China Tracker - Details for NIVS IntelliMedia Technology (NIVS)

 NIVS IntelliMedia Technology
 Business Outlook

COVERAGE TERMINATED (Going Dark)
Recent Chain of Events:
2011-08-26 -- Last SEC Filing
2011-06-24 -- Delisting from NYSE Amex
2011-06-09 -- Auditor Engagement
2011-05-14 -- Auditor Resignation
2011-04-10 -- Auditor Engagement
2011-03-24 -- Trading halted by NYSE Amex
2011-03-23 -- Auditor Resignation
2010-11-04 -- Last Quarterly/Annual Report: Q3/FY2010 ended September 30, 2010

(Source: Trading China, 2012-09-30)

On June 12, 2011, the special committee of the Board of Directors, established on March 28, 2011 to investigate certain allegations of the Company's former independent auditors, made certain interim remedial recommendations to the Company, including: the suspension of two employees; the engagement of an outside accounting firm to perform the Company's accounting functions; and the consolidation of the Company's cash in fewer bank accounts, and on June 15, 2011, the Board of Directors formally approved the Special Committee's recommendations.

On July 11, 2011, each of Messrs. Charles Mo and Robert Wasielewski resigned as a Director of the Company, effective immediately. In his resignation letter, Mr. Wasielewski's cited as a reason for his resignation, the Company's delay in implementing the Special Committee's recommendations. Mr. Wasielewski's resignation also noted that concurrent with his resignation, the Special Committee's legal counsel, Sidley Austin LLP, and its accounting advisors, Deloitte Financial Advisory Services LLP, have terminated their engagements with the Special Committee. The Company is in the process of engaging an outside consulting firm and consolidating the Company's bank accounts.

(Source: 8-K Filing, 2011-07-14)

NIVS IntelliMedia Technology Group today announced that the NYSE Amex LLC will suspend the Company's listing with the Exchange, effective as of the open of business on Thursday, June 23, 2011. On June 20, 2011, the Company was notified by the Exchange that a Listing Qualifications Panel of the Exchange's Committee on Securities had denied the Company's request for continued listing with the Exchange, following a hearing on June 15, 2011. The Company looks forward to the conclusion of the investigation of the Special Committee and the planned subsequent audit of the Company's 2009 and 2010 fiscal years. The Company hopes to provide accurate and complete financial information to its shareholders and the investing public as soon as possible.

(Source: PR Newswire, 2011-06-22)

The Company has received formal notification from the staff of the SEC that it has initiated a formal, nonpublic investigation into whether the Company and four other listed companies had made material misstatements or omissions concerning their financial statements, including cash accounts and accounts receivable. The SEC has served the Company with a subpoena, dated March 24, 2011, for documents relating to the matters under review by the SEC.

(Source: 8-K Filing, 2011-05-19)

On March 27, 2011, the Company's Board of Directors appointed a Special Committee comprised of independent directors, to investigate certain allegations of the Company's former auditor, MaloneBailey. ... The Special Committee has not completed the Investigation, and has made no findings to date. The Special Committee has encountered difficulties in obtaining cooperation with the Investigation and as a result, no assurance can be provided as to when or if the Investigation will be completed.

(Source: NT 10-Q Filing, 2011-05-17)

"We take the allegations by MaloneBailey very seriously and plan to conduct a thorough investigation. In the interim, we remain dedicated to providing the highest standards of oversight and governance to our shareholders and will work diligently to conclude the investigation in a timely manner."

In light of the investigation, the Company is delaying the filing of its Form 10-K for the year ended December 31, 2010. The Company does not intend to provide further comment regarding the allegations until after the conclusion of the Special Committee's investigation. The Company also announced that the Audit Committee has authorized the appointment of BDO China Li Xin Da Hua as the Company's new independent auditors, to conduct an audit of the Company's fiscal years ended December 31, 2010 and 2009.

(Source: PR Newswire, 2011-03-28)

On March 23, 2011, the Audit Committee of NIVS IntelliMedia Technology Group approved the dismissal of Malone Bailey LLP as the Company's independent auditor, effective immediately, and on March 24, 2011, Malone Bailey submitted its resignation as the Company's independent auditor.

On March 23, 2011, Malone Bailey provided a letter to the Audit Committee, advising that it had encountered issues and concerns that, in Malone Bailey's view, required additional information and procedures, including the initiation of an independent investigation, in order to verify the accuracy of certain transactions and balances recorded on the Company's financial statements and records for the year ended December 31, 2010. In a letter dated March 23, 2011, the Company notified Malone Bailey of the Board's decision to terminate Malone Bailey as the Company's independent auditor and on March 24, 2011, Malone Bailey submitted a letter of resignation to the Company. In its letter of resignation, Malone Bailey based its resignation on what it characterized illegal acts involving the Company's accounting records and bank statements and discrepancies in accounts receivable. Malone Bailey further advised the Company that, as a result of the issues identified in performing its audit of the Company's financial statements for the fiscal year ended December 31, 2010, it is unable to rely on management's representations as they relate to previously issued financial statements and it could no longer support its audit opinion dated March 24, 2010, related to its audit of the consolidated financial statements of the Company and its subsidiaries as of December 31, 2009, included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2009. The Company believes that it was taking appropriate steps to respond to Malone Bailey's recommendations for further investigation prior to the dismissal and resignation of Malone Bailey, but Malone Bailey does not agree with the Company's assertion in this regard.

