Due to management's assessment to deconsolidate Anhui Jucheng on August 30, 2011, and the expected completion date of the new production line of Anhui Jucheng, management has revised its fiscal 2012 guidance provided on April 11, 2011. We expect to achieve approximately $148 million of net revenue and approximately $28 million of net income in fiscal year 2012, a 15% increase on a year over year basis, excluding the effect of Anhui Jucheng.
While the first quarter is typically our slowest seasonal quarter for equipment sales, we are confident this business will show solid growth for the full year. Furthermore, we believe the progress we saw in software and technical services is just the beginning of a long term trend as the benefit from our investment in the Beijing HongTeng software and technical service subsidiary becomes more apparent.
Management has reaffirmed its fiscal 2012 guidance provided on April 11, 2011. We expect to achieve the following: Revenue of $195.4 million (+39%) and net income of $35.5 million (+47%). We expect Anhui Jucheng to sell approximately 15,000 to 18,000 tons of specialty chemicals in fiscal 2012 and achieve at least $34 million of net revenue. LianDi owns a 51% equity interest in Anhui Jucheng and consolidates revenues.
Management has reaffirmed its fiscal 2012 guidance provided on April 11, 2011. The Company expects to achieve the following: Revenue $195.4 million (+39% YoY) and Net Income $35.5 million (+47% YoY). The Company had 17 contracts with an aggregate value of $11 million in backlog at March 31, 2011. It has signed 8 additional new orders for approximately $12.1 million from March 31 to June 13.
The newly acquired majority owned subsidiary, Anhui Jucheng, sold approximately 10,855 tons of polyacrylamide, a specialty chemical used in oil recovery, wastewater and sewage treatment, and papermaking. Management expects to expand capacity to take advantage of the strong demand. Gross margins are expected to improve as the Company implements additional pricing increases and increases capacity utilization.
As of March 31, 2011, the Company has ordered three sets of cleaning equipment. Management has completed the training programs for operating the oil sludge cleaning equipment. Furthermore, it expects to generate approximately $3.5 million of revenue and $1.5 million of net income in fiscal 2012 from this business.