Like many other electronic brands, counterfeiting of our products has been an unwanted distraction to our operations and negatively affected sales volumes and margins during the quarter. We have promptly and aggressively addressed the issue with the authorities, while pinpointing culprits who have subsequently been notified by our attorneys and local authorities. Ultimately, new product development is what stymies counterfeit products and we are confident our continued emphasis on R&D and our ability to launch new Anytone products with enhanced functionality and designs will reinvigorate consumer and distributor purchases. By acting quickly to address the commercial needs of our distribution base, we have built trust and ensured the integrity of our brand. We were also pleased with Kim Fai's results, which are on track for to exceed our original forecast for 2011.
Also contributing to the downturn in sales growth in the segment were product line rationalizations in both NewPower and E'Jenie product lines, where legacy products were voluntarily delisted due to margin profiles below the Company's targets. While the Company will continue to service its long-standing customers with these two product categories, management anticipates lower sales in future quarters as it focuses resources on higher margin Anytone®, MeePower® and Kim Fai solar products.
Management is reiterating its 2011 guidance as follows: Revenue: $130 to $135 million. Adjusted Net Income: $24.5 million to $25.5 million. Adjusted EPS: $1.69 to $1.75.
The Company recently became aware of counterfeit products using Anytone's brand name being sold to distributors and online. Management has contacted regulators and taken legal actions against several perpetrators involved with manufacturing and selling counterfeit products. While the Company believes these and other actions will significantly curtail the amount of counterfeit products, Anytone's consumer product sales may be impacted in the short term.
Since closing the Kim Fai acquisition in November 2010, Management has been successful in signing new customers and expanding its portfolio of higher-margin solar application products. Based on the strong pipeline of orders and requests for proposals Kim Fai has, the Company is confident in at least meeting and potentially exceeding the prior forecast of $24 million of revenues and $5 mill of net income contribution from Kim Fai in 2011.
Based on the strong demand across each of its businesses, Management has provided the following guidance for 2011: Revenue: $130 to $135 million. Adjusted Net Income: $24.5 to $25.5 million. Adjusted EPS: $1.69 to $1.75 (based on 14.5 million shares outstanding)