All forward-looking statements are expressly qualified in their [entirety] by the cautionary statements and risk factors detailed in the company's filings with the SEC. CSST undertakes no duty to revise or update any forward-looking statements, except as required by applicable law.Without further ado, I will now turn the call over to the CSST Vice Chairman and Chief Financial Officer, Terence Yap. Terence, please. Terence Yap Thank you very much Patrick. Good morning everyone and for those in Asia, a very good evening. Before we get into the details, I would like to take just a couple of minutes to talk about what we are seeing in our business and the general economic environment. The market conditions for the surveillance and safety industry in China are generally consistent with what we saw in the past few quarters. Demand for new products and services from corporate and government companies continue to grow well in China. We are pleased to report continued growth in sizeable government contracts in safe cities and e-cities project. So we continuously invest and grow in key areas, such as large-scale government projects and security service businesses. Our goal is to become stronger financially and operationally with solid momentum in those areas that will lead to our future growth. That’s the game plan for this year and the game plan behind our achievement in the second quarter which are highlighted on page 3 of our earnings PPT slide. This quarter, we achieved strong total revenue growth to a tune of $168.35 million. We delivered $0.23 of earnings per share which was up 76.9% year-over-year. We increased our gross margin and operating margin by 390 basis points and 570 basis points respectively and net income was up 174%. These results can be attributed largely to the following, but we had excellent momentum in the installation bit, which contributed more strongly for revenue growth and margin improvement.
We continue to execute on large-scale government projects from safety cities and e-cities in China. Installation segment revenue grew by 19.6%, the highest among all four segments. Gross margin of installation segment rose to 27.8%, up by 630 basis points compared to the same quarter of last year.Secondly, we continue to look into the new business opportunities from both government and corporate sector while focusing on execution and operating efficiencies. We have already taken the lead in deploying and enhancing our industry leading products and solutions for government and private customers. We will continue to increase productivity by enhancing collaboration across our different operations, improving our strategic position and advancing our long-term growth potential. Thirdly, our strategic efforts in targeting our established customer base to build on service business, was starting to be realized in this quarter. This is the first quarter we successfully report the revenues from the service segment, which recorded $3.35 million in revenue contribution. While the revenue contribution is relatively small on this page, we are encouraged by the growth in this segment which we believe will favorably provide us with higher margin recurring revenue in the long run. To sum up this quarter, we delivered solid revenue growth and earnings per share with profit margin improvement. We also had good execution on the cost side and of course this momentum in our key growth guidance. First of all, allow me to go through the financial results. With that review, I’ll walk you throughout second quarter financial result on slide 4. Revenues, we experienced solid growth in revenues during the second quarter. The revenues totaled $168.35 million, up 18.6% from the same quarter in 2009. The revenue growth from the second quarter was broad-based with improvements across all major segments and continued growth in industry demand of surveillance and safety products of China. Our efforts to raise our brand awareness and increase our distribution channels in China over the past few years also contributed to the revenue growth. Read the rest of this transcript for free on seekingalpha.com