Comtech Group, Inc. Expands CDMA Business With Huawei by 50% Compared to Last Year
biz.yahoo.com
Friday July 7, 9:47 am ET
Company Expects Growth to Accelerate During Second Half of 2006
SHENZHEN, China, July 7 /PRNewswire-FirstCall/ -- Comtech Group, Inc. (Nasdaq: COGO), a leading provider of customized module design solutions as well as other engineering and business services for more than 200 domestic and international technology product manufacturing companies based in China, today announced that through the first half of 2006 the Company's CDMA business with Huawei was up more than 50 percent as compared to the same period last year and based on current visibility, management expects sales growth to accelerate from current levels for the balance of 2006.
Comtech is responsible for providing various customized module design solutions for both CDMA 1X/EV-DO infrastructure equipment and mobile handsets to Huawei. Specifically, this business is related to CDMA 2000, or the 3G standard developed by Qualcomm, and is in addition to the announcement earlier this year whereas Comtech is working closely with Huawei on their new Vodafone 3G WCDMA branded mobile handset. Huawei has a strong market position within the multiple variations of CDMA and is estimated to serve 40 million subscribers worldwide as of June 2006, leading to the industry research firm Frost & Sullivan proclaiming the company as among the "Big Three" in the global CDMA2000 1X/EV-DO market.
Jeffrey Kang, Chairman and Chief Executive Officer of Comtech, commented, "In the first half of 2006, Comtech experienced strong growth across our customized module business as we leveraged our strong relationships with key customers. In addition to partnering with Huawei we are also working closely with other leading OEM's to address the growing 3G market opportunity. Regardless of the winning dominant technology within 3G of WCDMA, CDMA 2000 or TD-SCDMA, we have the right relationships in place to capitalize not only in China but on a global basis. Driven by Huawei's increasing presence in the international marketplace, we continue to expect strong business growth in the second half of 2006." |
