Jul 16 2010
LianDi Clean Technology Inc. (OTC Bulletin Board: LNDT), ("LianDi" or the "Company"), a provider of clean technology, downstream flow equipment, engineering services and software to China's leading petroleum and petrochemical companies, today announced the signing of two new software contracts totaling approximately $2.7 million with Karamay Petrochemical Company and Fushun Petrochemical Company.
LianDi will implement its proprietary dynamic simulation training system for the operations staff at Fushun Petrochemical Company's workers. The system uses sophisticated mathematical models for simulating and monitoring user interface, installation, pumps, valves, compressors, and reaction processes. The system does the training and assessment, and also can manage the reaction process by changing parameters real-time in the process. Implementation will take place over the next six months.
With Karamay Petrochemical Company, the Company signed a steam operation management system contract to improve utilization and increase energy efficiency at the Company's steam power plant. The contract is to be implemented in four months. Through LianDi's software, equilibrium and coordination of optimal plant steam use can be achieved. Excess steam can be redirected to reduce energy consumption while ensuring smooth production.
"Our dynamic simulation training and steam operation systems are key components of modern petrochemical enterprises," stated Mr. Jianzhong Zuo, Chairman, Chief Executive Officer and President of the Company. "Since our software systems help optimize production processes and reduce related energy consumption in China's petroleum and petrochemical industries, we expect the government's growing emphasis on clean energy and technology will continue to benefit our software sales business in fiscal 2011."
In fiscal year 2010, the Company reported total software sales of $6.4 million, 33% higher than in 2009. For 2011, the Company anticipates generating approximately $ 9.4 million to $11.7 million in software sales, representing at least 47% growth and comprising about 8% to 10% of total revenues. Gross margins on total software sales are estimated to be at least 80%.