This year, we have deliberately moderated our top line growth in order to improve collections so that we can position Telestone for a return to growth and focus on developing our U-DAS, or WFDS and TIPS technologies.
The following are the key points in Telestone's business performance in the second quarter of 2012, revenues were $17.9 million, a decrease of 26.6% as compared to $24.3 million in the year-ago quarter. Gross profit was $6.6 million, as compared to $10.6 million in the year-ago quarter.
Net loss was $1.3 million, or $0.09 per diluted share; non-GAAP net loss was $1.2 million, or $0.08 per diluted share. In addition, during the second quarter a related company received an initial RMB2.5 million or US$0.4 million investment from Zhongguancun Development Group for the research, development and commercialization of Telestone Intelligent Premise System Technology.
This investment is part of a RMB15 million or US$2.4 million total commitment awarded in May, which the Group is expected to fulfill over the next three to five years.
Now, I will read Telestone's second quarter 2012 financial commentary. Revenues in the second quarter of 2012 were $17.9 million, a 26.6% decrease from $24.3 million in the year-ago quarter. The year-over-year decrease in revenue was primarily attributable to a slow start to 4G network construction, the maturity of 3G deployment, intensified competition, and the Company's strategic moderation of growth in certain cities with longer accounts receivable collection periods.