China Security (CSR) research, news, and more from GeoInvesting

Company description

Thu, 24 Apr 2008 04:00:00 GMT

Based in Shenzhen, China, China Security manufactures, distributes, installs and maintains security and surveillance systems throughout China. China Security has manufacturing facilities located in China and an R&D facility which maintains an exclusive collaboration agreement with Beijing University. China Security has built a diversified customer base through its extensive sales and service network that includes numerous points of presence throughout China.

Going Private News

Wed, 14 Sep 2011 04:00:00 GMT

SHENZHEN, China, September 14, 2011 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("CSST" or the "Company") (NYSE:CSR), a leading integrated surveillance and safety solutions provider in the P.R.C., today announced that, at the annual meeting of CSST stockholders held earlier today, the Company's stockholders voted, among other things, in favor of the proposal to adopt the previously announced Amended and Restated Agreement and Plan of Merger (the "Merger Agreement"), dated as of May 3, 2011, by and among Rightmark Holdings Limited, a British Virgin Islands company ("Parent"), Rightmark Merger Sub Limited, a Delaware corporation and a wholly owned, direct subsidiary of Parent ("Merger Sub"), the Company and Mr. Guoshen Tu (solely for the purpose of Section 6.15 of the Merger Agreement), pursuant to which Merger Sub will be merged with and into the Company with the Company surviving the merger as a wholly owned subsidiary of Parent. Approximately 84.98% of the Company's total outstanding shares of common stock voted in person or by proxy at today's annual meeting. Approximately 69.31% of the shares outstanding were voted in favor of the proposal to adopt the Merger Agreement. The proposal to adopt the Merger Agreement was also approved by approximately 59.91% of the shares of common stock outstanding held by unaffiliated stockholders, satisfying the "majority of the minority" voting requirement set forth in the Merger Agreement.

The parties currently expect to complete the merger in September 2011, subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement. If completed, the proposed merger would result in the Company becoming a privately held company and its common stock would no longer be listed on the New York Stock Exchange.

Going Private News

Thu, 11 Aug 2011 04:00:00 GMT

SHENZHEN, China, August 11, 2011 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("CSST" or the "Company") (NYSE: CSR), a leading integrated surveillance and safety solutions provider in the P.R.C., today announced that it has filed with the Securities and Exchange Commission ("SEC") the definitive proxy statement in connection with the previously announced merger under the Amended and Restated Agreement and Plan of Merger (the "Merger Agreement"), dated as of May 3, 2011, by and among Rightmark Holdings Limited, a British Virgin Islands company ("Parent"), Rightmark Merger Sub Limited, a Delaware corporation and a wholly owned, direct subsidiary of Parent ("Merger Sub"), the Company and Mr. Guoshen Tu (solely for the purpose of Section 6.15 of the Merger Agreement), pursuant to which Merger Sub will be merged with and into the Company with the Company surviving the merger as a wholly owned subsidiary of Parent. If completed, the proposed merger would result in the Company becoming a privately held company and its common stock would no longer be listed on the New York Stock Exchange. CSST public stockholders will be entitled to receive $6.50 per share in cash, without interest.

Comments & Business Outlook

Mon, 25 Jul 2011 04:00:00 GMT

SHENZHEN, China, July 25, 2011 /PRNewswire-Asia/ --

Second-quarter revenues decreased to $156.34 million, 7.1% down from the same quarter of last year due to structural change in the customer mix to include more higher margin and large-scale government installation projects which required a longer completion time; consequently fewer projects were completed during the quarter
Approximately 88% of second-quarter revenues came from government customers, as compared with 55% in the second quarter of 2010, reflecting the Company's strategic focus on large-scale government installation projects
Second-quarter gross margin increased 110 basis points year-over-year to 26.9% from 25.8% last year; while gross margin for the six months ended June 30, 2011 increased 370 basis points year-over-year to 28.8%, reflecting an increasing gross margin in system installation business and effective cost control measures
Second-quarter net income attributable to CSST decreased to $5.97 million, mainly due to the decrease in revenues, the increase in expenses related to the proposed merger transaction and the Company's advertising promotions to support its business expansion efforts and the increase in interest expenses
Second-quarter GAAP diluted EPS was $0.07, declining year-over-year from $0.23 for the second quarter of 2010, due to the fall in net income attributable to CSST and the increase in year-over-year weighted average diluted share count
A positive cash flow of $78.59 million over the first six months of 2011, as compared with $53.59 over the same period of 2010

