,295 16,953
Distributions in excess of affiliate earnings 7,356 10,954
Other long-term liabilities 6,526 8,877
29,181 62,625
Commitments and Contingencies
Stockholders’ equity
Common stock 57,795 57,274
Retained earnings 48,459 50,461
Additional paid-in-capital 478 481
Accumulated other comprehensive income (427) 2,118
Total stockholders’ equity 106,305 110,334
Total liabilities and stockholders’ equity $ 197,317 $ 216,229
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows – Unaudited
(In thousands)
Year Ended Year Ended
November 27, 2010 November 28, 2009
Operating activities:
Net loss $ (2,002) $ (22,699)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 5,966 6,604
Equity in undistributed income of investments and unconsolidated affiliated companies (4,737) (2,319)
Provision for restructuring and asset impairment charges 2,987
Lease exit costs 2,434
Provision for lease and loan guarantees 1,407 2,834
Provision for losses on accounts and notes receivable 6,567 15,205
Other than temporary impairment of investments 1,255
Realized income from investments (2,272) (764)
Payment to terminate lease (400)
Other, net 504 (2,364)
Changes in operating assets and liabilities
Accounts receivable (4,467) (6,744)
Inventories (5,443) 11,704
Other current assets 5,262 3,451
Accounts payable and accrued liabilities 7,003 (7,064)
Net cash provided by operating activities 7,788 4,120
Investing activities:
Purchases of property and equipment (2,013) (1,096)
Proceeds from sales of property and equipment 4,247 129
Acquisition of retail licensee stores, net of cash acquired (378) (481)
Proceeds from sales of investments 9,101 26,234
Purchases of investments (8,851) (6,939)
Dividends from affiliates 937 3,847
Net cash received on licensee notes 494 645
Net cash provided by investing activities 3,537 22,339
Financing activities:
Net repayments under revolving credit facility (15,000) (4,000)
Repayments of real estate notes payable (7,530) (812)
Issuance of common stock 142 95
Repurchases of common stock (75)
Cash dividends (1,142)
Payments on other notes (1,087) (1,081)
Net cash used in financing activities (23,475) (7,015)
Change in cash and cash equivalents (12,150) 19,444
Cash and cash equivalents – beginning of period 23,221 3,777
Cash and cash equivalents – end of period $ 11,071 $ 23,221
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Segment Information – Unaudited
(In thousands)
Quarter ended Quarter ended Year Ended Year Ended
November 27, 2010 November 28, 2009 November 27, 2010 November 28, 2009
Net Sales
Wholesale $ 49,322 (a) $ 44,803 (a) $ 176,255 (a) $ 179,534 (a)
Retail 34,842 27,501 122,241 105,378
Inter-company elimination (18,173) (12,781) (63,242) (52,190)
Consolidated $ 65,991 $ 59,523 $ 235,254 $ 232,722
Operating Income (Loss)
Wholesale $ 1,561 (b) $ 1,340 (b) $ 2,431 (b) $ (9,100) (b)
Retail (863) (799) (7,387) (8,131)
Inter-company elimination 105 46 269 1,077
Income from CDSOA 488 1,627 488 1,627
Restructuring and asset impairment charges (1,599) (2,987)
Lease exit costs (372) (2,434)
Consolidated $ 1,291 $ 243 $ (4,199) $ (19,948)
(a) Excludes wholesale shipments for dealers where collectibility is not reasonably assured at time of shipment as follows:
November 27, 2010 November 28, 2009
Quarter ended $ 85 $ 174
Year ended 947 7,149
(b) Includes bad debt and notes receivable valuation charges as follows:
November 27, 2010 November 28, 2009
Quarter ended $ 1,431 $ 2,241
Year Ended 6,567 15,205
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Reconciliation of Net Income (Loss) as Reported to Net Income (Loss) as Adjusted (Unaudited)
(In thousands, except for per share data)
Quarter ended Per Quarter ended Per Year Ended Per Year Ended Per
November 27, 2010 Share November 28, 2009 Share November 27, 2010 Share November 28, 2009 Share
Net income (loss) as reported $ 1,941 $ 0.17 $ 2,566 $ 0.22 $ (2,002) $ (0.17) $ (22,699) $ (1.99)
One-time tax benefit (1) (1,672) (0.15) (1,672) (0.15)
Income from CDSOA (488) (0.04) (1,627) (0.14) (488) (0.04) (1,627) (0.14)
Restructuring and asset impairment charges 1,599 0.14 2,987 0.26
Lease exit costs 372 0.03 2,434 0.21
Other than temporary impairment of securities 1,255 0.11
Closed stores and idle retail facility charges 804 0.07 450 0.04 2,256 0.20 2,062 0.18
Net income (loss) as adjusted $ 2,257 $ 0.20 $ 1,688 $ 0.14 $ (234) $ (0.01) $ (17,260) $ (1.51)
(1) $1.7 million tax benefit in 2009 associated with the one-time carryback of net operating losses resulting from a change in tax law.

The Company has included the “as adjusted” information because it uses, and believes that others may use, such information in comparing the Company’s operating results from period to period. The “as adjusted” information is not presented in conformity with generally accepted accounting principals in the United States. However, the items excluded in determining the “as adjusted” information are significant components in understanding and assessing the Company’s overall financial performance for the periods covered.

BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Supplemental Retail Information – Unaudited
(In thousands)
35 Comparable Stores 27 Comparable Stores
Quarter Ended Quarter Ended Year Ended Year Ended
November 27, 2010 November 28, 2009 November 27, 2010 November 28, 2009
Percent of Percent of Percent of Percent of
Amount Net Sales Amount Net Sales Amount Net Sales Amount Net Sales
Net sales $ 26,928 100.0% $ 26,734 100.0% $ 82,063 100.0% $ 86,131 100.0%
Cost of sales 13,782 51.2% 13,661 51.1% 41,982 51.2% 45,293 52.6%
Gross profit 13,146 48.8% 13,073 48.9% 40,081 48.8% 40,838 47.4%
Selling, general and administrative expense* 13,492 50.1% 13,747 51.4% 43,288 52.8% 46,279 53.7%
Loss from operations $ (346) -1.3% $ (674) -2.5% $ (3,207) -3.9% $ (5,441) -6.3%
All Other Stores All Other Stores
Quarter Ended Quarter Ended Year Ended Year Ended
November 27, 2010 November 28, 2009 November 27, 2010 November 28, 2009
Percent of Percent of Percent of Percent of
Amount Net Sales Amount Net Sales Amount Net Sales Amount Net Sales
Net sales $ 7,914 100.0% $ 767 100.0% $ 40,178 100.0% $ 19,247 100.0%
Cost of sales 4,318 54.6% 431 56.2% 21,631 53.8% 10,535 54.7%
Gross profit 3,596 45.4% 336 43.8% 18,547 46.2% 8,712 45.3%
Selling, general and administrative expense 4,113 52.0% 461 60.0% 22,727 56.6% 11,402 59.2%
Loss from operations $ (517) -6.5% $ (125) -16.3% $ (4,180) -10.4% $ (2,690) -14.0%
*Comparable store SG&A includes retail corporate overhead and administrative costs.
CONTACT:  J. Michael Daniel, Vice-President
          and Chief Accounting Officer
          (276) 629-6614 - Investors

          Jay S. Moore, Director of
          Communications
          (276) 629-6450 - Media
Thursday, January 27th, 2011 Uncategorized Comments Off on Bassett (BSET) Announces 11% Sales Increase for the Fourth Quarter

China Nutrifruit (CNGL) Signs Supply Contract with Doehler Rizhao

DAQING, China, Jan. 24, 2011 /PRNewswire-Asia-FirstCall/ — China Nutrifruit Group Limited (NYSE Amex: CNGL) (“China Nutrifruit” or “the Company”), a leading producer of premium specialty fruit based products in China (“PRC”), today announced that the Company entered into a supply contract (the “Contract”) with Doehler Food and Beverage Ingredients (Rizhao) Co., Ltd. (“Doehler Rizhao”) to supply 1,500 tons of its fruit concentrate products.

Doehler Rizhao, a subsidiary of DoehlerGroup, is a global consumer brand which offers a variety of fruit concentrate juices, including apple, pear, strawberry and kiwi juice concentrates. . Pursuant to the Contract, China Nutrifruit will supply 1,500 tons of fruit concentrate products to Doehler Rizhao in January 2011 at the prevailing market price.

“Our new supply contract with Doehler Rizhao marks an important milestone for China Nutrifruit as we diversify our customer base with the addition of a global consumer brand,” commented Mr. Changjun Yu, Chairman of China Nutrifruit. “Our products passed stringent testing criteria and we are currently performing the contract. We believe this demonstrates the high-quality and market acceptance of our premium specialty fruit products. We are encouraged by our co-operation with Doehler Rizhao and will continue to step up our marketing efforts to further expand our customer base. We anticipate increased sales contribution from international customers in fiscal year 2011 and are confident that our nutritious specialty products will be well received in both the domestic and international markets.”

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry, seabuckthorn, blackcurrant and raspberry. The Company’s processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive sales and distribution network throughout 17 provinces in China. For more information, please visit http://www.chinanutrifruit.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act“”). Such statements include, among others, those concerning our supply contract with Doehler Rizhao, our ability to expand our international customer base, our expectation regarding market reception of our products, our expected financial performance in FY2011 and strategic and operational plans,  as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words believe, expect, anticipate, project, targets, optimistic, intend, aim, will or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the Risk Factors section of our Annual Report on Form 10-K for the year ended March 31, 2010, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

Company Contact:

Investor Relations Contact:

Mr. Colman Cheng, Chief Financial Officer

Mr. Crocker Coulson, President

China Nutrifruit Group Limited

CCG Investor Relations

Tel:+ 852 9039 8111

Tel: +1-646-213-1915 (NY office)

Email: zsj@chinanutrifruit.com

Email: crocker.coulson@ccgir.com

Website: www.chinanutrifruit.com

Website: www.ccgirasia.com

Elaine Ketchmere, Partner

Tel: +1-310-954-1345 (LA office)

Email: elaine.ketchmere@ccgir.com

Monday, January 24th, 2011 Uncategorized Comments Off on China Nutrifruit (CNGL) Signs Supply Contract with Doehler Rizhao

Genoptix (GXDX) Announces Agreement to be Acquired by Novartis

SAN DIEGO, Jan. 24, 2011 /PRNewswire/ — Genoptix, Inc. (Nasdaq: GXDX) announced today that it has entered into a definitive merger agreement to be acquired by Novartis.  Under the terms of the merger agreement, Novartis will commence an all cash tender offer for all outstanding shares of common stock of Genoptix at USD$25.00 per share.  The transaction implies, on a fully-diluted basis, a total equity value of approximately USD$470 million and an enterprise value of USD$330 million.

The $25.00 per share cash offer price represents a premium of 39% over Genoptix’ unaffected closing share price of $17.98 on December 13, 2010 and a 27% premium over the closing price of USD$19.76 on January 21, 2011.

Genoptix’ Chief Executive Officer, Tina S. Nova, Ph.D., stated, “We believe this transaction provides substantial value and liquidity to our stockholders. We are excited about becoming part of the Novartis Molecular Diagnostics (MDx) unit and continuing to enhance the value that we bring to our core community oncologist customers. We share Novartis’ strong commitment to transforming patient care, improving health outcomes for patients and enhancing the suite of diagnostic tools for our physician customers.”

Genoptix’ board of directors unanimously determined that the merger agreement and the transactions contemplated thereby are fair to and in the best interests of Genoptix and its stockholders, and recommends that Genoptix’ stockholders tender their shares and adopt the merger agreement.

Each of Genoptix’ directors and executive officers has agreed to tender their shares in the offer.

The transaction is conditioned upon the tender of at least a majority of the shares of Genoptix in the tender offer, receipt of regulatory approvals and other customary closing conditions.  The transaction is expected to close within the first half of 2011.

The terms and conditions of the tender offer will be described in the tender offer documents, which will be filed with the U.S. Securities and Exchange Commission (“SEC”).

Barclays Capital is serving as financial advisor to Genoptix and Cooley LLP is serving as Genoptix’ legal advisor.

About Genoptix, Inc.

Genoptix is a specialized laboratory service provider focused on delivering personalized and comprehensive diagnostic services to community-based hematologists and oncologists.  Genoptix is headquartered in Carlsbad, California.

This press release is neither an offer to purchase nor a solicitation of an offer to sell shares of Genoptix.  The tender offer for shares of Genoptix described in this press release has not yet been commenced.  The offer to buy shares of Genoptix common stock will be made only pursuant to the offer to purchase and related materials that Novartis will file on Schedule TO with the SEC. At the same time, Genoptix will file its recommendation of the tender offer on Schedule 14D-9 with the SEC.  Genoptix stockholders and other investors should read these materials carefully because they contain important information, including the terms and conditions of the offer.   These materials and any other documents filed by Novartis or Genoptix with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov and by contacting Genoptix Investor Relations at 800-881-3100. In addition, investors and security holders will be able to obtain free copies of the documents filed with the SEC on Genoptix’ website at www.Genoptix.com. Investors and security holders are urged to read the Schedule TO, as amended from time to time, and the Schedule 14D-9, as amended from time to time, and the other relevant materials before making any investment decision with respect to the tender offer.

Statements in this press release that relate to future results and events are forward-looking statements based on Genoptix’ current expectations regarding the tender offer and transactions contemplated by the merger agreement. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors. There can be no assurances that a transaction will be consummated. Other risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; that the transaction may not be timely completed, if at all; that, prior to the completion of the transaction, if at all, Genoptix may not satisfy one or more closing conditions; that the merger agreement may be terminated; and the impact of the current economic environment, fluctuations in operating results, market acceptance of Genoptix’ services, and other risks that are described in Genoptix’ Annual Report on Form 10-K for the year ended December 31, 2009, in its most recent Quarterly Report of Form 10-Q and in its subsequently filed SEC reports. Genoptix undertakes no obligation to update these forward-looking statements except to the extent otherwise required by law.

SOURCE Genoptix, Inc.

Monday, January 24th, 2011 Uncategorized Comments Off on Genoptix (GXDX) Announces Agreement to be Acquired by Novartis

Optical Cable Corp. (OCCF) Reports Fourth Quarter and Fiscal Year 2010 Financial Results

ROANOKE, Va., Jan. 24, 2011 /PRNewswire/ — Optical Cable Corporation (Nasdaq GM: OCCF) (“OCC®” or the “Company”) today announced financial results for its fourth quarter and fiscal year ended October 31, 2010.

