Trading Symbol: JTI
TORONTO, June 30, 2011 /CNW/ - Jite Technologies Inc. ("Jite" or the
"Company") today announces its financial results and management's
discussion and analysis (MD&A) for the first quarter ended 2011. The
detailed financial statements and MD&A can be found on www.sedar.com. All amounts are in Canadian dollars unless otherwise noted.
First Quarter Financial Highlights
Sales: Sales for the first quarter of 2011 was $4,040,524, a decrease of 7%
compared to $4,346,264 in the first quarter of 2010. There is an
interruption of orders from one of the major North American customers
due to its market adjustment. Management believes that this is a
temporary situation and expects the customer to resume orders to normal
levels in future months.
Gross profit: Gross profit for the first quarter of 2011 was $1,159,086, a decrease
of 21% compared to $1,460,883 in the first quarter of 2010. The gross
profit expressed as a percentage of sales for the three months 2011 was
29%, lower than 34% reported for the first quarter of 2010. As
disclosed in the MD&A in previous periods, the higher than average
gross margin rate for the year 2009 and for the first quarter of 2010
was due to lower raw material purchase costs for those periods that
resulted from a forward purchase agreement securing the purchase price
of copper. There is also a significant increase in minimum wage for
workers in China started from July, 2010 and currency appreciation
against the US dollars. Both have negatively affected profit margins.
Operating Income: Operating income before other income and taxes for the first quarter of
2011 was $397,046, a decrease of 35% compared to $611,276 in the first
quarter of 2010.
Net Income and Earnings per Share: net income was $487,229 for the first quarter of 2011, a decrease of
16% compared to $578,819 in the first quarter of 2010. Basic and
diluted earnings per share were $0.024 for the first quarter of 2011, a
decrease of 12% from $0.027 in the first quarter of 2010.
Cash flows generated by operation activities: A cash inflow of $1,043,662 for the first quarter of 2011 compared to
$587,793 for the first quarter of 2010.
"Management is disappointed by the results, especially by the less than
expected shipments to a major customer during the period. However,
management is pleased to see that the cash flows from operating
activities were satisfactory in the quarter when compared to the last
few quarters", said Winfield Ding, CFO of the Company.
This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual
results could differ materially from those projected herein. Although
we believe that our expectations are based on reasonable assumptions,
we can give no assurance that our expectations will materialize. The
TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
SOURCE JITE Technologies Inc.
For further information:
Please contact Ms. eXavier Peterson or Winfield Yongbiao Ding, CFO at: 55 University Avenue, Suite 605, Toronto, ON M5J 2H7 Tel: (416)366-7420 Fax (416)366-7421 www.jite.com