DAQING, China, Nov. 18 Sunway Global Inc. (OTCBulletin Board: SUWG) ("Sunway" or "the Company"), a leading provider ofhospital logistic automation in China, today announced results for its thirdquarter 2008 ended September 30, 2008.
For the three months ended September 30, 2008, revenue increased 48.2% to$6,025,075. During this period, we sold 1015 Pneumatic Transportation System("PTS") workstations, an increase of 15.1% compared to 882 workstations soldin the same period in 2007. We also sold three units of Sunway AutomaticDispensing and Packaging ("SADP") machines, a product we launched in 2008.
Gross profit increased 41.8% to $4,234,600. Our gross margin was 70.3%,3.2% lower than the gross margin of 73.5% from the same period in 2007. Thechange in gross margin is mainly due to rises in raw material prices.
Operating income grew 45.1% to $3.2 million compared to approximately $2.2million for the same period in 2007.
Net income decreased 8.8% to $2.7 million compared to approximately $3.0million for the same period in 2007. The decrease was primarily due toone-time gain on disposal of investments of approximately $1.3 million in2007, which decreased to nil in the three months ended September 30, 2008compared with the same period of 2007.
Total revenue for the nine months ended September 30, 2008 were $14.1million, compared to $9.7 million for the same period of 2007, representing a44.7% increase. Gross profit for the first nine months of 2008 increased 42.5%to $9.9 million from $6.9 million for the same period of last year. The grossmargin was 70.5%, compared to 71.4% of the same period last year. Net incomefor the first nine months of 2008 was $6.4 million.
Cash and cash equivalents increased to $16,289,476 as of the nine monthsended September 30, 2008, compared to $5,820,100 as of the fiscal year endedDecember 31, 2007. The increase was mainly due to i) net income increase; ii)$6.5 million investment from warrant J exercised at June 5, 2008; and iii)amortization and depreciation increase.
As of September 30, 2008, total liabilities stood at $1.4 million, whileshareholders' equity totaled $37.2 million.
"We are pleased with our strong third quarter results as well as thesuccessful launch of our new SADP system. Despite macro economic slowdown,our business continues to grow as we benefit from Chinese government'scontinuous investment in healthcare. By leveraging the strong customer baseof Sunway's PTS product, we also expect strong contribution from SADP as weincrease its market penetration," commented Bo Liu, Chief Executing Officer ofSunway Global.
ABOUT SUNWAY GLOBAL INC.
Sunway Global Inc. (OTC Bulletin Board: SUWG), through its wholly ownedsubsidiaries, is a leading provider of hospital logistic automation in China.Leveraging on its proprietary technologies, Sunway is engaged primarily in thedesign, manufacture, sale and maintenance services of two product lines:hospital Pneumatic Tube Systems and Sunway Automatic Dispensing and PackagingSystems. It maintains the largest market share in these two segments in Chinaand has an installed base of approximately 200 hospitals in 23 provinces.Sunway has a seasoned management team with a strong focus on standards andtechnologies. Currently, Sunway has 13 issued patents covering automation andcontrol. Founded in 1971, Sunway is headquartered in Daqing with aboutapproximately 200 employees.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This presentation may contain forward-looking information about Sunway andits wholly owned subsidiary which are intended to be covered by the safeharbor for forward-looking statements provided by the Private SecuritiesLitigation Reform Act of 1995. Forward- looking statements are statements thatare not historical facts. These statements can be identified by the use offorward-looking terminology such as "believe," "expect," "may," "will,""should," "project," "plan," "seek," "intend," or "anticipate" or the negativethereof or comparable terminology, and include discussions of strategy, andstatements about industry trends and Sunway's future performance, operationsand products. This and other "Risk Factors" are contained in Sunway's publicfilings with the SEC.
SOURCE Sunway Global Inc.