Trading Symbol: JTI
TORONTO, Nov. 26 /CNW/ - JITE Technologies Inc. ("Jite" or the "Company") announces that it has filed its interim financial statements and management's discussion and analysis (MD&A) for the third quarter ended September 30, 2009. The detailed financial statements and MD&A can be found on www.sedar.com.
For the third quarter and nine months ended September 2009, Jite has achieved impressive financial performances as a result of its strategic and operational initiatives taken this year, with net profits up by 628% and 450%, respectively, compared to the corresponding periods in 2008. Sales for the third quarter of 2009 moved back to $4.31 million, only just short of $4.34 million achieved in the prior-year quarter.
The following are the highlights of results for the third quarter and nine months ended September 2009:
Third Quarter and First Nine Months of 2009 Financial Highlights
- Sales for the 2009 third quarter were $4.31 million, compared with
$4.34 million for the 2008 period. For first nine months of 2009,
sales were $11.84 million, down by 10.5% from $13.22 million in the
2008 period. The decreases are primarily the result of reduced sale
volumes due to global economic downturn.
- Gross profits for the 2009 third quarter were $1.54 million (35.7%
of sales), up from $0.82 million (18.9% of sales) in the 2008
period. For the first nine months of 2009, Gross profits were
$3.75 million, up from $2.68 million in the 2008 period. This
significant increase was attributable to a number of factors,
including lower raw material prices, less provision of obsolete
inventory and less manufacturing overhead.
- Net profits for the 2009 third quarter were $728 thousand (16.9% of
sales) or $0.035 per basic and diluted share, up from $100 thousand
(2.3% of sales) or a $0.005 per basic and diluted share in the 2008
period. For the first nine months of 2009, net profits were
$1.35 million (11.4% of sales) or $0.064 per basic and diluted
share, up from $0.25 million (1.9% of sales) or a $0.012 per basic
and diluted share in the 2008 period. This increase was a combined
result from higher gross margin and less operating expenses.
- Cash flows generated by operation activities for the 2009 third
quarter and first nine months were $0.17 million and $3.30 million,
respectively, compared with $1.06 million and $0.39 million in the
comparative prior-year periods.
"I am very pleased with the third quarter financial results despite the
challenging environment," said Kevin Ming Zhang, Chief Financial Officer of
Jite, "Both the net income and cash flows from our operations have increased
substantially due to measures taken to operating cost controls and fixing low
raw material prices, although the weak global economy continued to have a
negative impact on our revenues. Positively, we have begun to see some renewed
customers' orders, and we are confident about the ongoing development of our
company in the coming quarters".
Developments Subsequent to the End of the Third Quarter of 2009
- Jite registered its wholly-owned subsidiary of Kunshan plant in
Jiangsu province, China. The total registered capital for Kunshan
plant was $20 million USD, of which 20% or $4 million USD for its
first phase registered capital has been fully injected. Accordingly,
the remaining balance amounting to 25.2 million RMB (approximately
$3.9 million CDN) was paid in connection with the purchase of the
building at Kunshan plant.
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: For further information: JITE Investor Contact: Kevin Ming Zhang, Chief Financial Officer, Tel: (416) 366-7420, www.jite.com/(JTI.)