Orsus Xelent Sees 16% Gain in Revenues in 2008: Despite Economic Environment Anticipates Sales in 2009 Will Grow More Than 15% a
December 30 2008 - 12:45PM
Marketwired
At the annual meeting held today for Orsus Xelent Technologies,
Inc. (AMEX: ORS), a designer and manufacturer of award-winning
mobile phones for the Asian market, Mr. Wang Xin, the Company's
CEO, updated guidance for the year ending December 31, 2008.
In his comments to shareholders, Mr. Wang stated, "In the face
of the ongoing restructuring of the Chinese telecommunications
market and the deteriorated economic and financing conditions,
which led to increased competition, in 2008 we pursued a successful
strategy of focusing on sales of lower end handsets mainly in
China's rural areas. This has permitted us to achieve still another
year of double digit growth and helped us to maintain our market
position."
"I am pleased to report that for the full year of 2008," Mr.
Wang said, "our results are expected to be slightly above the low
end of the 15% to 20% range we had projected, with revenues
currently estimated to exceed $104.3 million, or approximately 16%
ahead of results in 2007."
He added that "the Company expects to achieve a profit in 2008,
however, it is too early to disclose a specific number."
Reflecting the Company's strategy, approximately 83% of the
Company's phone sales in 2008 were phones priced below 1500RMB per
unit. Nevertheless, these phones offered a very competitive array
of features and highly appealing designs which proved attractive to
customers.
Another Year of Growth in 2009 Despite Economic and Financing
Hurdles
"In 2008, we were hampered by both external industry and
economic conditions and an inability to achieve a level of
financing that would have permitted a stronger R&D effort as
well as the acquisition of a manufacturing facility. We believe
this acquisition also would help generate further improvement in
margins and an ability to improve our reaction to changes in the
marketplace," Mr. Wang said.
"Going into 2009, we continue to seek the financing necessary to
complete our target acquisition of Dalian Daxian Investment
Development Co. LTD, which is currently on hold. In this regard, we
would hope that our strong track record of success as a public
company will help us achieve our goals in this area which we think
will solidify our growth prospects," he added.
"At the same time," he said, "we do expect to be able to begin
to broaden our product line again in 2009, in particular with
respect to 1) the distribution of 3G products which we believe
could contribute 15% of our total sales, 2) entering new markets
like CMMB (China Multimedia Mobile Broadcasting) which could
account for 5% of total sales, and 3) increased collaboration with
telecom operators and professional customers which could account
for 20% of sales. In general, we will continue to focus on the
Company's traditional strengths, through which we expect to see
steady improvement in our GSM products."
"Recognizing the constraints of the economic environment, we
nevertheless believe that the strategy we have in place for 2009
will generate a profitable sales increase of at least 15% compared
with the current year, which we believe can be achieved without
additional equity financing or our completion of the targeted
acquisition as previously discussed. We hope this proves to be
conservative if the economic environment shows sign of improvement
and we can achieve our financing and acquisition goals," Mr. Wang
said.
About Orsus Xelent Technologies, Inc.
Incorporated in the State of Delaware and headquartered in
Beijing, China, Orsus Xelent Technologies, Inc. is an emerging
designer and manufacturer of award-winning mobile phones for the
Asian market, primarily the People's Republic of China ("PRC"). The
Company's business encompasses the design of mobile phones, related
digital circuits, and software development, and it is a recognized
pioneer in mobile phone integration technology. It introduced the
region's first wristwatch-style cellular phone, and it continues to
break new ground with state-of-the-art phones that include advanced
features such as fingerprint recognition and touch-screen displays.
The Company also is focused on developing and marketing, under its
Proxlink trademark, special application mobile phones for
specialized users in a wide variety of professions in business and
government. Since the Company's launch in 2004, it has established
"Orsus" as a popular brand and achieved a significant share of the
world's largest mobile phone market. It maintains more than 179
service call centers across the PRC, with additional offices in
Shanghai, Hong Kong, Shenzhen, and Tianjin. For more information,
please visit the Company's web site: www.orsus-xelent.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the
statements in this Press Release are forward-looking statements
that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties, which
may cause our actual results in future periods to differ materially
from forecasted results. These risks and uncertainties include,
among other things, product demand, market competition, and risks
inherent in our operations. These and other risks are described in
our filings with the Securities and Exchange Commission.
Contact: Orsus Xelent Technologies, Inc. Xavier Xin Wang
President & CEO PRC: Tel 010-85653777 Fax 010-85653666 US:
Investors: Tel: 212-402-7838 Fax: 212-425-6951 Press: Tel:
212-425-5700 Fax: 212-425-6951
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