OCC’s consolidated net sales for fiscal year 2010 were the highest in the Company’s history.

Fourth Quarter 2010 Financial Results

Consolidated net sales for the fourth quarter of fiscal year 2010 increased 31.1% to $18.5 million compared to net sales of $14.1 million for the comparable period in fiscal year 2009.  Net sales in both the Company’s commercial market and its specialty markets increased during the fourth quarter of fiscal year 2010 compared to the same period last year.  The acquisition of Applied Optical Systems, Inc. (“AOS”) by OCC on October 31, 2009 also contributed to the net sales growth achieved by the Company in the fourth quarter of fiscal year 2010.

Gross profit increased 47.9% to $7.2 million in the fourth quarter of fiscal year 2010, compared to $4.8 million for the fourth quarter of fiscal year 2009.  Gross profit margin, or gross profit as a percentage of net sales, increased to 38.8% in the fourth quarter compared to 34.4% in the same period last year.

OCC recorded net income attributable to the Company of $1.5 million, or $0.23 per basic and diluted share, for the fourth quarter of fiscal year 2010, compared to a net loss of $90,000, or $0.01 per basic and diluted share, for the fourth quarter of fiscal year 2009.

During the fourth quarter of fiscal year 2010, OCC reversed a $666,000, or $0.10 per share, goodwill impairment charge associated with a purchase accounting adjustment in connection with the AOS acquisition.  Excluding the positive impact that this goodwill impairment charge reversal had on income from operations, the Company’s proforma net income attributable to OCC was $808,000, or $0.13 per share, during the fourth quarter of fiscal year 2010.(1)

Fiscal Year 2010 Financial Results

Consolidated net sales increased 15.2% to $67.5 million in fiscal year 2010, compared to $58.6 million in fiscal year 2009.  Net sales growth during the fiscal year was achieved over a broad customer base and product mix, with notable increases in both commercial and specialty markets, despite the difficult economic environment.  The AOS acquisition also contributed to the net sales growth achieved by the Company in fiscal year 2010.

Geographically, OCC achieved consolidated net sales growth both in international markets and within the United States.  Net sales to customers located outside of the United States increased 14.3% in fiscal year 2010 compared to the prior year, and net sales to customers located in the United States increased 15.6%.

Gross profit increased 19.8% to $23.8 million for fiscal year 2010, compared to $19.8 million for fiscal year 2009.  Gross profit margin, or gross profit as a percentage of net sales, increased to 35.2% for fiscal year 2010 from 33.9% for fiscal year 2009.

For fiscal year 2010, OCC recorded a net loss attributable to the Company of $5.7 million, or $0.95 per basic and diluted share, compared to a net loss of $1.9 million, or $0.34 per basic and diluted share, for fiscal year 2009.  Significantly contributing to the net loss for fiscal year 2010 was a non-recurring, non-cash net impairment charge of $5.6 million recorded to write-off the carrying value of the goodwill associated with the acquisition of AOS.

Excluding the non-recurring, non-cash net goodwill impairment charge of $5.6 million, the Company would have reported a net loss attributable to OCC of $153,000, or $0.03 per share, for fiscal year 2010.(2)

At the end of fiscal year 2010, OCC’s net book value attributable to OCC was $27.9 million, or $4.44 per share.   In addition, OCC had a retained earnings balance of $21.9 million, or $3.48 per share as of the end of the fiscal year.  OCC’s share price closed at $3.70 per share on Friday, January 21, 2011.

Management’s Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said, “During the fiscal fourth quarter, we built on OCC’s strong momentum to finish the year with the highest net sales in our company’s history.  Importantly, we generated record revenue by meeting the needs of our diverse, global customer base, which is increasingly taking advantage of OCC’s comprehensive suite of products and integrated solutions.  With our strategic acquisitions now positively contributing to our bottom line results, we are focused on maintaining our operational discipline and executing on our plan to grow sales and earnings in order to create meaningful value for shareholders.”

Mr. Wilkin added, “In addition to achieving record sales, we are pleased to have further strengthened our balance sheet and initiated a quarterly dividend to provide a regular return of capital to our shareholders.  Despite challenging economic and market conditions, we demonstrated OCC’s strength in 2010 and we are confident in OCC’s strategy, market position and prospects for continued growth and value creation in the future.”

Company Information

Optical Cable Corporation (“OCC”) is a leading manufacturer of a broad range of fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market, offering an integrated suite of high quality, warranted products which operate as a system solution or seamlessly integrate with other providers’ offerings.  OCC’s product offerings include designs for uses ranging from commercial, enterprise network, datacenter, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining and broadcast applications.  OCC products include fiber optic and copper cabling, fiber optic and copper connectors, specialty fiber optic and copper connectors, fiber optic and copper patch cords, pre-terminated fiber optic and copper cable assemblies, racks, cabinets, datacom enclosures, patch panels, face plates, multi-media boxes and other cable and connectivity management accessories, and are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics.

OCC® is internationally recognized for pioneering the design and production of fiber optic cables for the most demanding military field applications, as well as of fiber optic cables suitable for both indoor and outdoor use, and creating a broad product offering built on the evolution of these fundamental technologies.  OCC also is internationally recognized for its role in establishing copper connectivity data communications standards, through its innovative and patented technologies.

Founded in 1983, OCC is headquartered in Roanoke, Virginia with offices, manufacturing and warehouse facilities located in each of Roanoke, Virginia, near Asheville, North Carolina and near Dallas, Texas.  OCC primarily manufactures its fiber optic cables at its Roanoke facility which is ISO 9001:2008 registered and MIL-STD-790F certified, its enterprise connectivity products at its Asheville facility which is ISO 9001:2008 registered, and its military and harsh environment connectivity products and systems at its Dallas facility which is ISO 9001:2008 registered and MIL-STD-790F certified.

Optical Cable Corporation, OCC®, Superior Modular Products, SMP Data Communications, Applied Optical Systems, and associated logos are trademarks of Optical Cable Corporation.

Further information about OCC is available on the Internet at www.occfiber.com.

FORWARD-LOOKING INFORMATION

This news release by Optical Cable Corporation and its subsidiaries (collectively, the “Company” or “OCC”) may contain certain forward-looking information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning our outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to variables, uncertainties, contingencies and risks that may cause actual events to differ materially from our expectations, and furthermore, such variables, uncertainties, contingencies and risks may also adversely affect Optical Cable Corporation and its subsidiaries, the Company’s future results of operations and future financial condition, and/or the future equity value of the Company.  Factors that could cause or contribute to such differences from our expectations or could adversely affect the Company include, but are not limited to:  the level of sales to key customers, including distributors; timing of certain projects and purchases by key customers; the economic conditions affecting network service providers; corporate and/or government spending on information technology; actions by competitors; fluctuations in the price of raw materials (including optical fiber, copper, gold and other precious metals, and plastics and other materials affected by petroleum product pricing); fluctuations in transportation costs; our dependence on customized equipment for the manufacture of our products and a limited number of production facilities; our ability to protect our proprietary manufacturing technology; our ability to replace royalty income as existing patented and licensed products expire by developing and licensing new products; market conditions influencing prices or pricing; our dependence on a limited number of suppliers; the loss of, or conflict with, one or more key suppliers or customers; an adverse outcome in litigation, claims and other actions, and potential litigation, claims and other actions against us; an adverse outcome in regulatory reviews and audits and potential regulatory reviews and audits; adverse changes in state tax laws and/or positions taken by state taxing authorities affecting us; technological changes and introductions of new competing products; changes in end-user preferences for competing technologies, relative to our product offering; economic conditions that affect the telecommunications sector, certain technology sectors or the economy as a whole; changes in demand of our products from certain competitors for which we provide private label connectivity products; terrorist attacks or acts of war, and any current or potential future military conflicts; changes in the level of military spending by the United States government; ability to retain key personnel; inability to recruit needed personnel; poor labor relations; the inability to successfully complete the integration of the operations of our new subsidiaries; the impact of changes in accounting policies and related costs of compliance, including changes by the Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), the Financial Accounting Standards Board (FASB), and/or the International Accounting Standards Board (IASB); our ability to continue to successfully comply with, and the cost of compliance with, the provisions of Section 404 of the Sarbanes-Oxley Act of 2002 or any revisions to that act which apply to us; the impact of changes and potential changes in federal laws and regulations adversely affecting our business and/or which result in increases in our direct and indirect costs, including our direct and indirect costs of compliance with such laws and regulations; the impact of the Patient Protection and Affordable Care Act of 2010, the Health Care and Education Reconciliation Act of 2010, and any revisions to those acts that apply to us and the related legislation and regulation associated with those acts, which directly or indirectly results in increases to our costs; the impact of changes in state or federal tax laws and regulations increasing our costs; impact of future consolidation among competitors and/or among customers adversely affecting our position with our customers and/or our market position; actions by customers adversely affecting us in reaction to the expansion of our product offering in any manner, including, but not limited to, by offering products that compete with our customers, and/or by entering into alliances with, making investments in or with, and/or acquiring parties that compete with and/or have conflicts with customers of ours; voluntary or involuntary delisting of the Company’s capital stock from any exchange on which it is traded; the deregistration by the Company from SEC reporting requirements, as a result of the small number of holders of the Company’s capital stock; adverse reactions by customers, vendors or other service providers to unsolicited proposals regarding the ownership or management of the Company; the additional costs of considering and possibly defending our position on such unsolicited proposals; impact of weather or natural disasters in the areas of the world in which we operate and market our products; an increase in the number of the Company’s capital stock issued and outstanding; economic downturns and/or changes in market demand, exchange rates, productivity, or market and economic conditions in the areas of the world in which we operate and market our products; and our success in managing the risks involved in the foregoing.  The foregoing is not intended to be complete and the Company is subject to other variables, uncertainties, contingencies and risks than those set forth above.

(1)  This reversal of a goodwill impairment charge partially reduces the $6.2 million non-cash, non-recurring goodwill impairment charge recorded by the Company during the second quarter of fiscal year 2010.  The purchase accounting adjustment made during the fourth quarter was primarily the result of the Company’s adjustment to the valuation of certain deferred tax assets acquired in the purchase of AOS, and is not a result of a re-evaluation of the goodwill impairment recorded during the second quarter of fiscal year 2010.  There is no tax benefit associated with the reversal of the goodwill impairment charge in the fourth quarter, as it is considered a non-deductible permanent item for tax purposes.  Accordingly, there is no change to the tax expense as reported for fourth quarter of fiscal year 2010 in determining the proforma net loss and net loss per share.

(2)  This proforma net loss attributable to OCC and proforma net loss per share attributable to OCC are calculated by excluding the non-cash, non-recurring net impairment of goodwill charge of $5.6 million that was recorded during fiscal year 2010 from the Company’s net loss attributable to OCC as reported for the fiscal year ended October 31, 2010.  The net goodwill impairment charge of $5.6 million during fiscal year 2010 consists of (i) a $6.2 million goodwill impairment charge recognized during the second quarter of fiscal year 2010 and (ii) a $666,000 reversal of the goodwill charge associated with a purchase accounting adjustment recognized during the fourth quarter of fiscal year 2010.  There is no tax benefit associated with the goodwill impairment charge, as it is considered a non-deductible permanent item for tax purposes.  Accordingly, there is no change to the tax expense as reported for fiscal year 2010 in determining the proforma net loss and net loss per share.

(Financial Tables Follow)

OPTICAL CABLE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(thousands, except per share data)

(unaudited)

Three Months Ended

October 31,

Fiscal Year Ended

October 31,

2010

2009

2010

2009

Net sales

$       18,464

$      14,080

$     67,506

$     58,589

Cost of goods sold

11,298

9,233

43,746

38,748

Gross profit

7,166

4,847

23,760

19,841

SG&A expenses

6,028

5,336

24,268

22,345

Royalty income, net

(309)

(198)

(1,233)

(878)

Amortization of intangible assets

146

199

587

825

Impairment of goodwill

(666)

5,580

Impairment of intangible assets (other than goodwill)

153

344

Income (loss) from operations

1,967

(643)

(5,442)

(2,795)

Interest income (expense), net

(157)

653

(542)

149

Other, net

(3)

(9)

65

16

Other income (expense), net

(160)

644

(477)

165

Income (loss) before income taxes

1,807

1

(5,919)

(2,630)

Income tax expense (benefit)

455

91

91

(706)

Net income (loss)

$        1,352

$          (90)

$     (6,010)

$     (1,924)

Net loss attributable to noncontrolling

interest (2)

(122)

(277)

Net income (loss) attributable to OCC

$        1,474

$          (90)

$      (5,733)

$      (1,924)

Net income (loss) per share attributable to

OCC:  Basic and diluted

$            0.23

$       (0.01)

$         (0.95)

$       (0.34)

PROFORMA net income (loss) attributable to OCC, EXCLUDING impairment of goodwill (1)

$             808

$        (153)

PROFORMA net income (loss) per share attributable to OCC, EXCLUDING impairment of goodwill: Basic and diluted (1)

$            0.13

$        (0.03)

OPTICAL CABLE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (continued)

(thousands, except per share data)

(unaudited)

Three Months Ended

October 31,

Fiscal Year Ended

October 31,

2010

2009

2010

2009

Weighted average shares outstanding:

Basic and diluted

6,388

6,543

6,015

5,656

(1) Proforma net income (loss) attributable to OCC and proforma net income (loss) per share attributable to OCC are calculated by excluding the non-cash, non-recurring net impairment of goodwill charge of $5.6 million associated with the acquisition of Applied Optical Systems, Inc. (“AOS”) that was recorded during fiscal year 2010 from the Company’s net loss attributable to OCC as reported for the fiscal year ended October 31, 2010.  The goodwill impairment charge of $5.6 million consists of (i) a $6.2 million goodwill impairment charge recognized during the second quarter of fiscal year 2010 and (ii) a $666,000 reversal of the goodwill charge associated with a purchase accounting adjustment recognized during the fourth quarter of fiscal year 2010.   The purchase accounting adjustment made during the fourth quarter was primarily the result of the Company’s adjustment to the valuation of certain deferred tax assets acquired in the purchase of AOS, and is not a result of a re-evaluation of the goodwill impairment recorded during the second quarter of fiscal year 2010.  There is no tax benefit associated with the goodwill impairment charge, as it is considered a non-deductible permanent item for tax purposes.  Accordingly, there is no change to the tax expense as reported for fiscal year 2010 in determining the proforma net loss and net loss per share.

