China Digital Q3 Revenue $4M, Net Income $1.3M
14 November 2006 - 11:15PM
PR Newswire (US)
LOS ANGELES and SHENZHEN, China, Nov. 14 /PRNewswire-FirstCall/ --
China Digital Communication Group (OTC:CHID) (BULLETIN BOARD: CHID)
, a growing Chinese battery components manufacturer and supplier of
3G telecommunications equipment, announced today that revenue in
the third quarter ended September 30, 2006 was $4,031,596, up 18.4%
from $3,405,238 in Q3 '05. Net income for the quarter was up 76.1%
to $1,317,960, or $0.02 per basic and diluted share, compared with
$748,488, or $0.01 per share, in the third quarter of 2005. For the
first nine months of 2006, revenue was $10,242,953, up 6.4% from
$9,629,077 in the first nine months of 2005. Net income was
$2,528,848, or $0.05 per share, up 16.3% from $2,175,084, or $0.04
per diluted share in the comparable nine-month period a year
earlier. At the end of the quarter, cash and cash equivalents were
$1,160,521 and current assets totaled $6,926,303. Cost of sales for
the third quarter was $2,364,631, compared to $2,420,281 in Q3 '05.
Interest expense increased from $8,421 in Q3 '05 to $69,636 in Q3
'06, which was a result of a loan obtained for the acquisition of
Galaxy View International. Selling, general and administrative fees
for the third quarter totaled $288,301, compared to $171,606 a year
ago. This $116,695 difference was primarily due to an increase in
accounting, legal and professional fees and also general and
additional expense from Sono Digital, a wholly owned subsidiary of
Galaxy View International, that was not included in the Q3 '05
numbers. China Digital CEO Ran Liang, said, "We had a profitable
third quarter. The increases in revenue and net income were the
result of our acquisition of Galaxy View International at the end
of the second quarter, as were the increases in interest expense
and cost of sales. Galaxy View is integrating well into our
business model, and we are beginning to see the benefits." About
China Digital Communication Group China Digital Communication Group
has two wholly owned subsidiaries, Shenzhen E'Jenie Science and
Technology Development Co. Ltd. and Galaxy View International.
E'Jenie manufactures and sells advanced high-quality lithium-ion
battery shell and cap products to all major lithium-ion battery
cell manufacturers in China and has recently begun manufacturing
complete batteries. E'Jenie's products are used to power mobile
phones, MP3 players, laptops, digital cameras, PDAs, camera
recorders and other consumer electronic digital devices. Galaxy
View, through its subsidiary Sono Digital, is a leading supplier of
third-generation (3G) communications technology and equipment in
China. China Digital Communication Group is continuing its
expansion, while seeking distribution partners and acquisitions in
new global markets, including the United States. For more
information, visit http://www.chinadigitalgroup.com/. An investment
profile on China Digital Communication Group may be found at
http://www.hawkassociates.com/chidprofile.aspx. For investor
relations information regarding China Digital Communication Group,
contact Frank Hawkins or Ken AuYeung, Hawk Associates, at (305)
451- 1888, e-mail: . An online investor kit including press
releases, current price quotes, stock charts and other valuable
information for investors may be found at
http://www.hawkassociates.com/ and
http://www.americanmicrocaps.com/. Forward-looking statement:
Except for the historical information, the matters discussed in
this news release may contain forward-looking statements,
including, but not limited to, factors relating to future sales.
These forward-looking statements may involve a number of risks and
uncertainties. Actual results may differ materially based on a
number of factors, including, but not limited to, uncertainties in
product demand, risks related to doing business in China, the
impact of competitive products and pricing, changing economic
conditions around the world, release and sales of new products and
other risk factors detailed in the company's most recent annual
report and other filings with the Securities and Exchange
Commission. DATASOURCE: China Digital Communication Group CONTACT:
Frank Hawkins or Ken AuYeung, both of Hawk Associates, +1-305-
451-1888, . Web site: http://www.chinadigitalgroup.com/
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