As a result of the issues identified by Malone Bailey in performing their audit of the Company's financial statements of the fiscal year ended December 31, 2010, the Board of Directors has determined that the audited consolidated financial statements of the Company for the year ended December 31, 2009 contained in the Company's annual report on Form 10-K, and the interim financial statements of the Company for the fiscal quarters ended March 31, June 30, and September 30, 201 contained in the Company's quarterly reports on Form 10-Q for such periods, should not be relied upon until a successor auditor can assess the impact of such issues on the Company's prior financial reports.

(Source: 8-K Filing, 2011-03-25)

In our resignation letter dated March 24, 2011, MaloneBailey cited that MaloneBailey found accounting fraud and irregularities in forging accounting records and bank statements during 2010 NIVS audit. On March 21 with email and On March 22, 2011, MaloneBailey, LLP, informed Charles Mo, NIVS independent board member and the chairman of the audit committee about "significant difficulties encountered during the 2010 audit." During the conversation, MaloneBailey, LLP informed Mr. Mo that two other public companies audits were conducted at the NIVS accounting department location. These two companies are located in Beijing and Guangzhou. However, their books and records were shipped to NIVS accounting department and MaloneBailey conducted the audits of these two public companies at NIVS accounting department. NIVS accounting personnel were involved in coordinating the two audits. MaloneBailey found accounting fraud and irregularities in these two audits. After the discovery, we encountered difficulties with management trying to limit our scope of the NIVS audit. We told Mr. Mo that we suspected accounting irregularities and fraud at NIVS but cannot audit through the issues due to the difficulties encountered during the audit. On March 23, 2011, the audit partner of MaloneBailey informed the CFO of NIVS that MaloneBaiely is writing a letter to the board of directors and the audit committee about accounting irregularities and difficulties encountered during the NIVS audit. We subsequently issued such letter.

(Source: 8-K Filing, 2011-03-25)

We have diligently pursued this relationship with China Mobile over the last six months, so we would like to recognize the dedication of the many NIVS employees that made this a reality. We believe that this first contract with China Mobile successfully gets our foot in the door as we look to expand the number of branded phones we offer through China's largest carrier, while simultaneously demonstrating NIVS' growing presence in China's rapidly expanding cell phone market. With further developments in the works, we expect 2011 to be a highly successful year for our mobile business.

(Source: PR Newswire, 2011-02-22)

NIVS IntelliMedia Technology announced that China Telecom, one of the top-three mobile telecommunications providers in China, has selected the NIVS IntelliMedia "E3" model mobile phone as one of its key 3G promotion products. As such, NIVS' E3 model is recognized on China Telecom's approved 3G stock inventory list, meaning local authorized retail stores can make orders directly from NIVS. The E3 will be co-branded with both a NIVS logo and a "TianYi" logo, which is the brand for China Telecom's 3G mobile services. The product will be primarily promoted in larger urban areas during the 2G to 3G transition in China; where growth in 3G is expected to be strongest. Since the beginning of January 2011, NIVS has received E3 product orders totaling approximately $4.5 million, which is a result of a sales effort through 10 authorized retail stores, across 7 different provinces. NIVS expects to see increasing orders for this model going forward.

"This is a new order from China Telecom after having completed sales orders worth over $30 million last year. To be selected by one of the top-three mobile carriers in China again this year for a co-branded product and to sell over $4 million in the first month are significant validators for the quality of our cell phones and their successful consumer-centric integration with China's 3G services. We believe that our traditional sales channels can be greatly enhanced through our multi-faceted sales initiatives with China Telecom. This includes close collaboration with their corporate development team, as well as the strong relationships we have been able to create by working closely on the ground with their authorized local retail stores, which will prove invaluable as we release new products. By partnering with a carrier the size of China Telecom, not only does it greatly improve the reach of our sales and marketing efforts for the E3 itself, it also raises the overall awareness of the NIVS brand within China's rising middle class. As one of its strategic 3G partners, we expect to continue this close collaboration with China Telecom and its authorized retailers in order to benefit from other opportunities in the future."

NIVS is implementing various corporate growth initiatives for 2011 and is committed to establishing itself as China's preeminent integrated consumer electronics company. The Company will continue to focus on innovative research and development and expects to expand its product portfolio with increasingly popular consumer electronics devices in China, such as its 3G mobile handsets.

