CHRM-YES A REAL PROFITABLE COMPANY
(COMTEX) B: S.W. Lam Inc. Reports Results for Quarter and Six Months
B: S.W. Lam Inc. Reports Results for Quarter and Six Months Ended September 30,
1999
HONG KONG, Nov 15, 1999 (BUSINESS WIRE) -- S.W. Lam Inc. (the
"Company") (OTCBB:CHRM) today reported unaudited consolidated financial
results for the quarter and six months ended September 30, 1999.
Revenue for the quarter rose 79.5% from $16.2 million in the quarter
ended September 30, 1998 to $29 million in the quarter ended September
30, 1999. The Company reported net income attributable to common stock
for the quarter ended September 30, 1999 of $1.1 million, or $0.08 per
share, as compared to net income attributable to common stock of $579,
000, or $0.05 per share, for the quarter ended September 30, 1998. For
the six months ended September 30, 1999, revenues rose 64% to $53.6
million from $32.7 million for the six months ended September 30, 1998.
Net income attributable to common stock totaled $2.5 million, or $0.19
per share, for the six months ended September 30, 1999 as compared to
net income attributable to common stock of $1.9 million, or $0.15 per
share, for the six months ended September 30, 1998.
Net income attributable to common stock reflected minority interest
charges during the current quarter and six month periods and accrued
dividends on redeemable preferred stock during the prior year periods.
Minority interest charges totaled $946,000 for the quarter ended
September 30, 1999 and $2.2 million for the six months ended September
30, 1999. Accrued dividends on redeemable preferred stock totaled $493,
000 for the quarter ended September 30, 1998 and $1.05 million during
the six months ended September 30, 1998. The minority interest charges
during the current periods were attributable to the group
restructuring, during fiscal 1999, of Hang Fung Gold Technology Limited
("Hang Fung Gold"), an indirect majority-owned subsidiary of the
Company, and the sale of shares of Hang Fung Gold in an initial public
offering in Hong Kong. The accrued dividends during the prior year
periods related to outstanding redeemable preferred stock which was
redeemed pursuant to the group restructuring.
Commenting on the Company's performance, Lam Sai Wing, president and
chairman, noted, "Our expansion of production capacity combined with
aggressive marketing efforts and improving economic conditions in Asia
have allowed us to grow our revenues across all of our geographic
markets while reducing our dependence on a single market. With strong
revenue growth and operating results to date and our peak season still
ahead of us, we are optimistic about the remainder of our fiscal year."
S.W. Lam Inc. is a Hong Kong-based designer, manufacturer and marketer
of a broad range of gold products, other precious metal products and
jewelry products.
The foregoing discussion contains forward-looking statements which are
based on current expectations. Actual results, including the ability to
continue to grow revenues and operating income, may differ materially
due to risks and uncertainties beyond the Company's control.
S.W. LAM INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(US$,000, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
------------------ ----------------
1998 1999 1998 1999
------ ------ ------ ------
Total revenues $16,177 $29,041 $32,659 $53,565
Cost of sales
and services (11,755) (22,787) (24,355) (40,545)
---------- ----------- ---------- ----------
Gross profit 4,422 6,254 8,304 13,020
Selling, general |
