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SW Lam; ticker symbol CHRM has released their first PR on February 10 since being listed on the OTC-BB in April of 1997. The fundamentals of this company are strong and they are just realizing that there stock is unknown. Management is beginning to release PRs that will improve the visibility of the company. If you read the recent PR (listed below) and the latest SEC filings you will see that this company is tremendously undervalued. The only problem is that the stock is unknown. It is a good short term and long term buy. I will let the the PR and the recent strong earnings speak for themselves. I look forward to others posting their opinions and insight into CHRM. I wish a wealthy future for all investors. Wednesday February 10, 11:16 am Eastern Time Company Press Release S.W. Lam Inc. Announces Sharply Higher Revenues and Earnings HONG KONG--(BUSINESS WIRE)--Feb. 10, 1999--S.W. Lam Inc. (OTC:BB:CHRM), a Hong Kong-based designer, manufacturer and marketer of gold and silver jewelry products, today reported its results of operations for the third quarter ended December 31, 1998. For the third quarter ended December 31, 1998, the Company reported net income of $3,682,000 or $.29 per share, on net revenues of $28,331,000, compared to net income of $1,182,000 or $.09 per share, on revenues of $17,707,000 for the comparable period of the prior year. For the nine months ended December 31, 1998 the Company reported net income of $6,617,000 or $.52 per share, on revenues of $60,990,000 shares compared to net income of $4,238,000 or $.33 per share on revenues of $47,093,000 for the comparable period of the prior year. Revenues for the quarter ended December 31, 1998 increased by $10,600,000 or 60% to $28.3 million dollars from $17.7 million for the quarter ended December 31, 1997. Sales of the Company's products increased by 63.5% to $27.5 million during the quarter ended December 31, 1998 compared to $16.8 million during the same period of the prior fiscal year. Subcontracting fees decreased by 5.7% to $.8 million during the quarter ended December 31, 1998 from $.9 million in the same period in the prior fiscal year. The increase is attributable to increased marketing efforts by the Company and the introduction of new products. The decrease in subcontracting fees for the quarter was attributable to increased concentration by the Company on the manufacture of products designed by the Company as opposed to products manufactured by the Company on a subcontracting contract basis. Gross profits increased by 79.6% to $7,000,000 for the quarter ended December 31, 1998 from $3.9 million for the corresponding period of the prior year. Gross margins increased to 24.9% of revenue during the quarter ended December 31, 1998 from 21.9% during the quarter ended December 31, 1997. The increase in profit margin was principally attributable to cost control measures implemented by the Company. For the quarter ended December 31, 1998, selling, general and administrative expenses increased by $661,000 to $2.2 million from $1.6 million for the corresponding period of the prior year. This increase was principally attributable to higher marketing costs. For the nine months ended December 31, 1998, revenues increased by $13.9 million or 29.5% to $61.0 million compared to $47.1 million during the nine months ended December 31, 1997. Sales of the Company's products were up 36.2% to $58.9 million during the nine months ended December 31, 1998 compared to $43.3 million during the nine months ended December 31, 1997. Subcontracting fees decreased by 46.4% to $2 million during the nine months ended December 31, 1998 compared to $3.8 million during the nine months ended December 31, 1997. The increase in sales for the nine months ended December 31, 1998 is attributable to the introduction of new products and increased marketing efforts. For the nine months ended December 31, 1998 gross profits increased 39% to $15.3 million from $11.0 million for corresponding period of the prior year. The gross profit margin increased to 25.5% of revenue for the nine months ended December 31, 1998 from 23.9% of revenues for the nine months ended December 31, 1997. Mr. Lam Sai Wing, president and chief executive officer of the Company, stated that, ''the continued efforts of the Company to develop its name brand recognition and new products are beginning to pay off substantially. Based on market acceptance of the existing product lines, the new products being introduced, and the increased emphasis on marketing, the Company anticipates having a record year both in sales and earnings.'' Mr. Lam continued to express surprise that despite the Company earning $.52 per share for nine months with a 30% growth in sales and a nearly 40% growth in earnings, that the Company shares are currently trading at $.62 per share. This is even more surprising since the financial condition of the Company has significantly strengthened. At December 31, 1998 the Company had a cash balance of $5.9 million dollars or nearly $.50 per share and working capital of $13.8 million, compared to a cash balance of $2.1 million and a deficit in working capital of $1.2 million at March 31, 1998. Furthermore, because of the conversion of certain debt to preferred stock and the current earnings, shareholder equity has more than doubled since March 31, 1998 to $30 million at December 31, 1998 or $2.42 per share. (Based on 12,800,000 shares of common stock being issued and outstanding). Mr. Lam added that he anticipates continued strong growth for the Company both for the balance of this fiscal year and the coming year. This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Statements contained herein which are not historical facts are forward-looking statements that involve risks and uncertainties. All phases of the Company's operations are subject to a number of uncertainties, risks and other influences. Therefore, the actual results of future events described in such forward-looking statements in this announcement could differ materially from those stated in such forward-looking statements. Among the factors which could cause the actual results to differ materially are the risks and uncertainties described in the Company's filings with the United States Securities and Exchange Commission and the risks, uncertainties and other factors set forth from time to time and the Company's other public reports, filings and public statements. Many of these factors are beyond the control of the Company any of which or a combination of which could materially affect the results of the Company's operations and whether the forward-looking statements made by the Company ultimately prove to be accurate. Contact: Vanderkam & Sanders, Houston Kellye Franzekos, 713/547-8900 More Quotes and News: SW Lam Inc (OTC BB:CHRM - news) Related News Categories: earnings, retail | ||||||||||||||
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