BEIJING, Dec. 6, 2010 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation (Nasdaq: TSTC) ("Telestone" or the "Company"), a leading developer and provider of telecommunications local access networks in China, today announced that it has retained CCG Investor Relations ("CCG") to design and execute its investor relations campaign.
Telestone has historically developed network-access equipment for the wireless communications market in China, offering equipment, project design, and after-sales services customized to meet customer requirements. The Company has developed close business relationships with the three major Chinese wireless carriers--China Mobile, China Unicom, China Telecom (the "Big 3")--as its main customers. Since 2006, Telestone has focused on expanding its international presence. The Company has developed a proprietary technology for aggregating wireless and wireline voice, data, and video traffic on a single optical fiber called Wireless Fiber-Optic Distribution System (WFDS), which it is deploying in China and also internationally.
China is the world's largest mobile market, with over 700 million subscribers. The Big 3 Chinese wireless carriers have invested about $21 billion rolling out their 3G mobile networks starting last year and have cooperated with handset manufacturers to promote the expansion of their 3G networks. China currently has about 25 million users of 3G mobile wireless technology, and the number of subscribers continues to expand. The Chinese telecom restructuring and the issuance of 3G licenses in China are expected to require an investment of approximately $70 billion from 2009 to 2011.
"We are excited about the large and new growing opportunity in the China wireless communications market. With our leading-edge R&D capabilities, experienced engineering team, and proprietary WFDS technology, we are extremely optimistic about increasing our presence in the China and international markets," said Mr. Daqing Han, Telestone's Chairman and Chief Executive Officer. "We look forward to working with CCG to communicate our product strategy and international expansion, particularly for our WFDS solution, as well as our financial performance, to investors."
"China's wireless communication market is undergoing unprecedented changes. The Chinese telecom restructuring, the issuance of 3G licenses, as well as the expected integration of telecommunications, TV, and radio broadcasting and Internet access into one unified network, have presented a slew of opportunities for the deployment of telecommunication infrastructure, where Telestone has established a solid foothold. The Company, supported by its proven track record with China's major wireless carriers, as well as both local and national government and industry authorities, is well positioned to capitalize on this fast-growing industry," said Crocker Coulson, President of CCG Investor Relations.
For the nine months ended September 30, 2010, Telestone's revenue increased by 82.1% year on year to $70.9 million. GAAP net income increased by 71.7% to $12.6 million from the same period of 2009. The Company recently reaffirmed its guidance of $129.4 million in revenue, $22.9 million in net income and $2.17 in EPS for 2010.
About Telestone Technologies Corporation
Telestone is a leader and innovator in wireless local-access network technologies and solutions. The company has a global presence, with 30 sales offices throughout China and a network of international branch offices and sales agents. For more than 10 years, Telestone has installed radio-frequency (RF)-based 1G and 2G systems throughout China for its leading telecommunications companies. After intensive research on the needs of carriers in the 3G age, Telestone developed and commercialized its proprietary third-generation local-access network technology, WFDS(TM) (Wireless Fiber-optic Distribution System), which provides a scalable, multi-access local access network solution for China's three cellular protocols. Telestone also offers services including project design, manufacturing, installation, maintenance and after-sales support. The Company has approximately 1,200 employees.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of Telestone Technologies Corporation and its subsidiary companies. Forward looking statements can be 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, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. Telestone Technologies is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Telestone Technologies Corporation
Mr. Richard Wu, VP of Finance
Phone: +86-10-6860-8335 ext 1008
Ms. Dan Feng, Investor Relations Associate
Phone: +86-10-6860-8335 ext 1232
Investor Relations Contacts:
CCG Investor Relations
Mr. John Harmon, CFA, Sr. Account Manager
Phone: +86-10-6561-6886 x807 (Beijing)
Mr. Bryan Blake, MI Executive
Phone: +1-646-833-3416 (New York)
SOURCE Telestone Technologies Corporation