The Company won a strategic contract valued at approximately $3.4 million for Shenzhen's Border Control Bureau Police-use GIS ("PGIS") Command System, and a high profile contract valued at approximately $3.2 million for Nanning City's Traffic Police Command Center Video Surveillance System. Both contracts are scheduled for completion in 2009, and therefore, the Company expects to recognize related revenue within this year.
Shenzhen's Border Control Bureau PGIS Command System
By integrating advanced real-time technologies like GPS positioning, digital geographic information, digital video surveillance, and high-speed communication networks, the Shenzhen Border Control Bureau's PGIS Command System is designed to greatly enhance the speed and effectiveness of border control and management. This system combines the use of rapid, intelligent visuals with China Information Security's core digital PGIS platform to create a comprehensive command center that allows border control personnel the ability to edit, manage, and maintain a robust PGIS database, as well as mapping and analysis of border control information.
Nanning City's Traffic Police Command Center Video Surveillance System
CIST's Command Center Video Surveillance System for Nanning City's Traffic Police Bureau is an all-fiber network digital video transmission and exchange platform. This system enables high-speed transmission of city-wide, real-time video surveillance of the city's transportation network, thereby greatly improving the efficiency of the city's traffic and police departments.
Mr. Jiang Huai Lin, CEO of China Information Security commented, "We are very pleased with these contract wins in two of Southern China's largest cities. Our strong reputation and proven capabilities in providing mission-critical security information systems to many local governments in China were winning criteria in the competitive selection process. These wins are examples not only of our leading total solution offerings but also of the wide recognition of our technical expertise in successfully implementing large-scale projects. Even in light of a higher emphasis on cost reduction in the current macroeconomic environment, we commanded firm pricing in these competitive wins, as we continue to provide an unmatched value proposition through our unique combination of leading brand, technical superiority, patented products and comprehensive digital security information systems.
"These contract signings are indicators that our core local government customers could be returning to their regular spending activities. We believe that the abrupt spending freeze since late March, due to the temporary shift of local funds to support the central government's broad stimulus, has begun to thaw. We are excited by significant near-term opportunities brought by China's National PGIS Standard Program and the 2011 Shenzhen World University Games. We anticipate promptly signing additional contracts in the coming months and expanding our contract pipeline, which was $35 million at the end of first quarter 2009. At present, we remain confident in our ability to achieve our current 2009 guidance of $94-98 million in revenue, and $26.8-$28.0 million in pro-forma net income."
About China Information Security Technology, Inc.
Through its wholly-owned Chinese subsidiary, China Information Security Technology, Inc. ("CIST" or the "Company") headquartered in Shenzhen, China ("PRC"), is a leading application software developer, systems integrator and full-service Geographic Information Systems ("GIS") solutions provider to the public security and civil-use markets in China, aiming to use information technology to improve public safety and information management. Its main business lines range from digital information security, to Geographic Information Systems (GIS), and digital hospital information systems. The Company provides a broad portfolio of fully integrated solutions and services, including its First Responder Coordination Platform, Intelligent Border Control System, Residence Card Information Management System, Police- and Civil-use GIS products, and Digital Hospital Information System to serve the growing demand for digital hospital and electronic medical record systems in China. Its commitment to leading-edge technology and quality assurance has won the Company numerous government and enterprise contracts throughout China. To learn more about the Company, please visit the corporate website at http://www.chinacpby.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the significance of these two new contract wins in; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact: Company Contact: Ms. Iris Yan Investor Relations Manager China Information Security Technology, Inc. Tel: +86-755-8370-4767 Email: firstname.lastname@example.org Web: http://www.chinacpby.com Investor Relations Contact: ICR: Michael Tieu Tel: +86-10-6599-7960 Email: email@example.com
Web site: http://www.chinacpby.com/