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China Fire & Security Group, Inc. Announces Third Quarter 2008 Financial Results.

Article Excerpt
- Record revenue of $16.7 million, an increase of 44.4% versus Q3 2007



- GAAP net income of $6.5 million, an increase of 47.0% versus Q3 2007 - Gross margin of 58.9% - GAAP EPS of $0.23 on a fully diluted basis - Reiterate 2008 full year guidance

- $7.6 million contract wins with China Nuclear Power Engineering Co., Ltd.

- Conference call on Wednesday, November 12, 2008 at 8:00 AM EST

BEIJING, Nov. 11 /Xinhua-PRNewswire-FirstCall/ -- China Fire & Security Group, Inc. ("China Fire" or "the Company"), a leading industrial fire protection product and solution provider in China, announced its financial results for the quarter ended September 30, 2008. The Company reported quarterly revenue of $16.7 million, up 44.4 percent year-over-year, compared to $11.6 million in the third quarter of 2007. Gross margin for the third quarter of 2008 reached 58.9 percent, compared to 59.2 percent in the third quarter of 2007. GAAP net income for the third quarter of 2008 was $6.5 million and the earnings per share (EPS) on the fully diluted basis was $0.23.

Key Financial Indicators (All numbers in US dollar) Q3/2008 Q3/2007 Percent Change Revenue 16,743,267 11,596,970 44.4 % Gross Profit 9,864,431 6,867,432 43.6 % Operating Expenses 3,737,632 2,769,996 34.9 % Income from Operations 6,126,799 4,097,436 49.5 % GAAP Net Income 6,457,964 4,392,035 47.0 % Fully Diluted GAAP EPS 0.23 0.16 44.8 % Financial Results

Revenues increased to a record $16.7 million in the third quarter of 2008, up 44.4% percent from $11.6 million in the third quarter of 2007. This increase was mainly attributable to the execution of increased number of total solution contracts during this quarter and also reflected a significant increase in revenue from maintenance services.

Gross profit for the third quarter increased 43.6 percent to approximately $9.9 million from $6.9 million for the same period of last year. The gross margin was 58.9 percent, compared to 59.2 percent of the third quarter of last year.

Operating income was approximately $6.1 million, compared to $4.1...

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