TNTU -- .53 x .56 Gapping on earnings news...
November 15, 2000 08:49
Tengtu Intl Reports Record 1Q Revenues Up 571% Sequentially as China Schools Buy Its Ministry-Mandated Microsoft Package
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TORONTO, ONTARIO--Tengtu International Corporation (OTC BB: TNTU) today reported record revenues of $1,143,446 for its first fiscalquarter ended September 30, 2000, up 571% from the $170,303 reported for the immediately preceding June quarter and up 4,567% from the $24,498 reported for the March 2000 quarter.
Chairman and CEO Pak K. Cheung said that the more than six-fold rise in revenue quarter-to-quarter sequentially was due primarily to a significant increase in installation of the Tengtu/Microsoft (NASDAQ: MSFT) Total Solution software package in K-12 China schools and the Edsoft Multimedia Digital Classroom in Hong Kong schools.
Net loss for the September quarter was narrowed by 24% to $597,835or 2 1/2 cents per share from $782,395 or three cents per share inthe June quarter. "Tengtu's margins for the quarter were compressed by unusually heavy promotional costs and a sales mix skewed untypically to systems integration rather than straight software," Cheung noted. "In the current December quarter more normal software margins should bring Tengtu much closer to break-even with a real break-out in early 2001," he stated.
The PRC Ministry of Education, in keeping with its mandate to modernize China's 800,000 K-12 schools, has officially and uniquely endorsed the Tengtu Total Solution Information Technologypackage. "The Ministry is our perfect strategic partner not only because it drives purchases by thousands of schools at thousands of dollars per school and shares revenues with us," said Chneung, "but also because it actually collects payments from the schools."
No comparative figures are available for the previous year due to accounting changes.
Note: All dollar amounts are in US dollars.
About Tengtu International Corp.
Tengtu International Corp. is a developer and distributor of multimedia educational and entertainment software and related services, operating through a joint venture and subsidiaries in Canada, Hong Kong and the People's Republic of China.
The company's primary operating unit, Tengtu United Electronics Development Co. Ltd. ("Tengtu United"), is a 57% owned joint venture with Beijing Tengtu Culture & Education Development Co. Ltd. ("Tengtu China"), the Chinese state enterprise mandated to develop a comprehensive information technology solution for the national K-12 school system and to serve as the country's gateway for electronic publishing. Tengtu China is owned by three of China's largest computer companies, Legend Computer Group, Great Wall Computer Group and Taiji Computer Corporation, and Chinese technology firm Beijing Oriental Lianfa Company Ltd. Its strategicpartners include the China unit of Microsoft Corporation (Nasdaq: MSFT); People's Education Press, the sole source of materials authorized for use in Chinese schools, and Netopia, Inc.
Tengtu International's other units include wholly owned e-businessportal e-bizTengtu.com, Inc.; wholly owned animation and television production studio TIC Beijing Digital Pictures Co., Ltd.; and 61.3% owned software marketer Edsoft Platforms (Hong Kong) Ltd.
Note: This press release for Tengtu International Corp. may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, regarding events, conditions and financialtrends that may affect the company's operating results and financial position. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual events or results may differ from the company's expectations, which are subject to various risks and uncertainties, some of which are listed in the company's SEC filings.
This press release was prepared by The Cavior Organization, Inc., a public relations firm, based on information supplied by its client, Tengtu International Corp. The information contained herein is believed to be reliable, but has not been independently verified by The Cavior Organization, Inc. None of the information contained in this press release should be construed as an offer tobuy or sell securities, either directly or indirectly. The Cavior Organization, Inc. or its officers or employees may from time to time acquire, hold or sell a position in the securities of Tengtu International Corp.
Neither Tengtu International Corp. nor The Cavior Organization, Inc. undertakes any obligation to publicly release revisions to these forward-looking statements, which may reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tengtu International Corporation
Pak K. Cheung
(604) 438-9729
or
The Cavior Organization
Warren J.Cavior
(212) 687-6070
caviorg@aol.com
INDUSTRY: SOF
SUBJECT: ERN |