"We just completed a quarter where the results of important strategic decisions were reflected in a gross margin expansion and a positive cash flow," said Mr. Guoshen Tu, Chairman and Chief Executive Officer of CSST. "Although our revenues were impacted by the structural change in our customer mix, we continue to see growth opportunities in the surveillance and safety industry in China, with favorable government support, as well as great potential in the security services segment. Large-scale projects and our proven execution and service capabilities continue to strengthen our competitive position in China."

Financial Outlook

"Mainland surveillance and safety industry growth opportunities continue to be robust, and CSST is strongly positioned to lead in this new era," said Mr. Tu. "Looking ahead, we are confident that we are able to continue to build on our strengths and accelerate the growth of our Company in 2011."

Investor Alert

Fri, 20 May 2011 04:00:00 GMT

SHENZHEN, China, May 19, 2011 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("CSST" or the "Company") (NYSE: CSR; NASDAQ Dubai: CSR), a leading integrated surveillance and safety solutions provider in the P.R.C., today announced that the Company had notified NASDAQ Dubai Limited ("NASDAQ Dubai") in writing its intention to voluntarily delist its securities from the Official List of NASDAQ Dubai effective at the close of trading on July 18, 2011. An application has also been made for immediate suspension of listing until such time as the delisting of its common stock on NASDAQ Dubai becomes effective. Under Section 40.3 of the Listing Rules of NASDAQ Dubai, an issuer with a primary listing on another exchange may voluntarily withdraw its securities from secondary listing on NASDAQ Dubai if it gives NASDAQ Dubai at least sixty (60) calendar days' advance written notice.

The decision to apply to voluntarily delist and to apply to suspend listing from NASDAQ Dubai was made by the Company's Board of Directors (the "Board") having regard to market conditions and the announcement made by the Company on May 3, 2011. The Board unanimously determined that the proposed delisting and suspension of listing were in the best interests of the Company and its stockholders. The Company's common stock has been secondarily listed at NASDAQ Dubai since October 2008. After the effectiveness of a delisting from NASDAQ Dubai, the Company's common stock will continue to be listed on its primary market, the New York Stock Exchange.

The Board believes that a delisting from NASDAQ Dubai and preceding suspension of listing of the Company's common stock on NASDAQ Dubai will not have a material impact on the Company's stockholders, its current relationships with employees, customers or suppliers, or its existing financing arrangements.

Comments & Business Outlook

Mon, 25 Apr 2011 04:00:00 GMT

First Quarter 2011 Results:

First-quarter revenues decreased to $99.05 million due to seasonality impact of the Chinese New Year holiday and the fact that the Company secured more large-scale installation projects which required longer installation time to complete. Government customers accounted for 87.0% of total revenues in the first quarter of 2011
First-quarter gross profit grew 8.6% to $31.48 million despite a decrease in revenues Gross margin and operating margin up 770 basis points and 250 basis points year over year to 31.8% and 8.3%, respectively. The margin improvement reflected the increasing gross margin in system installation business and effective cost control measures
First-quarter net income attributable to CSST decreased to $1.68 million and GAAP diluted EPS was $0.02. The drop was mainly attributable to the decrease in revenues, and an increase in income taxes and interest expenses
Cash increased $213.11 million to $278.74 million. This was mainly due to the improved operating cash flow condition and the proceeds from additional bank loans during the quarter

"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."

