BEIJING, April 2, 2014 /PRNewswire/ -- SGOCO Group, Ltd.
(Nasdaq: SGOC) ("SGOCO" or the "Company"), a company focused on
product design, distribution and brand development in the
flat-panel display market, today announced its preliminary
unaudited results for the fourth quarter ended December 31, 2013. The Company will announce,
through a press release, its unaudited financial results for the
fourth quarter 2013 and audited financial result for full fiscal
year ended December 31, 2013 after
market closes on Tuesday, April 22,
2014.
Preliminary Fourth Quarter 2013 Selected Unaudited Financial
Results Highlights
|
4Q13
|
4Q12
|
Change
|
FY2013
|
FY2012
|
Change
|
Revenue (US$
million)
|
44.2
|
63.4
|
-30.3%
|
201.0
|
166.7
|
+20.6%
|
Revenue
Mix
|
|
|
|
|
|
|
- SGOCO Brand
& Licensed Brand
|
85.1%
|
64.8%
|
+20.3pp*
|
69.2%
|
70.6%
|
-1.4pp
|
- Key
Accounts
|
14.9%
|
35.2%
|
-20.3pp
|
24.6%
|
29.4%
|
-4.8pp
|
- Others
|
-
|
-
|
-
|
6.2%
|
-
|
+6.2pp
|
Gross profit (US$
million)
|
3.5
|
4.9
|
-28.2%
|
15.9
|
12.5
|
+27.6%
|
Net income (US$
million)
|
1.2
|
3.2
|
-62.7%
|
8.4
|
4.2
|
+100.4%
|
EPS
(US$)
|
0.07
|
0.19
|
-63.2%
|
0.49
|
0.25
|
+96.0%
|
Note: pp
represents percentage points.
|
Key Highlights for Full Year 2013
- Total revenue increased 20.6% to US$201.0 million, compared to US$166.7 million in 2012 mainly due to increase
in sales volume and additional revenue contribution from new
products launched
- Net income increased 100.4% to US$8.4
million, compared to US$4.2
million in 2012 as a result of the revenue increase of some
businesses with higher gross profit margins and better cost
efficiency gained during the year
Key Highlights for Fourth Quarter 2013
- Total revenue decreased 30.3% to US$44.2
million, compared to US$63.4
million in the fourth quarter 2012. We have experienced a
ramp-up in revenue in the fourth quarter of 2012 due to positive
publicity associated with the resumption of trading of the
Company's stock on NASDAQ. The year-over-year decrease was due to
the significant growth in revenue in the fourth quarter of 2012
when comparing with a normal quarter in the fourth quarter
2013
- Net income decreased 62.7% to US$1.2
million, compared to US$3.2
million in the fourth quarter 2012, the year-over-year
decrease was due to the significant growth in revenue in the fourth
quarter of 2012 when comparing with a normal quarter in the fourth
quarter 2013
Mr. David Xu, President and Chief
Executive Officer of SGOCO, commented, "We delivered revenue growth
and margin expansion compared with 2012 full year results despite a
slowdown in global and China TV growth in 2013. "
Mr. Xu continued, "When reviewing 2013 performance in the
context of the past year, it is clear that SGOCO is executing
strongly on the right strategy. We took several steps to position
SGOCO for future success in the past year. We expanded the scale of
our business by adding a sales office in Shenzhen. We strengthened our R&D
capability by adding top new talents in late 2013. We increased the
speed of product launches, optimization and upgrades to respond to
consumer market trends. And more significantly, we differentiated
our display products and solution from the competitive low-end
display market and gain new market share by developing products
featuring designer style, high performance and affordability such
as AIO and PIO."
