Tongxin International Provides Preliminary Summary of Expected Financial Results for the Year Ended December 31, 2010
(firmenpresse) - CHANGSHA, CHINA -- (Marketwire) -- 07/25/11 -- Tongxin International Ltd. (PINKSHEETS: TXIC), a China-based manufacturer of engineered vehicle body structures ("EVBS") and stamped parts for the commercial automotive industry, today provided a preliminary summary of its expected financial results for the year ended December 31, 2010.
Tongxin International Ltd. (the "Company") expects total revenues for the year ended December 31, 2010 to be $106.5 million, a 12.1% decrease from the $121.1 million of total revenues for the year ended December 31, 2009. Such decrease in total revenues reflects the reduction of original equipment manufacturer production of mini and light commercial vehicles and the increase in production of heavy duty commercial vehicles.
For the year ended December 31, 2010, the Company expects cost of goods sold to be $99.8 million and selling, general and administrative expenses to be $14.0 million. As a result, the Company expects to have an operating loss of $7.3 million for the year ended December 31, 2010 as compared to operating income of $5.5 million for the year ended December 31, 2009.
The Company expects total stockholders' equity for the year ended December 31, 2010 to be approximately $92.1 million compared to $83.8 million for the year ended December 31, 2009.
At December 31, 2010, cash, cash equivalents, and restricted cash (security deposit) totaled approximately $10.8 million. Total current assets at December 31, 2010 totaled approximately $64.2 million compared to $67.5 million at December 31, 2009. Total current liabilities totaled approximately $71.4 million at December 31, 2010 compared to $79.7 million at December 31, 2009.
The Company is evaluating its goodwill for impairment in accordance with the Financial Accounting Standards Board's Statement of Financial Accounting Standard No. 142, "Goodwill and Intangible Assets." The determination as to whether a write-down of goodwill is necessary involves significant judgment based on the short-term and long-term projections of the future performance of the reporting unit to which the goodwill is attributed. To the extent that the Company incurs such an impairment charge, it will be non-cash in nature. The Company expects to complete the impairment evaluation of its goodwill and intangible assets by September 30, 2011.
The Company cautions that all of these financial results are preliminary and subject to change, possibly materially, following the completion and analysis of its financial statements for 2010. Consequently, actual results may differ significantly from the above estimates. The Company also reiterates that the above preliminary and unaudited financial information does not represent all of the information that would normally be included in an Annual Report on Form 20-F with respect to the Company's financial results for the year ended December 31, 2010.
On June 30, 2011, Tongxin International Ltd. filed a Form 12b-25 with the Securities and Exchange Commission indicating that it would not be able to complete the preparation, review and filing of its Annual Report on Form 20-F for the fiscal year ended December 31, 2010 by the filing deadline of June 30, 2011. The Company and its auditor are in the process of completing the audit of the Company's financial statements for its fiscal year ended December 31, 2009. In addition, and with respect to the audit of Company's financial statements for its fiscal year ended December 31, 2010, the Company is in the process of preparing and completing certain documents and financial and other information necessary to permit the completion of the required audit of the Company's financial statements for its fiscal year ended December 31, 2010. The Company is in the process of gathering such documents and in preparing and reviewing the financial and other information required to be included in its Annual Report on Form 20-F for the fiscal year ended December 31, 2010. The Company expects to file its Annual Report on Form 20-F for the fiscal year ended December 31, 2010 and its Annual Report on Form 20-F for its fiscal year ended December 31, 2009 as soon as reasonably possible.
This press release contains statements regarding the preparation and filing of statements or reports, including financial statements, the Company's expectations concerning its operating results and financial conditions, as well as other expectations, plans, goals, objectives, assumptions or information about future events, any and all of which may constitute forward-looking statements or information under applicable securities laws. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct.
All forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include those described in Tongxin International Ltd.'s reports to the SEC, and, among others, the cost and timing of implementing restructuring actions, the Company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, certain global and regional economic conditions, the continuing ability of the Company to prepare and timely file statements or reports with the SEC, and the effect of any goodwill impairment analyses that the Company may perform in the future. If one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected.
The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Consulting For Strategic Growth 1, Ltd.
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Birmingham, MI 48009
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Datum: 25.07.2011 - 21:14 Uhr
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News-ID 37510
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Other passenger vehicles
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