(2) Accounting Standards Codification 810-10, Consolidation (“ASC 810-10“), was adopted by OCC effective for fiscal year 2010 as it relates to noncontrolling interests.  There are no noncontrolling interest amounts presented for fiscal year 2009 since the minority interest’s share of losses attributable to Centric Solutions LLC was charged against the Company’s majority interest in accordance with the previous accounting literature.

OPTICAL CABLE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(thousands)

(unaudited)

October 31,

2010

October 31,

2009

Cash and cash equivalents

$           2,522

$         1,948

Trade accounts receivable, net

10,660

9,533

Inventories

14,423

12,306

Other current assets

3,062

3,915

Total current assets

30,667

27,702

Non-current assets

14,624

22,625

Total assets

$         45,291

$       50,327

Current liabilities

$           7,762

$         7,632

Non-current liabilities

9,949

9,438

Total liabilities

17,711

17,070

Total shareholders’ equity attributable to OCC

27,857

33,257

Noncontrolling interest (a)

(277)

Total shareholders’ equity

27,580

33,257

Total liabilities and shareholders’ equity

$         45,291

$       50,327

(a)  ASC 810-10, Consolidation, was adopted by OCC effective for fiscal year 2010 as it relates to noncontrolling interests.  There are no noncontrolling interest amounts presented for fiscal year 2009 since the minority interest’s share of losses attributable to Centric Solutions LLC was charged against the Company’s majority interest in accordance with the previous accounting literature.

AT THE COMPANY:

Neil Wilkin

Tracy Smith

Chairman, President & CEO

Senior Vice President & CFO

(540) 265-0690

(540) 265-0690

investorrelations@occfiber.com

investorrelations@occfiber.com

AT JOELE FRANK, WILKINSON BRIMMER KATCHER:

Andrew Siegel

Aaron Palash

(212) 355-4449 ext. 127

(212) 355-4449 ext. 103

occf-jfwbk@joelefrank.com

occf-jfwbk@joelefrank.com

Monday, January 24th, 2011 Uncategorized Comments Off on Optical Cable Corp. (OCCF) Reports Fourth Quarter and Fiscal Year 2010 Financial Results

Clinical Data, Inc. (CLDA) Announces FDA Approval of Viibryd(TM) (vilazodone HCl)

Jan. 24, 2011 (Business Wire) — Clinical Data, Inc. (NASDAQ: CLDA), today announced that the U.S. Food and Drug Administration (FDA) has approved vilazodone HCl tablets, to be marketed under the brand name Viibryd™, for the treatment of adults with major depressive disorder (MDD).1 Viibryd is a new molecular entity and the first and only selective serotonin reuptake inhibitor and 5HT1A receptor partial agonist.1 Clinical Data plans to make Viibryd available in U.S. pharmacies in the second quarter of this year.

U.S. Food and Drug Administration Approves Viibryd(TM) (vilazodone HCl tablets) for Major Depressive Disorder (see accompanying press release for details)(Photo: Business Wire)

“When treating MDD, our goal is to offer treatment options that meet the individual needs of each patient,” said Stephen M. Stahl, M.D., Ph.D., Professor of Psychiatry, University of California, San Diego. “Viibryd is an important new treatment option with proven efficacy and a demonstrated safety profile.”

The mechanism of the antidepressant effect of Viibryd is not fully understood but is thought to be related to its enhancement of serotonergic activity in the central nervous system (CNS) through selective inhibition of serotonin reuptake. Viibryd is also a partial agonist at serotonergic 5HT1A receptors; however, the net result of this action on serotonergic transmission and its role in Viibryd’s antidepressant effect are unknown.1

The efficacy of Viibryd as a treatment for MDD was established in two 8-week, multicenter, randomized, double-blind, placebo-controlled studies in adults who met the criteria for MDD. In these studies, patients were titrated over two weeks to a dose of 40 mg of Viibryd once daily. Viibryd was superior to placebo in the improvement of depressive symptoms as measured by the mean change from baseline to week 8 in the Montgomery-Asberg Depression Rating Scale (MADRS) total score.

Viibryd was demonstrated to be safe in clinical studies. In the placebo-controlled, Phase III studies, the most commonly observed adverse reactions in Viibryd-treated patients were diarrhea, nausea, vomiting and insomnia. No single adverse event led to discontinuation of treatment in greater than 1% of patients. Overall, 7.1% of the patients who received Viibryd discontinued treatment due to an adverse reaction, compared to 3.2% of placebo-treated patients. Viibryd has not been associated with any clinically important changes in laboratory test parameters including liver function tests, ECG including QT interval, or vital signs. In addition, Viibryd had no effect on body weight as measured by mean change from baseline in the 8-week studies. Among the common adverse reactions (≥2%) related to sexual function with Viibryd compared to placebo were decreased libido (4% vs. <1%), abnormal orgasm (3% vs. 0%), delayed ejaculation (2% vs. 0%, males only), and erectile dysfunction (2% vs. 1%, males only).1

“While there are currently available treatments for MDD, no one therapy works for every patient and side effect profiles vary, which may impact both compliance and treatment success,” said Carol R. Reed M.D., Executive Vice President and Chief Medical Officer of Clinical Data. “Viibryd will be a new choice for healthcare providers and their patients who are suffering from depression.”

“Viibryd is the only antidepressant that is a selective serotonin reuptake inhibitor and 5HT1A receptor partial agonist,” said Drew Fromkin, President and CEO of Clinical Data. “It is also the first drug that the Company has developed, and to have received marketing approval from the FDA on its first review is a significant milestone for Clinical Data.”

About Depression

Major depressive disorder (MDD), also called major depression, is a mental disorder characterized by an imbalance of chemicals in the brain, also called neurotransmitters, and is one of the most common mental disorders in the U.S. A person diagnosed with MDD exhibits a combination of symptoms that interfere with one’s ability to work, sleep, study, eat, and enjoy once–pleasurable activities. Though an episode of depression may occur only once in a person’s life, it more commonly recurs throughout a person’s lifetime.2

The World Health Organization estimates that MDD affects approximately 18 million people in the U.S.3 More than 212 million prescriptions were written for antidepressants in 2009.4

About Viibryd (vilazodone HCl tablets)

Viibryd was approved for marketing by the FDA on January 21, 2011 for the treatment of MDD in adults. Clinical Data holds exclusive worldwide rights to Viibryd from Merck KGaA, Darmstadt, Germany. The safety of Viibryd was evaluated in 2,177 patients diagnosed with MDD.

Important Information About Viibryd

Indication

VIIBRYD (vilazodone) is indicated for the treatment of major depressive disorder (MDD) in adults.1

Important Safety Information

WARNING: SUICIDALITY AND ANTIDEPRESSANT DRUGS

Antidepressants increased the risk compared to placebo of suicidal thinking and behavior (suicidality) in children, adolescents, and young adults in short-term studies of Major Depressive Disorder (MDD) and other psychiatric disorders. Anyone considering the use of VIIBRYD or any other antidepressant in a child, adolescent, or young adult must balance this risk with the clinical need. Short-term studies did not show an increase in the risk of suicidality with antidepressants compared to placebo in adults beyond age 24; there was a reduction in risk with antidepressants compared to placebo in adults aged 65 and older. Depression and certain other psychiatric disorders are themselves associated with increases in the risk of suicide. Patients of all ages who are started on antidepressant therapy should be monitored appropriately and observed closely for clinical worsening, suicidality, or unusual changes in behavior. Families and caregivers should be advised of the need for close observation and communication with the prescriber. VIIBRYD is not approved for use in pediatric patients.1

Contraindications

VIIBRYD must not be used concomitantly in patients taking MAOIs or in patients who have taken MAOIs within the preceding 14 days due to the risk of serious, sometimes fatal, drug interactions with serotonergic drugs. Allow at least 14 days after stopping VIIBRYD before starting an MAOI.1

Warnings and Precautions

  • All patients treated with antidepressants should be monitored appropriately and observed closely for clinical worsening, suicidality, and unusual changes in behavior, especially during the first few months of treatment and when changing the dose. Consider changing the therapeutic regimen, including possibly discontinuing the medication, in patients whose depression is persistently worse or includes symptoms of anxiety, agitation, panic attacks, insomnia, irritability, hostility, aggressiveness, impulsivity, akathisia, hypomania, mania, or suicidality that are severe, abrupt in onset, or were not part of the patient’s presenting symptoms.1 Families and caregivers of patients being treated with antidepressants should be alerted about the need to monitor patients.1
  • The development of potentially life-threatening serotonin syndrome or Neuroleptic Malignant Syndrome (NMS)-like reactions has been reported with antidepressants alone, but particularly with concomitant use of serotonergic drugs (including triptans) with drugs which impair metabolism of serotonin (including MAOIs), or with antipsychotics or other dopamine antagonists. Symptoms of serotonin syndrome were noted in 0.1% of patients treated with VIIBRYD. Serotonin syndrome symptoms may include mental status changes (e.g., agitation, hallucinations, coma), autonomic instability (e.g., tachycardia, labile blood pressure, hyperthermia), neuromuscular aberrations (e.g., hyperreflexia, incoordination) and/or gastrointestinal symptoms (e.g., nausea, vomiting, diarrhea). Patients should be monitored for the emergence of serotonin syndrome or NMS-like signs and symptoms while treated with VIIBRYD.1
  • Symptoms of mania/hypomania were noted in 0.1% of patients treated with VIIBRYD in clinical studies. As with all antidepressants, VIIBRYD should be used cautiously in patients with a history or family history of mania or hypomania.1
  • Prior to initiating treatment with an antidepressant, patients with depressive symptoms should be adequately screened to determine if they are at risk for bipolar disorder. VIIBRYD is not approved for use in treating bipolar depression.1
  • Discontinuation symptoms have been reported with discontinuation of serotonergic drugs such as VIIBRYD. Gradual dose reduction is recommended, instead of abrupt discontinuation, whenever possible. Monitor patients for these symptoms when discontinuing VIIBRYD. If intolerable symptoms occur following a dose decrease or upon discontinuation of treatment, consider resuming the previously prescribed dose and decreasing the dose at a more gradual rate.1
  • Like other antidepressants, VIIBRYD should be prescribed with caution in patients with a seizure disorder.1
  • The use of drugs that interfere with serotonin reuptake, including VIIBRYD, may increase the risk of bleeding events. Patients should be cautioned about the risk of bleeding associated with the concomitant use of VIIBRYD and NSAIDs, aspirin, or other drugs that affect coagulation or bleeding.1
  • Advise patients that if they are treated with diuretics, or are otherwise volume depleted, or are elderly they may be at greater risk of developing hyponatremia while taking VIIBRYD.1 Although no cases of hyponatremia resulting from VIIBRYD treatment were reported in the clinical studies, hyponatremia has occurred as a result of treatment with SSRIs and SNRIs. Discontinuation of VIIBRYD in patients with symptomatic hyponatremia and appropriate medical intervention should be instituted.1

Adverse Reactions

  • The most commonly observed adverse reactions in MDD patients treated with VIIBRYD in placebo-controlled studies (incidence ≥ 5% and at least twice the rate of placebo) were: diarrhea (28% vs. 9%), nausea (23% vs. 5%), insomnia (6% vs. 2%), and vomiting (5% vs. 1%).1

Please see full prescribing information for VIIBRYD at www.viibryd.com. To report suspected adverse reactions, please call Clinical Data, Inc. at 1-877-878-7200 or the FDA at 1-800-FDA-1088 / www.fda.gov/medwatch.

VIIBRYD™ is a trademark of Clinical Data, Inc. and its affiliates.

Conference Call Information

Date: Monday, January 24, 2011

Time: 8:30 a.m. ET

Internet: The live webcast can be accessed at www.clda.com, in the Investor Relations section.

Telephone: Domestic dial (800) 535-7056; International dial (212) 729-5049 (access code: 39633801)

About Clinical Data, Inc.

Clinical Data’s mission is to develop first-in-class and best-in-category therapeutics. The Company’s lead product, Viibryd, was approved for marketing by the FDA for the treatment of major depressive disorder in adults. The Company is also advancing its late-stage drug candidate, Stedivaze, a pharmacologic stress agent in Phase III development for use during myocardial perfusion imaging. Clinical Data has promising drug candidates entering the clinic in major therapeutic areas including asthma, ophthalmology and diabetes. To learn more, please visit the Company’s website at www.clda.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains certain forward-looking information and statements that are intended to be covered by the safe harbor for forward looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about our ability to successfully introduce Viibryd; our ability to expand our long-term business opportunities; and all other statements regarding future performance. All such information and statements are subject to certain risks and uncertainties, the effects of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements contained in this press release. These risks and uncertainties include, but are not limited to, whether Viibryd will be successfully marketed; the strength of our intellectual property rights, including, but not limited to, our patents for the various polymorphic versions of Viibryd; competition from pharmaceutical and biotechnology companies; general economic conditions; and those risks identified and discussed by Clinical Data in its filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward looking statements that speak only as of the date hereof. Clinical Data does not undertake any obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures in Clinical Data’s SEC periodic and interim reports, including but not limited to its Annual Report on Form 10-K for the fiscal year ended March 31, 2010, Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2010, and Current Reports on Form 8-K filed from time to time by the Company.

# # #

1 Viibryd Label.

2 http://www.nimh.nih.gov/health/publications/depression/what-are-the-different-forms-of-depression.shtml

3 Greden, John F. The Burden of Recurrent Depression: Causes, Consequences, and Future Prospects, Journal of Clinical Psychiatry, 2001.

4 IMS Health’s National Prescription Audit, 2009.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6582380&lang=en

Clinical Data, Inc.

Vice President

Corporate Communications

Theresa McNeely, 617-467-6673

or

Media inquiries:

Ruder Finn Public Relations

Trina Chiara, 860 673-4017

Monday, January 24th, 2011 Uncategorized Comments Off on Clinical Data, Inc. (CLDA) Announces FDA Approval of Viibryd(TM) (vilazodone HCl)

CleanTech Innovations, Inc. (CTEK) Receives $11 Million In Initial Wind Tower Supply Contracts

NEW YORK, Jan. 21, 2011 /PRNewswire/ — CleanTech Innovations, Inc. (Nasdaq: CTEK), a U.S. company and a market leader in China’s clean technology solutions in the wind energy industry, announced today that CleanTech has signed two initial wind tower supply contracts totaling US$11 million (RMB 72,732,000, including VAT tax) with a subsidiary of China HuaNeng Group, the largest energy company in China. CleanTech will supply these wind towers to HuaNeng in 2011. HuaNeng has been a long-standing customer of CleanTech. China HuaNeng Group posted US$35 billion in revenue for 2010 and had total assets of US$99 billion.

