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Telestone Tech (TSTC) Cuts FY11 Outlook on Refocused Spending by China Telecoms

January 3, 2012 7:08 AM EST
TSTC Hot Sheet
Revenue Growth %: +17.9%

Financial Fact:
General and administrative: 1.35M

Today's EPS Names:
TARO, BRLI, TLB, More
Telestone Technologies Corporation (Nasdaq: TSTC) has updated its guidance for the business year ending December 31, 2011.

Telestone now expects revenues for the year ending December 31, 2011 to be 15% to 20% lower than in the 2010 fiscal year, or approximately $105.3 to $111.9 million, versus prior guidance of a 30% increase. The Street sees revs of $122.94 million.

The Company now expects net income within the range of $16.8 to $22.4 million, reflecting a margin of 16% to 22%, compared with prior guidance of approximately $27.5 million, which was based on 10% net-income growth.

Telestone's updated guidance reflects a change in investment direction among China telecom carriers, who are increasingly focusing their capital spending on next-generation technologies such as 4G wireless, and 2011 represents the last year of 3G deployment.


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