CinTel Revises Accounting Deferred Tax Credits to Reflect Shift in Business Direction
CinTel Corp. (CinTel) (OTCBB: CNCN), Korea's top Internet traffic management (ITM) solution provider, announces that on December 1, 2006, due to the recent acquisition of Phoenix Semiconductor and Telecommunication Suzhou (PSTS) in China, the company, while still maintaining its support of the Internet Traffic Management market, has refocused its core business to the Semiconductor sector. With this switch our Board of Directors determined it prudent to restate deferred tax accounts and refine our MD&As from the past year.
In order to present a more accurate profit picture in the future, which will reflect the result of change in business activities not obscured by the past operations, the Board of Directors determined to write off the accounting tax benefits on books from Korean losses carried forward from prior years. The adjustments resulted in increases in net losses after taxes of $1,203,899 for the year ended December 31, 2005, $78,473 for the three month period ended March 31, 2006, and $244,667 for the six month period ended June 30, 2006.
Management believes this will have virtually no effect on our current operations and will simply allow us to show an improved stature with our anticipated net profit in the new year. Management believes we are transforming into a player on the international semiconductor, flash memory and LCD packaging sector that will bring improved strength to our share holder's positions.
CinTel's CEO and President, Sang Don Kim says, "With CinTel's new acquisitions and projected income for the coming year, we are ready to show significantly improved financials in the coming year. With our new direction we are insuring that our investors and the market are shown a strong and accurate reflection of our progress."
CinTel's independent auditors and internal accounting staff have reviewed and accepted these changes and recognize that it should bring an improved picture of the company to the public and should satisfy any concerns of those investors who review our projections and past performance. |