The completion of the $20 million in bridge financing with institutional investors on December 13, 2010, made it possible for CleanTech to submit contract bids to HuaNeng before the December 18, 2010 bidding deadline.

CleanTech has submitted other contract bids to HuaNeng and other large energy companies in China. CleanTech anticipates winning additional wind tower supply contracts throughout 2011.

Bei Lu, Chairman & CEO of CleanTech commented: “These two recent contracts represent approximately 50% of our entire 2010 revenues.  The new contracts are critical to meeting our 2011 revenue targets in a favorable market environment. CleanTech’s management team is also the founders of our company. As CleanTech has already disclosed publicly, our entire management and insider holdings are locked up and prohibited from any share sales for at least 3 years through December 2013. CleanTech management’s vested interest is completely aligned with those of our public shareholders. We look forward to delivering another year of record earnings growth in 2011.”

Large state-owned energy companies such as HuaNeng are the final customers and integrators of the wind energy industry in China. Topping the five major power producers in China, HuaNeng accounts for 11.9% of domestic power capacity, and 17% of China’s clean energy capacity. In 2010, HuaNeng accounted for 12.8% of China’s total power generation.

About CleanTech Innovations, Inc.

CleanTech Innovations, Inc. (Nasdaq: CTEK) is a U.S. public company with its primary operations in China. CleanTech designs and manufactures high performance clean technology products that promote renewable energy generation, energy savings and pollution reduction. CleanTech’s products include wind turbine towers, bellows expansion joints and pressure vessels, which are broadly used in the wind power, steel, coking, petrochemical, high voltage electricity transmission and thermoelectric industries. CleanTech’s longstanding customers include China Guodian, HuaNeng Energy, Sinosteel and other industrial companies.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company’s expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect CleanTech’s current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in CleanTech’s filings with the Securities and Exchange Commission.

Corporate Contact

Mr. Jason Li

Corporate Communications

CleanTech Innovations, Inc.

Tel: 011-86- 157-1403-7180

Email: investors@ctiproduct.com

Website: www.ctiproduct.com

SOURCE CleanTech Innovations, Inc.

Friday, January 21st, 2011 Uncategorized Comments Off on CleanTech Innovations, Inc. (CTEK) Receives $11 Million In Initial Wind Tower Supply Contracts

Online Resources (ORCC) Considering Alternatives to Board-Approved Strategic Growth Plan

Jan. 21, 2011 (Business Wire) — Online Resources Corporation (Nasdaq: ORCC), a leading provider of online financial services, today announced that its Board of Directors is evaluating unsolicited expressions of interest in potential business combinations that it has received from third parties. The Board is considering these alternatives against the long-term strategic growth plan that it recently approved in order to determine whether there is now an option that can deliver greater shareholder value. Under the strategic plan, the Company has enhanced its management team and is currently investing in technology, products and organizational structure to drive revenue growth and margin improvement.

“Since I arrived as CEO in June, we have worked diligently to develop a long-term plan to put Online Resources back on the path to sustainable growth by investing in new ways to provide exceptional value to our customers,” said Joseph Cowan, President and Chief Executive Officer of Online Resources. “We have a robust and unique set of core assets at Online Resources, and I believe that with the strong team we have in place, we can deliver against the objectives defined in the plan. However, because we have also been approached by other parties, the Company has an obligation to examine other potential value-creating alternatives that may now exist for our shareholders.”

Given this announcement, the Company is postponing its 2011 analyst and investor day event, previously scheduled for Thursday, January 27, 2011. Online Resources currently hopes to provide additional information or commentary in conjunction with the release of its financial results for the fourth quarter of fiscal 2010, planned for early March. However, no specific timetable has been set for completion of this evaluation and there can be no assurance that any transaction will result from the process. Online Resources does not intend to make any further comment until its evaluation is complete.

The Company has retained Raymond James & Associates, Inc. as its financial advisor and Kirkland & Ellis LLP as its legal counsel.

About Online Resources

Online Resources (Nasdaq: ORCC) powers financial interactions between millions of consumers and the Company’s financial institution and biller clients. Backed by its proprietary real-time payments gateway that links banks directly with billers, the Company provides web and phone-based financial services, electronic payments and marketing services to drive consumer adoption. Founded in 1989, Online Resources is the largest financial technology provider dedicated to the online channel. For more information, visit www.orcc.com.

This news release contains statements about future events and expectations, which are “forward-looking statements.” Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically factors that might cause such a difference include, but are not limited to: the company’s history of losses and anticipation of future losses; the company’s dependence on the marketing efforts of third parties; the potential fluctuations in the company’s operating results; the company’s potential need for additional capital; the company’s potential inability to expand the company’s services and related products in the event of substantial increases in demand for these services and related products; the company’s competition; the company’s ability to attract and retain skilled personnel; the company’s reliance on the company’s patents and other intellectual property; the early stage of market adoption of the services it offers; consolidation of the banking and financial services industry; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading “Risk Factors” in the company’s Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.

Online Resources Corporation

Media Contact:

Beth Halloran

Sr. Dir., Corp. Communications

703-653-2248

bhalloran@orcc.com

or

Investor Contact:

Catherine Graham

EVP & Chief Financial Officer

703-653-3155

cgraham@orcc.com

Friday, January 21st, 2011 Uncategorized Comments Off on Online Resources (ORCC) Considering Alternatives to Board-Approved Strategic Growth Plan

Community West Bancshares (CWBC) Reports Profit of $1.1 Million for 4Q10 and $2.1 Million for the Year

GOLETA, Calif., Jan. 20, 2011 (GLOBE NEWSWIRE) — Community West Bancshares (“Community West”), (Nasdaq:CWBCNews), parent company of Community West Bank, today reported net income of $1.1 million in the fourth quarter of 2010 (4Q10), compared to net income of $97,000 in the fourth quarter a year ago (4Q09). The loan loss provision in 4Q10 was $1.3 million compared to $2.8 million in 4Q09. For the full year, Community West reported net income of $2.1 million, compared to a net loss of $5.8 million for 2009. The loan loss provision for all of 2010 was $8.7 million compared to $18.7 million in 2009.

“We are extremely pleased by our positive operating results in 2010,” stated Lynda J. Nahra, President and Chief Executive Officer. “We have improved across all areas of the Bank and continue to benefit from strong core earnings, net interest margin expansion and stabilizing asset quality. Our net interest income and noninterest income both increased during the fourth quarter compared to the fourth quarter a year ago, while our provision for loan losses has decreased. Additionally, our nonperforming loans declined during the quarter and remain at workable levels.”

2010 Financial Highlights

  • Net income applicable to common stockholders was $795,000, or $0.11 per diluted common share in 4Q10.
  • For the year, net income applicable to common stockholders was $1.0 million, or $0.18 per diluted common share.
  • Net interest margin was 4.57% in 4Q10, a 39 basis point improvement compared to 4Q09.
  • For the year, net interest margin was 4.50%, a 59 basis point improvement compared to 2009.
  • Core deposits increased by 29.5% compared to a year ago.
  • Nonperforming loans were $12.7 million, or 2.13% of total loans at 12/31/10, compared to $15.1 million, or 2.51% of total loans, at 9/30/10.
  • The total allowance for loan losses/total loans held for investment was 2.60% at 12/31/10 compared to 2.64% at 9/30/10.
  • Community West Bank’s Total risk-based capital ratio was 12.87%, Tier 1 risk-based capital ratio was 11.61% and Tier 1 leverage ratio was 9.24% at 12/31/10.

In 4Q10, including the $262,000 preferred stock dividends, the net income applicable to common stockholders was $795,000, or $0.11 per diluted share, compared to a net loss applicable to common stockholders of $165,000, or $0.03 per diluted share, in 4Q09. For the full year, the net income applicable to common stockholders was $1,044,000, or $0.18 per diluted share, compared to a net loss applicable to common stockholders of $6.8 million, or $1.15 per diluted share, a year ago.

Income Statement Review

“Improvement in our funding costs led to continued net interest margin expansion,” said Charles G. Baltuskonis, EVP and Chief Financial Officer. In 4Q10, the net interest margin was 4.57% compared to 4.49% in 3Q10 and 4.18% in 4Q09. For the full year, the net interest margin increased 59 basis points to 4.50% from 3.91% in 2009.

Fourth quarter net interest income increased 5.6% to $7.4 million compared to $7.1 million in 4Q09. For the year, net interest income increased 12.8% to $29.3 million compared to $26.0 million a year ago. Non-interest income increased 18.6% to $1.2 million in 4Q10, compared to $1.0 million in 4Q09. For the year, there was a modest decline in loan servicing fees due to lower SBA sold loan balances and lack of new loan sales.

Non-interest expenses were $5.6 million in 4Q10, compared to $5.1 million in 4Q09. The increase in operating costs was primarily attributable to higher costs related to problem credits. For the year, non-interest expenses improved 2.3% to $21.0 million compared to $21.5 million for 2009.

For 2010, the efficiency ratio improved by 11.2% to 63.5% compared to 71.0% a year ago.

Credit Quality

Nonperforming loans totaled $12.7 million, or 2.13% of total loans at December 31, 2010, compared to $15.1 million or 2.51% of total loans three months earlier and $16.2 million, or 2.62% of total loans a year ago. Real estate owned and repossessed assets totaled $8.5 million at December 31, 2010 compared to $5.5 million at September 30, 2010 and $1.8 million a year ago. Of the $12.7 million in total nonperforming loans, $5.9 million or 46.7% were real estate loans, $4.2 million or 33.0% were SBA loans, $1.9 million or 15.1% were manufactured housing loans, $602,000 or 4.8% were commercial loans and $52,000 or 0.4% were other installment loans.

“The decrease in the provision for loan losses was the direct result of the improving asset quality trends as well as real estate valuations stabilizing,” said Nahra. The loan loss provision was $1.3 million in 4Q10 compared to $1.5 million in 3Q10 and $2.8 million in 4Q09. The allowance for loan losses totaled $13.3 million at year-end, equal to 2.60% of total loans held for investment, compared to 2.64% at September 30, 2010 and 2.67% a year ago.

Community West had net charge-offs of $1.4 million in 4Q10 compared to $2.0 million in 3Q10 and $2.3 million in 4Q09.

Balance Sheet

Total loans decreased from a year ago as loan demand has softened, particularly in the commercial and SBA loan sectors. Total loans were $593.9 million at December 31, 2010 compared to $617.2 million a year ago.

Real estate loans outstanding decreased 4.9%, or $9.9 million, from year ago levels to $192.5 million at December 31, 2010, and comprise 32.4% of the total loan portfolio. Manufactured housing loans were down slightly from year ago levels to $194.7 million and represent 32.8% of total loans. Commercial loans were down 7.2% compared to a year ago and now represent 9.7% of the total loan portfolio and SBA loans decreased 7.5% from a year ago and now represent 21.7% of the total loan portfolio. Other installment loans increased 13.5% from year ago levels and represent 3.5% of the total loan portfolio.

“Our deposit strategy is focused on the growth of core and business deposits while reducing our reliance on wholesale funding,” said Baltuskonis. “As a result, core deposits grew $14.0 million for the quarter and $72.6 million for the year.”

Total deposits were $529.9 million at December 31, 2010 compared to $531.4 million a year earlier. Non-interest-bearing accounts were $35.8 million at December 31, 2010 compared to $37.7 million a year ago. Interest-bearing accounts increased 36.8% to $262.4 million compared to $191.9 million a year ago. Core deposits, defined as non-interest-bearing, interest-bearing and savings accounts, increased 29.5% to $318.6 million at year-end, compared to $246.0 million a year earlier while certificates of deposit decreased 26.0% over the same period to $211.3 million, compared to $285.4 million a year earlier.

Total assets were $667.6 million at year-end, compared to $684.2 million a year earlier. Stockholders’ equity was $61.6 million at year-end, compared to $60.3 million a year earlier and book value per common share was $7.92 at year-end compared to $7.74 a year earlier.

Capital Management

In August, Community West completed its public offering of $8,085,000 of 9% convertible subordinated debentures. Proceeds from the offering further strengthened the capital position of the Company and support its strategic growth opportunities.

Company Overview

Community West Bancshares is a financial services company with headquarters in Goleta, California. The Company is the holding company for Community West Bank, which has five full-service California branch banking offices, in Goleta, Santa Barbara, Santa Maria, Ventura and Westlake Village. The principal business activities of the Company are Relationship banking, Mortgage lending and SBA lending.

Safe Harbor Disclosure

This release contains forward-looking statements that reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including, but not limited to, the ability of the Company to implement its strategy and expand its lending operations.

COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in 000’s, except per share data)
Three Months Ended Twelve Months Ended
December 31,
2010
September 30,
2010
December 31,
2009
December 31,
2010
December 31,
2009
Interest income $ 9,862 $ 9,727 $ 10,108 $ 39,234 $ 40,903
Interest expense 2,419 2,419 3,058 9,957 14,945
Net interest income 7,443 7,308 7,050 29,277 25,958
Provision for loan losses 1,279 1,518 2,788 8,743 18,678
Net interest income after
provision for loan losses
6,164 5,790 4,262 20,534 7,280
Non-interest income 1,220 1,023 1,029 4,015 4,418
Non-interest expenses 5,588 5,035 5,124 20,991 21,479
Income (Loss) before income taxes 1,796 1,778 167 3,558 (9,781)
Provision for income taxes 739 733 70 1,467 (4,018)
NET INCOME (LOSS) $ 1,057 $ 1,045 $ 97 $ 2,091 $ (5,763)
Preferred stock dividends 262 261 262 1,047 1,046
NET INCOME (LOSS) APPLICABLE
TO COMMON SHAREHOLDERS
$ 795 $ 784 $ (165) $ 1,044 $ (6,809)
Earnings (Loss) per common share:
Basic $ 0.13 $ 0.13 $ (0.03) $ 0.18 $ (1.15)
Diluted 0.11 0.12 (0.03) 0.18 (1.15)
COMMUNITY WEST BANCSHARES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in 000’s, except per share data)
December 31,
2010
September 30,
2010
December 31,
2009
Cash and cash equivalents $ 6,226 $ 12,332 $ 5,511
Interest-earning deposits in other financial institutions 290 475 640
Investment securities 40,235 39,186 40,348
Loans:
Commercial 57,369 55,120 61,810
Commercial real estate 173,906 175,700 180,688
SBA 128,721 131,366 139,113
Manufactured housing 194,682 196,451 195,656
Single family real estate 13,739 13,873 14,821
HELOC 20,273 20,544 17,902
Consumer 379 363 287
Mortgage loans held for sale 4,865 7,223 6,896
Total loans 593,934 600,640 617,173
Loans, net
Held for sale 82,320 93,643 102,574
Held for investment 511,614 506,997 514,599
Less: Allowance (13,302) (13,395) (13,733)
Net held for investment 498,312 493,602 500,866
NET LOANS 580,632 587,245 603,440
Other assets 40,221 37,232 34,277
TOTAL ASSETS $ 667,604 $ 676,470 $ 684,216
Deposits
Non-interest-bearing $ 35,767 $ 39,140 $ 37,703
Interest-bearing 262,431 246,576 191,905
Savings 20,371 18,848 16,396
CDs over 100K 163,118 170,130 173,594
CDs under 100K 48,206 60,979 111,794
Total Deposits 529,893 535,673 531,392
Other borrowings 72,081 76,085 89,000
Other liabilities 3,988 3,930 3,517
TOTAL LIABILITIES 605,962 615,688 623,909
Stockholders’ equity 61,642 60,782 60,307
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 667,604 $ 676,470 $ 684,216
Shares outstanding 5,916 5,915 5,915
Book value per common share $ 7.92 $ 7.78 $ 7.74
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts)(Unaudited)
Quarter Ended Quarter Ended Quarter Ended Twelve Months Ended
PERFORMANCE MEASURES AND RATIOS Dec. 31, 2010 Sep. 30, 2010 Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2009
Return on average common equity 8.98% 9.03% 0.83% 4.50% -12.02%
Return on average assets 0.63% 0.62% 0.06% 0.31% -0.85%
Efficiency ratio 64.50% 60.44% 63.42% 63.05% 71.00%
Net interest margin 4.57% 4.49% 4.18% 4.50% 3.91%
Quarter Ended Quarter Ended Quarter Ended Twelve Months Ended
AVERAGE BALANCES Dec. 31, 2010 Sep. 30, 2010 Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2009
Average assets $ 676,475 $ 673,932 $ 681,201 $ 676,776 $ 675,672
Average earning assets 646,180 645,765 669,248 650,448 663,151
Average total loans 599,071 600,234 611,512 603,141 605,741
Average deposits 535,258 536,616 531,453 537,454 502,173
Average equity (including preferred stock) 61,837 60,975 61,187 61,132 62,353
Average common equity (excluding preferred stock) 47,074 46,278 46,683 46,464 47,947
EQUITY ANALYSIS Dec. 31, 2010 Sep. 30, 2010 Dec. 31, 2009
Total equity $ 61,642 $ 60,782 $ 60,307
Less: senior preferred stock 14,807 14,740 14,540
Total common equity $ 46,835 $ 46,042 $ 45,767
Common stock outstanding 5,916 5,915 5,915
Book value per common share $ 7.92 $ 7.78 $ 7.74
ASSET QUALITY Dec. 31, 2010 Sep. 30, 2010 Dec. 31, 2009
Nonperforming loans (NPLs) $ 12,671 $ 15,104 $ 16,177
Nonperforming loans/total loans 2.13% 2.51% 2.62%
REO and repossessed assets $ 8,478 $ 5,466 $ 1,822
Less: SBA-guaranteed amounts $ 1,725 $ 1,435 $ 181
Net REO and repossessed assets $ 6,753 $ 4,031 $ 1,641
Nonperforming assets (net) $ 19,424 $ 19,135 $ 17,818
Nonperforming assets/total assets 2.91% 2.83% 2.60%
Net loan charge-offs in the quarter $ 1,372 $ 1,960 $ 2,329
Net charge-offs in the quarter/total loans 0.23% 0.33% 0.38%
Allowance for loan losses $ 13,302 $ 13,395 $ 13,733
Plus: Allowance for undisbursed loan commitments 194 208 501
Total allowance for credit losses $ 13,496 $ 13,603 $ 14,234
Total allowance for loan losses/total loans held for investment 2.60% 2.64% 2.67%
Total allowance for loan losses/nonperforming loans 105% 89% 85%
Community West Bancshares
Tier 1 leverage ratio 9.08% 8.98% 8.81%
Tier 1 risk-based capital ratio 11.40% 11.25% 10.93%
Total risk-based capital ratio 14.16% 14.02% 12.20%
Community West Bank
Tier 1 leverage ratio 9.24% 9.09% 8.69%
Tier 1 risk-based capital ratio 11.61% 11.38% 10.78%
Total risk-based capital ratio 12.87% 12.65% 12.05%
INTEREST SPREAD ANALYSIS Dec. 31, 2010 Sep. 30, 2010 Dec. 31, 2009
Yield on interest-bearing deposits 1.42% 1.44% 1.92%
Yield on total loans 6.33% 6.21% 6.29%
Yield on investments 2.60% 2.96% 3.37%
Yield on earning assets 6.06% 5.98% 5.99%
Cost of deposits 1.31% 1.34% 1.77%
Cost of FHLB advances 2.75% 2.83% 3.65%
Cost of Federal Reserve borrowings 0.00% 0.00% 0.50%
Cost of interest-bearing liabilities 1.68% 1.67% 2.10%

Contact:

Charles G. Baltuskonis, EVP & CFO
805.692.5821
Thursday, January 20th, 2011 Uncategorized Comments Off on Community West Bancshares (CWBC) Reports Profit of $1.1 Million for 4Q10 and $2.1 Million for the Year

BIOLASE (BLTI) Launches Dual-Wavelength Waterlase(R) iPlus(TM) All-Tissue Laser

IRVINE, CA–(Marketwire – 01/20/11) – BIOLASE Technology, Inc. (NASDAQ:BLTINews), the world’s leading dental laser manufacturer and distributor, today announced the launch of the Waterlase® iPlus™ System dual-wavelength all-tissue laser, the first major breakthrough in all-tissue laser technology since the Waterlase MD™ was introduced in 2005.

The iPlus’ Intuitive Power not only addresses the key needs for the next generation of laser dentists, but it also delivers more power, control and versatility for experienced laser dentists. Cutting of all tissue types with the new iPlus can be performed twice as fast as current laser systems, with no pain or discomfort, no risk of cross-contamination associated with conventional drills, and resulting in surface quality much smoother than ever.

Chief Technology Officer Dmitri Boutoussov, PhD, said, “The iPlus represents a major leap in the development of all-tissue dental lasers. Cutting teeth at the speed of the mechanical drill without sacrificing patient comfort has always been our goal at BIOLASE. It was a tremendous challenge for us which took several years to develop. Now, our patent-pending technology (named ‘2R Powered’ technology) allows us to build an Er;Cr:YSGG laser with the highest pulse energy at short pulses among all Erbium-based, 3-micron lasers in the industry, as well as the highest pulse repetition rates. The result is very fast removal of hard tooth tissue with no discomfort to the patient, in combination with a smooth surface finish. Our new technology also opens a great opportunity to explore non-dental applications in medicine, which require fast and smooth cutting of both soft tissue and bone, coverage of larger surface areas (like skin or wounds), and where the delivery of laser radiation to treatment site through a flexible fiber is a must-have.”

After using the system, Southern California dentist Dr. Christina Do stated, “It is amazingly fast, as fast or faster than my high-speed drill and the patient never flinched.”

Unlike dental lasers of the last decade, the iPlus also features a revolutionary and intuitive applications-based user interface with a large high resolution touch screen programmed with over 50 factory-loaded procedure presets. Dentists will simply choose which procedure to perform — from “bread and butter” restorative cases to specialty cases like periodontal or endodontic — and the iPlus will program everything for the dentist.

The iPlus is available in a system configuration and features the proprietary 2780 nm YSGG technology together with an integrated iLase 940 nm diode laser or as a standalone unit. The YSGG technology has been the industry standard for all tissue dental lasers since its introduction in 1997. The iLase will enhance the capabilities of the YSGG by providing a diode laser that can be utilized for unexpected soft-tissue cases in an adjacent treatment room, better control of bleeding, and the potential for temporary pain relief and teeth whitening.

Chairman and CEO Federico Pignatelli said, “The iPlus is our new flagship laser product and will have a substantial impact on our sales in 2011 and beyond. It is the most advanced — yet most intuitive — dental laser ever conceived. With the Intuitive Power of the iPlus, dentists will be able to completely focus on dentistry, while the iPlus handles the technical laser details. I’m extremely proud of the job done by our R&D team under the leadership of Dr. Boutoussov, to deliver the perfect product for the rapidly growing worldwide dental laser market. We have received full FDA clearance and will begin taking orders next week for delivery this quarter.”

Other innovations include a new fiber delivery system with little to no “pull-back” on the dentist’s hand and a new 3X brighter illumination source. This allows for complete freedom of movement of the handpiece and greatly reduces hand fatigue throughout the day in combination with excellent site visibility.

“I have been using lasers from BIOLASE and other manufacturers for twenty years in my practice, and also taught hundreds of other dentists how to use lasers,” commented Dr. Phil Hudson from Spokane. “Whenever I have asked what took them so long to buy a laser, two of the most common concerns were that it would slow them down, and it would be too difficult to learn. The iPlus solves all of that. It is blazingly fast in all classes of cavity preparation and is my first choice when I am confronted by soft tissue surgical challenges. Any dentist with a smart phone will feel right at home with the iPlus, as its intuitive nature eliminates both the mystery and the fear factor of lasers.”

Pignatelli added, “With the iPlus, any dentist can quickly integrate an all-tissue laser into his or her practice. The intuitive nature of the interface is very much like the personal electronic devices we already use in our daily lives, so dentists will easily learn how to operate the iPlus. With our higher powered laser, dentists will be able to perform hard tissue procedures with as much speed as conventional drills, but without the discomfort and risk of cross contamination as often occurs with drills in conventional dental procedures as per recent astonishing published research. Finally, the iLase diode laser completes the set of services that dentists can provide for their patients. Our new Waterlase iPlus makes all of this possible.”

The formal introduction of the iPlus, with a retail price depending on a system configuration expected to be at a price point of $54,900, will be in booth #1640 at the Yankee Dental Congress on January 27th in Boston. A preview video of the iPlus can also be viewed at www.waterlaseiplus.com

About BIOLASE Technology, Inc.
BIOLASE Technology, Inc., the World’s leading dental laser company, is a medical technology company that develops, manufactures and markets lasers and related products focused on technologies that advance the practice of dentistry and medicine. The Company’s products incorporate patented and patent pending technologies designed to provide clinically superior performance with less pain and faster recovery times. BIOLASE’s principal products are dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. Other products under development address ophthalmology and other medical and consumer markets.

For updates and information on laser and Waterlase dentistry, find BIOLASE at http://www.biolase.com, Twitter at http://twitter.com/GoWaterlase, and YouTube at http://www.youtube.com/user/Rossca08.

This press release may contain forward-looking statements within the meaning of safe harbor provided by the Securities Reform Act of 1995 that are based on the current expectations and estimates by our management. These forward-looking statements can be identified through the use of words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” and variations of these words or similar expressions. Forward-looking statements are based on management’s current, preliminary expectations and are subject to risks, uncertainties and other factors which may cause the Company’s actual results to differ materially from the statements contained herein, and are described in the Company’s reports it files with the Securities and Exchange Commission, including its annual and quarterly reports. No undue reliance should be placed on forward-looking statements. Such information is subject to change, and we undertake no obligation to update such statements.

Thursday, January 20th, 2011 Uncategorized Comments Off on BIOLASE (BLTI) Launches Dual-Wavelength Waterlase(R) iPlus(TM) All-Tissue Laser

Kingtone Wirelessinfo Solution Holding Ltd (KONE) Reports Fourth Quarter and Fiscal Year 2010 Financial Results

XI’AN, China, Jan. 20, 2011 /PRNewswire-Asia/ — Kingtone Wirelessinfo Solution Holding Ltd (Nasdaq:KONENews) (“Kingtone”, or the “Company”), a leading China-based software and solutions developer focused on wirelessly enabling businesses and government agencies to more efficiently manage their operations, today announced financial results for the fourth quarter and fiscal year 2010. The financial statements and other financial information included in this press release are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Fourth Quarter Financial Highlights

  • Revenues increased 36.1% to $5.33 million from $3.92 million in the prior year period.
  • Gross profit increased 104.7% to $4.64 million from $2.27 million in the prior year period.
  • Gross margin increased to 87.0% from 57.9% in the prior year period.
  • Net income increased 72.9% to $3.13 million from $1.81 million in the prior year period.
  • Basic and diluted earnings per share were $0.22 as compared to $0.18 in the prior year period with weighted average shares outstanding of 14,000,000 as compared to 10,000,000 in the prior year period.

Fiscal Year 2010 Financial Highlights

  • Revenues increased 29.1% to $14.51 million from $11.24 million in the prior year period.
  • Gross profit increased 65.5% to $12.15 million from $7.35 million in the prior year period.
  • Gross margin increased to 83.8% from 65.4% in the prior year period.
  • Net income increased 55.5% to $8.24 million from $5.3 million in the prior year period.
  • Basic and diluted earnings per share were $0.71 as compared to $0.53 in the prior year period with weighted average shares outstanding of 11,527,473 as compared to 10,000,000 in the prior year period.

“We are pleased with our strong performance in 2010 which demonstrates our ability to expand revenues and profits as we capitalize on our first mover advantage, highly competitive suite of products and renowned customer service quality. Our results also benefited from our strategic shift towards software solutions which enjoy much higher margins than wireless systems solutions” commented Mr. Peng Zhang, Chief Executive Officer of Kingtone. “During the year, we reached several milestones in our corporate history. We became publicly traded on Nasdaq and raised US$16 million in equity capital to strengthen our financial position and support our growth strategy. Our geographic footprint expanded, creating further opportunities to build a stronger business pipeline and we continued to build our scalable infrastructure on the back of targeted cost controls, selective investments and productivity improvements. All these steps enabled us to conclude fiscal 2010 with the strongest growth prospects in our company history.”

