Pansoft has announced unaudited financial results for the fiscal 2011 business year ended June 30, 2011.

Compared to $12.1 million in the prior fiscal year, revenues for the fiscal year ended June 30, 2011 were $19.2 million, an increase of 59.0 percent, of which, approximately 72.2 percent was contributed by Pansoft-China and 27.8 percent by newly acquired businesses. Also, showing an increase of 104.4 percent from $6.3 million in the prior fiscal year, cost of sales was $12.8 million, the company stated in a press release.

“We are mostly satisfied with our business results for fiscal 2011. We basically achieved our revenue growth target of 60 percent. The ITLamp acquisition offers us direct access to the Tarim oilfield and enhances Pansoft's presence and sales there. Our stake in HongAo offers us access to its solid base of thermal-power clients and the turnkey solutions it provides. The delay in reaching breakeven at Pansoft-Japan offset an otherwise solid year,” said Hugh Wang, Pansoft's chairman of the Board.

Showing an increase of 10.0 percent from $5.8 million from the prior fiscal year, gross profit was $6.4 million. Gross margin was 33.3 percent, as compared to 48.1 percent in the prior fiscal year.

The decline in the gross margin was mainly due to the abovementioned reasons. also, showing an increase of 129.2 percent from $2.2 million in the fiscal year ended June 30, 2010, operating expenses were $5.0 million. Compared to $3.6 million in the prior fiscal year, operating profit was $1.4 million.

Recently, Pansoft announced that the company signed an agreement to acquire all of the equity interests of Hefei Langji Technology Co., and its subsidiary, Shanghai Zhongrui on September 9, 2011, for a total purchase price of RMB 10.8 million.

The purchase price is payable in four installments. The first installment, representing 35 percent of the total purchase price, will be paid in a combination of cash and the company's common stock. The three other installments will be paid on an annual basis.