NANCHONG, China, Feb. 28, 2011 (GLOBE NEWSWIRE) -- American Nano Silicon Technologies, Inc. (OTCBB:ANNO) ("ANNO" or "the Company"), a leading manufacturer and distributor of micro nano silicon based products, announced today its financial results for its first quarter ended December 31, 2010.
First Quarter Highlights
- Revenue was $5,929,436, up 42.7% from the first quarter of the prior fiscal year.
- Gross profit was $1,470,877, up 39.4% from the first quarter of the prior fiscal year, with gross margin of 24.8%, slightly increased from 23% for the first quarter of the prior fiscal year.
- Net income was $2,479,450, an increase of $1,807,347 or 268% from the first quarter of the prior fiscal year, and earnings per diluted share were $0.08 based on 31,607,119 shares.
First Quarter of Fiscal 2011 Results
"We are pleased to announce solid financial results and robust growth in the quarter," Fachun Pu, CEO of the Company commented. "Our First Quarter results came in strong as anticipated. We experienced 42.7% growth in our revenues for the quarter year over year. We have seen increased demand in the Sichuan Province for our non-phosporous based detergent and cement additive products. Consumers are constantly becoming more conscious of using environmentally safe products and contributing to a cleaner environment. Using our emerging technologies, we continue to develop new products including our non-phosphate flame resistant additive. Additionally, we have sufficient cash from operations to fund our continued capacity expansion."
Fachun Pu added, "We remain committed to producing the highest quality non-phosphorous based auxiliary detergent agents and developing new agents for our rapidly expanding consumer base in China. Based on the development of our unique micro nano silicon technology, we believe that our enforcement and accelerator agent for cement is superior to any competitive product manufactured in China."
"We have recently increased our customer base and expect to establish long term relationships with each new customer. In turn we believe this will further strengthen our robust revenue growth in the future," Mr. Pu continued.
Revenues
Our revenues increased by 43% to $5,929,436 for the quarter ended December 31, 2010. The increase in revenue is attributable to the fact that, as a result of increased market awareness of our product, we have been operating our Micro-Nano Silicon production line at full capacity, producing product for both the detergent and the cement industries, whereas we only produced for the detergent industry in the quarter ended December 31, 2009.
During the quarter ended December 31, 2010, our revenue from the production of accelerator additives for cement was $870,289, representing approximately 15% of the total revenue for the quarter and a higher gross margin rate than our detergent product. During the quarter ended December 31, 2009, we did not have this cement business section.
Income from Operations and Net Income
Our operations are currently profitable, and have been so for the past two years. Our net income for the recent quarter totaled $2,582,965. This represents a $1,864,197 or 259% increase over income from operations for the first quarter of the prior year. Aside from the income from our operations, there was other income of $1,484,396 resulting from the change in the fair value of our derivative liabilities. Although our plans to expand our facilities and increase research and development activities will increase our operating expenses in the future, we believe that the top line benefits will more than compensate for the increased expenses, and that we will realize increased income from operations in future periods.
Liquidity and Capital Resources
The Company expects that it will need to invest an additional $3.5 million during calendar year 2011 to complete construction and place these assets into service. It is expected that cash flow from operations will be sufficient to fund this. The Company has sufficient liquidity for the next twelve months.
Industry Outlook
The rapid growth in demand for our products has created a need for rapid expansion of our production capacity. As of right now, in China, the increasing number of infrastructure projects drives the demand for cement and other construction materials. In 2010, approximately two billion square meters of cement were produced in China, approximately half of worldwide production. The domestic Chinese market opportunity for household detergent products also continues to grow. In 2009, China's soap and detergent manufacturing industry included about 300 private owned companies with combined annual output of 10 million tons. In 2009, the overall annual revenue generated from the world wide household detergent market reached $64 billion.
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 focused on the concrete and non-phosphate detergent industries, micro nano silicon (TM) is adaptable to and widely used in many consumer and industrial products, including: laundry detergent, petrochemical, plastics, rubber, paper, ceramics and water treatment materials.
The American Nano Silicon Technologies, Inc. logo is available at
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 include, but are not limited to, statements regarding the 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 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. Except as required by law, 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: Nuwa Group, LLC Investor Contact: Mr. Kevin Fickle +1-925-330-8315 [email protected]
