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China Information Security Ups Guidance

China Information Security Technology has raised it full-year guidance after reporting an increase in first-quarter net income.
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SHENZHEN, China (TheStreet) -- China Information Security Technology (CPBY) has raised it full-year guidance after reporting an increase first-quarter net income, and as the company continues winning GIS (geographic information systems) contracts.

China Information Security Technology has raised its fiscal-year adjusted net income guidance to $35.5 million to $39.5 million, from the previously projected $33.5 million to $37.5 million and revenue guidance to $141 million to $146 million, from the previously-expected $133 million to $138 million. Analysts are currently expecting full-year revenue of $137.22 million.

This guidance update comes as China Information Security Technology says it continues to strengthen its position in the industry by winning national contracts. Shortly after the quarter-end, the

State Grid Corporation of China

selected the company as one of only two GIS platform software suppliers for the build-out of the nationwide smart grid in China.

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China Information Security Technology has also won one-third of the market share in the initial roll-out of China's national PGIS (police-use GIS platform) standardization project by signing contracts with six cities and provinces, including Shanghai, for the installation of China Information Security's core police-use GIS platform.

For the first quarter, China Information Security reported a net income increase of 67.2% year-on-year to $6.3 million, while earnings were 12 cents a share, versus 8 cents a share a year ago. Excluding certain items, earnings were 12 cents, compared with 9 cents a share, previously.

Revenue increased 68.9% year-on-year to $25.3 million. During the quarter, the company signed new contracts with clients in 23 provinces and cities, valued at $30.6 million.

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Analysts were expecting first-quarter earnings of 10 cents a share on revenue of $22.35 million.

China Information Security has jumped 5.1% to $6.38 minutes after Monday's market open.

-- Reported by Andrea Tse in New York

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