Shengkai Innovations, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended March 31, 2013
May 15, 2013 at 04:00 pm EDT
Share
Shengkai Innovations, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended March 31, 2013. For the quarter, the company reported revenues were approximately $3.0 million compared with approximately $5.7 million in the third quarter of fiscal year 2012. Excluding the non-cash share-based compensation, non-GAAP operating loss was approximately $1.3 million compared with non-GAAP operating income of approximately $0.7 million for the comparable period in fiscal year 2012. GAAP net loss was approximately $1.4 million compared with approximately $0.1 million in the third quarter of fiscal year 2012. Diluted loss per share was $0.08 compared to $0.01 in the third quarter of fiscal year 2012. Excluding the non-cash items of share-based compensation and changes in fair value of instruments, non-GAAP net loss was approximately $1.1 million compared with non-GAAP net income of approximately $0.8 million in the third quarter of fiscal year 2012. The decrease was primarily due to the decline in revenues resulting from slowdown in PRC economy, loss of customers and operational transition, coupled with lower margin product mix and higher selling, marketing and research and development expenses for new potential markets. Non-GAAP loss was $0.07 per diluted share compared with Non-GAPP earnings of $0.05 per diluted share in the third quarter of fiscal year 2012. Loss from operations was $1.47 million against $0.28 million for the same period a year ago. Loss before income taxes was $1.43 million against income before income taxes of $0.19 million for the same period a year ago.
For the nine months, company reported revenues were approximately $11.6 million compared with $27.0 million in the first nine months of fiscal year 2012. Net loss was approximately $3.1 million or loss of $0.18 per diluted share compared with a net income of approximately $2.6 million or diluted earnings per share of $0.14 during the first nine months of fiscal year 2012. Non-GAAP net loss was approximately $2.5 million, or non-GAAP loss of $0.14 per share, after adjusting for non-cash items of share-based compensation and loss resulting from changes in the fair value of instruments. Non-GAAP net income in nine months of fiscal year 2012 was $4.97 million. Excluding non-cash items of share-based compensation and change in fair value of instruments, non-GAAP net loss for the first nine months of fiscal year 2013 was approximately $2.5 million compared with a non-GAAP net income of approximately $5.0 million for the comparable period in fiscal year 2012. The decrease was primarily due to the decline in revenues because of loss of business resulting from unsolicited investigations, operational transition, and slowdown in PRC economy, coupled with lower margin product mix and higher selling, marketing and research and development expenses for new potential markets. Non-GAAP loss was $0.14 per diluted share compared with Non-GAPP earnings of $0.27 per diluted share in the first nine months of fiscal year 2012. Net cash flow provided by operating activities was approximately $1.3 million compared with approximately $7.7 million in the first nine months of fiscal year 2012. The decrease was primarily attributable to the net loss incurred as compared to a net income for the same period in fiscal year 2012. Loss from operations was $3.29 million against $1.34 million for the same period a year ago. Loss before income taxes was $2.99 million against income before income taxes of $3.97 million for the same period a year ago. Purchase of property, plant and equipment was $0.29 million against $52,973 in the first nine months of fiscal year 2012.
Shengkai Innovations, Inc. (SKII), through its subsidiaries and affiliates, is in the business of manufacturing and sale of industrial ceramic valves and components in the Peopleâs Republic of China (PRC). The Company is a holding company of Shen Kun International Limited (Shen Kun). Shen Kun holds 100% of the equity interests in Shengkai (Tianjin) Limited (SK WFOE), a wholly foreign owned enterprise organized under the laws of the PRC, which, in turn, through contractual relationships, controls the business of Tianjin Shengkai Industrial Technology Development Co., Ltd. (Tianjin Shengkai), a PRC company that designs, manufactures and sells ceramic valves. Shengkai (Tianjin) Trading Ltd. is primarily engaged in the international trading of non-valve products to serve the Companyâs international customers.