The Company's subsidiaries, IST, ISDT and Bocom Technology, and its VIE, iASPEC, are subject to EIT at a rate of 18% of assessable profits in 2008.
Management expects that the acquisitions of ISDT, Bocom Technology, and Geo will also accelerate the Company's geographic expansion, enhance its technological capabilities or competitive advantages, provide licensing and recurring revenue opportunities, and serve to fulfill its planned expansion into civil-use GIS markets.
The Company is maintaining its 2008 financial guidance for pro forma revenues of $85 million, and pro forma net income of $27 million, which excludes any non-cash charges as a result of employee stock option grants in 2007 and 2008 and amortization of intangible assets associated with the recent acquisitions of ISDT, Bocom Technology and Geo.
Another factor was the increasing proportion of hardware sales with higher related costs after the Company's acquisition of ISDT in November 2007.
Ltd (''IST''), ISDT, and its VIE, iASPEC, are subject to an enterprise income tax (''EIT'') rate of 15% of assessable profits.