China Digital Communication Group Announces Financial Results for Q1 2007
21 Maggio 2007 - 11:31PM
PR Newswire (US)
LOS ANGELES and SHENZHEN, China, May 21 /PRNewswire-FirstCall/ --
China Digital Communication Group (OTC:CHID) (BULLETIN BOARD: CHID)
, a manufacturer of battery components in China, announced today
financial results for the first quarter of fiscal year 2007.
Revenue for the quarter was $1,639,000, a decrease from $3,184,000
for the same quarter last year. Net loss for the quarter was
$1,012,510 or $0.02 per share versus net income of $737,000 or
$0.01 per share for the comparable quarter last year. The loss for
the first quarter of 2007 included a non-cash expense of $1,296,000
associated with the impairment of goodwill. The decrease in sales
for the quarter was attributable to a decrease of purchase orders
from E'Jenie customers due to increased competition in the market.
Xu Zhongnan, CEO of China Digital Communications Group, said, "As
anticipated, we experienced a decline in revenue this quarter
compared to the same period last year. Though we recorded a net
loss this quarter, it was primarily attributable to a non-cash
impairment charge of approximately $1.3 million. Despite top-line
weakness, we generated $382,000 in cash flow from operations for
the quarter and ended the quarter with $1,071,000 in cash, giving
us the flexibility to continue our previously announced strategic
repositioning. "We are continuing our search for promising
acquisition candidates. We believe that our strong balance sheet
allows us to pursue these opportunities aggressively and we will
provide more details on our efforts as appropriate. At the same
time, we are working diligently to stabilize sales at E'Jenie as we
actively seek new customers. We look forward to keeping our
investors updated on our progress on both fronts over the coming
months." About China Digital Communication Group China Digital
Communication Group owns Shenzhen E'Jenie Science and Technology
Development Co. Ltd. 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. China Digital Communication Group is continuing to
seek acquisitions in new global markets, including the United
States. For more information, visit
http://www.chinadigitalgroup.com/ or contact Jacky Jiang of China
Digital Communication Group at (626) 432-5427, e-mail: . 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/. To receive free e-mail
notification of future press releases for this company, sign up at
http://www.hawkassociates.com/email.aspx. 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. Investor Relations Contact: Hawk Associates,
Inc. Frank Hawkins and Ken AuYeung Phone: (305) 451-1888 E-mail:
http://www.hawkassociates.com/ DATASOURCE: China Digital
Communication Group CONTACT: Frank Hawkins and Ken AuYeung, both of
Hawk Associates, Inc., +1-305-451-1888, , for China Digital
Communication Group Web site: http://www.chinadigitalgroup.com/
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