Business
Highway Holdings Reports Fiscal 2021 Third Quarter and Nine-Month Results
HONG KONG--(BUSINESS WIRE)-- Highway Holdings Limited (Nasdaq:HIHO) today reported results for its fiscal third quarter and nine months ended December 31,
About this update from Highway Holdings Limited
[{"type":"text","content":" HONG KONG--(BUSINESS WIRE)--\nHighway Holdings Limited (Nasdaq:HIHO) today reported results for its fiscal third quarter and nine months ended December 31, 2020, reflecting the impact of the COVID-19 pandemic on its customers and supply chain.\n\nNet sales for the fiscal 2021 third quarter were $2.5 million compared with $3.6 million a year ago. For the same period, net income was $84,000, or $0.02 per diluted share, compared with $318,000, or $0.08 per diluted share, in the same quarter a year earlier.\n\nFor the nine months, net sales were $7.3 million compared with $9.6 million a year ago. For the same period, the company reported net income of $90,000, or $0.02 per diluted share, compared with a net income of $123,000, or $0.03 per diluted share, a year earlier.\n\n“Results for the quarter were impacted by the ongoing global effects of COVID-19. In addition, trade-related issues involving China, the United States and Australia may have impacted the supply of components and raw materials for the whole industry and also the requirements for the company’s regular business. These factors also delayed the start of manufacturing activities for new business from existing and new customers. Certain other projects have also been delayed due to COVID-related travel restrictions that prevented the company’s engineers traveling from China to Myanmar to setup new production lines,” said Roland Kohl, chairman, president and chief executive officer of Highway Holdings.\n\n“Notwithstanding the current political unrest in Myanmar, the company’s Yangon factory has been able, to date, to continue to operate, manufacture and ship products to our customers; and there have been no delays in receiving raw materials due to this situation,” Kohl said.\n\nKohl noted the company’s financial results benefitted from the reversal of prior-year tax provisions, as well as government subsidies from China and Hong Kong reduced rental and electricity charges in China.\n\nGross margin as a percentage of sales for the three months ended December 31, 2020 increased to 34.0 percent from 33.7 percent a year earlier, and gross margin as a percentage of sales for the nine months increased to 31.7 percent from 29.0 percent last year.\n\nSelling, general and administrative expenses decreased for the quarter by $26,000 and by $524,000 for the nine-month period on a ye...