On Friday, BEFUT International Co., Ltd. announced their financial results for the third quarter of fiscal 2011 and nine months ended March 31, 2011.
Revenue for the third quarter ended March 31, 2011 was $9.4 million, compared to $6.7 million for the third quarter ended March 31, 2010. Gross profit was $2.5 million for the three months ended March 31, 2011. This is in comparison to $1.7 million for the three months ended March 31, 2010. Operating income was $1.4 million for the three months ended March 31, 2011, compared to $1.0 million for the three months ended March 31, 2010.
Net income for the three months ended March 31, 2011 was $0.8 million, or $0.03 per diluted share. This is in comparison to net income of $0.6 million, or $0.02 per diluted share, for the same period in 2010.
Revenue for the nine months ended March 31, 2011 was $40.2 million, compared to $19.3 million for the nine months ended March 31, 2010. Gross profit was $10.7 million for the nine months ended March 31, 2011, compared to $5.2 million for the nine months ended March 31, 2010. Operating income was $7.3 million for the nine months ended March 31, 2011. This is in comparison to $3.4 million for the nine months ended March 31, 2010.
Net income for the nine months ended March 31, 2011 was $4.9 million, or $0.17 per diluted share. This is compared to net income of $2.3 million, or $0.08 per diluted share, for the same period in 2010.
Mr. Hongbo Cao, Chairman and CEO of BEFUT International Co., Ltd., commented, “With China’s large and increasing demand for cable and wire products, we are rapidly gaining domestic market share as evidenced by a 41 percent increase in year-over-year sales this quarter. In order to accommodate this growing demand, we recently added new production facilities, which significantly expand our capacity. We are currently operating at just 60 percent of total capacity, which should allow us to gain operating leverage and significantly increase our profitability as we continue to grow.
“In addition to our traditional cable, we are focusing on growing our high margin specialty cable products. We have a very strong R&D team and continue to introduce new products to the market based on our customers’ needs. We now have 7 approved patents and 25 pending patents. In particular, our carbon fiber and other specialty cables incorporate unique technology that makes them lighter with better electrical conductivity. We will continue to strengthen our research team and develop new hi-tech cables. We believe this approach will help further differentiate us from competitors and enable us to capture additional market share in China.
“Looking ahead, we have aggressive sales and marketing initiatives underway,” he concluded. “Demand within China is driven by increased construction and infrastructure development. We are adding new sales reps and sales offices across China. We are also expanding into new domestic markets such as submarine and ‘new energy’ cables.”
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