China Security & Surveillance Technology, Inc. ("China Security") (OTC Bulletin Board: CSCT) a leading provider of digital surveillance technology in China, is correcting some of the numbers released in its 2006 Earnings Report on March 12, 2007.
There were two changes on the income statement. Net Income per share (diluted) has been changed from $0.87 to $0.85 due to a change in the share count. The weighted average number of shares outstanding (diluted) has been changed from 26,253,745 to 26,940,215.
In addition, there were two changes from the cash flow statement. Net cash provided by operating activities was reported $2.434 million and has been changed to $2.984 million. Net cash provided by financing activities has been changed from $36.462 million to $35.912 million.
In addition, the financial tables below have been amended to include these revisions.
The financial results presented herein are preliminary and are subject to adjustment until the company files its Form 10-K with the United States Securities and Exchange Commission for the year ended December 31, 2006.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, China Security manufactures, distributes, installs and maintains security and surveillance systems. China Security has manufacturing facilities located in China and a R&D facility which leverages an exclusive collaboration agreement with Beijing University. In addition, 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 China Security, visit their website at: http://www.csstf.com .
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may 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. For a further description of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 20-F, 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 .
CHINA SECURITY & SURVEILLANCE TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004
Expressed in thousands of U.S. dollars
(Except for share amounts)
2006 2005 2004
Revenues $ 106,989 $ 32,688 $ 16,056
Cost of goods sold 75,976 23,473 8,796
Gross profit 31,013 9,215 7,260
Selling and marketing 1,511 288 391
General and administrative 3,036 1,189 513
Depreciation and
amortization 1,124 260 225
Income from operations 25,342 7,478 6,131
Rental income from related
parties -- 439 478
Other income (expense), net 1,162 129 (12)
Equity in net income of
affiliated companies 307 -- --
Income before income taxes 26,811 8,046 6,597
Minority interest in income of
consolidated subsidiaries (9) -- --
Income taxes 3,889 780 873
Net income 22,931 7,266 5,724
Foreign currency translation
gain 1,664 545 -
COMPREHENSIVE INCOME $ 24,595 $ 7,811 $ 5,724
NET INCOME PER SHARE
BASIC $ 0.88 $ 0.39 $ 0.34
DILUTED $ 0.85 $ 0.39 $ 0.34
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING
BASIC 26,052,519 18,521,479 17,000,000,000
DILUTED 26,940,215 18,521,479 17,000,000,000
For more information, please contact:
Terence Yap
Tel: +1-646-713-4888 / +852-9838-7413
Email: terence@csstf.com