ZSTN 10-K/A 2010 Annual Report out after hours today.
http://biz.yahoo.com/e/110802/zstn10-k_a.html
2nd quarter earnings to be released before the bell on Wed, 8/3 and should be interesting to see the numbers. Hopefully this NASDAQ ZSTN and ECDC deal happens soon, would like to get some movement of the ECDC train again. ZSTN has been steadily climbing back up and if this deal finally goes down, I except ECDC to follow in the same direction.
A few highlights cut and pasted from the 10-K/A Annual Report released today:
Summary of Operating Results for 2010
The following summary is intended to provide significant highlights of the discussion and analysis for the year ended December 31, 2010.
Total revenue for year ended December 31, 2010 was $134.6 million, an increase of 34% compared to fiscal 2009.
Gross profit for the year ended December 31, 2010 was $34.8 million, an increase of 104% compared to fiscal 2009.
Gross profit ratio for fiscal 2010 was 26% compared to 17% for fiscal 2009.
Net income for fiscal 2010 was $22.1 million, an increase of 117% compared to fiscal 2009.
GPS-Related Business
Since the fourth quarter of 2009, we have been providing GPS location and tracking services to third parties, mainly logistics and transportation trucking companies. In March 2009, we entered into a network access right agreement with the Henan Subsidiary of China Unicom that allows us to use the China Unicom wireless network for providing GPS location and tracking services.
We expect that in the foreseeable future, the source of revenue for our business will be from (1) selling network system equipment and set-top boxes to cable system operators and (2) providing GPS location and tracking services to mainly logistics and transportation companies. There are 118 counties within Henan Province whereas we are currently serving only 33 counties. Consequently, we believe there is opportunity for future growth. In the future, we may expand our business activities beyond the border of Henan Province. Since we believe that the broadcasting and TV bureau at the provincial level is planning to redesign and enhance the entire network system in the entire Henan province, opportunities to bid for these projects exist. Our current goal for the GPS line of business is to continuously gain and secure market shares within Henan Province.
We expect that our business expenses will continue to increase as expenses associated with our efforts to expand sales, marketing, product development and general and administrative capabilities in all of our businesses, as well as expenses that we incur as a publicly-traded company, including costs associated with financial reporting, information technology, complying with federal securities laws (including the Sarbanes-Oxley Act of 2002), tax administration and human resources related functions. While we are striving for business growth, we also intend to focus on measures to control operational costs.
Overall our revenue was $134.6 million for the year ended December 31, 2010, representing an increase of $34.2 million or a 34.0% increase in comparison to $100.4 million for the year ended December 31, 2009. The significant increase in revenue was contributed mainly by GPS-related business, revenue from sales of GPS devices and related service amounting to $27.5 million in fiscal 2010, representing an increase of $23.6 million or a 6.0 times increase in comparison to $3.9 million for fiscal 2009, since we did not launch GPS-related business until the fourth quarter of 2009. GPS-related business contributed 23.5% of overall increase in sales revenue.
GPS Products:
Revenue from sales of GPS devices and GPS-related service was $27.5 million, which accounted to 20.4% of total sales revenue for fiscal 2010. We entered into GPS-related business in the fourth quarter of 2009 whereas there were only two months GPS operations in fiscal 2009 with revenue of $3.9 million. We intend to concentrate on and dedicate resources to the continuous development of our GPS business.
Among the $27.5 million sales revenue from GPS business, sales of GPS devices amounted to $20.8 million and GPS-related service amounted to $6.7 million. GPS-related services fees include service fee from installation service and subscription service for tracking and locating.
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