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SHENZHEN CITY, China--(BUSINESS WIRE)--China Ivy School, Inc. (OTBCC: CIVY) has released its financial expectations and guidance for 2007. The Company has stated it expects revenue to increase between 16% and 20% and net income to increase between 9% and 11% on a year-over-year basis. The following table depicts China Ivy's historical and projected results:
(US $ Million) 2005 A 2006 A 2007 CIS Estimate 2007 CIS Estimate Range Growth Rate
------ ------ ----------------- -----------------
Revenue $5.25 $5.56* $6.45 - $6.70 16.05% - 20.50%
Net Income $2.41 $2.71 $2.95 - $3.01 8.86% - 11.07% --------------------------- ------ ----------------- -----------------
*Does not include SG&A Consulting Fee
Commenting on the company's growth forecast, Yongqi Zhu, Director and Chief Executive Officer of China Ivy School, Inc. noted, "As our reputation continues to spread throughout the region as well as the country, and as CIS remains committed to the personal and professional growth of our student body, we believe there will be a direct correlation in revenue growth with this success."
With respect to the current year's revenue, Mr. Zhu explained, "Unlike most sectors, education revenue is mostly derived and recognized during the second half of the calendar year when enrollment numbers have been confirmed and tuition and enrollment fees have been received. While CIS does generate revenue during the first and second quarter, this revenue does not offer an accurate reflection for the full year." Mr. Zhu continued, "Having said that, we anticipate the release of our first quarter financial results on or near May 15, 2007."
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