$中国信息技术(CNIT)$
ACCESSWIRE / September 1, 2016 / China Information Technology, Inc. (CNIT), a growing provider of cloud-app-terminal technologies for Internet-of-Things (IoT) platforms, digital advertising delivery and other internet-based information distribution systems throughout China, today said that, for the first six months of calendar 2016 ended June 30, the Company had a net loss of approximately $7.1 million, or ($.18) per share, on revenue of approximately $3.0 million, compared to a net loss of approximately $7.2 million, or ($.22) per share, on revenue of approximately $4.7 million in the first half of calendar 2015.

Excluding non-cash items mainly in the categories of impairment of goodwill and intangible assets, provision for doubtful accounts on account receivables and other current assets, amortization of intangibles, depreciation expenses and stock-based compensation, the Company's adjusted net loss for the first six months of 2016 was approximately $2.9 million, or ($.07) per share, compared to an adjusted net loss of approximately $6.2 million, or ($.19) per share, for the comparable period a year ago.

Weighted average number of shares outstanding was 40,119,106 for the first half of 2016 and 32,549,632 for the prior-year six-month period.

As of June 30, 2016, the Company had $2.8 million in cash and cash equivalents, and short-term debt and bills payable were $6.5 million and zero, respectively, down from $15.3 million and $1.3 million, respectively, at the end of 2015.

CNIT's reduction of its net loss compared to the prior-year six-month period was partially the result of its continuing transition from a traditional custom-made IT software development and system integrations (TIT) provider to the government sector over to a cloud-based technology (CBT) solutions provider to private enterprise - a role that enables considerably higher sales margins. During the first six months of 2016, for example, 79.5 percent of the Company's revenue was derived from its CBT business (up from 58.5 percent in the first half of last year), which achieved a 53 percent gross margin. The remaining 20.5 percent of Company revenue produced by CNIT's TIT segment (down from 41.5 percent for the first six months of 2015), was mainly comprised of maintenance services provided for certain previously completed projects and had a gross margin of negative 51.7 percent.

This same transition - which de-emphasized the Company's pursuit of low-margin and long account receivable cycle TIT contracts and shifted its CBT unit away from custom-made hardware manufacturing to standardized cloud-based terminal products and services -- was also responsible for CNIT's reduction in total revenue as compared to the first six months in 2015.