SHENZHEN, China, Oct. 26, 2011 /PRNewswire-Asia-FirstCall/ -- Jingwei International Limited (NASDAQ: JNGW) ("Jingwei" or "the Company"), a leading provider of data-mining, interactive marketing and software services in China, today announced its preliminary financial results for the third quarter ended September 30, 2011.
The Company now expects revenue to be $8.6 million, a decrease of approximately 17% compared to $10.4 million of revenue reported in the third quarter 2010. For the third quarter 2011, the Company now expects diluted earnings per share to be between $(0.02) and $0.02, as compared to diluted earnings per share of $0.13 in the third quarter 2010.
"After a strong performance in operating results in 2010, we experienced some softness in our key BSS/OSS product offerings to the telecom carriers. Management changes within a major telecom carrier have also impacted the expected ramp-up of our interactive marketing services in the quarter; which in turn negatively impacted our cost structure for the services," commented Mr. George Du, Chairman and Chief Executive Officer of Jingwei. "In addition, net income was negatively affected by a one-time impairment charge of about $1.1 million to a long-term investment, as well as a surge in Selling, General & Administrative Expense in part to support our quick business expansion in the Data mining segment."
Mr. George Du continued, "We have continued to make strides in our market development of the mobile value-added services ("MVAS") Society Channel and marketing support system during the third quarter of 2011. So far, we have successfully deployed our platforms with four China Unicom provincial offices. We can expect significant earnings contribution from this product line in 2012. "
Jingwei plans to report full third quarter 2011 financial results on Monday, November 14, 2011.
Jingwei also has revised its initial outlook for full year 2011 and now expects total revenue between $36.0 million and $40.0 million, net income of between $3.0 million and $4.6 million, and dilutive earnings per basic share of between $0.15 and $0.23 assuming 20.5 million weighted average common shares outstanding on a dilutive basis.
The results provided in this press release are preliminary and subject to completion and review of the third quarter 2011 interim financial statements by the Company as well as review by the Company's independent auditors and Audit Committee.
About Jingwei International Limited:
Jingwei International Limited ("Jingwei") has established a leading position in China in data mining, interactive marketing and software services. By leveraging its proprietary database of over 400 million consumer profiles, Jingwei helps companies to more effectively reach their target audiences. To capitalize on China's explosive mobile, Internet and e-Commerce growth, Jingwei has focused on new data mining offerings that encompass interactive marketing, bundled mobility solutions and mobile value added services. The Company's software services include business intelligence, billing, customer relationship management and decision support solutions for Chinese telecom operators and power companies.
Business Risks and Forward-Looking Statements
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SOURCE Jingwei International Limited