"Our long-term future remains bright. We made the decision to concentrate CSST's strategic focus on the opportunities we saw flowing from large-scale government projects and security service business. Under the newly issued 12th five-year plan on security industry and the central government's spending plan in 2011, which landed a large increase of the government Safe City and E-city projects spending, we saw tremendous opportunities in the horizon," said Mr. Tu. "Looking ahead, we are confident that we are ready to capitalize on our solid fundamentals, market leadership and disciplined cost control strategy to accelerate the growth of our Company in 2011."

Going Private News

Wed, 20 Apr 2011 04:00:00 GMT

SHENZHEN, China, April 20, 2011 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. today announced that it has entered into a definitive agreement and plan of merger with Rightmark Holdings Limited ("Parent"), a British Virgin Islands company wholly owned indirectly by Mr. Guoshen Tu, and Rightmark Merger Sub Limited ("Merger Sub"), a Delaware corporation wholly owned by Parent. Mr. Guoshen Tu is the Company's Chief Executive Officer and the Chairman of the Company's Board of Directors and beneficially owns approximately 20.9% of the Company's outstanding shares of common stock (the "Company Common Stock").

Going Private News

Tue, 08 Mar 2011 05:00:00 GMT

China Security & Surveillance Technology, Inc. today announced that its Board of Directors has received a non-binding proposal letter from its Chairman and Chief Executive Officer, Mr. Guoshen Tu ("Mr. Tu"), for Mr. Tu to acquire all of the outstanding shares of the Company’s common stock not currently owned by Mr. Tu, certain members of the management and their affiliated entities, in a going private transaction for $6.50 per share in cash subject to certain conditions. According to the proposal letter, the acquisition is intended to be financed with a combination of debt and equity capital to be secured by Mr. Tu. Mr. Tu currently beneficially owns approximately 20.9% of CSST’s common stock. A copy of the text of Mr. Tu’s proposal letter is set forth at the end of this press release.

As previously disclosed, CSST’s Board of Directors has formed a special committee consisting solely of independent directors (the "Special Committee") to consider, among other things, any proposal made by Mr. Tu, and the Special Committee has retained Nomura International (Hong Kong) Limited as its financial advisor and Shearman & Sterling LLP as its legal advisor to assist the Special Committee in its work. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that a transaction with Mr. Tu or any other transaction will be approved or consummated. The Company does not intend to disclose developments regarding these matters unless and until its Board of Directors determines there is a need to update the market.

Deal Flow

Fri, 04 Mar 2011 05:00:00 GMT

On March 1, 2011, China Security & Surveillance Technology, Inc., a Delaware corporation entered into a term loan facility agreement with China Development Bank Corporation Hong Kong Branch (“CDB”), as original lender, arranger and facility agent pursuant to which CDB agrees to make available to the Company a term loan facility in an aggregate principal amount of up to US$200,000,000 (the “Facility”) subject to the terms and conditions of the Loan Agreement. Any loan under the Facility will mature on the third anniversary of the first date when the Facility is utilized by the Company (the “First Utilization Date”) and will have an interest rate of LIBOR plus 3% per annum. The Company will repay the principal amount in two installments, with 50% of the principal due on 30 months after the First Utilization Date and the remaining 50% due on the final maturity date. The interest will be paid every six months starting on May 20, 2011. The loan will be unsecured and used for working capital purposes. The Company submitted the utilization notice to draw down US$200 million from the Facility on March 1, 2011.

Comments & Business Outlook

Mon, 28 Feb 2011 05:00:00 GMT

Fourth Quarter Highlights:

For the quarter ended December 31, 2010, CSST's revenues totaled $214.01 million, compared with $182.71 million in the year-earlier quarter.
Gross profit totaled $61.15 million, up 18.8% from $51.48 million in the year-earlier period. Gross margin increased to 28.6% from 28.2% for the same period in 2009, as a result of expanded profitability of the large-scale government contracts.
Net income attributable to CSST totaled $29.04 million, up 11.4% from $26.07 million in the year-earlier quarter. Net margin was 13.6%.
GAAP diluted EPS was $0.33 in the fourth quarter of 2010, as compared with $0.38 in the fourth quarter of 2009.

