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Strategies & Market Trends : Greater China Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (7700)	1/3/2012 1:58:34 AM
From: Elroy	Read Replies (1) \| Respond to of 8334

Telestone Technologies Corporation Updates 2011 Guidance finance.yahoo.com Telestone now expects revenues for the year ending December 31, 2011 to be 15% to 20% lower than in the 2010 fiscal year, or approximately $105.3 to $111.9 million , versus prior guidance of a 30% increase. The Company now expects net income within the range of $16.8 to $22.4 million , reflecting a margin of 16% to 22%, compared with prior guidance of approximately $27.5 million , which was based on 10% net-income growth. Telestone's updated guidance reflects a change in investment direction among China telecom carriers, who are increasingly focusing their capital spending on next-generation technologies such as 4G wireless, and 2011 represents the last year of 3G deployment. This has delayed the 3G investment designated at the beginning of the year. Although the Company has won an increasing number of bids with the Big-3 carriers, delays in network construction have negatively affected its sales plan for WFDS products. This new guidance is also attributable to uncertainties surrounding auditing issues among the Big-3 carriers, which have complicated the process of doing business and extended payment terms with suppliers. These developments have substantially reduced the Company's visibility during the past few quarters and in the near term. Telestone plans to provide guidance for the 2012 fiscal year when visibility improves.