SHENZHEN, CHINA--(Marketwire - Oct 29, 2012) - Wonhe High-Tech International, Inc. ("Wonhe High-Tech" or the "Company") (OTCQB: WHHT), a high-tech enterprise specializing in sales of electronic products, today announced net income guidance of $2 million for 2012 fiscal third quarter ending September 30, 2012.
Review of the Second Quarter of the Fiscal Year 2012
The revenue for the three months ended June 30, 2012 was $5.6 million, the gross profit was $2.7 million and the net income was $1.2 million. The gross margin and the net profit margin were 48% and 21% respectively. The Company began to sell HMC660, a multimedia box, in December 2011 and the revenue was primarily from the sale of HMC600. The revenue and net income increased by 65% and 22% respectively for the second quarter of 2012 ended in June 30, compared with the revenue of $3.4 million and net income of $0.98 million in the first quarter of 2012 fiscal year ended in March 31, 2012. For the six months ended June 30, 2012, the sales revenue was $9.0 million. The gross profit was $4.4 million with gross profit margin of 49% and the net income was $2.1 million with net profit margin of 23%.
The Projected Earnings of the Third Quarter of 2012 Fiscal Year
Through the on-going implementation of marketing plans, we expect the sales will keep growing. The sales revenue for the three months ended September 30, 2012 is projected to reach $6.7 million. The gross profit is projected to approximate $3.3 million, with gross profit margin of 49%, and the net income is forecasted to be approximately $2 million, with net income margin of 30%.
About Wonhe High-Tech International, Inc.
Wonhe High-Tech International, Inc. is a high-tech enterprise which specializes in research and development (R&D), outsourced-manufacturing and marketing of high-end business and personal IT products and providing application services. For more information please visit http://www.szwonhe.com.
Cautionary Statement Regarding Forward Looking Information
Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our 8K dated June 28, 2012, and other recent filings. These filings are available at http://www.sec.gov/.