Ninetowns turns profit in H2

News this week: Ninetowns Internet Technology Group announced its full year result earlier this week. For the year ended 31^st December 2010, revenues were US$12 million, almost flat with the previous year. The company recorded a net profit of US$1.9 million, compared with a profit of US$192,000 in 2009. The dilute EPS were US$0.05 for the year.

More than 60% of total revenues were generated from the sales of enterprise software (US$7.5 million) while 30% of revenues were generated through its software development services (US$3.6 million), and the remaining revenues were from food related business.

Ninetowns also reported its result for the six months ended 31^st December. Revenues were US$6.1 million, down 1.9% over the second half of 2009. During the period, the company recorded a net profit of US$2.9 million, compared with a loss of US$1.6 million in the same period of 2009.

Shuang Wang, CEO of Ninetowns, commented in the company announcement, “Our results for the year were in-line with expectations, as we continued to focus on maximizing customer retention and the expansion of our customer base. We delivered a more diversified revenue mix for the full year, with a greater share of total revenues coming from our software development services and food related business. Nevertheless, the operating environment in our core enterprise software segment remains challenging.”

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