China Security & Surveillance Technology Earnings: Not Surveying the Business Very Well

China Security & Surveillance Technology, Inc. (NASDAQ:CSR) saw profit fall amid falling revenue. China Security & Surveillance Technology Inc is in business of installing, manufacturing and distribution of surveillance & safety systems, which integrates development, manufacturing, marketing, & maintenance of digital video surveillance.

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China Security & Surveillance Technology Earnings Cheat Sheet for the First Quarter

Results: Net income for China Security & Surveillance Technology, Inc. fell to $1.7 million (2 cents/share) vs. $3.3 million (5 cents/share) a year earlier. A decline of 48.8% from the year earlier quarter.

Revenue: Fell 17.6% to $99.1 million YoY.

Actual vs. Wall St. Expectations: CSR fell short of the mean analyst estimate of 11 cents/share. Estimates ranged from 10 cents per share to 12 cents per share.

Quoting Management: “We just completed a quarter with encouraging margins expansion and a positive cash flow,” said Mr. Guoshen Tu, Chairman and Chief Executive Officer of CSST. “Despite the seasonality impacts on our revenues, we continue to look into growth opportunities in safety and surveillance industry in China, with a particular focus on large-scale government projects and security service business. These continue to be our growth platforms as we maintain our market leadership in China.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 11.4% from the year earlier while the figure increased 23.9% in third quarter of the last fiscal year, more than twofold four quarters ago and 62.8% five quarters earlier.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise 24.7%.

Competitors to Watch: Mace Securities International, Inc. (MACE), Magal Security Systems Ltd. (NASDAQ:MAGS), Napco Security Systems (NASDAQ:NSSC), Vicon Industries, Inc. (AMEX:VII), Tyco International Ltd. (NYSE:TYC), Checkpoint Systems Inc. (NYSE:CKP), Axcess International, Inc. (AXSI).

Today’s Performance: Shares of CSR are trading at $5.32 as of April 25, 2011 at 9:05 AM ET, down 4.1% from the previous close.

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