Mr. Xu concluded, "Although visibility of the traditional TV and
PC display demand for 2014 is low, we have confidence in our
ability to respond to the market with our unmatched display
solutions. We plan to have two to three new smart products
releases in the first half of the year. In addition, as announced
earlier about our management team structure, we are confident that
we will be able to optimize our cross-channel synergies by
developing more market driven products such as those that combine
hardware with software, and intelligent and application specific
products that can target both the consumer and commercial
markets. We will continue to focus on expanding our
distribution channels, bringing ours and our top-tier brand
customers' products online and carefully evaluating industry
verticals with high growth opportunities to expand our product and
service offerings to the commercial markets."
Conference Call
SGOCO's senior management will host a conference call on
Wednesday, April 23, 2014 at
8 a.m. (Eastern) /5 a.m. (Pacific) / 8
p.m. (Beijing/Hong Kong) to discuss quarterly and full
fiscal year results and operational updates.
To access the conference call, please dial in at least 10
minutes before the call.
1-877-941-1427
|
(US
Toll-free)
|
1-480-629-9664
|
(International)
|
4001-200-611
|
(China
Toll-free)
|
86-400-628-0671
|
(China)
|
Conference call
identification number: 4671227
|
The Company will also broadcast a live audio webcast of the
conference call. The webcast will be available at
http://public.viavid.com/index.php?id=108081
An archive of the call will be available within 48 hours at
http://stage.investorroom.com/sgocogroup/index.php?s=123
ABOUT SGOCO GROUP, LTD.
SGOCO Group Ltd. (NASDAQ: SGOC) offers innovative display
products and solutions to consumers and businesses in various
industry verticals. By collaborating with its brand partners
and utilizing comprehensive industry knowledge in product
development, SGOCO addresses customers' rapidly-changing display
needs by delivering highly intelligent products and solutions that
integrate hardware and software in SGOCO's own brand and licensed
brands. Leveraging on its highly integrated distribution channels,
SGOCO primarily targets China's
rapidly-emerging tier three and four cities in China. SGOCO
is also regarded as a reliable brand developer. SGOCO was
established in 2005 and maintains its headquarters in Beijing, China. For more information about
SGOCO, please visit our investor relations website
http://www.sgocogroup.com .
SAFE HARBOR AND INFORMATIONAL STATEMENT
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. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements,
other than statements of historical fact, including, without
limitation, those with respect to the objectives, plans and
strategies of the Company set forth herein and those preceded by or
that include the words "believe," "expect," "anticipate," "future,"
"will," "intend," "plan," "estimate" or similar expressions, are
"forward-looking statements". Forward-looking statements in this
release include, without limitation, the effectiveness of the
Company's multiple-brand, multiple channel strategy and the
transitioning of its product development and sales focus to a
"light-asset" model. Although the Company's management believes
that such forward-looking statements are reasonable, it cannot
guarantee that such expectations are, or will be, correct. These
forward-looking statements involve a number of risks and
uncertainties, which could cause the Company's future results to
differ materially from those anticipated. These forward-looking
statements can change as a result of many possible events or
factors not all of which are known to the Company, which may
include, without limitation, requirements or changes adversely
affecting the LCD and LED market in China; fluctuations in customer demand for LCD
and LED products generally; our success in promoting our brand of
LCD and LED products in China and
elsewhere; our ability to have effective internal control over
financial reporting; our success in designing and distributing
products under brands licensed from others; management of sales
trends and client mix; possibility of securing loans and other
financing without fixed assets as collateral; changes in government
policy in China; the fluctuations
and competition in sales and sale prices of LCD and LED products in
China; China's overall economic conditions and local
market economic conditions; our ability to expand through strategic
acquisitions and establishment of new locations; compliance with
government regulations; legislation or regulatory environments;
geopolitical events, and other events and/or risks outlined in
SGOCO's filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F and other filings. All
information provided in this press release and in the attachments
is as of the date of the issuance, and SGOCO does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please contact:
SGOCO Group, Ltd.
Johnson Lau
Chief Financial Officer
Tel: +86-10-8587-0173 (China)
US: +1-646- 583-1616 (Voice mail)
Email: johnson@sgoco.com
SOURCE SGOCO Group, Ltd.