(Source: PR Newswire, 2011-02-10)

The Company expects 20-30% growth in fiscal 2010 for its traditional audio and visual products compared with fiscal 2009, with gross and net profit margin maintained at approximately 22-25% and 10-12%, respectively. The mobile phone business is a new product line for the Company and is expected to contribute $80-100 million of revenue in 2010 and with gross and net profit margins ranging from approximately 10-18% and 5-9%, respectively. The Company hopes to further enhance its margins by incorporating increased product functionality and enhanced product design into its recently acquired mobile phone manufacturing operations.

Overall, the Company anticipates that it will generate $290-340 million of revenue, with gross and net margins estimated to range between 19-21% and 7-10%, respectively, in 2010.

(Source: PR Newswire, 2010-11-04)

The Company's financial position improved strongly in the second quarter of 2010 as the Company's newly acquired mobile phone manufacturing operations contributed a meaningful amount of revenue. The Company believes that these and other fundamentals that have been established will contribute to the Company's continued rapid growth in 2010.

The Company intends to sustain its strong growth across all operating segments and remains confident about the growth of the mobile phone and consumer electronics industry. Management further believes that the Company's integrated strengths should allow it to expand market share within its core market and help to capture opportunities in new markets, enabling sustained strong financial results and greater share value. Overall, the Company anticipates that it will generate $290-340 million of revenue in 2010, with gross and net margins estimated to be similar to those realized in the first half of the year.

(Source: PR Newswire, 2010-08-11)

The Company expects second quarter 2010 total revenue to be between $77 million and $79 million (compared to $40.9 million for 2009 second quarter), representing an estimated increase of between 88.4% and 93.3%. Second quarter 2010 gross profit is expected to be between $15 million and $16 million (compared to $9.7 million for 2009 second quarter), representing an estimated increase of between 53.9% and 64.1%. Second quarter 2010 net income is expected to be between $6.5 million and $7.5 million (compared to $4.6 million for 2009 second quarter), representing an estimated increase of between 52.3% and 63.2%, and resulting in estimated earnings per share of between $0.14 and $0.16, based on a weighted-average of 47,159,642 shares outstanding during the second quarter. Regarding its previously released guidance for full year 2010, the Company reiterates that it anticipates full year revenue of between $290 and $340 million, with gross and net margins estimated to range between 19-21% and 7-10% respectively.

(Source: PR Newswire, 2010-07-20)

The Company expects 20-30% growth in fiscal 2010 for its traditional audio and visual products compared with fiscal 2009, with gross and net profit margin maintained at approximately 22-25% and 10-12%, respectively. The mobile phone business is a new product line for the Company and is expected to contribute $60-90 million of revenue in 2010 and with gross and net profit margins ranging from approximately 10-18% and 5-9%, respectively. The Company hopes to further enhance its margins by incorporating increased product functionality and enhanced product design into its recently acquired mobile phone manufacturing operations. Overall, the Company anticipates that it will generate $280-330 million of revenue, with gross and net margins estimated to range between 19-21% and 7-10%, respectively, in 2010.

(Source: PR Newswire, 2010-05-10)

For the remainder of 2010, the Company intends to continue its strong marketing and new product launch momentum, and remain focused on executing the goal of becoming China's preeminent integrated consumer electronics company. The Company intends to further enhance its balance sheet by focusing on cutting operating costs and streamlining operating efficiencies. In addition, the Company will continue to focus on R&D and add to its product portfolio, such as 3G mobile handsets, for example. As demonstrated by the tripling of revenue year-over-year of the intelligent audio and visual products in the fourth quarter of 2009, the Company believes that its integration of solid technology, design, manufacturing, distribution, product and marketing continues to be well-received by its customers and end users. The Company intends to sustain its strong growth across all its operating segments and remains confident about the business and growth of the AV consumer electronics industry, and believes that its integrated strengths should allow it to expand market share within its core market and help to capture opportunities in new markets, enabling the Company to deliver sustained strong financial results and greater share value.

(Source: PR Newswire, 2010-03-25)
NIVS
Retail/Consumer

COVERAGE SUSPENDED OR TERMINATED
 
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Current Price:  n/a
F10k Day (2009-03-13): -100.00%$4.20
2009 Close: -100.00%$2.58
2010 Close: -100.00%$2.26
2011 Close: -100.00%$0.08
High (2012-02-14): -100.00%$0.15
Low (2012-07-27): -100.00%$0.01
Exchange: N/A
Market Capitalization: n/a
Total Shares: 47.97 mill
Float: n/a
Avg Volume: n/a
Last Quarter: 2010-09-30
Revenue (MRQ): 84.40 mill
Net Income (MRQ): 7.93 mill
Op. Cash Flow (MRQ): 1.32 mill
all financial data provided without warranty