China Security & Surveillance Technology Announces Recent Business Developments
Company Reiterates 2Q08 and FY08 Financial Forecast
SHENZHEN, China, June 23 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. ('The Company' & 'CSST')(NYSE:CSR) , a leading provider of digital surveillance technology in the PRC, today announced recent notable business developments, with two new project wins in Beijing, Safe City Project updates in Kunming City and Yinchuan City, and a Strategic Partnership Memorandum with IBM Global Financing. The Company today also reiterates its second quarter and full year of 2008 financial forecast.
CSST has recently won two new security projects in Beijing, the first time the Company has ever won projects in this city. This first project is with The People's Bank of China to provide security surveillance solutions in its central office in Beijing. Separately, CSST has also been selected to be the sole contractor to implement a video surveillance platform within a 30 kilometer radius of the Beijing Capital International Airport (PEK) in Beijing City. The new surveillance system will enable the existing airport security operations centers to simultaneously monitor various remote sites, which include secured airport areas and public parking lots. Together, these two new projects in Beijing are valued at approximately RMB 55 million (approximately USD $8.0 million). The Company expects to begin realizing revenues from these two projects in the fourth quarter of 2008.
''This is a great honor to win such notable projects in a tier one city such as Beijing,'' said Mr. Guoshen Tu, Chief Executive Officer of China Security. ''These two new wins indicate the continued progress our team is making in extending our growth and business expansion within China. We are particularly encouraged by the two project wins in Beijing given that we have historically focused on delivering solutions within China's tier 2 and 3 cities. We will continue to press forward with our plans of expanding our security and surveillance business solutions in China.''
The Company also announced that implementation for two of its largest Safe City projects: Kunming City (valued at RMB 209.4 million) and Yinchuan City (valued at RMB 260 million), which were signed in March and May of this year, have already started. The Company will start to utilize its financing facility from China Construction Bank to fund the working capital requirements of the project in Kunming City.
In addition, the Company is pleased to announce signing a Strategic Partnership Memorandum with IBM Global Financing (IGF), a division of IBM (NYSE:IBM) , to obtain lease financing facilities for Safe City projects within China.
''We are proud to have the opportunity to work with a world class organization like IBM Global Financing,'' Said Mr. Tu. ''We believe that our partnership with IBM will enable CSST to further expand its Safe City projects in China by utilizing financing facilities to address working capital needs for the larger government Safe City projects. We look forward to this strategic partnership with IBM Global Financing.''
For the second quarter of 2008, the Company reiterates its revenue estimate of US$85-$87 million, adjusted net income of US$15.9-$16.5 million and adjusted diluted earnings per share of $0.36-$0.38. The Company also reiterates its financial forecast for full year 2008 revenue of US$380-$400 million, adjusted net income of $70-$76 million and adjusted diluted earnings per share of $1.59-$1.76.
Mr. Guoshen Tu, commented, ''We are confident that the security and surveillance industry in China and globally will continue to grow significantly. Our business fundamentals and operations continue in accordance to our business plans. We are highly focused on maintaining steady and deliberate progress towards our key growth objectives.''
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, China Security manufactures, distributes, installs and maintains security and surveillance systems throughout the PRC. China Security has manufacturing facilities located in China and an R&D facility which maintains an exclusive collaboration agreement with Beijing University and Wuhan University. China Security has built a diversified customer base through its extensive sales and service network that includes numerous points of presence throughout the PRC. To learn more about the Company visit http://www.csst.com/ .
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as ''will'' ''believes'', ''expects'' or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov/ .
Source: China Security & Surveillance Technology, Inc.
CONTACT: Kewa Luo of China Security & Surveillance, +1-212-984-0688, or
email@example.com; Investor Contact at ICR, Bill Zima or Ashley Ammon MacFarlane,
+1-203-682-8200; or Media Contact at Fleishman-Hillard Hong Kong, Patrick Yu,
+852-2530-2577, or Patrick.firstname.lastname@example.org, both for CSR