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Press Release Source: The Hartcourt Companies, Inc.
Hartcourt Announces Its First Quarter 2005 Results
Thursday May 19, 6:07 am ET
SHANGHAI, CHINA--(MARKET WIRE)--May 19, 2005 -- The Hartcourt Companies, Inc. (OTC BB:HRCT.OB - News) (Frankfurt: 900009) today announced its first quarter results as March 31, 2005.
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Revenue was $11 million for the first quarter, representing mostly sales of Samsung products in the Shanghai region. Sales of Samsung products were up 17% in the Shanghai region compared to last year. Samsung revenue in Zhejiang was not a part of Hartcourt sales beginning this year, since we sold the Zhejiang distribution business in 2004. Samsung notebook accounted for $3.4 million of the total revenue, an increase of 42% over last quarter, a healthy growth in view of this being only the second quarter that we began distribution of Samsung notebooks. Interactive/multimedia product sales was consolidated into Hartcourt in March and accounted for 2% of total revenue.
Gross margin for the first quarter was $457K, or 4.08%, up from $181K, or 1.04% a year ago. The significant increase of 153% on gross margin dollars was contributed by our interactive/multimedia business, even though the related revenue was insignificant. This is the result of our strategy to move into profitable segment of the market to improve our operating results.
Operating expenses for the first quarter was $412K, down by 25% compared to a year ago, reflecting our cost-reduction efforts.
Operating income was $46K, compared to a loss of $370K a year ago. Net income after taxes was $30K, compared to $58K a year ago, which included a one-time gain of $492K from discontinued operations.
Operating cash flow improved by $874K compared to a year ago, resulting from better inventory management. Current ratio was 1.3, approximately the same as last year.
Details of this financial report can be found in our 10Q filing on www.sec.gov.
About Hartcourt
Hartcourt's achievements and operations can be found on its web site: www.hartcourt.com
Forward-looking statements
The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
Contact:
Contact:
Ms Tingting Ni
Tel: + 86 21 52138810
Fax: + 86 21 52138870
Email: ir@hartcourt.com
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Source: The Hartcourt Companies, Inc.