For the full year 2011, CSST reaffirms its

revenue projection of $870 to $890 million,
net income of $104 to $106 million,
and GAAP diluted EPS of $1.13 to $1.15.

"We aim to take our business to the next level in 2011," Mr. Tu said. "We're seeing continuing growth in industry demand in China. We have built and scaled solid growth platforms for the future. Our installation business is positioned for growth from future wins of large-scale government contracts and we also expect growth in our service business. CSST has led the surveillance and safety industry in China and we are well positioned to drive the industry's next waves of innovation and growth."

Liquidity Requirements

Mon, 28 Feb 2011 05:00:00 GMT

We believe that our currently available working capital, after receiving the aggregate proceeds of our capital raising activities, the credit facilities referred to above and the anticipated bank loans, should be adequate to sustain our operations at our current levels through at least the next twelve months. We believe that our currently available working capital, after receiving the aggregate proceeds of our capital raising activities, the credit facilities referred to above and the anticipated bank loans, should be adequate to sustain our operations at our current levels through at least the next twelve months.

Comments & Business Outlook

Mon, 31 Jan 2011 05:00:00 GMT

China Security & Surveillance Technology, Inc., today announced that it has established a special committee to consider the letter received by its board of directors from its Chairman and Chief Executive Officer, Mr. Guoshen Tu on January 28, 2011, and to evaluate any proposal that Mr. Tu may make as stated in the letter. In that letter, Mr. Tu stated that he is considering the feasibility of developing a proposal to acquire all of the outstanding shares of common stock of CSST not currently owned by Mr. Tu in a going private transaction. There can be no assurance that any proposal for a transaction will be made, that any agreement will be approved or executed or that any transaction will be consummated.

Comments & Business Outlook

Fri, 28 Jan 2011 05:00:00 GMT

China Security & Surveillance Technology, Inc., today announced that its Board of Directors has received a preliminary, non-binding letter from its Chairman and Chief Executive Officer, Mr. Guoshen Tu ("Mr. Tu"), which stated that Mr. Tu is considering the feasibility of developing a proposal to acquire all of the outstanding shares of common stock of CSST not currently owned by Mr. Tu in a going private transaction. Mr. Tu stated in the letter that "the amount of the purchase price has not been determined, but my firm expectation is that it will not exceed $6.50 per share." Mr. Tu currently beneficially owns approximately 20.9% of CSST’s common stock.

CSST’s Board of Directors intends to form a special committee of independent directors (the "Special Committee") to consider Mr. Tu’s interest and any proposal made by him, and the Special Committee will be authorized to retain independent legal and financial advisors to assist it. There can be no assurance that any proposal for a transaction will be made, that any agreement will be approved or executed or that any transaction will be consummated.

Comments & Business Outlook

Tue, 26 Oct 2010 04:00:00 GMT

Third-quarter highlights:

Third-quarter revenues increased 14.0% year over year to $182.15 million.
Third-quarter gross margin and operating margin up by 860 basis points and 850 basis points year over year, respectively.
Third-quarter net income attributable to the Company increased 24.0% year over year to $27.27 million.
Diluted EPS, including all non-cash expenses, was $0.31.
Backlog increased 93.6% sequentially to $412.56 million.

"We delivered another strong quarter, with improved revenue trends, continued double-digit earnings growth and significant margin expansion. These results add to our confidence in the future," said Mr. Guoshen Tu, Chairman and Chief Executive Officer of CSST.

"We continue to see positive signs of growth in large-scale government contracts, which speaks to our unparalleled one-stop solutions and our leadership in this area. Our service business also continues to garner favorable response from the customers. I am excited by the opportunities ahead."

