China Public Security Technology, Inc., (CPBY.OB), a leading provider of public security information technology and Geographic Information Systems software services, has announced record financial results for the third quarter ended September 30, 2007. Significant highlights include a 128% increase in revenue, a gross profit margin increase of 87%, and an operating income increase of 71% to $3.7 million.
Revenues increased from the $4.4 million that was reported during the same period of 2006 million to $10.2 million now, a significant increase. This increase can primarily be attributed to the successful launch of several new product lines, expansion of markets outside of Shenzhen City, and the delivery of several high profile projects.
Gross profit increased 87% to $4.9 million, representing a 48% gross margin, as compared to 59% in the third quarter of 2006. Because the company engaged in several expensive large scale integration projects, the company’s gross margin declined as a result. Likewise, administrative expenses increased to $0.9 million in the third quarter of 2007, from $0.3 million in the same period last year.
Lastly, net income grew 92% to $3.7 million in the third quarter of 2007, or $0.09 per basic and diluted share, compared to $1.9 million during the same period of 2006.
Mr. Jiang Huai Lin, CEO of China Public Security, stated ”China Public Security delivered strong growth in revenues and profits in the third quarter, as we successfully expanded to markets outside Shenzhen and implemented several large-scale system integration projects. In the third quarter, we completed several high profile projects, and began the construction of Phase I of the Shenzhen City Residence Card Information Management System Project. We also restructured our legal relationship with iASPEC, our exclusive commercial partner, in order to provide greater transparency to investors.”
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