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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Date of Report (Date of Earliest Event Reported): March 9, 2010
CHINA SECURITY & SURVEILLANCE TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-33774
98-0509431
(State or other jurisdiction of
(Commission File Number)
(IRS Employer Identification No.)
13/F, Shenzhen Special Zone Press Tower, Shennan Road,
Futian District, Shenzhen,
(86) 755-8351-0888
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425
under the Securities Act (17 CFR.425)
o Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a -12)
o Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
o Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND
FINANCIAL CONDITION On March 9, 2010, China Security & Surveillance Technology,
Inc. (the "Company") issued a press release. A copy of the press release,
which the Company is furnishing to the Securities and Exchange Commission, is
attached as Exhibit 99.1 and incorporated by reference herein. The information contained in this Current Report on Form
8-K and the exhibit attached hereto shall not be deemed to be "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended
("Exchange Act"), or otherwise subject to the liabilities of that section, nor
shall such information or such exhibit be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended or the Exchange Act,
except as shall be expressly set forth by specific reference in such a filing.
ITEM 7.01. REGULATION FD DISCLOSURE.
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
incorporation or organization)
People's Republic of China, 518034
(Address of Principal Executive Offices)
The information set forth in Item 2.02 above is incorporated by reference herein.
ITEM 9.01.
FINANCIAL STATEMENTS AND EXHIBITS
(d)
Exhibits
Exhibit No. | Description |
99.1 | Press release dated March 9, 2010 |
-2-
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CHINA SECURITY & SURVEILLANCE TECHNOLOGY, INC.
Date: March 10, 2010
By: /s/ Terence Yap
Terence Yap
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. | Description |
99.1 | Press release dated March 9, 2010 |
Exhibit 99.1
|
China Security & Surveillance Technology, Inc. Maintains
Momentum with
Government Customers Throughout China and Continues to See
Seasonality in its
Financial Results
-
Strong government demand for security and surveillance solutions in E-city projects highlighted by three significant framework agreements
-
Seasonality consistent with historical trends and likely to continue with meaningful revenues and earnings concentration in the second half of the year
SHENZHEN, China, Mar. 9, 2010 -- China Security & Surveillance Technology, Inc. ("CSST") (NYSE: CSR; Nasdaq Dubai: CSR), a leading integrated security and surveillance solution provider in China, today announced that it expects revenues and earnings to continue to exhibit seasonality in 2010 and subsequent years as its customer and revenue mix shifts to more government installation contracts. CSST continues to see strong demand from government customers in China, as highlighted by three recent E-city framework agreements. With the continued growth in government customers, the seasonality of revenues and earnings is expected to be more heavily concentrated in the second half of the year.
Consistent with its 2009 full-year results, CSST expects that the majority of its earnings will be recognized in the second half of the year 2010. Additionally, CSST has historically generated nominal net earnings in the first quarter and anticipates similar results in the first quarter of 2010. This seasonality is mainly caused by the Chinese New Year, which lasts ten days, and other holidays that occur in the first quarter. Additionally, CSSTs customer base is increasingly comprised of government customers. Revenues in the government sector tend to be skewed to the latter part of the year, largely driven by government budgeting practices.
CSST continues to show momentum in new government projects. CSST announced that it has recently entered into three E-city framework agreements:
-
Phase one framework agreement for the Tongling City E-city development, with a project valued at approximately RMB 77 million (approximately US$ 11.3 million): It entails the development and installation of a traffic management platform, a city geographic information platform, and data sharing and transfer systems. CSSTwill act as the sole project manager for the Tongling E-city development.
-
Phase one framework agreement for a major digitization project for the Dantu area of Zhenjiang City, with a project valued at approximately RMB 250 million (approximately US$ 36.6 million): As part of the Zhenjiang City E-city development, this project entails the build-out of a video surveillance system, and data storage and transfer systems. CSST will act as the sole project manager for the Zhenjiang E-city development.
-
Framework agreement for the Changchun City E-city development, with the total project valued at approximately RMB 1.5 billion (US$ 219.4 million).
|
CSST expects the three projects to be deployed over the next two to three years.
The detailed execution time and value of these E-city projects will be subject
to installation arrangements separated into several phases, and corresponding
revenues will be recognized upon completion of each phase.
Mr. Guoshen Tu, Chairman and Chief Executive Officer of CSST, commented, "CSST is very proud to have secured framework agreements for E-city projects with these three cities. Our continued momentum in government customers and strong backlog show CSSTs leadership in the implementation of video surveillance and emergency response solutions as well as digitalization projects for major cities around China."
For the full year 2010, CSST reaffirms its revenue projection of $800 to $820 million and diluted earnings per share of $1.15 to $1.20. The Company had backlog of unfilled orders of $193 million as of December 31, 2009 compared to $89 million as of December 31, 2008, representing an increase of 117.8%.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, CSST designs, manufactures, sells, installs, services and monitors electronic surveillance and safety products and solutions, including related software, in China. Its customers are mainly comprised of government, commercial industrial and education entities. CSST has built a diversified customer base through its extensive sales and service network that includes branch offices and distribution points throughout China. To learn more about the Company visit http://www.csst.com
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected revenues from the framework contracts, our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for surveillance and safety products, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Forward-looking statements can be identified by the use of forward-looking terminology such as 'will,' 'believes,' 'expects' or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov
For more information, please contact:
Company Contact:
Terence Yap, Chief Financial Officer and Vice Chairman
China Security & Surveillance Technology, Inc.
Tel: +86-755-8351-5634
Email: ir@csst.com
Investor and Media Contact:
Patrick Yu, Fleishman-Hillard Hong Kong
Tel: +852-2530-2577
Email: patrick.yu@fleishman.com