Financial Outlook

"Surveillance and safety solutions have become ever more important to corporate and government bodies in China. This has generated unprecedented opportunities for CSST to reap the returns on our investments in recent years," said Mr. Tu. "CSST's established presence and network in China creates the underpinnings for surveillance and safety solutions that allow customers to protect their own assets. We've extended our established strengths in this space with a keen focus on the large-scale government projects and security service segment. We continue to deliver on our commitment to provide customers with the capabilities and solutions they need."

As a result of the strong momentum in higher margin large-scale government contracts in China, the Company anticipates that these projects will take a longer time to complete, hence impacting the revenue trends in the fiscal year of 2010. The Company revises its revenue projection to the range of $730 million to $750 million, representing a year-over-year growth of 26% to 29%. Diluted earnings per share is projected to be in the range of $1.02 to $1.04, based on an average share count on fully-diluted basis of approximately 90 million.

In consideration of its strong backlog and improved margins mostly driven by installation projects in the government sector, the Company projects that 2011 revenue will be in the range of $870 million to $890 million, and net income will be in the range of $104 million to $106 million. EPS will be approximately $1.13 to $1.15.

"Despite the continuing challenges of relatively longer time to realize the revenues from large-scale government contracts, we believe that our leap into this high-margin business fits perfectly well with the Company's overall direction," said Mr. Tu. "We have already established sound financial facilities with local banks and expect to have sufficient working capital to fund our growth. Our job is to continue to execute and to deliver financial results for shareholders in the long run. This is the area where we will continue to focus on going forward."

GeoTeam® Note: Guidance is below analyst estimates.

Comments & Business Outlook

Mon, 26 Jul 2010 04:00:00 GMT

"Underneath the terrific industry demand for surveillance and safety products and services in China, we're optimistic about CSST's prospect to continue to lead the industry in China," said Mr. Tu. "We believe our market leadership extends across the industry's broadest portfolio of products and services in China. Our scale and reach in China will provide meaningful and sustainable competitive advantages for us to capitalize on in the years ahead. Together with our sharp focus on high-growth initiatives, we have a tremendous set of assets and an impressive record in terms of executing and delivering on targets. I am very confident in our ability to deliver strong results in 2010."

For the full year 2010, the Company reaffirms its revenue projection of $830 to $850 million. The Company also reaffirms diluted EPS projection of $1.12 to $1.16, based on an average share count on fully diluted basis of approximately 90 million.

Comments & Business Outlook

Wed, 28 Oct 2009 04:00:00 GMT

Mr. Tu concluded, "Reflecting our forecast of considerable revenue growth for full year 2010, we continue to see strong demand for Safe City products and services. Through the combination of our leading brand, distribution, expertise, and total solution offerings, we are confident that we can continue to gain a greater share of our core surveillance and safety market. We are also beginning to see strong growth in our services business, highlighted by our recent E-city project wins which included not only surveillance and safety offerings but also other broader digital infrastructure offerings. With our improved capital structure and the continued strong demand for our products and services, we believe we are well positioned for sustained growth, as we strive to build greater long term value for our supportive shareholders."

FULL YEAR 2009/2010 Guidance

Year Ends Dec.	Full Year 2010	Full Year 2009	Full Year 2008 Reported
GAAP Revenue	$800.0 to $820.0 million	$600.0 to $630.0 million	$427.4 million
GAAP	$1.15 to $1.20	$0.95 to $0.98	$0.72

Source: PR Newswire (October 28, 2009)

^aNon-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

Comments & Business Outlook

Tue, 04 Aug 2009 04:00:00 GMT

Mr. Guo Shen Tu, Chief Executive Officer of China Security, commented, 'We are pleased that our revenue in the second quarter of 2009 exceeded expectations, as we experienced strong demand for our comprehensive portfolio of products and services. We remain focused on expanding our market leadership in China through greater integration of our corporate strengths and assets, and we are delighted with our rapid organic growth, which once again demonstrated that our market share continue to expand. Though our corporate customers continue to insist more discounted pricing for small projects, we continue to see a growing pipeline of large projects from our core corporate and government customers. Based on our strong second quarter top line performance and accelerating bidding activities, we anticipate we can meet or exceed our revenue forecast for 2009, and despite lower gross margins, we remain comfortable with our profit forecast for the year.'

