Qiao Xing gives rosy update on first half of FY, guides for robust second half
Shares of Qiao Xing Universal Telephone, Inc. (Nasdaq: XING) are gaining ground in pre-market trading after the Chinese telecommunications company reported a sanguine first half of its fiscal year and guided for a robust second half.
For the six months ended June 30, the small cap said net sales, gross profit and income from operations increased 30.9%, 95.4% and 199.6% respectively to $244 million, $65.2 million and $48.4 million respectively.
Basic earnings per share for the first half before and after the extraordinary gain, which was due to the acquisition of minority interests in a sub-subsidiary, were $2.83 and $2.89 respectively.
Qiao Xing said growth in the first half was due to a 41% increase in the sale of its CECT-branded mobile phone handsets.
For the second half of the year the company expects to continue to record upbeat results. The company estimates that for the second half of 2007, the shipment volume of mobile phone handsets will increase over 80%, and gross margin for the mobile phone business segment will improve significantly, compared with 2006.
Qiao Xing further stated that its CECT-branded mobile phone business is expected to “remain robust in the foreseeable future with continuous launches of creative and differentiated mobile phone handsets.”
Shares of Qiao Xing (XING) edged up $0.30, or 3.02%, to $10.25 in pre-market trading. Shares of Qiao Xing have been trading in the range of $ for the past 52 weeks.
