Research and Trading Portal for US-listed China Stocks · February 27, 2017
China Tracker - Details for Recon Technology (RCON)
The high-end segment of China's oilfield service industry has opened more to private companies, and we believe there are opportunities for Chinese oilfield services companies, especially experienced companies that can provide all-in-one solutions for customers. As a small company, Recon now is more focused on oilfield automation and production stimulation-related services. But we also seek to extend our business on the industrial chain by providing more integrated services and incremental measures and growing our business from a predominantly up-ground business to include some down-hole services as well. We believe our experience and reputation will help us remain competitive in this arena.
Based on stronger demand from our existing and new clients, we are raising our previous forecast for full fiscal year 2010 revenue to a range of $15 million to $16 million, a 40% to 45% increase over FY 2009 revenue, and net income to a range of $2.8 million to $2.9 million, a 25% to 30% increase over FY 2009 net income. We previously forecasted our revenue to be between $12.7 million and $13.3 million, net income between $2.5 million and $2.7 million.
There has been some discussion among shareholders about our mention in the last quarterly conference call of a possible future $30 million funding. I wish to clarify that we have no specific plans at this time for any sort of additional funding. That number surfaced in response to a theoretical question about potential acquisitions that would grow the company's business. We believe there are some outstanding acquisition possibilities available to us. In the event that we have an opportunity to make a valuable acquisition that would immediately add value for our shareholders, it is conceivable that some sort of funding would be required. But there is nothing specifically planned at this point and, in any case, we have no intention of taking any action that would be inappropriately dilutive or harmful in any way to our shareholders.