China TMK Battery Systems Inc., a Chinese manufacturer and distributor of customized rechargeable battery solutions to global consumer product companies, recently posted its financial results for the fourth quarter and full year ended December 31, 2010.
The company reported a 38.8 percent increase in fourth quarter 2010 revenues to $19.9 million, driven by expanded sales efforts and increased demand for TMK’s products from both existing and new customers.
Total cost of sales increased 43.9 percent to $15.3 million for the fourth quarter of 2010 compared to the same period in 2009. Gross profit increased 24.7 percent to $4.7 million, with gross margin of 23.6 percent in the fourth quarter compared to $3.8 million and gross margin of 26.6 percent in 2009.
Income from operations increased 22.7 percent to $3.6 million for the fourth quarter of 2010; operating margins were 17.9 percent, compared to 20.2 percent in 2009.
Revenues for the full year 2010 ended December 31, 2010, were increased 36.6 percent to a record $66.4 million compared to $48.6 million in the same period in 2009.
Cost of sales for fiscal year 2010 increased by 40.4 percent to approximately $51.1 million, compared to approximately $36.5 million for the same period in 2009. Gross profit increased by 26.3 percent to approximately $15.3 million compared to approximately $12.1 million for the same period in 2009, representing gross margins of approximately 23.0 percent and 24.9 percent, respectively.
Income from operations increased slightly to $9.2 million and operating margins were 13.9 percent, compared to 19.0 percent in 2009.
As of December 31, 2010, the company reported cash and cash equivalents totaled $0.4 million.
The company noted its strengthening position in the Ni-MH battery market and how the company plans on taking advantage of various market variables.
“2010 was a fruitful year for TMK,” Henian Wu, the company’s chairman and president stated in the press release. “We are becoming an emerging player in the $5 billion global Ni-MH battery market, which we believe is expanding due to strong demand for rechargeable consumer devices. With greater production capacity, an expanded R&D team focused on new product introductions and an enhanced sales and marketing staff, we are well positioned to benefit from both domestic and global demand.”
For more information visit tmk-battery.com
Please see disclaimer on QualityStocks website: disclaimer.qualitystocks.net
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.