Ossen had approximately USD 19.2 million of cash and restricted cash at June 30 2012 compared to USD 21.3 million at December 31 2011. Total accounts receivable on June 30, 2012 increased slightly to USD 50.0 million from USD 48.0 million on December 31 2011. The average accounts receivable days sales outstanding were 145 days in the second quarter of 2012 compared to 97 days in the second quarter of 2011. Inventories were down from USD 17.2 million at December 31 2011 to USD 15.0 million at June 30 2012. Total working capital was USD 72.3 million at June 30 2012 compared to USD 70.8 million at December 31 2011.

For the second quarter of 2012, the Company used approximately USD 15.5 million of cash flows from operations as compared to USD 7.0 million in the second quarter of 2011. The primary reason for the increase was higher notes receivable balance and advance to suppliers at June 30 2012.

The Company generated approximately USD 15.2 million of cash flows from financing activities in the second quarter of 2012 as compared to USD 7.8 million in the second quarter of 2011. The increase was mainly due to increased proceeds from short-term bank loans and increased proceeds from notes payable during the period.

In November 2011, the Company Board of Directors approved a share repurchase program for up to 500,000 shares of the Company American Depositary Receipts through May 2012. On May 31 2012 the program was further extended for another 12 months to May 31 2013. During the three months ended June 30 2012, the Company repurchased 55,766 shares of ADSs from the secondary market at an average price of USD 0.99 per share.

Source - Ossen Innovation

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