NEW YORK and HARBIN, China, Feb. 22, 2011 (GLOBE NEWSWIRE) -- China Digital Animation Development, Inc. (OTCBB:CHDA) today provided a business update and announced financial results for its fiscal second quarter ended December 31, 2010.
Mr. Fu Qiang, Chairman and Chief Executive Officer, commented, "We are pleased to report another strong quarter and a growing portfolio of notable projects. Revenue for the second quarter of fiscal 2011 grew 63% to $2.0 million compared to the second quarter of fiscal 2010 and we achieved gross margins of 82% for the quarter versus 44% for the same period last year. Streamlining our focus on digital animation is proving to be a winning strategy for the company and our shareholders."
To meet demand for its animation services, China Digital put a significant amount of new equipment into service over the past few months and expects to make additional upgrades to its facilities in the coming year.
Revenue for the second quarter of fiscal 2011 increased 63% to $2.0 million compared to $1.2 million for the same period last year. Gross profit for the second quarter of fiscal 2011 was $1.7 million versus $537 thousand for the same period last year. The company's income from operations for the second quarter of fiscal 2011 was $1.3 million compared to $271 thousand for the second quarter of fiscal 2010. Net income for the second quarter of fiscal 2011 was $919 thousand or $0.05 per share, versus $251 thousand, or $0.01 per share in the same period last year.
As of December 31, 2010, the company had cash and cash equivalents of $9.3 million, working capital of $9.4 million, no long-term debt and shareholders' equity of $17.4 million.
About China Digital Animation Development, Inc.
China Digital Animation Development, Inc. is a premier China-based digital animation development company, operating in Harbin (one of the largest animation development centers in China) as well as Beijing in The People's Republic of China. The Company also has an administrative office in New York City. The Company is engaged in animation post-stage processing, animation outsourcing, and information transmission services. The Company also operates an animation development skills training center located in Harbin, China, which provides its students with different types of animation skill training programs such as motion graphics, product modeling, character animation, and more. The Company's technical team has extensive experience in animation production and outsourcing.
Safe Harbor Statement
In addition to historical information, this press release contains forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. These forward-looking statements represent Management's belief as to the future of China Digital Animation Development, Inc. Whether those beliefs become reality will depend on many factors that are not under Management's control. Many risks and uncertainties exist that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in Section 1A: "Risk Factors" In the Company's Annual Report on Form 10-K for the year ended June 30, 2010. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.
(tables follow)
| CHINA DIGITAL ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
| FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2010 AND 2009 | ||||
|
Three months ended December 31, |
Six months ended December 31, |
|||
| 2010 | 2009 | 2010 | 2009 | |
| Revenues | $2,014,129 | $1,234,375 | $3,819,988 | $2,378,290 |
| Cost of goods sold | 360,299 | 697,413 | 710,904 | 935,747 |
| Gross profit | 1,653,830 | 536,962 | 3,109,084 | 1,442,543 |
| Operating expenses | ||||
| Selling expenses | 113,796 | 69,742 | 215,553 | 134,373 |
| General and administrative expenses | 288,982 | 196,367 | 604,561 | 348,996 |
| Total operating expenses | 402,778 | 266,109 | 820,114 | 483,369 |
| Income from operations | 1,251,052 | 270,853 | 2,288,970 | 959,174 |
| Other income (expense) | ||||
| Interest income | 7,121 | 83,952 | 9,136 | 168,548 |
| Loss from disposal of property, plant and equipment | -- | -- | -- | (26) |
| Total other income (expense) | 7,121 | 83,952 | 9,136 | 168,522 |
| Income before income taxes | 1,258,173 | 354,805 | 2,298,106 | 1,127,696 |
| Less: Provision for income taxes | 339,616 | 103,653 | 615,787 | 299,532 |
| Net income | 918,557 | 251,152 | 1,682,319 | 828,164 |
| Other comprehensive income | ||||
| Foreign currency translation gain | 225,030 | 39,397 | 479,506 | 52,464 |
| Total comprehensive income | $1,143,587 | $290,549 | $2,161,825 | $880,628 |
| Basic and diluted earnings per share | $0.05 | $0.01 | $0.08 | $0.04 |
| Basic and diluted weighted average shares outstanding | 20,125,978 | 20,020,000 | 20,072,989 | 20,020,000 |
| CHINA DIGITAL ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| FOR THE PERIOD ENDED DECEMBER 31, 2010 AND YEAR ENDED JUNE 30, 2010 | ||
|
December 31, 2010 |
June 30, 2010 |
|
| (Unaudited) | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $9,299,039 | $6,219,438 |
| Accounts receivable | 940,540 | 976,304 |
| Other receivables | 14,010 | 3,616 |
| Total current assets | 10,253,589 | 7,199,358 |
| Property, plant and equipment, net | 5,289,156 | 5,575,026 |
| Land use right and other intangible assets, net | 2,671,747 | 2,756,604 |
| Total assets | $18,214,492 | $15,530,988 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Loan payable | 335,975 | 286,000 |
| Accrued expenses and other payables | 122,982 | 91,378 |
| Taxes payable | 350,439 | 410,339 |
| Total current liabilities | 809,396 | 787,717 |
| Commitments and contingencies | ||
| Stockholders' equity | ||
|
Common stock ($0.001 par value, 500,000,000 shares authorized, 20,270,000 shares issued and outstanding at December 31, 2010, 20,020,000 shares issued and outstanding at June 30, 2010) |
20,270 | 20,020 |
| Additional paid-in-capital | 6,723,447 | 6,223,697 |
| Accumulated other comprehensive income | 2,353,439 | 1,873,933 |
| Reserved Fund | 1,257,468 | 705,738 |
| Retained earnings | 7,050,472 | 5,919,883 |
| Total stockholders' equity | 17,405,096 | 14,743,271 |
| Total liabilities and stockholders' equity | $18,214,492 | $15,530,988 |