Cogo Announces Tablet Revenue Accelerating Faster than Expected
SHENZHEN, China, Jan. 12, 2011 /PRNewswire/ -- Cogo Group, Inc. (Nasdaq: COGO), a leading gateway for global semiconductor companies to access the industrial and technology markets in China, today announced that its tablet revenue is accelerating faster than expected. The better than expected revenue is due to the faster than expected growth of the China tablet market combined with a continued increase in the number of Cogo's tablet customers. Cogo began recording tablet revenue in November of 2010. Additionally, several of Cogo's customers debuted their tablet products at the recent Consumer Electronic Show ("CES") in Las Vegas and have received overwhelmingly positive feedback.
Cogo provides integrated, embedded solutions that include an MCU (microcontroller unit), memory and wireless access (either 3G or WiFi) from several of its leading global semiconductor partners. Cogo's average selling price ("ASP") for these devices is significantly higher than its ASP for embedded high-end 3G Smart-phone solutions currently shipping.
As expected, the global success of Apple's iPad has raised consumer awareness and demand for touch-screen tablet products in China. Consequently, dozens of digital media and consumer electronics companies in China have begun to produce tablets at a variety of price points using several different operating systems, including Android, Windows and others.
"I am excited that the market for touch-screen tablets in China has taken off even faster than our optimistic expectations," commented Jeffrey Kang, CEO of Cogo. "This, combined with the continued growth of our tablet customer base, makes us even more confident about continued strong growth in our digital media segment in 2011. Overall, we continue to see broad-based order strength across all of our end markets and we look forward to another year of strong revenue growth."
About Cogo Group, Inc.:
Cogo Group, Inc. (Nasdaq: COGO), a leading gateway for global semiconductor companies to access the industrial and technology markets in China. 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 leverages 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 focuses on the telecommunications equipment, digital media and industrial applications end-markets for their customized design modules while also offering business and engineering services to their large telecommunications equipment vendor customers. Over the last fifteen years, Cogo has grown its customer list to include nearly 1,500 manufacturers across the telecommunications equipment, digital media and industrial applications markets, covering both multinational Chinese subsidiaries and Chinese domestic companies.
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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 or growth strategy such as growth in digital media and consumer electronics end-markets as well as 3G Smart-phone and touch-screen/ tablet devices businesses, which are 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 further descriptions of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings,. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.
SOURCE Cogo Group, Inc.
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