American Nano Silicon Technologies, Inc. (OTCBB:ANNO) ("ANNO" or
"the Company"), a leading manufacturer and distributor of consumer
chemical products in China, today announced its financial results
for the second quarter ended March 31, 2011.
Second Quarter 2011 Financial Highlights:
- Revenue increased 29%, from $4.9 million in Q2 2010 to $6.3
million in Q2 2011
- Gross profit improved 27%, from $1.1 million in Q2 2010 to $1.5
million in Q2 2011
- Operating income rose 43%, from $0.95 million in Q2 2010 to
$1.36 million in Q2 2011
- Net income increased from ($4.4 million) in Q2 2010 to $0.5
million in Q2 2011
Summarized Second Quarter 2011 Results:
|
Q2 2011 |
Q2 2010 |
CHANGE |
Revenue |
$6.27 million |
$4.87 million |
+29% |
Gross Profit |
$1.52 million |
$1.14 million |
+27% |
Operating Income |
$0.95 million |
$1.36 million |
+43% |
Net Income |
$0.52 million |
($4.41 million) |
N.A. |
EPS (Diluted)* |
$0.01 |
($0.17) |
N.A. |
*Earnings per diluted share of $0.01
on 31.1 million shares. For the second quarter of 2010, the
Company reported fully diluted losses per share of ($0.17) on 26.7
million shares. |
"I am very pleased that ANNO had a strong second quarter," said
Fachun Pu, ANNO's Chief Executive Officer. "Solid growth in our
core business, our phosphate-free detergent additive, along with
excellent progress in our emerging business, our accelerator and
enforcement additive for concrete, drove 29 percent revenue growth
from the first quarter of 2010 to the first quarter of 2011. We are
especially delighted that our accelerator and enforcement additive
for concrete has been embraced by China's rapidly developing
construction industry. We are very confident about our future and
we intend to continue to invest aggressively in our core areas of
business."
Second Quarter 2011 Financial Results
Revenue
ANNO had sales of $6.3 million in the second quarter of 2011
compared to sales of $4.9 million in the second quarter of 2010, an
increase of $1.4 million or 29%. The growth in revenue is
attributable to ANNO's increased production capacity. The Company
is currently operating its Micro Nano Silicon production line at
full capacity, producing product for both the detergent and the
cement industries, whereas it only produced its detergent additive
in the second quarter of 2010. In the second quarter of 2011,
ANNO's production of its accelerator and enforcement agent for
concrete was approximately 3,028 tons.
Gross Profit
ANNO's gross profit was $1.5 million in the second quarter of
2011 compared to a gross profit of $1.1 million in the second
quarter of 2010, an increase of $0.4 million or 27%. Since the
Company generated revenue in the second quarter of 2011 from its
accelerator and enforcement additive for concrete, the gross margin
of which is higher than that of ANNO's detergent additive, the
Company's gross margin increased from 23% in the second quarter of
2010 to 25% this past quarter. ANNO's production capacity
expansion and the scale of economy positively affected its gross
profit margin.
Net Income
ANNO's net income was $0.5 million in the first quarter of 2011
compared to a net loss of $4.4 million in the first quarter of
2010, an increase of $4.9 million.
Recent Updates
ANNO began manufacturing its Micro Nano Silicon based
accelerator and enforcement additive for concrete near the end of
fiscal year 2010. The Company considers its additive for concrete a
useful way for cement manufacturers to lower production costs and
comply with China's energy saving regulations. ANNO's research
indicates that its accelerator and enforcement additive for
concrete provides an 18% increase in the compressive strength and a
47% increase in the flexural strength of cement while being less
harmful to the environment than competitive products. Additionally,
as an accelerator and enforcement additive, Micro Nano Silicon can
be utilized in a chemical rotary kiln instead of a lime rotary
kiln; unlike a lime rotary kiln, a chemical rotary kiln can be
operated at extremely high temperatures, resulting in larger
production and lower costs. ANNO is in the midst of patenting its
enforcement and accelerator additive for cement product through the
State Intellectual Property Bureau of China.
Business Outlook
In the future, ANNO looks to produce approximately 30,000 tons
per year of its Micro Nano Silicon based flame retardant additive
for rubber and plastic materials. The Company considers its flame
retardant a technologically and economically viable alternative to
halogenated flame retardant products. Compared to its
halogenated-based competitors, ANNO's research indicates that its
flame retardant additive is more cost effective due to its superior
flame retardancy, lower specific gravity, low loading level, and
non-blooming characteristic. The Company's studies also show that
when its flame retardant is exposed to flame, it is less toxic with
lower smoke density and less invasive odor than competitive
products.
"Since our sales already exceed our production capacity, we plan
to further expand our current capacity for our finished Micro Nano
Silicon products from 30,000 tons to 120,000 tons per year.
Additionally, we intend to strengthen our sales force so that we
are better able to market our products beyond our regional base of
customers. Our goal is to establish Micro Nano Silicon in a broad
range of industries as our current products based on this unique
technology have shown to be more cost effective and environmentally
friendly than competitors. We will strive to develop additional
uses for Micro Nano Silicon as we look to provide other industries
with more effective, cleaner additives," stated Mr. Fachun Pu.
About American Nano Silicon Technologies,
Inc.
American Nano Silicon Technologies, Inc., through its 95%-owned
subsidiary, Nanchong Chunfei Nano Silicon Technologies Co., Ltd.,
is engaged in the business of manufacturing and distributing Micro
Nano Silicon™ based products. While the Company's Micro Nano
Silicon based products are currently focused on the concrete and
non-phosphate detergent industries, Micro Nano Silicon is adaptable
to and widely used in many consumer and industrial products,
including paint, petrochemical, plastics, rubber, paper, ceramics
and water treatment materials.
The American Nano Silicon Technologies, Inc. logo is available
at http://www.globenewswire.com/newsroom/prs/?pkgid=8811
Safe Harbor Statement
This release may contain certain "forward-looking statements"
relating to the business of American Nano Silicon and its
subsidiary companies, which can be identified by the use of
forward-looking terminology such as "believes," "expects,"
"anticipates," "estimates" or similar expressions. These
forward-looking statements are based on assumptions about the
Company's future, including, but are not limited to, continued
demand for American Nano Silicon Technology, Inc.'s products,
American Nano Silicon Technology Inc.'s ability to sustain growth
for the balance of the year, and its ability to generally meet all
of its objectives. Such forward-looking statements and the
underlying assumptions involve known and unknown risks and
uncertainties, including all business uncertainties relating to
product development, marketing, and concentration in a small number
of customers, raw material costs, market acceptance, future capital
requirements, and competition in general as well as 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 the Company's filings with the SEC, in
particular in Item 1A: "Risk Factors" in the Company's Annual
Report on Form 10-K for the year ended September 30, 2010. American
Nano Silicon Technology, Inc. will not update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise.
CONTACT: Investor Contact:
Mr. Kevin Fickle
NUWA Group, LLC
Tel: +1-925-330-8315
Email: kevin@nuwagroup.com
Or
Mr. Kevin Ma
NUWA Group, LLC
Tel: +1-415-571-3640
Email: qma@nuwagroup.com