Pansoft Company Limited, BVI-registered ERP software and professional services provider for oil and gas industry in China, announced financial results for the third quarter ended March 31, 2010. The company showed strong fiscal performance in this period, including high level of growth in revenue and profits, and improvement in the gross margin.
British Virgin Islands-registered Pansoft reported total revenues of US$2.3 mln, 62% more than US$1.4 mln in the third quarter of 2009. Gross profit reported by the company was US$1.43 mln, a 120% increase compared to US$0.65 mln in the same quarter of 2009. In the third quarter of 2010, gross margin was 62% (46% in Q3 2009).
The BVI company reported a 352% increase of operating profit, which made US$0.80 mln in the reported quarter, compared to US$0.18 mln in the third quarter of 2009. Net income was US$0.72 mln, 145% more than in the third quarter of 2009. Adjusted net income excluding share-based compensation expenses was US$0.78 mln, this is a 67% increase compared to last year’s US$0.47 mln.
Diluted earnings per share was $0.13, an increase of 117% compared to $0.06 for the third quarter ended March 31, 2009. As of March 31, 2010, Pansoft’s cash and cash equivalents made US$13.5 mln, a 19% increase compared to US$11.3 mln in June 30, 2009.
Company’s CEO Guoqiang Lin said in his comments that this quarter showed record growth in financial results, due to the strong market demand for the proprietary ERP systems. He noted that the company will continue to expand its business organically and through acquisitions in order to expand the product portfolio and customer base.
As a result of the decision of Pansoft Company Limited to authorize a change in the fiscal year end to June 30 from December 31 (because of higher consistency with the purchasing cycle of its major customers), the quarter ended March 31, 2010 actually represents the third quarter of the fiscal year ended June 30, 2010.