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

han other segments of the Company's business.
  • The gross profit margin for our system integration business decreased from 53.9% in the third quarter of 2010 to 26.4% in the third quarter of 2011, primarily because certain projects in 2010 had higher average gross margins
  • Since the start of 2011, we have been more selective in our acceptance of orders in an effort to improve the quality of our earnings. As a result, the gross margin for software and product sales increased in the third quarter of 2011.

  • Administrative ExpensesAdministrative expenses decreased by $0.3 million, or 4.9%, to $5.2 million for the three months ended September 30, 2011, from $5.5 million in the same period of 2010.

    Research and Development ExpensesResearch and development expenses increased by $0.2 million, or 18.0%, to $1.1 million for the three months ended September 30, 2011, from $0.9 million in the same period of 2010. As a percentage of revenue, research and development expenses accounted for approximately 3.9% of total revenue for the three months ended September 30, 2011, compared with 2.1% of total revenue for the same period in 2010. Such increase was primarily due to efforts to improve the profitability of existing product offerings as well as development of new products.

    Selling ExpensesThe Company's selling expenses increased $0.1 million, or 7.9%, to $1.8 million for the three months ended September 30, 2011, from $1.7 million in the corresponding period of 2010. This increase was due to the Company's increasingly nationwide market expansion, which requires increased travel and telecommunication expenses as well as increased total compensation to sales and marketing staff.

    Income from OperationsIncome from operations was $1.4 million in the third quarter of 2011, a decrease of 89.5% from $13.0 million in the same period in 2010.

    Net Income Attributable '/>"/>

    SOURCE China Information Technology, Inc.
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