Business
Highway Holdings Reports Fiscal 2020 Fourth Quarter and Year-End Results
--Company Profitable for Quarter and Full Year Despite COVID-19 Impact-- HONG KONG--(BUSINESS WIRE)-- Highway Holdings Limited (Nasdaq: HIHO) today reported
About this update from Highway Holdings Limited
[{"type":"text","content":"\n--Company Profitable for Quarter and Full Year Despite COVID-19 Impact--\n\n HONG KONG--(BUSINESS WIRE)--\nHighway Holdings Limited (Nasdaq: HIHO) today reported results for its fiscal fourth quarter and year ended March 31, 2020 – reflecting the impact of lower orders from certain customers experiencing soft product demand and the impact of a four-week shut down of the company’s factory in China due to the Chinese New Year holiday and government-required coronavirus closures in January and February.\n\n\nNet sales for the fiscal 2020 fourth quarter were $2.9 million compared with $3.8 million a year ago. Net income for the same period was $563,000, or $0.14 per diluted share, compared with a net loss of $186,000, or $0.05 per share, a year earlier.\n\n\nNet sales for fiscal 2020 were $12.6 million compared with $14.3 million a year ago. Net income for fiscal 2020 was $686,000, or $0.18 per diluted share, compared with a net loss of $630,000, or $0.17 per share, a year earlier.\n\n\nThe sales decrease for fiscal 2020 noted above reflects sharply reduced orders from two of the company’s major customers – including a year-over-year sales reduction of approximately 30 percent from one customer alone. The decrease in orders from these customers was due to a weaker demand for the products sold by those customers.\n\n\n“The company’s solid financial performance for the fourth quarter and fiscal year reflects the recovery of business in the second half of the year from our largest customer – partially offsetting the sharp decrease in sales in first half of the fiscal year. Our performance was also greatly enhanced by sharp cost-cutting initiatives, a rental subsidy, and the reversal of certain prior-year provisions. Sales in the fourth quarter would have been better had our Shenzhen factory not been closed for four weeks and the company substantially handicapped in month of March 2020 due to COVID-19,” said Roland Kohl, chairman, president and chief executive officer of Highway Holdings.\n\n\n“Despite the impact of the coronavirus crisis and its impact on the worldwide economy and our business, we expect our financial strength will carry us through and may become a competitive edge and enable us to take advantage of new business opportunities created by the expected realignment of the business environment. In addition, the escalating...