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Recon Technology Reports Strong Gains in FY 2014 and Announces Growth Goals [Global Data Point](Global Data Point Via Acquire Media NewsEdge) Revenues grew 22% to $15,181,815 from $12,442,444* in FY 2013 as sales of oilfield hardware products to non-related parties more than doubled Adjusted net income attributable to Recon (non- U.S. GAAP)** grew 170% to approximately $831,550 from $307,440 in FY 2013 Adjusted EBIDTA (non- U.S. GAAP) increased 88% year over year to $1,435,679, from $763,800* Net income attributable to Recon (U.S. GAAP) rose to approximately $131,140 from approximately $6,450* in the prior year Diluted EPS (U.S. GAAP) rose 1,400% to $0.03 from EPS of $0.002 in FY 2013 Adjusted diluted EPS** (non- U.S. GAAP) rose 137% to $0.19 compared with $0.08 a year earlier * Based on the exchange rate of RMB6.1552 to US$1.00. ** Non- U.S. GAAP measures are explained in tables 3 and 4 below. Non -U.S. GAAP adjusted net income and EPS exclude certain special non-cash after tax expenses totaling $ 700,419 ($0.16 per share) that are included in net income Other FY 2014 Highlights Hardware and Software sales to non-related parties grew 108.2% year over year, offsetting a decline in revenues related to fracturing Gross margins increased year-over-year from 32.7% to 34.7%, in part reflecting the decline in lower margin fracturing related sales Operating income increased from a loss in FY2013 of $91,751 to income of $459,813 Current assets as of June 30, 2014, including approximately $2.94 million in cash and cash equivalents, were approximately $25.1 million. The Company reported no long term debt and total current liabilities of approximately $8.18 million as of June 30, 2014 Working capital as of June 30, 2014 was approximately $13.5 million There were approximately 4.4 million weighted average outstanding ordinary shares, on a fully diluted basis, as of June 30, 2014, up from approximately 4.0 million as of June 30, FY 2013, in part reflecting a registered direct offering in November 2013 of 546,500 ordinary shares and warrants to initially purchase an aggregate of 163,950 ordinary shares. This offering generated net proceeds of approximately $2.0 million. Growth in Automation Products Mr. Yin continued, "In FY 2014, we see particularly good continuing demand for 'Digital Oil Field' automation products and services, further enhanced by our recent appointment as an authorized third party system integrator for world renowned automation leader ABB. While I believe this partnership, as well as our partnerships with global oil servicing leaders such as Baker Hughes, Emerson and others reflects well on our abilities, more importantly, it inspires further confidence in our customers and helps to expand the range of products and services we are able to customize for the unique needs of the oil and gas fields in China." Growth Goals: Organic Growth Plus Acquisitions "In recent weeks," Mr. Yin said, "we have focused on developing growth goals to guide the efforts of our still young Company that we believe is entering a new stage of development. Our major focus going forward will continue to be on the organic development of our business, built on strong technology, our very well developed solid relationships with China's large oil companies, and our focus on building our business in China's most challenging oil fields away from large potential competitors. However, we believe we can supplement this growth with carefully chosen acquisitions and joint ventures, and have put a greater effort into accomplishing this." Double Our Revenues Over Next 2 to 3 Years "Looking ahead," Mr. Yin said, "we believe that an achievable goal for Recon is annual average revenue growth of a minimum of 20%. We further believe that if we couple this with appropriate acquisitions, we can aim to double our revenues over the next two to three fiscal years." Mr. Yin concluded, "While pursuing these goals, we will keep in mind the best interests of our shareholders, who we know would also like to see a growing bottom line as we grow our revenues, and also don't want us to stray from our areas of expertise. We think we have a very exciting future ahead and look forward to continuing to inform shareholders of our progress." (c) 2014 GlobalData Provided by SyndiGate Media Inc. (Syndigate.info). |