BEIJING, July 15 /PRNewswire-Asia/ -- eFuture Information Technology Inc.
(Nasdaq: EFUT, the "Company"), a leading provider of software and services in
China's rapidly growing retail and consumer goods industries, today announced
that it would delay filing its annual report on Form 20-F for the fiscal year
ended December 31, 2008 (the "2008 20-F").
The delay is principally due to the Company's determination to review its
accounting for certain convertible notes issued in 2007 in connection with a
private placement of securities with three institutional investors (the "2007
Notes"). The 2007 Notes consisted of $10 million in senior notes convertible
into the Company's ordinary shares at an initial rate of $24.99 per share
(subsequently reset to $19.00 per share on June 11, 2008). As of July 15, 2009,
the institutional investors have converted, in the aggregate, $9 million of
the 2007 Notes into the Company's ordinary shares.
In connection with its review, the Company has engaged Marsh, an
independent valuation firm to provide additional guidance regarding the 2007
Notes. Pending the completion of Marsh's review, the Company cannot estimate
at this time whether any adjustments to previously announced financial results
will be required.
Because the Company has delayed its filing of the 2008 20-F, it
anticipates that it will shortly receive a notice from the NASDAQ Stock Market
that it is not in compliance with NASDAQ Marketplace Rule 5250(c)(1). Rule
5250(c)(1) requires listed companies to file periodic financial reports like
the Form 20-F with the Securities and Exchange Commission on or before the
date they are required to be filed. The Company expects that this notice will
be issued in accordance with standard NASDAQ procedures and that the
notification will not have an immediate effect on the listing of the Company's
ordinary shares.
The Company is working diligently to complete the assessment process and
intends to file the 2008 20-F as promptly as possible.
About eFuture Information Technology Inc.
eFuture Information Technology Inc. (NASDAQ: EFUT) is a leading provider
of software and services in China's rapidly growing retail and consumer goods
industries. eFuture provides integrated software and services to manufacturers,
distributors, wholesalers, logistics companies and retailers in China's
front-end supply chain (from factory to consumer) market, especially in the
retail and fast moving consumer goods industries. eFuture currently serves
over 15 Fortune 500 companies, over 1,000 retailers and over 5,000 suppliers
operating in China. eFuture is one of IBM's premier business partners in Asia
Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and
Samsung Network China. eFuture has more than 600 employees and 20 branch
offices across China. For more information about eFuture, please visit
http://www.e-future.com.cn/ .
Safe Harbor
This announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Among
other things, 2009 financial outlook and quotations from management in this
announcement, as well as strategic and operational plans, contain
forward-looking statements. eFuture may also make written or oral
forward-looking statements in periodic reports to the Securities and Exchange
Commission (the "SEC"), in its annual report to shareholders, in press
releases and other written materials and in oral statements made by its
officers, directors or employees to second parties. Statements that are not
historical facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following:
eFuture's anticipated growth strategies; eFuture's future business development,
results of operations and financial condition; expected changes in the
Company's revenues and certain cost or expense items; eFuture's ability to
attract customers and leverage its brand; trends and competition in the
software industry; the Company's ability to control expenses and maintain
profit margins; the Company's ability to hire, train and retain qualified
managerial and other employees; the Company's ability to develop new software
and pilot new business models at desirable locations in a timely and
cost-effective manner; the performance of third parties under contracts with
the Company; the expected growth of the Chinese economy software market in
retail and consumer goods industries; and Chinese governmental policies
relating to private managers and operators of software and applicable tax
rates.
Further information regarding these and other risks is included in
eFuture's annual report on Form 20-F and other documents filed with the SEC.
All information provided in this press release and in the attachments is as of
June 19, 2009, and the Company undertakes no duty to update such information
or any other forward-looking information, except as required under applicable
law.
For more information, please contact:
Investor Contact:
Troe Wen, Company Secretary
eFuture Information Technology Inc.
Tel: +86-10-5293-7699
Email: ir@e-future.com.cn
Investor Relations (US):
Mahmoud Siddig
Taylor Rafferty
Tel: +1-212-889-4350
Email: eFuture@Taylor-Rafferty.com
Investor Relations (HK):
Ruby Yim
Taylor Rafferty
Tel: +852-3196-3712
Email: eFuture@Taylor-Rafferty.com
Media Contact:
Jason Marshall
Taylor Rafferty
Tel: +1-212-889-4350
Email: eFuture@Taylor-Rafferty.com
SOURCE eFuture Information Technology Inc.
