DALLAS, TX--(Marketwire - May 27, 2009) - China Crescent Enterprises, Inc. (
OTCBB:
CCTR)
has released a Webcast providing a corporate overview for new investors.
The on-demand Webcast highlights the Company's first outsourcing services
contract announced earlier today, recently published first quarter
financial results and the Company's suggest fair value target pps of $0.30,
compared to the company's recent $0.07 pps. China Crescent realized more
than $40 million in profitable revenue in 2008 and recently executed a
recapitalization as part of an overall strategy to align fundamental
financial value with what management believes to be an otherwise
undervalued share price.
Webcast Overview and Highlights Now Available
(Featuring: First Outsourcing Client; Recent Financial Performance;
Suggested Fair Value Target PPS)
A Webcast on the Company's first technology outsourcing contract, recent
financial performance and a suggested fair value target PPS of $0.30 is now
available for review on the Company website. A link to the Webcast titled
'China Crescent Investor Overview: Outsourcing, Recent Financials and PPS
Growth (May 27, 2009)' is available on the Company website under Webcasts
at:
http://www.newmarkettechnology.com/about-newmarket-china.htm. For
assistance accessing or listening to the Webcast, please email
ir@chinacrescent.com or call 214-722-3065.
China Crescent Technology Outsourcing Offering and First Long Term Contract
China Crescent recently announced launching a technology outsourcing
offering. The new offering is part of the Company's overall strategy to
increase margins and the percentage of its overall revenue generated from
recurring contracts. Beijing Chuangzhitongda Technology Development is
China Crescent's first outsourcing customer. China Crescent anticipates
engaging additional outsourcing customers over the course of the year.
The initiation of outsourcing services under the agreement announced
earlier today is expected to commence within the current fiscal quarter.
The agreement announced today is a general agreement outlining the overall
terms and conditions of the outsourcing services. Complete details of the
agreement will encompass a series of supporting contracts and the
anticipated $30 million in contract revenue is expected to be earned over
the three year contract period.
Suggested Fair Value Target PPS of $0.30
Earlier this month, China Crescent released an on-demand Webcast on the
Company's strategy to gain share price traction and improve the potential
return on investment for shareholders with a target price per share of
$0.30. The Webcast is now available for review on the Company website. A
link to the Webcast titled 'China Crescent CCTR Ticker and PPS Growth (May
13, 2009)' is available on the Company website under Webcasts at:
http://www.newmarkettechnology.com/about-newmarket-china.htm.
First Quarter 2009 Results
Last week, China Crescent filed SEC Form 10-Q reporting the Company's
performance for the first three months of 2009. Notably, net income
increased 15% for the first three months of 2009, $112,000 compared to
$97,000 for the same period last year. Management anticipates continued
revenue and net income growth throughout 2009 to exceed the overall revenue
and net income reported in 2008.
The Company reported an overall increase in revenue and net income in 2008
compared to 2007. With the net income increase in the first quarter of
2009, management is optimistic that the Company will continue to not only
weather the global economic challenges, but continue to realize organic
growth in spite of the challenges. The Company's sales are historically
seasonal, increasing throughout the year and usually reporting the largest
sales and profits in the 4th quarter. Management believes the decrease in
first quarter sales compared to the previous period can be attributed to
the overall economic slowdown and can be offset by the anticipated increase
in sales throughout the year.
Additional Financial Highlights
- Net income (before currency translation) for 1st quarter 2009 was
$112k compared to $97k for 1st quarter 2008
- Revenue for 1st quarter 2009 decreased 13% from 1st quarter 2008
($7.4m v. $8.5m)
- Stockholders' equity increased 54% from same quarter last year ($5m v.
$3.3m)
- Working capital increased 54% from same quarter last year ($6.9m v.
4.5m)
- Cash increased 213% from same quarter last year (2.2m v. 701k)
- Total Assets increased 31% from the same quarter last year ($11m v.
$8.4m)
- Cost of Sales decreased 13% from the same quarter last year ($7m v.
$8m)
- Operation expenses decreased 23% from the same quarter last year (215k
v. 281k)
Corporate E-mail Updates
To be added to China Crescent's e-mail database to receive company updates
or to obtain more information on the Company, please send an e-mail to
ir@chinacrescent.com or call 214-722-3065.
About China Crescent Enterprises, Inc. (
http://www.chinacrescent.com/)
China Crescent Enterprises, Inc. is a technology leader in the rapidly
developing Chinese market specializing today in software engineering, high
quality software development and digital multimedia outsourcing services
delivered to customers globally. At the same time, the firm is a systems
integrator and value added reseller of major global hardware brands in the
Chinese domestic market.
Headquartered in Dallas with operations in Shanghai and Beijing, China
Crescent bridges the gap between Western and Eastern business cultures to
assist western clients in realizing the advantages of the high quality, low
cost technology products and services available from China. China Crescent
also assists Western clients in localizing products and services to realize
the tremendous growth potential available by expanding into the Chinese
Market.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This press release contains forward-looking statements that involve risks
and uncertainties. The statements in this release are forward-looking
statements that are made pursuant to safe harbor provision of the Private
Securities Litigation Reform Act of 1995. Actual results, events and
performance could vary materially from those contemplated by these
forward-looking statements. These statements involve known and unknown
risks and uncertainties, which may cause China Crescent's actual results in
future periods to differ materially from results expressed or implied by
forward-looking statements. These risks and uncertainties include, among
other things, product demand and market competition. You should
independently investigate and fully understand all risks before making
investment decisions.
Contact Information: Contact:
China Crescent Enterprises, Inc.
ir@chinacrescent.com
214-722-3065