Financials

Mon, 03 Aug 2009 04:00:00 GMT

Second QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED JUNE

	2nd Quarter 2009	2nd Quarter 2008	Period Change
GAAP Revenue	$141.92 Million	$92.74 million	53.0%
GAAP EPS	$0.13	$0.17	-17.6%
Non-GAAP EPS Per Company Calculations	$0.39	$0.39	00.00%
GeoTeam Non-GAAP EPS ^a	TBA	TBA	TBA
Tax Rate	7.8%	21.8%	-64.2%
Fully Tax-Adjusted EPS ^b	TBA	TBA	TBA
Company Fully Tax-Adjusted Non-GAAP EPS ^b	TBA	TBA	TBA
Fully Tax-Adjusted Non-GAAP EPS ^b	TBA	TBA	TBA
Fully Diluted Shares	50,021,505	44,927,620	11.3%

Source: See Release, July 28, 2009

First QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED MARCH

	1stQuarter 2009	1st Quarter 2008	Period Change
GAAP Revenue	$96.42 million	$71.78 million	34.3%
GAAP EPS	$.04	$.11	-63.6%
Non-GAAP EPS Per Company Calculations	$0.32	$0.32	00.0%
GeoTeam Non-GAAP EPS ^a	$0.23	$0.28	-17.8%
Tax Rate	9.17%	32.74%	-72.0%
Fully Tax-Adjusted EPS ^b	$0.03	$0.10	-70.0%
Company Fully Tax-Adjusted Non-GAAP EPS ^b	$0.23	$0.31	25.8%
Fully Tax-Adjusted Non-GAAP EPS ^b	$0.17	$0.27	-37.0%
Fully Diluted Shares	49,362,254	42,796,797	15.3%

Source: See Release

FULL YEAR 2008 vs. 2007 FINANCIAL SNAPSHOT ENDED DECEMBER

	Full Year 2008	Full Year 2007	Period Change
GAAP Revenue	$ 427.35 million	$ 240.19 million	77.9%
GAAP EPS	$.72	$.91	-20.8%
Non-GAAP EPS Per Company Calculations	$1.67	$1.20	39.1%
GeoTeam Non-GAAP EPS ^a	$1.46	$1.07	36.4%
Tax Rate	14.63%	20.80%	-29.6%
Fully Tax-Adjusted EPS ^b	$0.57	$0.77	-25.9%
Company Fully Tax-Adjusted Non-GAAP EPS ^b	$1.31	$1.02	28.4%
GeoTeam Fully Tax-Adjusted Non-GAAP EPS ^b	$1.15	$.91	*26.3%*
Fully Diluted Shares	45,284,070	38,795,241	16.7%

Source: See Release

^a Please note that the GeoTeam® non-GAAP calculation differs from the company's. The company adds back depreciation and amortization along with other non-cash items and subtracts one time gains to net income to derive a non-GAAP net income figure. The GeoTeam® generally prefers not to add back depreciation and amortization to derive a non-GAAP net income figure.

^b For valuation purposes, The GeoTeam® prefers to adjust EPS to reflect a standard United States tax rate of 36%

Comments & Business Outlook

Fri, 31 Jul 2009 04:00:00 GMT

Mr. Tu concluded, 'For the remainder of 2009, we remain steadfast on expanding our market leadership and achieving greater internal efficiencies. We will continue to capture new business opportunities driven by robust demand for our integrated security solutions in China and abroad, and at the same time proactively manage our cost structure. We will also continue to expand our scope along our natural evolutionary path, as our recent strategic acquisitions further augment our recurring revenue base. Supported by our unparalleled leadership position in China and our integrated strengths built over the years, we believe CSST can achieve sustained growth and build greater long-term value for our supportive shareholders.'

