China Wind Systems Announces Results for 2009

The Company has not completed the audit of its 2009 financial results, and the information in this press release is based on preliminary information. The Company will release its audited financial information concurrently with filing its Form 10-K on or before March 31, 2010.

For the year ended December 31, 2009, revenue increased an estimated 26%, to approximately $53.4 million from $42.3 million in the year ended December 31, 2008. Revenue from the sale of wind energy components exceeded 40% of total revenue in fiscal 2009 and exceeded 52% of total revenues for the fourth quarter of 2009.

For 2009, the non-GAAP net income available to common shareholders increased an estimated 33% to approximately $7.7 million, or $0.34 per diluted share, from $5.8 million, or $0.27 per diluted share, for the year ended December 31, 2008. Non-GAAP fiscal 2009 net income excludes approximately $32,000 of interest expense related to amortization of debt discount from convertible debt and warrants, approximately $462,000 related to a deemed preferred stock dividend, and $128,000 related to interest expense from another debt conversion.

Non-GAAP fiscal 2008 net income excludes $2.3 million of interest expenses related to amortization of debt discount related to convertible debt and $2.9 million related to a deemed preferred stock dividend, and $21,000 related to amortization of debt issuance costs. Full year 2009 preliminary net income available to common shareholders was approximately $7.1 million, or $0.31 per diluted share, up 1,087% from $598,000, or $0.03 per diluted share, for the year ended December 31, 2008.

"In fiscal 2009, our financial performance was primarily driven by the growth in our forged products segment, which increased 91% to $37.9 million from $19.8 million in fiscal 2008. We remain confident in our growth prospects, as we prepare to launch our electro-slag remelted forged product line in March 2010."

China Wind Systems supplies forged rolled rings and shafts to the wind power and other industries and industrial equipment in China. 

http://www.chinawindsystems.com/