Shengkai Innovations Reports FY 2010 Results (VALV)

Shengkai Innovations, Inc. VALV earlier today announced its fiscal year financial results for the year ended on June 30, 2010. Highlights for FY2010 and Key Events -- Revenue was approximately $54.1 million, an increase of 37.8% year-over-year; -- Gross profit was approximately $32.2 million, and gross margin was 59.5%; -- Excluding the non-cash share-based compensation costs resulted from incentive stock options granted to independent directors and management staff, and the return of escrowed common stock to Mr. Chen Wang, our chief executive officer, pursuant to the Securities Escrow Agreements resulting from the financings completed in 2008 , non-GAAP operating income was approximately $23.7 million, compared to approximately $17.9 million for FY2009; -- Non-GAAP net income for the FY2010 was approximately $19.6 million, up 44.0% year-over-year, or $0.571 per diluted share as compared to $0.367 in FY2009. FY2010 non-GAAP net income was derived after adjusting for the aforementioned non-cash shared-based compensation costs of approximately $19.0 million in total for both stock options and return of Make Good shares, and changes in fair value of warrants and conversion option of preferred stock, namely derivative instruments, for approximately $56.9 million; and -- Approved to trade on the NASDAQ Global Market, -- New manufacturing facility in Tianjin commenced commercial production in September 2010; and -- Appointment of BDO China Li Xin Da Hua CPA Co., Ltd. as our new independent registered public accounting firm.