Borqs Technologies missed the filing deadline for the 2019 Annual Report on Form 20-F and announced preliminary unaudited fi...
July 01 2020 - 11:20AM
Borqs Technologies, Inc. (Nasdaq: BRQS), (the “Company”, or
“Borqs”), a global leader in embedded software and products for the
Internet of Things (IoT) industry, announced that due to travel
restrictions and lockdown through June 30th related to the COVID-19
pandemic, staff of our Beijing based accounting department as well
as our New York based auditor had not been able to travel freely
within China and India, and from the U.S. to these two countries.
Our China office had been very much affected as Beijing saw a
resurgence of the COVID-19 virus recently. The Company was not able
to complete its financial audit for the year ended December 31,
2019 and file the required annual report on Form 20-F by the
deadline of June 30, 2020. As a result, the Company is not in
compliance with the reporting rules of the U.S. Securities and
Exchange Commission and of the Nasdaq Stock Market. The
Company will make additional disclosure on the timing of the filing
of the required report as the pandemic situation changes.
For the year ended December 31, 2019, the
Company’s unaudited management prepared financial results showed
that net revenue was $109.7 million with a net loss of $7.7
million. Under non-US GAAP basis, the adjusted EBITDA figure was
$4.5 million which included adding back to net loss, interest
expense of $5.4 million, income taxes of $0.5 million, depreciation
and amortization of $6.0 million, and foreign exchange loss of $0.3
million.
Latest status of the COVID-19 lockdown:In China,
from late January to April, most of the cities had been locked down
due to COVID-19. The country started to ease traveling from late
April; however, certain cities such as Wuhan and Beijing were still
under stringent control. Recently, Beijing underwent a resurgence
of the virus and parts of the city were subject to lockdown
again.https://www.theguardian.com/world/2020/jun/15/beijing-lockdown-tightens-as-new-coronavirus-outbreak-spreads
In India, the first COVID-19 lockdown started on
March 25 and extended until June 30th in containment zones.
Currently India has started Unlock 2.0 from July 1 to July 31,
where only limited international travel has been permitted.
https://en.wikipedia.org/wiki/COVID-19_pandemic_lockdown_in_India
About Borqs Technologies,
Inc.
Borqs Technologies is a global leader in
software and products for the IoT, providing customizable,
differentiated and scalable Android-based smart connected devices
and cloud service solutions. Borqs has achieved leadership and
customer recognition as an innovative end-to-end IoT solutions
provider leveraging its strategic chipset partner relationships as
well as its broad software and IP portfolio.
Borqs’ unique strengths include its Android and
Android Wear Licenses which enabled the Company to develop a
software IP library covering chipset software, Android
enhancements, domain specific usage and system performance
optimization, suitable for large and low volume customized
products. The Company is also currently in development of 5G
products for phones and hotspots.
Forward-Looking Statements and
Additional Information
This press release includes “forward-looking
statements” that involve risks and uncertainties that could cause
actual results to differ materially from what is expected. Words
such as “expects”, “believes”, “anticipates”, “intends”,
“estimates”, “predicts”, “seeks”, “may”, “might”, “plan”,
“possible”, “should” and variations and similar words and
expressions are intended to identify such forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. Such forward-looking statements
relate to future events or future results, based on currently
available information and reflect our management’s current beliefs.
Many factors could cause actual events or results to differ
materially from the events and results discussed in the
forward-looking statements, including the possibility that the
Company’s final audited financial results will differ from the
unaudited management’s announced results contained in this press
release, the Company will not consummate its previously announced
line of credit transaction and other investment opportunities on
terms favorable to the Company or at all, the possibility that the
Company may not receive actual orders in the amounts forecasted,
the possibility that the Company may not be able to deliver its
wearable device to satisfy the increased demand forecasted, and the
negative impact of the coronavirus on the Company’s supply chain,
revenues and overall results of operations, so the reader is
advised to refer to the Risk Factors sections of the Company’s
filings with the Securities and Exchange Commission for additional
information identifying important factors that could cause actual
results to differ materially from those anticipated in the
forward-looking statements. Except as expressly required by
applicable securities law, the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Contact:
Sandra DouDirector of FinanceBorqs Technologies,
Inc.sandra.dou@borqs.netwww.borqs.com
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