China Security has reaffirmed its previously issued 2009 financial guidance.

Source: PR Newswire (July 28, 2009)

Potential Valuation Scenarios

Fri, 29 May 2009 04:00:00 GMT

Valuation Scenarios

Data Inputs:

Fiscal Year Ends in December

Date	05/29/09
Price	$7.96
12 Months Trailing EPS ^a,b	$1.05
Published 2009 EPS Guidance ^a,b	$1.55
Future EPS Growth Based on 2009 Average Guidance	34.78%
Trailing P/E Ratio ^a,b	7.58
PEG Ratio (P/E divided by growth rate) ^a,b	0.22

^a CSR is not paying a full U.S. tax rate. Therefore, all EPS numbers have been adjusted by the GeoTeam® to reflect a standard U.S. tax rate of 36%. All EPS numbers are non-GAAP.

^bPlease note that the GeoTeam® non-GAAP calculation differs from the company's. The company adds back depreciation and amortization along with other non-cash items and subtracts one time gains to net income to derive a non-GAAP net income figure. The GeoTeam® generally prefers not to add back depreciation and amortization to derive a non-GAAP net income figure.

Short-Term Valuation Scenarios

Date	05/29/09
Price Based on P/E of 15 on Four Quarters Trailing EPS ^c	$15.75
Price Based on P/E of 10 on Four Quarters Trailing EPS ^c	$10.50
Price Based on P/E of 5 on 2009 EPS Guidance ^c	$7.75

Long-Term (12 Months Forward) Valuation Scenarios

Date	05/29/09
Price Based on P/E of 15 on 2009 EPS Guidance ^c	$23.25
Price Based on P/E of 10 on 2009 EPS Guidance ^c	$15.50

Peg Ratio Analysis - Common rule of thumb that PEG ratio should be less than 1.0

PEG Ratio Less than 1?

YES

^c The GeoTeam® used P/E ratios that are less than our usual assumptions due to the company's high Debt to Equity ratio of 50%.

These scenarios are not investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.

Financials

Thu, 28 May 2009 04:00:00 GMT

First QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED MARCH

	1stQuarter 2009	1st Quarter 2008	Period Change
GAAP Revenue	$96.42 million	$71.78 million	34.33%
GAAP EPS	$.04	$.11	-63.64%
Non-GAAP EPS Per Company Calculations	$.32	$.32	00.00%
GeoTeam Non-GAAP EPS ^a	$.23	$.28	-17.86%
Tax Rate	9.17%	32.74%	-72.00%
Fully Tax-Adjusted EPS ^b	$.03	$.10	-70.00%
Company Fully Tax-Adjusted Non-GAAP EPS ^b	$.23	$.31	25.81%
Fully Tax-Adjusted Non-GAAP EPS ^b	$.17	$.27	-37.04%
Fully Diluted Shares	49,362,254	42,796,797	15.34%

Source: See Release

FULL YEAR 2008 vs. 2007 FINANCIAL SNAPSHOT ENDED DECEMBER

	Full Year 2008	Full Year 2007	Period Change
GAAP Revenue	$ 427.35 million	$ 240.19 million	77.92%
GAAP EPS	$.72	$.91	-20.88%
Non-GAAP EPS Per Company Calculations	$1.67	$1.20	39.17%
GeoTeam Non-GAAP EPS ^a	$1.46	$1.07	36.45%
Tax Rate	14.63%	20.80%	-29.66%
Fully Tax-Adjusted EPS ^b	$.57	$.77	-25.97%
Company Fully Tax-Adjusted Non-GAAP EPS ^b	$1.31	$1.02	28.43%
GeoTeam Fully Tax-Adjusted Non-GAAP EPS ^b	$1.15	$.91	*26.37%*
Fully Diluted Shares	45,284,070	38,795,241	16.73%

