- Associated Press - Thursday, August 12, 2010

NEW YORK (AP) - Shares were pummeled in Chinese wireless network gear-maker Telestone Technologies Corp., which on Thursday reported lower second-quarter profits as rising costs for training its sales staff offset higher revenue.

Net income in the three months to June 30 fell 13 percent to $1.7 million, or 16 cents per share, from $2 million, or 19 cents per share, a year ago.

Revenue rose 37 percent to $16.6 million from $12.1 million.

Shares plunged $2.51, or 18.5 percent, to $11.08 in after-hours trading Thursday, after closing up 7 cents at $13.59.

The company said half of its revenues would fall in the fourth quarter so it kept its full-year guidance of net income of $22.9 million on revenue of $129.4 million.

The company said its selling, general and administrative expenses grew to $5.1 million from $2.3 million a year ago, caused mostly by retooling its sales staff to better sell its higher-profit-margin WFDS systems for its major customers.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide