SHENZHEN, China, Dec. 8, 2010 /PRNewswire-Asia-FirstCall/ -- New Energy Systems Group (NYSE Amex: NEWN) ("New Energy" or the "Company"), a vertically integrated original design manufacturer and distributor of lithium ion batteries and backup power systems, today raised its full year 2010 guidance as illustrated below:
Previous 2010 Guidance
Revised 2010 Guidance
Adjusted Net Income (1)
Adjusted EPS (1)(2)
(1) Adjusted Net Income and Adjusted EPS exclude the effect of non-cash amortization and stock-based compensation.
(2) Assumes 12.9 million weighted average fully-diluted shares.
"We are pleased to be able to raise our 2010 guidance," began Mr. Jack Yu, Chairman of New Energy. "We are experiencing good momentum as the use of portable electronics devices such as those made by Apple and RIM drive demand across all our product lines. To a small extent our increased guidance also reflects the accretive impact of the Kim Fai acquisition which we closed on November 10, 2010. However, since that acquisition will only be reflected in our 2010 consolidated results for less than two months, the earnings per share accretion from this acquisition will not be fully evident until 2011. While we have increased our 2010 guidance significantly, we believe the revised guidance is conservative."
OUTLOOK FOR 2011
Mr. Jack Yu, Chairman of New Energy, continued, "We are currently engaged in our planning process for next year and will provide specific guidance for 2011 during the first quarter of 2011. As we introduce new products and further expand our distribution, we are confident that we will sustain strong growth in 2011. We expect our core business to grow significantly next year, especially the Anytone® product line and our suite of products 'Made for iPhone, iPod and iPad'. As previously stated, we also expect the Kim Fai acquisition to contribute approximately $5.0 million of net income in 2011. We currently have approximately 14.5 million fully diluted shares outstanding, which includes the 1.9 million shares issued for the Kim Fai acquisition. As a result of our healthy balance sheet and strong cash flow, we have no near-term need to raise equity to finance our current operations."
About New Energy Systems Group
New Energy Systems Group is a vertically integrated original design manufacturer and distributor of lithium ion batteries and backup power systems for mobile phones, laptops, digital cameras, MP3s and a variety of other portable electronics. The Company's end-user consumer products are sold under the Anytone® brand in China, and the Company has begun expanding its international sales efforts. The fast pace of new mobile device introductions in China combined with a growing middle class make it fertile ground for New Energy's end-user consumer products, as well as its high powered, light weight lithium ion batteries. In addition to historically strong organic growth, New Energy is expected to benefit from economies of scale, broader distribution, and greater production capacity and higher profit margins. Additional information about the Company is available at: www.newenergysystemsgroup.com.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary and affiliated companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
New Energy Systems Group
Ken Lin, VP of Investor Relations
John Mattio, SVP
HC International, Inc.
Tel: US +1-203-616-5144
SOURCE New Energy Systems Group