Source: See Release

^b For valuation purposes, The GeoTeam® prefers to adjust EPS to reflect a standard United States tax rate of 36%

Comments & Business Outlook

Thu, 28 May 2009 04:00:00 GMT

'For the remainder of 2009, we intend to sustain our current momentum and aim to achieve greater synergies across our portfolio of technologies, products, and subsidiaries by focusing on greater cross-selling and cross-development throughout our organization. Even in the context of a slower global economy, we continue to see a growing pipeline of large projects from our core corporate and government customers. Our optimism is supported by our unparalleled product and services offering, our unmatched nationwide distribution, and our leading brand. We believe that our integrated strengths will allow us to expand our market share and help us to capture new markets.'

FULL YEAR 2009 Guidance

	Full Year 2009	Full Year 2008	Period Change
GAAP Revenue	$600 to $630 million	$427 million	40.52% to 47.54%
^a Non-GAAP Adjusted Net Income	$108 to $113 million	$76 million	42.11% to 48.68%
Non-GAAP EPS Per Company Calculations ^b	$2.16-$2.26	$1.67	29.34% to 35.33%
GeoTeam Non-GAAP EPS ^b	$1.92 to $2.02	$1.46	31.51% to 38.36%
Fully Diluted Shares	50,000,000	45,284,070	10.41%

Source: See Release

^aEPS Figures exclude non-operating gains and losses. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information.For a more complete explanation of the company's definition of non-GAAP please refer to their First Quarter financial press release

^b Please note that the GeoTeam® non-GAAP calculation differs from the company's. The company adds back depreciation and amortization along with other non-cash items and one time gains to net income to derive a non-GAAP net income figure. The GeoTeam® generally prefers not to add back depreciation and amortization to derive a non-GAAP net income figure. The company's reported non-GAAP EPS figure were

Research

Wed, 25 Mar 2009 04:00:00 GMT

CSR has been added to the GeoBargain® List. More details to come.

GeoBargain Notes

Wed, 25 Mar 2009 04:00:00 GMT

CSR debt to equity ratio currently stands at 49%. The GeoTeam® prefers that a company's debt to equity ratio be under 20%.

Institutional ownership for CSR stands at about 30%. The GeoTeam® prefers that a company's Institutional ownership be under 20%.

Comments & Business Outlook

Fri, 20 Mar 2009 04:00:00 GMT

Guidance Report:

Mr. Guo Shen Tu, Chief Executive Officer of China Security, commented, ''In the fourth quarter, we continued to see significant demand from government Safe-City contracts, and we continue to have excellent success in winning ever larger contracts, due to our strong brand and comprehensive product and services offerings. While our pricing and profitability remain firm in the government sector, we nevertheless experienced price erosions in our corporate segment, due to higher emphasis on cost controls by many of our corporate customers. As such, while we continue to project healthy demand and revenue growth over the next 12 months, we are focused on further integrating our operations and generating greater synergies across our portfolio of technologies, products, and subsidiaries. We are also focused on increasing our manufacturing and administrative efficiencies through targeted cost savings initiatives.''

Full Year Fiscal 2009 Guidance Ending December

	2009 Guidance	2008 Reported	Period Change
GAAP Revenue	$600 to $630 million	$427 million	40.52% to 47.54%
*Non-GAAP Adjusted Net Income	$108 to $113 million	$76 million	42.11% to 48.68%
*Non-GAAP EPS	$2.16-$2.26	$1.67	29.34% to 35.33%

*EPS Figures exclude non-operating gains and losses. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information.For a more complete explanation of the company's definition of non-GAAP please refer to their Fourth Quarter financial press release.

Source: PR Newswire (March 5, 2009)