ZST Digital Networks, Inc. Signs Jiyuan Commercial GPS Tracking and Services Contract
ZHENGZHOU, China, April 14, 2011 /PRNewswire-Asia-FirstCall/ -- ZST Digital Networks, Inc. (NASDAQ: ZSTN) ("ZST" or the "Company"), a major developer, manufacturer and supplier of digital and optical network equipment to cable system operators and provider of GPS tracking devices and support services for transport-related enterprises in China, today announced that it has signed an agreement with the Jiyuan Universal Taxi Leasing Company ("Jiyuan Universal"), a company located in Jiyuan City in Henan Province, to provide GPS tracking and monitoring products and services for Jiyuan Universal's fleet of over 1,300 taxis.
Under the terms of the agreement, ZST Digital will install its GPS tracking and monitoring units and accompanying accessories including digital camera systems and voice announcement systems in Jiyuan Universal's fleet of 1,382 taxis. Following installation and configuration, ZST Digital will provide training to Jiyuan Universal's staff on the GPS hardware and systems operation. The terms of the agreement include an RMB2.8 million (approximately US$0.4 million)(1) upfront payment by Jiyuan Universal to ZST Digital for the hardware, installation and first year service fee. After the first year, Jiyuan Universal will pay an annual service fee of RMB360 (approximately US$55.00) (1) per installed GPS unit.
The Company's GPS positioning devices are an internet based system with numerous features, including but not limited to real time GPS tracking and monitoring, WEBGIS platform with live updated maps, alternative positioning systems and other value-added functions such as speed limiting and vehicle exhaust emission testing. These features are well applied to government efforts to promote environmental protection and energy saving. In addition to the hardware, which ZST Digital installs and service, the Company operates a 24/7 call center to handle subscriber queries and emergency calls. As a result, the Company's GPS segment generates both one time revenue from the sale and installation of products, and recurring revenue from the service contracts.
Mr. Zhong Bo, Chairman and Chief Executive Officer of ZST, commented, "This new contract with Jiyuan Universal demonstrates the growing demand for efficient and effective transportation fleet management systems among a broad scope of commercial enterprises in Henan Province. We believe that our entry into the taxi market in Jiyuan City will provide a clear case study to support the expansion of our GPS products and services into taxi markets in other cities and counties in Henan Province. We have successfully expanded our GPS segment in every quarter since launch in late 2009, and this latest contract adds further momentum behind our efforts to become the leading commercial GPS tracking systems and services provider in Henan Province. We will continue to seek additional opportunities to expand our GPS customer base and remain confident in our ability to grow this segment in the year ahead."
(1) The amount in RMB was translated to U.S. Dollars using the spot rate of US$1 = RMB6.535 for April 8, 2011
About ZST Digital Networks, Inc.
ZST Digital Networks, Inc. (Nasdaq: ZSTN) is a China-based company, principally engaged in (1) supplying digital and optical network equipment and providing installation services to cable system operators in China and (2) providing GPS location and tracking services to local logistics and transportation companies in China. The Company has developed a line of IPTV devices that are used to provide bundled cable television, Internet and telephone services to residential and commercial customers. The Company has assisted in the installation and construction of over 400 local cable networks in more than 90 municipal districts, counties, townships, and enterprises. The Company has also launched a commercial line of vehicle tracking devices utilizing our GPS tracking technologies and support services for transport-related enterprises to track, monitor and optimize their businesses. For more information about ZST Digital Networks, Inc., please visit http://www.zstdigital.com/english .
"Safe Harbor" Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary 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, including, but not limited to, unforeseen difficulties that may hinder the Company's ability to effectively provide the products and services under the Jiyuan Universal contract; our ability to maintain and increase revenues and sales of our products; our ability to develop and market new products; our strategic investments and acquisitions; compliance and changes in the laws of the People's Republic of China (the "PRC") that affect our operations; our ability to obtain all necessary government certifications and/or licenses to conduct our business; and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time. 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 the factors discussed above and in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable 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.
Contacts: |
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Company Contact: ZST Digital Networks Inc. Henry H. Ngan, Chief Financial Officer Email: [email protected] |
Investor Relations (HK): Mahmoud Siddig Taylor Rafferty Tel: +852-3196-3712 Email: [email protected] |
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Investor Relations (US): Bryan Degnan Taylor Rafferty Tel: +1 (212) 889-4350 Email: [email protected] |
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SOURCE ZST Digital Networks, Inc.
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