“As we move forward, we believe that we are ideally positioned to capture the growing opportunities in front of us as our clients continue to strive for greater efficiency in their business. We will continue to carefully evaluate each new business opportunity on its own merits in the best interest of the company and its shareholders,” concluded Mr. Peng.

Fourth Quarter Financial Performance

Results of Operations – Three months ended September 30, 2010 compared to three months ended September 30, 2009.

Revenues. For the fourth quarter of fiscal year 2010, revenues increased by 36.1% to $5.33 million from $3.92 million in the comparable period of fiscal 2009. Revenue from software solutions increased by 124.5% to $4.1 million in the fourth quarter of fiscal year 2010 compared to $1.82 million in the fourth quarter of fiscal year 2009. Revenue from wireless system solutions decreased by 40.9% to $1.24 million in the fourth quarter of fiscal year 2010 compared to $2.09 million in the prior year period.

Gross Profit and Gross Margin. For the fourth quarter of fiscal year 2010, gross profit increased by 104.7 % to $4.64 million from $2.27 million in the prior year period. Gross margin for the fourth quarter of fiscal year 2010 was 87.0% compared to 57.9% in the fourth quarter of fiscal year 2009.

Income from Operations. Income from operations increased by 90.8% to $3.75 million in the fourth quarter of fiscal year 2010 from $1.97 million in the comparable period of fiscal 2009. Operating margins for the fourth quarter of fiscal year 2010 and 2009 were 70.4% and 50.2%, respectively.

Net Income and EPS. Net income was $3.13 million in the fourth quarter of fiscal year 2010, compared to $1.81 million in the prior year’s fourth quarter, an increase of 72.9%. Net income as a percentage of total net revenues was 58.6% and 46.2% for the fourth quarter of fiscal year 2010 and 2009, respectively. Basic and diluted earnings per share were $0.22 in the fourth quarter of fiscal year 2010, compared to $0.18 in the prior year period. The number of weighted average common shares outstanding for the three months ended September 30, 2010 was 14 million, compared to 10 million a year ago.

Fiscal Year 2010 Financial Performance

Results of Operations – The year ended September 30, 2010 compared to the year ended September 30, 2009.

Revenues. For the year ended September 30, 2010, total revenues increased by 29.1% to $14.51 million from $11.24 million in the comparable period of fiscal 2009. Revenue from software solutions increased by 118% to $11.27 million for the year ended September 30, 2010 compared to $5.17 million for the prior year, mainly driven by mobile enterprise applications in police and emergency agencies in new geographic areas. Revenue from wireless system solution decreased by 46.7% to $3.23 million for the year ended September 30, 2010 compared to $6.07 million in the prior year. This decrease was due primarily to two factors: (1) we had smaller contract value and less recognizable revenue with one major customer in the oil refinery industry this year, even though the number of contracts with its different subsidiaries had increased; and (2) we completed two related party transactions in the prior year with Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd.. As a result, the third-party revenue from wireless system solution sales decreased 34.3% from a year ago without the $1.1 million revenue from these two related party transactions from the prior year.

Gross Profit and Gross Margin. For the year ended September 30, 2010, gross profit increased by 65.5 % to $12.15 million from $7.35 million in the prior year period. Gross margin for the year ended September 30, 2010 was 83.8%, compared to 65.4% for the same period in the prior year.

Income from Operations. Income from operations increased by 58.2% to $10 million for the year ended September 30, 2010 from $6.32 million in fiscal 2009, primarily due to the growth in revenues. Operating margin for the year ended September 30, 2010 and 2009 were 68.9% and 56.2%, respectively.

Net Income and EPS. Net income increased by 55.5% to $8.2 million for the year ended September 30, 2010 from $5.3 million in the fiscal 2009. The growth of net income was mainly attributed to the growth in our revenue. Basic and diluted earnings per share were $0.71 in the fiscal year 2010, compared to $0.53 in the prior year. The number of weighted average common shares outstanding for the year ended September 30, 2010 was 11.5 million, compared to 10 million a year ago.

Liquidity and Capital Resources.

Cash and Cash Equivalents. As of September 30, 2010, the Company had cash and cash equivalents of $14.9 million, compared to $0.34million as of November 30, 2009, the Company’s last fiscal year end. Cash flows provided by operating activities for the year ended September 30, 2010 were approximately$4.3 million, compared to approximately $4 million in the prior year period. Depreciation and amortization expenses were $0.23 million and $0.13 million for the years ended September 30, 2010 and 2009, respectively. Cash flows provided by financing activities were approximately $10.32 million and $8.55 million for the years ended September 30, 2010 and 2009, respectively.

Financial Outlook

For the fiscal year ending September 30, 2011, management expects revenues of $18.8 million to $20.2 million and net income of $10.2 million to $11.6 million. This guidance reflects management’s anticipated increase in sales resulting from the Company’s existing solution offerings and the increasing demand driven by the on-going adoption of 3G in the PRC.

Conference Call

The Company will host a conference call to discuss its fourth quarter and fiscal year 2010 financial results at 9:00 a.m. ET on Thursday, January 20, 2011. Mr. Tao Li, Chairman, Mr. Peng Zhang, Chief Executive Officer, Ms. Ying Yang, Chief Financial Officer, will be on the call.

To participate in the conference call, please dial any of the following numbers:

USA Toll Free: (877) 407-9205

International: (201) 689-8054

Conference ID #: 364788

A replay of the call will be available until 11:59 PM ET on January 20, 2011.

To access the replay, please dial any of the following numbers:

USA Toll Free: (877)-660-6853

International: (201) 612-7415

Replay Passcodes (both required for playback):

Account #: 286

Conference ID #: 364788

The conference call will be webcast live by Vcall and can be accessed at http://www.InvestorCalendar.com.

About Kingtone Wirelessinfo Solution Holding Ltd

Kingtone Wirelessinfo Solution Holding Ltd (Nasdaq:KONENews) is a leading China-based software and solutions developer focused on wirelessly enabling businesses and government agencies to more efficiently manage their operations. The Company’s products, known as mobile enterprise solutions, extend a company’s or enterprise’s information technology systems to include mobile participants. The Company develops and implements mobile enterprise solutions for customers in a broad variety of sectors and industries, to improve efficiencies by enabling information management in wireless environments. At the core of its many diverse packaged solutions is proprietary middleware that enables wireless interactivity across many protocols, devices and platforms.

For more information, please visit Kingtone’s website at www.kingtoneinfo.com. The Company routinely posts important information on its website.

Safe Harbor Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. These forward-looking statements may include, but are not limited to, statements containing words such as “may,” “could,” “would,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “expects,” “intends”, “future” and “guidance” or similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to change at any time. These forward-looking statements are based upon management’s current expectations and are subject to a number of risks, uncertainties and contingencies, many of which are beyond the Company’s control that may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company’s actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading “Risk Factors” in the Company’s prospectus, dated May 14, 2010 filed with the Securities and Exchange Commission (the “SEC”), and in documents subsequently filed by the Company from time to time with the SEC including the Company’s Transition Report for the transition period from December 1, 2009 to September 30, 2010 to be filed with the SEC. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable law.

Contact Information

Kingtone WirelessInfo Solution Holding Ltd

Ms. Ying Yang, Chief Financial Officer

Tel: +1-626-623-2575 (US)

+86-187-1040-4571 (China)

Email: yangying@kingtoneinfo.com

Christensen

Tip Fleming

Tel:  +852-9212-0684

Email: tfleming@christensenir.com

Kathy Li

Tel:  +1-480-614-3036

Email: kli@christensenir.com

KINGTONE WIRELESSINFO SOLUTION HOLDING LTD AND SUBSIDIARIES

CONSOLIDATED AND COMBINED BALANCE SHEETS

(Express in thousands of U.S. Dollars, except shares and per share data)

As of  September 30,

As of  November 30,

2010

2009

(see note below)

ASSETS

Current assets

Cash and cash equivalents

$14,909

$344

Accounts receivable, net of allowance

6,650

2,353

Unbilled revenue

973

178

Due from related companies

120

Inventories, net

383

127

Other receivables and prepayments

771

1,012

Total Current Assets

23,806

4,014

Non-current assets

Property and Equipment, net

13,637

1,693

Deposit to purchase building

12,200

Intangible assets

630

Total Assets

$38,073

$17,907

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$ 575

$ 1,409

Advances from customers

371

1,398

Other payables and accruals

167

559

Taxes payable

3,421

601

Short-term loan

3,437

Amounts due to shareholder

200

Deferred government grant

Dividend payable

772

1,177

Total Current Liabilities

5,306

8,781

Commitments and contingencies

Stockholders’ equity

Ordinary share ($.001 par value, 100,000,000 shares authorized, and 10,000,000 shares and 14,000,000 shares issued and outstanding)

$ 14

$10

Paid in capital

6,897

Additional paid in capital

21,915

216

Appropriated retained earnings

844

231

Unappropriated retained earnings

8,281

657

Accumulated other comprehensive income

1,713

1,115

Total Stockholders’ Equity

32,767

9,126

Total Liabilities and Stockholders’ Equity

$38,073

$17,907

Note: In March 2010, the Company changed its fiscal year-end from November 30th to September 30th, so that it would have the same fiscal year end as its variable interest entity (“VIE”), Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”).

KINGTONG WIRELESSINFO SOLUTION HOLDING LTD AND SUBSIDIARIES

CONSOLIDATED AND COMBINED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Express in thousands of U.S. Dollars, except shares and per share data)

For the quarter ended September 30,

For the year ended September 30,

2010

2009

2010

2009

(Unaudited)

(Unaudited)

(see note below)

Revenues

Software

$ 4,095

$ 1,824

$ 11,272

$ 5,170

Wireless system solution

1,236

2,092

3,234

6,070

Total revenues

5,331

3,916

14,506

11,240

Cost of sales

Software

413

126

903

476

Wireless system solution

280

1,524

1,449

3,418

Total cost of sales

693

1,650

2,352

3,894

Gross profit

4,638

2,266

12,154

7,346

Operating expenses

Selling and marketing expenses

85

92

341

350

General and administrative expenses

752

172

1,635

537

Research and development expenses

48

35

179

139

Total Operating expenses

885

299

2,155

1,026

Income from operations

3,753

1,967

9,999

6,320

Other income(expense)

Subsidy income

278

44

307

Interest expense

(9)

(11)

(218)

(340)

Other income (expense)

14

(121)

20

(55)

Total other income (expense)

5

146

(154)

(88)

Income before income tax expenses

3,758

2,113

9,845

6,232

Income tax expenses

633

305

1,608

935

Net income

$ 3,125

$ 1,808

$ 8,237

$ 5,297

Other comprehensive income

Foreign currency translation gain

517

(4)

598

22

Comprehensive income

$ 3,642

$ 1,804

$ 8,835

$ 5,319

Earnings per ordinary share:

Basic and Diluted

$ 0.22

$ 0.18

$ 0.71

$ 0.53

Weighted average number of ordinary shares outstanding

Basic and Diluted

14,000,000

10,000,000

11,527,473

10,000,000

Note: In March 2010, the Company changed its fiscal year-end from November 30th to September 30th, so that it would have the same fiscal year end as its VIE, Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”). There were no operations in the Company other than in its VIE, Kingtone Information from October 1, 2009 to November 30, 2009. In addition, the consolidated and combined statements of income and comprehensive income for the year ended November 30, 2009 included Kingtone Information for the year ended September 30, 2009. Therefore the Company is presenting its consolidated and combined statements of income and comprehensive income for the years ended September 30, 2010 and 2009 instead of for the ten months ended September 30, 2010 and the year ended November 30, 2009.

KINGTONE WIRELESSINFO SOLUTION HOLDING LTD AND SUBSIDIARIES

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

(Express in thousands of U.S. Dollars, except shares and per share data)

For the year ended September 30,

2010

2009

Cash flows from operating activities

(see note below)

Net income

$8,237

$5,297

Depreciation and amortization

225

129

Disposal of fixed assets

Subsidiary income recognized from deferred government grant

(50)

Share-based compensation expense

302

Changes in operating assets and liabilities

Accounts receivable

(4,170)

(1,851)

Unbilled revenue

(778)

(177)

Other receivables and prepayments

257

(234)

Inventories

(249)

150

Tax payable

2,756

601

Accounts payable

(848)

1,092

Advance from customers

(1,037)

(1,424)

Other payables and accruals

(394)

467

Deferred government grant

Net cash provided by operating activities

4,301

4,000

Cash flows from investing activities

Purchases of vehicles and office equipment

(308)

(24)

Prepayment to purchase building

(12,186)

Net cash used in investing activities

(308)

(12,210)

Cash flows from financing activities

Proceeds in short-term bank loan

3,432

Repayment of short-term bank loan

(3,445)

(3,681)

(Payment)/Collection in amounts due from related-party companies

(118)

11,335

Repayment of loan from non-related companies

Collection from loan to non-related companies

Receipt/(Repayment) in amounts due to shareholders

(200)

200

Proceeds from issuance of shares

14,503

10

Dividend paid to shareholders

(422)

(2,751)

Net cash provided by financing activities

10,318

8,545

Effect of exchange rate changes on cash and cash equivalents

254

Net increase in cash and cash equivalents

14,565

335

Cash and cash equivalents at beginning of year

344

9

Cash and cash equivalents at end of year

$14,909

$ 344

Supplemental disclosure of cash flow information

Interest paid

$ 218

$ 340

Income taxes paid

$92

$ 215

Note: In March 2010, the Company changed its fiscal year-end from November 30th to September 30th, so that it would have the same fiscal year end as its VIE, Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”). There were no operations in the Company other than in its VIE, Kingtone Information from October 1, 2009 to November 30, 2009. In addition, the consolidated and combined statements of income and comprehensive income for the year ended November 30, 2009 included Kingtone Information for the year ended September 30, 2009. Therefore the Company is presenting its consolidated and combined statements of income and comprehensive income for the years ended September 30, 2010 and 2009 instead of for the ten months ended September 30, 2010 and the year ended November 30, 2009.

