American Metal & Technology, Inc. Announces Preliminary Second Quarter 2008 Results
July 22 2008 - 8:00AM
PR Newswire (US)
HEBEI, China, July 22 /PRNewswire-FirstCall/ -- American Metal
& Technology, Inc. (OTC:AMGY) (BULLETIN BOARD: AMGY) ("American
Metal," the "Company"), a leading manufacturer in the People's
Republic of China engaged in the development, manufacture and sale
of high-precision metal casting and metal fabrication products to
European and U.S. markets and microprocessor- controlled electronic
circuit boards in China, today announced preliminary results for
the second quarter ended June 30, 2008. The Company will release
full quarterly results prior to filing second quarter results on
Form 10-Q. Based on preliminary results, American Metal generated
revenues of approximately $4.9 million to $5.1 million for the
quarter ended June 30, 2008, an increase of approximately 107% from
$2.4 million in the same period a year ago. Revenue growth resulted
from increased fulfillment of customer orders related to greater
capacity and higher raw materials costs, which were passed on to
customers. Net margin improved to approximately 25.0% from 20.2% in
the year-ago quarter. Preliminary net income increased 157% to
approximately $1.2 million to $1.3 million from $0.5 million for
the second quarter of 2007. "During the second quarter, demand
continued to outpace our production capacity, which enabled us to
fill orders with high gross margins," said Mr. Chen Gao, Chairman
and Chief Executive Officer of American Metal. "This was the first
full quarter in which all 60 of our high-precision lathe machines
were installed and operational, which allowed us to fulfill
additional orders from our existing customers." Outlook Based on
greater-than-expected second-quarter results, the Company is
increasing its expectation for full-year 2008 net income to a range
of $3.7 million to $4.0 million from net income of $3.2 million to
$3.4 million. Full- year guidance assumes a mix of multiple
products at varying price points and increased efficiencies as the
Company gains additional experience with its customer base. "Our
increased guidance reflects our enhanced performance through the
first half of 2008 and our continuing favorable view of our
prospects in our chosen markets," Mr. Gao said. "We are continuing
to pursue our goal of 40% annual revenue growth from those markets,
and to support that growth, we are expanding production capacity
over three phases. Phase two of that expansion is due to come
online at the end of this year, and phase three of the expansion is
targeted for commencement in 2009." About American Metal &
Technology, Inc. American Metal & Technology, through its
wholly-owned subsidiary American Metal Technology Group ("AMTG"), a
Nevada Corporation, and through AMTG's subsidiaries, Beijing Tong
Yuan Heng Feng Technology Co., Ltd. and American Metal Technology
(Lang Fang) Co., Ltd., is a leading manufacturer of high- precision
casting and machined products in the People's Republic of China.
The subsidiaries operate in a 53,819-square-foot manufacturing
plant. In 2006, AMTG expanded into the design and manufacture of
electric circuit boards for home appliances and motion controllers.
The Company recently announced facility expansion plans to increase
casting product capacity by 50% and enhance the development and
manufacturing of its circuit board solutions at its Lang fang
manufacturing center. To learn more about American Metal &
Technology, Inc., please visit the Company's Web site at:
http://www.ammyusa.com/. Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995: Certain of the statements
made in this press release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other unknown factors that could cause the
Company's actual results to be materially different from the
historical results or from any future results expressed or implied
by such forward- looking statements. In addition to statements that
explicitly describe such risks and uncertainties, readers are urged
to consider statements labeled with the terms "believes," "belief,"
"intends," "anticipates" or "plans" to be uncertain and
forward-looking. The forward-looking statements contained herein
are also subject generally to other risks and uncertainties that
are described from time to time in the Company's reports filed with
the Securities and Exchange Commission. Contact: CCG Investor
Relations Mark Collinson, Partner Phone: (310) 231-8600 ext. 117
E-mail: DATASOURCE: American Metal & Technology, Inc. CONTACT:
Mark Collinson, Partner, CCG Investor Relations, +1-310-231-8600
ext. 117, Web site: http://www.ammyusa.com/
Copyright