Lihua International Inc., a Chinese developer, designer, and manufacturer of alternatives to pure copper products, expects full-year GAAP net income of $38.5 million and non-GAAPnet income of $40.1 million, representing year-over-year increases of 181% and 57%, respectively.
This news is based on the treatment of non-cash items following completion of the company’s year-end 2010 audit.
On February 22, 2011, the company announced preliminary 2010 unaudited GAAP and non-GAAP net income of $40.6 million and $40.0 million, respectively. These preliminary results assumed non-cash gains of $0.4 million and $0.5 million related to the extinguishment of warrants and change in fair value of warrants. In completing its audit of the company's financials, Lihua's independent registered public accountants determined that the non-cash gain related to the extinguishment of warrants for 2010 was$0.2 million, while the change in the fair value of warrants was a non-cash expense of $1.4 million.
For 2010, Lihua will report revenue of $370.5 million, a 129% year-over-year increase, and gross profit of $62.1 million, a 71% year-over-year increase.
Lihua also reaffirmed its financial guidance for 2011 in which it expects 2011 gross profit of $80.0 million to $82.0 million and non-GAAP net income of $52.0 million to $54.0 million, representing year-over-year growth of 29-32% and 30-35%, respectively.