SHENZHEN, China, July 10 /PRNewswire-FirstCall/ -- Cogo Group, Inc. (Nasdaq: COGO), a leading provider of customized module design solutions for more than 200 technology product manufacturing companies based in China, today announced that it will host a conference call at 4:30 p.m. Eastern Time on Wednesday, August 6, 2008 to report earnings results for the second quarter of 2008 and provide management's outlook for the remainder of the year.
Management expects sales and profit margins, while remaining in-line with projections, to be pressured. However, it is anticipated that growth will resume in the beginning of next year. Management also plans to announce the steps it is taking in the second half of this year to drive long-term growth.
Additionally, management plans to make the following statements on the company's performance:
-- Management expects business in the second quarter to be in line with projections but sees pressure on gross margin because of weak demand and intense competition in the mobile handset sector.
-- In the third quarter, margin pressure in the mobile handset arena is likely to continue although end market demand and mobile handset shipment units are expected to increase.
-- Management estimates that demand for mid and high-end cell phones will slow down while low-end handsets will represent the bulk of the market in the near future, which unfavorably affects our gross margin.
After assessing the macro market trend, management decided to adjust business strategy to focus on maintaining and expanding market share and increasing revenue growth as its top priorities in the second half of this year. Management is confident that this adjustment will help the company, build strong fundamentals to achieve sustainable long term growth and estimates that the market will start to rebound in 2009. Nevertheless, the company has repurchased 405,000 shares at an average of $12.73 pursuant to its stock repurchase program.
The earnings call will be hosted by Jeffrey Kang, Chairman and Chief Executive Officer and Frank Zheng, Chief Financial Officer. A supporting press release will be distributed via PR Newswire on Wednesday, August 6, 2008 at 4:00 PM (ET). The press release and the transcript of the call will be posted at http://www.cogo.com.cn under "Investor Information" section.
Cogo 2008 Q2 Earnings Results Conference Call
Date/ Time:
Aug 6, 2008 (Wed) @ 4:30 PM (ET)
Conference Call:
US/ Canada Toll-Free: 1-800-762-8779
International: +1 (480) 248-5081
Webcast/ Audio Recording:
http://viavid.net/dce.aspx?sid=0000533E.
Replay:
US/ Canada Toll-Free: 1-800-406-7325
International: 1-303-590-3030
From: 08/06/2008 @ 7:30 pm Eastern Time
To: 08/13/2008 @ 11:59 pm Eastern Time
Replay Pin Number: 3900235
About Cogo
Cogo Group, Inc. (Nasdaq: COGO) is a leading provider of customized module and subsystem design solutions for the Chinese market. The company believes it acts as a proxy to China's technology industry as it works with virtually all the major ODMs and OEMs in China. Cogo utilizes these relationships and combines their IP to create designs that Cogo then sells to electronic manufacturers. These designs allow manufacturers to reduce their time to market for new products and ultimately increase sales. Cogo Group focuses on the mobile handset, telecom equipment and digital media end-markets for their customized design modules while also offering business and engineering services to their large telecom equipment vendor customers. Over the last twelve years, Cogo has grown its customer list to include more than 200 of the largest and most well known manufacturers across the mobile handset, telecom equipment and consumer markets, covering both multinational Chinese subsidiaries and Chinese domestic companies.
Safe Harbor Statement:
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about our proposed discussions related to our business such as growth in mobile handset business, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. For a further descriptions of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form10-K, and our subsequent SEC filings, including our most recent Form 10-Q. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov.
SOURCE Cogo Group, Inc.
International News / Press Release source: PR Newswire
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