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China Information Technology, Inc. Announces Third Quarter 2011 Results
Date:11/9/2011

3 million, or 35.0%. The decrease was primarily due to the Chinese government's implementation of monetary tightening policies, which led to a slowdown in projects for the Company's government customers, which generated over half of revenues during the three-month periods ended September 30, 2011 and 2010.

Product sales increased by $0.4 million, or 3.2%, to $13.0 million for the three months ended September 30, 2011, as compared with $12.6 million in the same period of 2010. Product sales constituted 45.8% of total revenue during the three-month period ended September 30, 2011, as compared with 28.9% during the same period ended September 30, 2010. The increase mainly reflected the Company's efforts to grow its DT segment, to meet market demand from non-government sectors.

Software sales decreased by $22.6 million, or 76.8%, to $6.9 million for the three months ended September 30, 2011, from $29.5 million for the three months ended September 30, 2010. Software sales constituted 24.1% of the Company's total revenue, which decreased from 67.3% during the same period in the prior year. The decrease was mainly due to the Chinese government's implementation of monetary tightening policies, which led to a slowdown in software projects for the Company's government customers.

Sales of system integration services increased by $6.8 million, or 503.4%, to $8.1 million for the three months ended September 30, 2011, as compared with $1.3 million for the same period of 2010. As a percentage of revenue, system integration sales increased from 3.1% during the three months ended September 30, 2010 to 28.6% during the three months ended September 30, 2011. The increase was mainly the result of an increase in demand for system integration solutions in connection with the Shenzhen Summer Universiade, which was held in August 2011, and new integration projects the Company secured during the second quarter of 2011, including a $2.4 million system integration contrac
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SOURCE China Information Technology, Inc.
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