BVI Company Financial News

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.

BVI-registered mineral exploration company Talon Metals Corp. reported its fiscal results for the first quarter of 2010. For the three months period ended March 31, 2010, the company reported net loss in the amount of US$265,013, or $0.01 per share (basic and diluted) – compared to net earnings of US$579,704, or $0.02 per share (basic and diluted) for the first quarter ended March 31, 2009. The earnings in Q1 2009 were the result of the company selling the remaining shares of its investment in Brazauro Resources Corporation, while this year’s loss is the result of operating expenses.

In the first quarter of 2010, Talon Metals announced that its capital exploration on mineral properties made US$301,901, mainly related to work done on Talon’s Sergipe Potash Project. On March 31, 2010, total capitalized exploration on mineral properties was US$9,719,821, primarily connected to works performed on the São Jorge Gold Project. Due to the Saber Gas Project, total capitalized exploration on oil and gas properties to March 31, 2010 was US$16,329,533. The merger deal between Talon and Saber Energy Corp. was completed in the first quarter of 2010.

An electronics manufacturing and design services provider Nam Tai Electronics Inc. announced the unaudited financial results for the first quarter ended March 31, 2010. It is stated in the review that the business environment in Nam Tai’s product sectors remains extremely competitive. The weak market demand for consumer products adversely affected sales of all the end-user products of the company.   

According to the report, published on May 3, 2010, BVI company’s net sales decreased by 22.4 per cent to US$79.3mln, compared to US$102.2mln in the first quarter of 2009. Gross profit in Q1 2010 was US$6.5mln, 8.7 per cent down from US$7.1mln in Q1 2009,  primarily because of the decrease in sales. The company reported gross profit margin at 8.2 per cent (7.0 per cent in the same quarter of the previous year).

In the first quarter of this year, Nam Tai reported net loss attributable to its shareholders of US$1.1mln, as compared to net loss of US$3.9mln in the same quarter of 2009. The loss in Q1 2010 primarily resulted from the overall decline in sales, whereas the reason for the loss in Q1 2009 was a US$5.1mln restructuring charge for employee severance expenses in Chinese subsidiaries of Nam Tai Electronics.

Loss per share (basic and diluted) in the first quarter of 2010 was US$0.02, as compared to basic and diluted loss per share of US$0.09 in the first quarter of the previous year.

As at March 31, 2010, Nam Tai’s financial position remained strong with US$196.8mln cash on hand. Net cash provided by operating activities was US$4.4mln. In the first quarter of 2010, capital expenditure of the company made US$3.3mln.