USmart Mobile Device Inc. Reports First Quarter 2013 Financial Results
HONG KONG, May 16, 2013 /PRNewswire/ -- USmart Mobile Device Inc. (OTCBB: ACLO), an integrated China-based designer, manufacturer and distributor of advanced technologies spanning smartphone and semiconductor components, reported unaudited financial results for the first quarter ended March 31, 2013.
Mr. Ben Wong, Chief Executive Officer of USmart Mobile Device Inc., commented, "We ended the first quarter of 2013 with a net income of $888.3 thousand thanks to a one-off profit from the disposal of fixed assets in the amount of $1.9 million. The majority of our sales came from selling memory products. With the acquisition of Jussey on September 28, 2012, we have diversified our business interests from a memory components distributor to an IDH (Industrial Design House) focusing on smartphone products. We foresee that our primary business will shift to selling smart phone products."
Mr. Wong continued, "Although the global economic conditions continue to be weak and volatile, there are signs of market recovery for DRAM starting with the second quarter of 2013. Smartphones and tablets are also expected to drive DRAM and NAND flash demands throughout the year which in turn should have a positive impact on our future revenue growth."
Net revenue for the quarter ended March 31, 2013 was $14.5 million, compared to $42.4 million in the same period last year.
Gross loss for the first quarter of 2013 was $98.5 thousand, compared to a gross profit of $364.7 thousand in the same period last year.
Net income for the quarter ended March 31, 2013 was $888.3 thousand compared to a net loss of $865.7 thousand in the same period last year. Earnings per diluted share were $0.02 for the quarter ended March 31, 2013, as compared to $(0.03) in the same period last year.
- In February 2013, the Board of Directors of the Company appointed Mr. Ben Wong as the Company's Chief Executive Officer to replace Mr. Chung-Lun Yang. Mr. Yang continues to act as the Chairman of the Board of Directors.
- In November 2012, the Company's stockholders approved the proposed amendment to the certificate of incorporation to change the Company's corporate name from ACL Semiconductors Inc. to USmart Mobile Device Inc. This name change was effective as of April 17, 2013.
- In September 2012, the Company acquired Jussey, a company incorporated in British Virgin Islands, which owns 100% equity interest in eVision Telecom Limited ("eVision"), a Hong Kong incorporated company, and 80% equity interest in USmart Electronic Products Limited ("USmart"), a Hong Kong incorporated company, which wholly owns Dongguan Kezheng Electronics Limited ("Kezheng"), a wholly foreign-owned enterprise ("WFOE") organized under the laws of the PRC. Through this acquisition, the Company has diversified its product portfolio and customers' network, obtained design and manufacturing capabilities, and tapped into the expanding telecommunication industry with access to the 3G baseband licenses.
About USmart Mobile Device Inc.
USmart Mobile Device Inc., is an integrated China-based designer, manufacturer and distributor of advanced technologies spanning smartphone and semiconductor components. Through the September 2012 acquisition of Jussey Investments, USmart Mobile Device Inc., has become a one-stop solution provider of smartphone components serving OEM customers spanning local China mobile phone companies and established telecom carriers. Following the formation of the ATMD joint venture with Tomen Devices in April 2012, USmart Mobile Device Inc. has retained a 30% stake in the business focused on supplying Samsung semiconductors and LCD products in Greater China.
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings.
SOURCE USmart Mobile Device Inc.