KINGTONE WIRELESSINFO SOLUTION HOLDING LTD AND SUBSIDIARIES

CONSOLIDATED AND COMBINED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Express in thousands of U.S. Dollars, except shares and per share data)

Ordinary shares

Paid-in capital

Additional paid-in capital

Appropriated Retained earnings

Unappropriated Retained earnings

Comprehensive income

Total stockholders’ equity

No. of share

Amount

Balance at November 30, 2007

$-

$ 6,034

$-

$ 30

$(1,527)

$ 549

$ 5,086

Net income for the year

1,015

1,015

Share contribution

863

216

1,079

Transfer to statutory reserves

32

(32)

Foreign currency translation gain

544

544

Balance as of November 30, 2008

$-

$ 6,897

$ 216

$ 62

$(544)

$ 1,093

$ 7,724

Share contribution

10,000,000

10

10

Net income for the year

5,297

5,297

Payment of dividends

(4,096)

(4,096)

Transfer to statutory reserves

169

169

Foreign currency translation gain

22

22

Balance as of November 30, 2009

10,000,000

10

6,897

216

231

657

1,115

9,126

Issuance of ordinary shares in form of American Depositary Shares

4,000,000

4

14,500

14,504

Share-based compensation

302

302

Net income for the year

8,237

8,237

Effect of reorganization

(6,897)

6,897

Transfer to statutory reserves

613

(613)

Foreign currency translation gain

598

598

Balance as of September 30, 2010

14,000,000

$ 14

$-

$ 21,915

$ 844

$8,281

$ 1,713

$ 32,767

Thursday, January 20th, 2011 Uncategorized Comments Off on Kingtone Wirelessinfo Solution Holding Ltd (KONE) Reports Fourth Quarter and Fiscal Year 2010 Financial Results

Southwest Bancorp Inc. (OKSB) Announces Election of Chief Financial Officer, Secretary

STILLWATER, Okla., Dec. 20, 2010 (GLOBE NEWSWIRE) — Southwest Bancorp, Inc. (Nasdaq:OKSB), (“Southwest”), today reported that on December 16, 2010 its board of directors elected Laura Robertson as Southwest’s new Executive Vice President and Chief Financial Officer and Priscilla Barnes, Executive Vice President/Regulatory Risk Management, to the additional office of Southwest’s Secretary.

Laura Robertson (age 37) previously served as Senior Vice President/Finance Division Manager of Southwest and its principal subsidiary, Stillwater National Bank and Trust Company. Ms. Robertson joined Stillwater National in 2006. She has also served as the Public Company Reporting and Tax Manager and Assistant Secretary of Southwest and Stillwater National. Prior to joining Southwest, Ms. Robertson practiced public accounting in the Dallas, Texas metro area. She is a Certified Public Accountant and a member of both the Oklahoma and Texas Society of CPAs as well as the American Institute of Certified Public Accountants. She reported to Kerby Crowell, the former Executive Vice President and Chief Financial Officer, since joining Southwest. Ms. Robertson currently serves on the Board of Directors for Payne County Court Appointed Special Advocates.

Priscilla Barnes (age 54) served as Executive Vice President, Director of Human Resources and Compliance prior to becoming Executive Vice President/ Regulatory Risk Management in 2010. Ms. Barnes joined Southwest in 2005 as Vice President, Compliance of Stillwater National. Ms. Barnes has 30 years experience in the banking industry. Prior to joining Stillwater National, Ms. Barnes was a federal bank examiner, a senior consultant for a regional accounting firm, and served as a banker in many similar capacities. She was named an Oklahoma State University Regent’s Distinguished Scholar and attended the Graduate School of Banking in Madison, Wisconsin.

Rick Green, Southwest Bancorp’s President and Chief Executive Officer, stated, “We are fortunate to have these experienced and talented individuals to serve in these offices, and are confident that they will continue their track records of excellence in these new roles.  Southwest maintains succession plans for all executive officers, which has served us well during this transition.”

These elections follow the death of Kerby Crowell, who served with distinction as Executive Vice President, Chief Financial Officer, and Secretary for many years before his death in November 2010.

Southwest Bancorp and Subsidiaries

Southwest is the bank holding company for Stillwater National and Bank of Kansas. Through its subsidiaries, Southwest offers commercial and consumer lending, deposit and investment services, and specialized cash management, and other financial services from offices in Oklahoma, Texas, and Kansas, and on the Internet, through SNB DirectBanker®. We were organized in 1981 as the holding company for Stillwater National, which was chartered in 1894. At September 30, 2010 we had total assets of $2.9 billion, deposits of $2.3 billion, and shareholders’ equity of $376.6 million.

Our area of expertise focuses on the special financial needs of healthcare and health professionals, businesses and their managers and owners, and commercial and commercial real estate borrowers. We established a strategic focus on healthcare lending in 1974. We provide credit and other services, such as deposits, cash management, and document imaging for physicians and other healthcare practitioners to start or develop their practices and finance the development and purchase of medical offices, clinics, surgical care centers, hospitals, and similar facilities. As of September 30, 2010, approximately $706.1 million, or 29%, of our noncovered loans were loans to individuals and businesses in the healthcare industry.

We also focus on commercial real estate mortgage and construction credits. We do not focus on one-to-four family residential development loans or “spec” residential property credits. Additionally, subprime lending has never been a part of our business strategy, and our exposure to subprime loans and subprime lenders is minimal. One-to-four family mortgages account for less than 5% of total noncovered loans. As of September 30, 2010 approximately $1.8 billion, or 74%, of our noncovered loans was commercial real estate mortgage and construction loans, including $404.7 million of loans to individuals and businesses in the healthcare industry. Our commercial real estate mortgage and construction and commercial loans are concentrated in states that have experienced less adverse effects from the recession than many others.

We operate six offices in Texas, eleven offices in Oklahoma, and eight offices in Kansas. At September 30, 2010 our Texas segment accounted for $1.0 billion, or 41% of total portfolio loans, followed by $890.6 million, or 36%, from our Oklahoma segment, $309.2 million, or 13%, from our Kansas segment, and $248.9 million, or 10%, from our other states segment.

Southwest’s common stock is traded on the NASDAQ Global Select Market under the symbol OKSB. Southwest’s public trust preferred securities are traded on the NASDAQ Global Select Market under the symbol OKSBP.

The Southwest Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8074

CONTACT:  Southwest Bancorp, Inc.
          Rick Green, President & CEO
          (405) 372-2230
Thursday, January 20th, 2011 Uncategorized Comments Off on Southwest Bancorp Inc. (OKSB) Announces Election of Chief Financial Officer, Secretary

Pernix(TM) Therapeutics (PNX) and ParaPRO Receive FDA Approval of Natroba(TM)

Jan. 19, 2011 (Business Wire) — Pernix™ Therapeutics Holdings, Inc. (NYSE Amex: PTX) and ParaPRO, LLC announced today that the U.S. Food and Drug Administration (FDA) has approved Natroba™ (spinosad) Topical Suspension, 0.9% to eliminate head lice (pediculosis capitis). Natroba™ received approval as a prescription medication and is indicated for the topical treatment of head lice infestations in patients four (4) years of age and older.

Natroba™ is an effective, easy-to-use product, which has been shown to resolve most head lice problems in about 10 minutes with just one application and no nit combing. Pernix and ParaPRO expect to launch the product in the first half of 2011.

“We believe Natroba™ gives physicians and parents a game-changing solution to the problem of head lice,” said Bill Culpepper III, president of ParaPRO, LLC. “Natroba™ is the only head lice treatment whose approval is supported by superiority studies versus permethrin 1%. FDA approval of Natroba™ is a significant step forward in the longstanding struggle to treat head lice infestations and we look forward to making the product available in pharmacies nationwide in the first half of 2011. Unlike many other currently available treatments, most children will only require one application and do not need to sit through extensive, time-consuming nit combing sessions when Natroba™ is used. This means that parents trying to rid their children of head lice will soon have an important new treatment option given the ease of use and effectiveness of Natroba™.”

Natroba™ (pronounced na-ˈtrōb- ə) treats head lice using spinosad, a compound derived from a soil microbe. Until Natroba™ was approved, the most common pediatrician-recommended head lice treatments available either over-the-counter or by prescription required nit combing, which can be painstaking and time consuming. Further, in the clinical studies, patients treated with permethrin 1%, (marketed under the brand name Nix®i) more often required an additional round of treatment than patients who were treated with Natroba™.

“We are pleased by the FDA’s decision to approve Natroba™,” said Cooper Collins, President and Chief Executive Officer of Pernix. “This product provides Pernix with a unique opportunity to promote a treatment that has been proven in multiple clinical trials to be more effective than currently available treatments. We look forward to launching this innovative new prescription product to the pediatrics market via our established sales force in the first half of 2011.”

Head lice are the second most communicable disease among schoolchildren, after the common cold.ii The U.S. Centers for Disease Control and Prevention estimate that there are between 6 to 12 million cases of head lice infestations each year, mostly in children 3 to 12 years old. Head lice are tiny, wingless insects that live on the human scalp and spread between people by head-to-head contact or the sharing of hats, combs, brushes or towels.iii

Costs associated with head lice infestations are estimated to be as high as $1 billion per year in the United States alone.iv Direct costs include treatments and clinic visits, while indirect costs range from school nurse time to school absenteeism to lost wages.

“Head lice are a common problem that can affect anyone regardless of where they live. Historically, it has been a time-consuming, frustrating problem for families. Multiple treatments may be required and due to a variety of factors, the initial treatment is often ineffective,” said Dow Stough, M.D., Burke Pharmaceutical Research and an investigator in the Natroba™ Phase III clinical studies. “When available, Natroba™ will offer a safe and effective option. The Phase III studies showed that a single treatment of Natroba™ worked for most patients and with Natroba™ combing is not required. This product will represent a real advance in the treatment of head lice.”

Natroba™ is the only head lice treatment whose approval is supported by superiority studies versus permethrin 1%, the most commonly prescribed head lice treatment to date.v In two Phase III clinical studies, Natroba™ was significantly more effective in eliminating head lice than permethrin 1% (marketed under the brand name Nix®) – the head lice treatment recommended by the American Academy of Pediatrics at the time the study protocol was approved by the FDA.vi The studies, published online in the journal Pediatrics (Pediatrics 2009; 124:e389-e395), also confirmed the safety and effectiveness of Natroba™. The 1,038 participants with active head lice infestations were provided either Natroba or Nix® to be used at home. A total of 84.6% (study 1) and 86.7% (study 2) of Natroba™-treated participants were assessed to be lice-free 14 days after the last treatment, compared with 44.9% and 42.9% treated with permethrin (P < 0.001 for both studies). Most participants in the Natroba™ groups (63.8% and 86.2%) needed only one application, whereas most participants in the permethrin groups (60.3% and 64.5%) required two applications.

There were few adverse events reported in the Phase III clinical studies. The most commonly occurring adverse events included application-site erythema (redness of the skin) which occurred in 3% of the Natroba™ patients (vs. 7% of permethrin), ocular hyperemia (redness and irritation of the eyes) which occurred in 2% of the Natroba™ patients (vs. 3% of permethrin) and application-site irritation which occurred in 1% of Natroba™ patients (vs. 2% permethrin). Although adverse event rates were low for both products, application site redness occurred significantly less frequently in patients treated with Natroba™ than in patients treated with permethrin (P = 0.007).

Indication

Natroba™ Topical Suspension is a pediculicide indicated for the topical treatment of head lice infestations in patients four (4) years of age and older.

Important Safety Information

Natroba™ contains benzyl alcohol and is not recommended for use in neonates and infants below the age of 6 months. Systemic exposure to benzyl alcohol has been associated with serious adverse reactions and death in neonates and low birth-weight infants.

The most common adverse events were: application site redness (3%), redness and irritation of the eyes (2%) and application site irritation (1%).

For additional safety information, see the patient and full prescribing information at www.Natroba.com.

About ParaPRO

ParaPRO, LLC (www.parapro.com), based in the Indianapolis, Indiana metropolitan area, is a specialty pharmaceutical company focused on commercializing proprietary products for the pediatric market. ParaPRO is a wholly owned subsidiary of SePRO Corporation (www.sepro.com).

Natroba™ is a trademark of ParaPRO, LLC. Other trademarks are the property of their respective owners.

About Pernix Therapeutics

Pernix Therapeutics Holdings, Inc. is a specialty pharmaceutical company primarily focused on serving the needs of the pediatric marketplace. Commercially-proven branded product families include CEDAX®, Brovex®, Aldex®, Pediatex®, ReZyst®, QuinZyme® and Z-Cof®. The Company was originally founded in 1999 and is based in the Houston, TX metropolitan area. Additional information about Pernix is available on the Company’s website located at www.pernixtx.com.

Pernix™ is a registered trademark of Pernix Therapeutics, LLC.

Cautionary Notice Regarding Forward-Looking Statements

The Company wishes to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. No assurances can be given regarding the future performance of the Company. The Company wishes to advise readers that factors could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake, and specifically declines any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

i Nix is a registered trademark and the property of its owner.

ii Mayo Clinic website, available at http://www.mayoclinic.com/health/head-lice/DS00953. Accessed Dec. 13.2010

iii Centers for Disease Control and Prevention, available at http://www.cdc.gov/lice/head/factsheet.html. Accessed Sept. 28, 2010.

iv Lebwohl M, Clark L, Levitt J. Therapy for head lice based on life cycle, resistance and safety considerations. Pediatrics 2007; 119(5): 965-974

v Wolters Kluwer Health, Source® Pharmaceutical Audit Suite prescription pediculicide/head lice market audit current 12 months, November 2010.

vi Frankowski BL, Weiner LB; American Academy of Pediatrics, Committee on School Health, Committee on Infectious Diseases, Head Lice, Pediatrics 2002; 110(3):648-643.

Pernix Therapeutics Holdings, Inc.

Tracy Clifford, 843-720-1501

Chief Financial Officer

or

The IGB Group

Investor Relations Contacts:

Nick Rust, 212-477-8439

nrust@igbir.com

or

Lev Janashvilli, 212-227-7098

ljanashvili@igbir.com

Wednesday, January 19th, 2011 Uncategorized Comments Off on Pernix(TM) Therapeutics (PNX) and ParaPRO Receive FDA Approval of Natroba(TM)

China Metro-Rural Holdings Limited (CNR) Releases SEC Form 6K

NEW YORK, NY — (Marketwire) — 01/19/11 — China Metro-Rural Holdings Limited (NYSE Amex: CNR) (the “Company”) today announced that it has released two new 6K forms which can be found on the Company’s website at http://www.chinametrorural.com/ as well as on the SEC website at http://secfilings.com/searchresultswide.aspx?link=1&filingid=7660386 and http://secfilings.com/searchresultswide.aspx?link=1&filingid=7660588 respectively.

