Wowjoint Holdings Limited Reports Financial Results for First Quarter of Calendar
2010 and for Four-month Transition Period Ended December 31, 2009
BEIJING, June 29 — Wowjoint Holdings Limited ("Wowjoint," or the "Company") (NASDAQ GM:
BWOW, BWOWU, BWOWW), a leading provider of customized heavy duty lifting and carrying machinery
used in large scale infrastructure projects such as railway, highway and bridge construction, having recently
changed its fiscal year-end from August 31 to December 31, reported today unaudited financial results for the
first quarter of its newly established fiscal year ending December 31, 2010 and for the four-month transition
period ended December 31, 2009.
First-quarter Ended March 31, 2010
Revenues for the Company’s first quarter ended March 31, 2010 were $1.7 million as compared to $16.3
million in the three month period ended March 31, 2009. The decline in revenue is primarily attributable to a shift
in China’s governmental policies from stimulus to a restrictive one in later 2009, which includes measures to slow
the country’s rapidly expanding economy. The tightening included curtailment of certain government spending on
large infrastructure projects resulting in a significant reduction in new contracts being awarded for railway,
highway and bridge projects. Recently, government budgeting for large infrastructure projects has accelerated,
which has in turn positively impacted Wowjoint’s sales pipeline and backlog.
Cost of sales for the three months ended March 31, 2010 was approximately $1.5 million as compared to $11.4
million for the three months ended March 31, 2009. For the first quarter of 2010, the Company reported gross
profit of $0.3 million, or 18.8% of sales compared to gross profit of $5.0 million, or 30.4% of total revenues, for
the first quarter of 2009.
Operating expenses for the three months ended March 31, 2010 were approximately $0.8 million, compared
to $0.5 million in the same period of 2009. Selling expenses for