Tongxin International Ltd. reported unaudited consolidated earnings results for the third quarter and first nine months ended September 30, 2009. Net revenues for the third quarter ended September 30, 2009 increased 18.8% to $27.1 million, an approximate $4.3 million improvement over the same period the prior year. For the year ago period, revenues were $22.8 million. Mini, Light, Medium and Heavy-duty trucks lead growth from shipments to Tongxin's customer base in 21 sales regions in throughout China. Operating income was $5.1 million versus $2.9 million in 2008. Non-GAAP net income was $3.8 million, representing an increase of 83.4% from $2.1 million reported in the same period prior year. Non-GAAP earnings per diluted share for the quarter were $0.29 against $0.16 last year. Loss before income taxes was $9.7 million against income before income taxes of $2.6 million last year. GAAP net loss was $10.9 million against GAAP net income of $2.1 million last year. Non C GAAP net income per basic common share was $0.33 against $0.19 last year. For the first nine months ended September 30, 2009, total revenues were $91.5 million, representing an increase of 19.9% over $76.3 million reported in the same period of 2008. Increase in revenues outperformed the overall commercial vehicle market segment during the first nine months of 2009 which grew approximately 15.6%, and is attributed to the securing of 17 new manufacturing contracts earlier in the year, growth in the mini and light truck segments and the company's move into on-site manufacturing programs with two of its top ten customers. Non-GAAP earnings before interest and taxes were $17.9 million versus $12.3 million. Non-GAAP net income for the nine month period ended September 30, 2009 increased 51.85% to $12.3 million from $8.1 million in the nine months of 2008. Non-GAAP earnings per diluted share were $1.08 versus $0.63 for the nine month period 2008, a 49.0% increase. GAAP net loss for the nine months ended September 2009 was $9.1 million which include unrealized warrant loss of $17.6 million and warrant expense of $3.8 million against GAAP net income of $8.1 million last year. Operating income was $17.2 million against $11.9 million last year. Loss before income taxes was $4.7 million against income before income taxes of $10.6 million last year. Non C GAAP net income per basic common share was $1.08 against $0.73 last year. Net cash provided by operating activities was $5.4 million. Cash paid for purchase of fixed assets and intangible assets was $6.3 million. Net cash provided by operating activities was $12.4 million for the year ended December 31, 2008. Cash paid for purchase of fixed assets and intangible assets was $9.5 million for the year ended December 31, 2008. GAAP loss per share was $0.80.

To discuss the company's financial performance year to date, the commercial vehicle manufacturing market in China, provide an overview why the company is the leading market-share OE supplier of cabs and discuss growth targets both in China and select international markets for 2010 and beyond

Tongxin International, Ltd., Q3 2009 Earnings Call, Nov 10 2009