The First 6-K was issued as an update to the Form 20-F previously filed on July 9, to reflect a) the distribution of Man Sang International Limited which resulted the discontinued operations; b) adoption of amendments to an existing International Accounting Standard; and c) a change in the accounting policy of the Company.

The second 6K filing was issued to reflect a full set of condensed consolidated interim financial information for the six months ended September 30, 2010 and related management discussion and analysis of results of operations.

ABOUT CHINA METRO-RURAL HOLDINGS LIMITED
China Metro-Rural Holdings Limited, through Man Sang International Limited engages in pearl and jewelry business and in selling and leasing of properties in the PRC related to the pearl and jewelry business and, through Mega Dragon is one of the leading developers and operators of large scale, integrated agricultural logistics and trade centers in Northeast China that facilitate a relationship between sellers and buyers of agricultural commodities and small appliances, provide relevant physical platform and timely marketing information and intelligence, provide a transparent and competitive market price discovery mechanism and provide infrastructure to enhance the living standards of those from the rural area.

CONTACT:
China Metro-Rural Holdings Limited
Investor Relations Department
Phone: (852) 2317 9888
E-mail: Email Contact

Wednesday, January 19th, 2011 Uncategorized Comments Off on China Metro-Rural Holdings Limited (CNR) Releases SEC Form 6K

Ener1 (HEV) and Wanxiang Sign Strategic Joint Venture Agreement

NEW YORK and HANGZHOU, China, Jan. 18, 2011 /PRNewswire/ — Ener1, Inc. (Nasdaq: HEV), a leader in lithium-ion battery technology, and Wanxiang Electric Vehicle Co., Ltd., a division of the Chinese conglomerate Wanxiang Group Corporation, today signed a joint venture agreement to co-manufacture Li-ion cells and battery packs for the rapidly growing Chinese market.  The new company will harness cutting-edge American technology and advanced Chinese manufacturing capability to produce battery systems for Wanxiang’s several existing light- and heavy-duty automotive and power grid customers for delivery this year.

(Logo:  http://photos.prnewswire.com/prnh/20080312/CLW018LOGO )

(Logo:  http://photos.prnewswire.com/prnh/20110118/CL31242LOGO )

“Wanxiang and Ener1 share a vision to help fulfill our country’s strong commitment to electrifying transportation on a mass scale and to deploy lithium-ion technology to improve the effectiveness of the power grid,” said Lu Guanqiu, founder and chairman of Wanxiang Group.  “We believe our manufacturing expertise and deep customer relationships throughout China and in the region will help ensure the success of this timely technology venture.”

The signing takes place against the background of a state visit by Chinese President Hu Jintao and expanding U.S.-China bilateral initiatives to spur cooperation in transportation electrification and grid energy storage, a hallmark of the Obama administration’s policy toward China.  The Chinese government, anticipating the environmental and oil demand impact of potentially hundreds of millions of new vehicle purchases by a burgeoning middle class, has set an annual production goal of 500,000 hybrid or all-electric cars and buses by 2012.

The new venture – Zhejiang Wanxiang Ener1 Power System Co., Ltd – will use Wanxiang Electric Vehicle’s existing 553,000-square-foot facility in Hangzhou.  The joint enterprise is expected to achieve annual cell manufacturing capacity of 300 million Ampere hours (approximately 40,000 electric vehicle battery packs) annually by 2014.

“We are honored and excited to enter into this important new venture with one of China’s most respected industrial leaders,” commented Ener1 Chairman and CEO Charles Gassenheimer, referring to Wanxiang’s emergence from a small business to the second-largest private company in China and the country’s largest tier-one auto parts supplier with $10 billion in annual revenue.  “This joint venture gives us scalability by leveraging an existing manufacturing facility and an established broad customer base.  Applying our advanced battery technology will enable us to hit the ground running in serving what is potentially the largest advanced battery market in the world.”

Wanxiang Electric Vehicle will have a 60-percent equity stake in the joint venture.  The company will contribute property, plant, equipment, and customer relationships, including State Grid, SAIC Motor, Dongfeng Motor, Guangzhou Auto and Yutong.

As part of its 40-percent stake, Ener1 will provide intellectual property, engineering, manufacturing and technical expertise.  The joint venture will help further expand Ener1’s global footprint, and increase the company’s head count through the addition of R&D and engineering staff in the U.S.

“We are very fortunate to be able to work in partnership with a manufacturing giant in one of the fastest-growing markets in the world for Li-ion technology,” Gassenheimer commented.  “A combination of industrial policy, explosive growth potential and vision make this a winning proposition for both sides.”

About Ener1, Inc.

Ener1, Inc. is a publicly traded (Nasdaq: HEV) energy technology company that develops compact, lithium-ion-powered battery solutions for the transportation, utility grid storage and consumer markets.  Headquartered in New York City, the company has more than 700 employees with manufacturing locations in the United States and Korea.  Ener1 also develops commercial fuel cell products, nanotechnology-based materials and manufacturing processes.  In collaboration with strategic partner and electric vehicle manufacturer THINK, Ener1 also manufactures electric vehicle drive train products.

About Wanxiang Group

Wanxiang Group was founded by Dr. Lu Guanqiu, who is regarded as a legendary entrepreneur in China for taking $500 in start-up capital in 1969 to create a farm tool repair shop and transforming it into one of the largest non-government-owned companies in China. The company is the country’s largest automotive components manufacturer, and a conglomerate with more than $10 billion (USD) in revenue covering businesses including financial services, alternative energies, agricultural products, international trading, natural resources, real estate, private equity and venture capital investment, and other areas.  Wanxiang Group currently employs more than 30,000 employees worldwide, with 19 companies in 9 countries and a sales and marketing network covering over 50 countries.  The Boston Consulting Group has listed Wanxiang Group as one of the 100 most challenging and successful companies in China.

Safe Harbor Statement

Certain statements made in this press release constitute forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. All forward-looking statements speak only as of the date of this press release and the company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

MEDIA CONTACT

Brian Sinderson

212-920-3500 X117

brian.sinderson@ener1.com

Tuesday, January 18th, 2011 Uncategorized Comments Off on Ener1 (HEV) and Wanxiang Sign Strategic Joint Venture Agreement

Datalink (DTLK) Expects to Exceed 2010 Fourth Quarter Revenue and EPS Guidance

Jan. 18, 2011 (Business Wire) — Datalink (Nasdaq: DTLK), a leading provider of data center infrastructure and services, today announced that it expects to significantly exceed its previous revenue and earnings guidance for the fourth quarter of 2010. The company now expects fourth quarter 2010 revenues to be approximately $90 million. This is up over 70% from revenues of $51.8 million in the fourth quarter of 2009, and up over 45% from revenues of $60.2 million in the third quarter of 2010. At the end of the third quarter of 2010 the company had provided revenue guidance of between $75.0 million and $80.0 million for the fourth quarter of 2010.

On a GAAP basis the company expects earnings per share to be in the range of $0.15 per share to $0.18 per share. On a non-GAAP basis the company expects earnings per share in the range of $0.21 per share to $0.24 per share. The company’s previous guidance was for GAAP earnings per share to be in the range of $0.09 per share to $0.13 per share, and non-GAAP earnings to be in the range of $0.12 per share to $0.16 per share.

The company ended the year with a record fourth quarter backlog of over $47 million. This compares to a $46 million backlog at the end of 2009, which was previously a record for the fourth quarter.

Paul Lidsky, Datalink’s president and CEO, commented, “I am pleased with such a strong finish to 2010 and the momentum it provides for 2011. We continued to see strong demand for our data center solutions during the quarter as the result of a steadily increasing trend in technology spending, coupled with the success from our previous investments to expand Datalink’s market share around data center solutions. Another key driver of the revenue growth was our success in closing several multi-million dollar sales at Fortune 100 companies during the quarter. We believe that this market share expansion is vital to our long-term success. Although these transactions carry lower gross margins, they allow us entry into new customer accounts with the potential for significant future business. As a result, we expect to see our overall fourth quarter gross margins decline to approximately 22.0%, compared to 24.1% in the third quarter of 2010.”

The company will report its fourth quarter financial results and hold an investor conference call after the market closes on February 17, 2011.

About Datalink

A complete data center solutions and services provider for Fortune 500 and mid-tier enterprises, Datalink transforms data centers so they become more efficient, manageable and responsive to changing business needs. Datalink helps leverage and protect storage, server, and network investments with a focus on long-term value, offering a full lifecycle of services, from consulting and design to implementation, management and support. Datalink solutions span virtualization and consolidation, data storage and protection, advanced networks, and business continuity. Each delivers measurable performance gains and maximizes the business value of IT. For more information, call 800.448.6314 or visit www.datalink.com.

This press release contains forward-looking statements, including information about management’s view of Datalink’s future expectations, plans and prospects, including internal projections of anticipated 2010 results, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Datalink to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents Datalink files with the Securities and Exchange Commission, including but not limited to, its annual report on Form 10-K , as well as subsequent reports filed with the Securities and Exchange Commission. Additional risks include, but are not limited to: the level of continuing demand for storage, including the effects of current economic and credit conditions; competition and pricing pressures and timing of Datalink’s installations that may adversely affect its revenues and profits; fixed employment costs that may impact profitability if it suffers revenue shortfalls; revenue recognition policies that may unpredictably defer reporting of Datalink’s revenues; Datalink’s ability to hire and retain key technical and sales personnel; Datalink’s dependence on key suppliers; Datalink’s ability to adapt to rapid technological change; risks associated with integrating possible future acquisitions; fluctuations in our quarterly operating results; future changes in applicable accounting rules; and volatility in stock price. Further, Datalink’s revenues for any particular quarter are not necessarily reflected by its backlog of contracted orders, which also may fluctuate unpredictably.

Non-GAAP Details

Non-GAAP financial measures exclude the impact from acquisition accounting adjustments to deferred revenue and costs, stock-based compensation expense, amortization of intangible assets, integration and transaction costs related to acquisitions and the related effects on income taxes. These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Datalink believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Datalink’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Datalink’s results of operations in conjunction with the corresponding GAAP measures.

These non-GAAP financial measures facilitate management’s internal comparisons to the Datalink’s historical operating results and comparisons to competitors’ operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making, such as employee compensation planning. Datalink believes that the presentation of these non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations.

Datalink

Media & Alliances:

Suzanne Gallagher, 720-566-5110

SVP of Marketing

Email : sgallagher@datalink.com

or

Investors & Analysts:

Greg Barnum, 952-944-3462

Vice President and CFO

Email: gbarnum@datalink.com

Tuesday, January 18th, 2011 Uncategorized Comments Off on Datalink (DTLK) Expects to Exceed 2010 Fourth Quarter Revenue and EPS Guidance

Technology Research Corporation (TRCI) Adopts Shareholder Rights Plan

CLEARWATER, Fla., Jan. 18, 2011 (GLOBE NEWSWIRE) — Technology Research Corporation (Nasdaq:TRCI) today announced that its Board of Directors has adopted a Shareholder Rights Plan and declared a dividend of one right on each outstanding share of TRC’s common stock. The Rights Plan has a term of two years.

The Company also announced that it had received an unsolicited indication of interest from Coleman Cable, Inc. (Nasdaq:CCIX) in acquiring TRC at a price of $5.50 per share in cash. The Board adopted the Rights Plan, consistent with its responsibilities to shareholders, to better assure that the Company has time to properly evaluate and respond to this indication of interest in relation to the Company’s prospects and opportunities. The Board cautions shareholders that there is no need to take any action at this time with respect to the indication of interest from Coleman Cable. Rights plans are often adopted by boards of directors under these and similar circumstances and are designed to protect the interests of the company and all its shareholders.

Owen Farren, President and Chief Executive of TRC, stated, “The Board unanimously believes the adoption of the short-term rights plan is appropriate at this time. The Board will consider this expression of interest consistent with its responsibilities to the Company and all its shareholders.”

Under the Rights Plan, the rights generally become exercisable only if a person or group (i) acquires beneficial ownership of 15% or more of TRC’s common stock or (ii) announces or commences a tender or exchange offer that would result in that person or group acquiring 15% or more of TRC’s common stock. Thereafter, all rights beneficially owned by the person or group that acquired (or that would acquire as a result of a tender or exchange offer) 15% or more of TRC’s common stock will become null and void. The exercise price of the rights has been set at $15.00. If they become exercisable, the rights entitle the holder of each right to purchase for the exercise price that number of shares of common stock of the Company which has a market value of twice the exercise price, subject to certain adjustments as provided under the Rights Plan. The rights are redeemable by TRC for $0.001 per right, subject to adjustment, any time before the rights become exercisable, including to permit an offer to purchase all of TRC’s shares. Until the rights become exercisable, they will not be evidenced by separate certificates and will trade automatically with the Company’s common stock. The rights will expire on January 18, 2013, unless earlier redeemed, exchanged, or amended by TRC.

Additional information regarding the Rights Plan is contained in a Form 8-K being filed with the Securities and Exchange Commission. The above description is only a summary; interested persons are urged to read the full Rights Plan filed with the Securities and Exchange Commission.

Technology Research Corporation is a recognized leader in providing cost effective engineered solutions for applications involving power management and control, intelligent battery systems technology and electrical safety products based on our proven ground fault sensing and Fire Shield® technology.  These products are designed, manufactured and distributed to the consumer, commercial and industrial markets worldwide.  The Company also supplies power monitors and control equipment to the United States Military and its prime contractors.  More information is available at www.trci.net.

The Technology Research Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6266

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:  Some of the statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934.  These statements are related to future events, other future financial performance or business strategies, and may be identified by terminology such as “may,” “will,” “should,” “expects,” “scheduled,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “potential,” or “continue,” or the negative of such terms, or other comparable terminology.  These statements are only predictions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.  In evaluating these statements, you should specifically consider the factors discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended March 31, 2010, our quarterly reports on Form 10-Q, and periodic reports on Form 8-KDo not rely on any forward-looking statement, as we cannot predict or control many of the factors that ultimately may affect our ability to achieve the results estimated. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.

CONTACT: Robert D. Woltil
         Chief Financial Officer
         Tel: (727) 812-0551
         Fax: (727) 535-9691
         Web Page: www.trci.net
Tuesday, January 18th, 2011 Uncategorized Comments Off on Technology Research Corporation (TRCI) Adopts Shareholder Rights Plan