NEW YORK, June 10 /PRNewswire-FirstCall/ -- Deer Consumer Products, Inc. (Nasdaq: DEER; website: http://www.deerinc.com/), one of the world's largest vertically integrated designers and ODM/OEM manufacturers of home and kitchen electronics marketing to both global and China domestic consumers, is pleased to announce that the Company has signed product supply contracts for approximately $12 million with large global buyers for the North American and Southeast Asian markets.
Deer sees no signs of slowdown in any of the Company's global markets. In addition, Deer has recognized record sales and new order growth for the North American and emerging markets during the month of May.
Deer continues to see positive organic growth in its core business. Historically, Deer has had almost no bad debts from export sales.
"Deer is experiencing strong sales in its current second quarter. Management sees significantly increased new order flow and buyer interest from the North American markets. Deer is also benefiting from its increased production capabilities, which can support approximately $300 million in annual revenues. Our expanded capacity enables Deer to continue to attract larger and broader customers worldwide," commented Bill He, Deer's Chairman & CEO.
UPDATES ON $20 MILLION STOCK BUYBACK:
Deer believes the share buyback is a good use of shareholders' capital at the current share price levels. Since Deer announced a $20 million share buyback, Deer has been executing buyback orders through qualified U.S. broker-dealers. All purchased shares will be returned to the treasury and thereafter will reduce total shares available in the DTC and in the public float. Deer has sufficient cash on hand to execute the share buyback as well as to continue to fund its business expansion. At the end of first quarter 2010, Deer had $75 million in cash without any long-term debts.
UPDATES ON PARTICIPATION IN THE WILLIAM BLAIR GROWTH CONFERENCE:
Deer's senior management will make a presentation and participate in one-on-one meetings with institutional investors at the William Blair Growth Conference in Chicago on June 15 at 11:30 a.m. at the Chicago Four Seasons Hotel. Deer's PowerPoint presentation is available at the Company's website.
About Deer Consumer Products, Inc.
Deer Consumer Products, Inc. (Nasdaq: DEER; website: http://www.deerinc.com/) is a NASDAQ Global Select Market listed U.S. registered public company headquartered in China. Deer has a 15-year operating business as well as a strong balance sheet. Supported by more than 103 patents, trademarks, copyrights and approximately 2,000 company-trained seasonal and full time staff, Deer is a leading designer, ODM/OEM manufacturer and global marketer of quality small home and kitchen electric appliances. Deer's product lines include blenders, juicers, soy milk makers and a large variety of other home appliances designed to make today's lifestyles simpler and healthier. With more than 100 global clients/branded products such as Black & Decker, Ariete, Disney, Toastmaster, Magic Bullet, Back to Basics and Wal-Mart, and rapidly expanding China domestic market footprint, Deer has enjoyed rapid sales and earnings growth in recent years.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Deer's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Deer's filings with the Securities and Exchange Commission.
Ms. Helen Yongmei Wang, President
Deer Consumer Products, Inc.
SOURCE Deer Consumer Products, Inc.