QualityStocks would like to highlight China BAK Battery, Inc. (NASDAQ: CBAK), a leading global manufacturer of lithium-based battery cells, with production capacity of 1.5 million pieces per day. The company’s main products include cylindrical, prismatic, and polymer battery cells, which are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers, and other portable consumer electronics.
In the company’s news yesterday, China BAK Battery announced its financial results for the first quarter of fiscal year 2012 for the three months ended December 31, 2011. Net revenues for the first quarter of fiscal 2012 were $71.8 million, up 12.9 percent from $63.5 million for the comparable quarter of fiscal 2011.
The company reported gross profit for the first quarter of fiscal year 2012 at $14.0 million, a 40.4 percent increase over the $10.0 million reported in the same quarter of last year. Gross margin of 19.6 percent was a significant increase over gross margin of 15.7 reported in the year ago period.
Operating expenses totaled $11.7 million, or 16.3 percent of revenue, in the first quarter, down 0.8 percent from $11.8 million, or 18.6 percent of revenue, in the first quarter of last year. Operating income for the first quarter was $2.3 million compared to operating loss of $1.8 million in the same quarter of fiscal 2011.
China BAK reported a net loss of $1.8 million, or diluted loss per share of $(0.03), in the first quarter of fiscal 2012 compared to a net loss of $3.7 million, or diluted loss per share of $(0.06), in the same quarter of fiscal 2011.
As of December 31, 2011, China BAK had $5.9 million in cash and cash equivalents. The company also offered an outlook for the remainder of 2012, noting growth initiatives and growing market demand.
“In fiscal 2012, our growth strategy is focused on implementing aggressive sales and marketing efforts to expand our market share and increase our OEM customer base for prismatic battery packs and high-power lithium batteries. Over the next few quarters, we also expect to be certified by additional Tier 1 customers for polymer batteries for use in ultra-thin smartphones and tablet computers,” Xiangqian Li, chairman, president and CEO of China BAK stated in the press release.
“The market demand for our high-power lithium batteries and cylindrical batteries used in EVs, E-bikes, power tools, and UPS energy storage solutions continues to grow at a robust pace and we believe we are well-positioned to capitalize on such market opportunities. We expect such growth opportunities in the EV industry to contribute to our revenue growth in fiscal 2012,” Li concluded.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
