BEIJING, Sept. 24, 2013 (GLOBE NEWSWIRE) -- Wowjoint Holdings Limited ("Wowjoint" or the "Company") (OTC:BWOWF), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that it has entered into six new contracts for projects and services. The contracts are for projects in China and Malaysia with a total value of approximately $6.2 million. The contracts consist of two sales contracts and four technical service contracts, with approximately 50% of the contract value expected to be recognized in 2013.
"We're very pleased with our recent orders from China and Malaysia," stated Mr. Yabin Liu, Chief Executive Officer of Wowjoint. "These contracts demonstrate Wowjoint's continued pursuit of diversifying its revenue stream with the technical service sales and additional sales internationally. We are also happy to see an improvement in the domestic Chinese market and anticipate this trend will continue as infrastructure spending in China returns. We believe our world-class products and services, strong client relationships and our ability to provide unique solutions to our customers will result in continued growth both in China and international markets."
The first contract Wowjoint entered into is a sales contract with BBE Solutions Sdn. Bhd ("BBE") to provide one overhead launching gantry for the Klang Valley Mass Rapid Transit project in Malaysia. Production on the equipment began in July 2013 and delivery is expected to occur by December 2013. The value of the contract is $935,000 and is expected to be recognized as revenue in 2013. This is Wowjoint's second project in Malaysia, following the successful completion of a highway bridge construction project in 2012.
Wowjoint also entered into a technical service contract with a subsidiary of China Railway Group, No. 1 Engineering Co., Ltd. of China Railway Group 25th Bureau. The contract is to redesign Wowjoint's proprietary 900-ton special launching carrier to enable it to transport railway beams passing through the tunnel with a very small radius and a unique bridge erection curve radius. Production began in July 2013, with completion of delivery and installation of the product expected by December 2013. The value of the contract is approximately $389,000 and is expected to be recognized as revenue in 2013.
The third contract Wowjoint entered into was a technical service contract with a subsidiary of China Railway Group, Haqi High-speed Rail Project Department 2nd Branch, of China Railway Group 16th Bureau. Wowjoint will provide the disassembly, maintenance, and transportation to a new jobsite and then reassembling a 900-ton special carrier and a 900-ton beam carrier. Service commenced in July 2013 and is expected to be completed by the end of September 2013. The total value of the contract is approximately $514,000 and will be recognized as revenue in 2013.
In September 2013, Wowjoint entered into a sales contract with Hainan Huarun Shimei Bay Tourism Development Co., Ltd., a subsidiary of one of the largest state-owned enterprises in China, China Resources (Holdings) Co., Ltd. for an 80-ton marine hoist. The Company commenced production and delivery and installation is expected by the end of December 2013. The contract value is approximately $453,000 and is expected to be recognized as revenue in 2013.
Wowjoint's fifth contract is a technical service contract with a subsidiary of China Railway Group, Zhengzhou Engineering Co., Ltd. of China Railway Group 7th Bureau. The contract is to redesign Wowjoint's proprietary 900-ton special launching carrier to be utilized for a railway bridge with a minimum 1600 meter radius to be utilized in the construction of the Zhengzhou Airport Rail Project. Production began in September, with delivery and installation expected to occur during the fourth quarter. The total value of the contract is approximately $385,000 and is expected to be recognized as revenue in 2013.
The sixth contract Wowjoint entered into is a technical service contract with a subsidiary of China Railway Group, No. 3 Engineering Co., Ltd. of China Railway Group 20th Bureau. It's a lease and servicing agreement of a tyre trolley and a special launching carrier. The equipment will be used to lift, transport and install 334 prefabricated railway box beams of varying lengths in the construction of the Baoji-Lanzhou High-speed Rail project. The contract value is approximately $3.5 million. The service is scheduled to be performed beginning September 2013 and completing in February 2015. A portion of the contract revenue is expected to be recognized in 2013 with the balance estimated in 2014.
"Our relationship with BBE continues to grow and we're excited to enhance that relationship. In May 2013 Wowjoint made a strategic investment in BBE of $100,000 in exchange for 35% ownership. BBE has worked closely with us since 2012, being a substantial customer that year, and we are confident in the continued success of the association. BBE was instrumental in helping Wowjoint enter the Malaysian market and in achieving the second project in the country this year," Mr Liu stated. "We are currently working together on several potential projects in other Asian markets, such as Indonesia and Hong Kong. We believe this strategic investment will help Wowjoint's international expansion effort and will be mutually beneficial to both companies."
Revenue Guidance and Contract Backlog
For the second half of fiscal year 2013, management anticipates total revenue to be between $8 million to $10 million, an increase from previous guidance. Full year revenue is expected to be between $13 million to $15 million.
As of September 18, 2013, Wowjoint's backlog was approximately $15 million, an increase from $12.7 million on June 30, 2013.
About Wowjoint Holdings Limited
Wowjoint is a leading provider of customized heavy duty lifting and carrying machinery used in large scale infrastructure projects such as railway, highway and bridge construction. Wowjoint's main product lines include launching gantries, tyre trolleys, special carriers, marine hoists and special purpose equipment. The Company's innovative design capabilities have resulted in patent grants and proprietary products. Wowjoint believes it is well-positioned to benefit directly from worldwide infrastructure development by leveraging its extensive operational experience and long-term relationships with established blue chip customers. Wowjoint also continues to expand into other countries and vertical markets, which will help to sustain and balance the Company's growth. Information on Wowjoint's products and other relevant information are available on its website at http://www.wowjoint.com.
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Wowjoint undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this communication. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. All forward-looking statements are qualified in their entirety by this cautionary statement. All subsequent written and oral forward-looking statements concerning Wowjoint or other matters and attributable to Wowjoint or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Wowjoint does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release.
CONTACT: For additional information contact: Wowjoint Holdings: Aubrye Foote, Vice President Investor Relations Tel: +1-530-475-2793 Email: firstname.lastname@example.org Website: www.wowjoint.comSource:Wowjoint Holdings