"I'm happy the company has largely maintained consistent sales volume during a challenging second quarter when our largest customer, Haizhong Heating, which represented around 80% of our Shenyang-based revenues, suspended operations of its CWSF boilers. As a result, our Shenyang facility ceased operations in late April 2011. Our business in Tongchuan was also challenged by the emergence of a new competitor. As Haizhong Heating plans to restart its CWSF operations at the end of September, three months later than our original estimation, our production in Shenyang will remain suspended during the third quarter. Although we are encountering some setbacks due to tightening macro policy and increased local competition, the Company remains confident in the prospects of CWSF and will continue to invest in building up our capacity through production line expansions and acquisitions. Our margins might be under pressure for the rest of 2011, but we believe that capacity investment will position Sino Clean Energy favorably in the mid-to-long term."
Due to the extended suspension of CSWF operations of a major client, Company management is adjusting its fiscal 2011 guidance and expects revenue of between $101.5 million and $110.7 million. It expects Non-GAPP adjusted earnings to be in the range of $23.02 million to $24.80 million. The Company expects full year adjusted earnings per share of between $0.98 and $1.06. This guidance assumes total sales volume of 850,000-920,000 metric tons of CWSF in 2011.
Because of loss of certain customer accounts and cancelled orders from existing customers, the company is making efforts to diversify its customer base and provide a more stable source of revenues. As a result, management has increased the number of sales representatives and raised incentives for new accounts that enter into long-term purchasing agreements.
Management is reaffirming fiscal 2011 guidance and expects revenues of at least $170 million and net income of at least $38 million, representing an increase of approximately 60.0% and 35.7% compared to 2010 revenues and adjusted net income, respectively. The Company also reaffirmed full year EPS guidance of $1.43 to $1.57 based on 26.6 million fully diluted shares. This guidance assumes total sales volume of 1.4 million metric tons of CWSF in 2011.