This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China Info Tech Plunges on CFO Resignation

NEW YORK ( TheStreet) -- Shares of China Information Technology (CNIT) plummeted on Friday after the company announced the abrupt resignation of Chief Financial Officer Jackie You Kazmerzak.

Kazmerzak is leaving the company on Monday to "pursue another opportunity." China Information said Eva Liu, its financial controller, will manage daily financial operations in the interim as it looks for a replacement for Kazmerzak, who joined the company in August 2009.

The stock was the biggest percentage decliner on the Nasdaq, dropping 62 cents, or 24.3%, to $1.93. Volume of 3.2 million is more than five times the issue's trailing three-month daily average of roughly 665,000. The volatile shares have ranged between a low of $1.77 and a high of $2.35 during Friday's session.

Year-to-date, the stock is down more than 50%, and at current levels, it's fallen 71.5% since hitting a 52-week high of $6.78 on Oct. 15.

Friday's market reaction reflects investor nervousness about investing in China following accusations of accounting issues at a number of public companies based in the country in 2011, including China Agritech (CAGC.PK), China MediaExpress (CCME.PK), and Longtop Financial (LFT).

"We will take the time necessary to ensure that we find the best possible candidate to build on Jackie's accomplishments," said Jiang Huai Lin, the company's chairman and CEO. "We remain fully committed to the highest levels of transparency and corporate governance."

On May 10, China Information reported non-GAAP earnings of $7.4 million, or 14 cents a share, for its fiscal first quarter ended March 31, up from a year-ago equivalent profit of $6 million, or 12 cents a share. Revenue rose 6.5% year-over-year to $26.7 million in the quarter from $25.3 million in the same period a year earlier.

The company, which provides information technology services and sells hardware and software products, also reiterated an outlook for an adjusted profit of $42 million to $45 million on revenue of between $165 million and $187 million.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CNIT $1.24 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs