VisionChina Media reported second quarter 2008 revenues of $20.3 million, up an astounding 332.4% from $4.7 million in the second quarter 2007. Net income for the second quarter 2008 increased an impressive 56.7% to $8.5 million from $5.4 million in the second quarter 2007. The Company increased its operations estimates for the full year 2008. Revenues for the full year 2008 are now expected to be in the range of $101.0 million to $105.0 million and net income on a non-GAAP basis is estimated to be between $44.0 million to $48.0 million.
Revenues for the full year 2007 were up an astronomical 654% to $29.4 million from $3.9 million for the full year 2006. Net income for the full year 2007 was $9.4 million compared to a $4.1 million loss for the prior year in 2006.
VisionChina Media Inc. (NASDAQ: VISN) furnishes digital advertising through China's mass transportation system using its network of more than 40,000 real-time mobile digital television displays in buses and subway stations. The Company delivers real-time news, stock quotes, weather, traffic updates, sports and other programs with advertisements.
VisionChina Media on July 23, 2008 announced signing an exclusive contract with Shanghai Shentong Metro to be the exclusive advertising agent for two of Shanghai's subway lines. VisionChina Media has exclusive rights to the 292 digital screens installed on the two subway lines. The contract now gives VisionChina a foothold on buses and subways in China's four most strategic and important cities - Beijing, Shanghai, Guangzhou and Shenzhen - which capture approximately 60% of China's total advertising budget.
VisionChina Media closed on August 7, 2008 at $20.06, down 28% from its fifty-two week high of $25.60. The Company has a virtual monopoly and is growing like gang busters. This is a super growth stock in the largest market in the world and in one of the fastest growing economies in the world: China. This scenario would appear to be a recipe for continued future stratospheric growth and success. VisionChina Media's stock seems like it will reap very gratifying rewards for investors in the future; leaving them happy that they went along for the ride.
References:
http://library.corporate-ir.net/library/21/215/215970/items/301793/Q208EarningsRelease.pdf
Company Second Quarter 2008 Results Press Release
http://finance.google.com/finance?fstype=ii&q=NASDAQ:VISN
Company 2007 Income Statement
http://www.visionchina.cn/
VisionChina Media Signs Exclusive Contract with Shanghai Metro
User comments