Comtech Group, Inc. Announces Preliminary Results for Fourth Quarter; Provides 2006 Guidance
biz.yahoo.com
Wednesday February 1, 4:01 pm ET
Estimates Reporting Fourth Quarter Revenue of Approximately $33 Million Representing 70% Growth Versus Year Ago Quarter
SHENZHEN, China, Feb. 1 /PRNewswire-FirstCall/ -- Comtech Group, Inc. (Nasdaq: COGO), a leading provider of customized module design and subsystem solutions for more than 200 technology product manufacturing companies based in China, today announced preliminary results for the Company's fourth quarter of 2005 and has provided guidance for fiscal 2006.
For the fourth quarter 2005, the Company expects to report revenue of approximately $33.0 million, an increase of 70 percent compared to the $19.4 million reported for the fourth quarter of fiscal 2004 with total revenue growth for 2005 estimated to be up approximately 40 percent compared to last year. The Company expects to report diluted earnings per share of at least $0.10 for the fourth quarter.
Jeffrey Kang, Chairman and Chief Executive Officer of Comtech Group, commented, "Continued expansion in our core markets, coupled with several growth initiatives and joint ventures announced during the past year contributed to a record year. In addition, our product mix improved which facilitated an expansion in gross margins."
For 2006, the Company expects revenue of $135 to $140 million, an increase of approximately 30 percent assuming the middle of the guidance range as compared to 2005 revenues. Before the stock-based compensation expense due to SFAS123R, diluted earnings per share for 2006 are expected to be at least $.50, representing an increase of approximately 43 percent compared to the expected diluted earnings per share for fiscal 2005.
Mr. Kang continued, "We are excited about Comtech's future prospects given the early traction in our location based wireless search service, the increase in demand we have experienced for our digital consumer products and continued growth in our mobile handset and telecom segments. In addition, through our recently acquired controlling interest in Huameng Engineering Service Ltd., we see significant opportunities to meet our current customers increasing demand for engineered and business services. We look forward to continued growth in revenues and profitability in 2006."
Teleconference Information
Management will host a conference call today at 4:30 p.m. Eastern to discuss the preliminary results. Please dial 1-800-289-0533 domestically, or 1-913-981-5525 internationally to listen to the live call. The conference call ID is "Comtech." This call is being web cast by ViaVid Broadcasting and can be accessed at Comtech's website at www.comtech.com.cn. The web cast may also be accessed at ViaVid's website at www.viavid.net. The web cast can be accessed until March 1, 2006 on either site. To access the web cast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player please visit: microsoft.com |
