SHENZHEN, China, April 8, 2011 /PRNewswire-Asia/ -- SinoHub, Inc. (NYSE Amex: SIHI), an electronics company whose major growth driver is manufacturing and distributing custom, private-label mobile phones, today announced that it has added three substantial new mobile phone design houses as supply chain management ("SCM") customers, namely, Tianlong Shenzhen, Gaophone Shanghai and Henzong Hong Kong. These new customers are expected to generate additional profits for the electronic sales and services ("ECSS") business segment. Transactions with these new customers will strengthen the Company's robust database of information available to support electronic component purchasing in its ECSS and integrated contract manufacturing ("ICM") business segments. Furthermore, SinoHub will have the opportunity to seek to engage these new SCM customers as suppliers of new reference designs for mobile phones in the ICM segment. These new clients are major Chinese design houses, similar to SinoHub's largest SCM client, Huaqin, which is now also an ICM supplier.
In light of the strong growth opportunities in SinoHub's ICM business segment and its strengthened working capital position as a result of its recently reported $11 million equity raise and existing bank facilities, SinoHub remains confident in the firm's fundamentals, strategy, and prospects. The Company has thus far not seen any significant impact on its business as a result of the recent earthquake in Japan and, as such, reaffirms its 2011 full year revenue guidance of 30% growth to $255 million as well as its target of producing and selling 3 million mobile phones for 2011, representing year-over-year growth of 160% in terms of handsets sold. SinoHub does not expect it will require further equity financing for the foreseeable future.
About SinoHub, Inc. (NYSE Amex: SIHI)
SinoHub, Inc. (NYSE Amex: SIHI) is a leading electronics company based in Shenzhen, PR China which services clients worldwide. The Company's integrated contract manufacturing (ICM) business unit is currently focused on providing custom, private label mobile phones to customers in developing countries. This fast growing ICM segment is capitalizing on a trend by carriers and distributors to offer their own brands with features and functionality targeted at their local markets, including 3G smart phones, at competitive price points. The Company's electronic component sales and services (ECSS) business unit provides procurement-fulfillment, spot component sales and supply chain management (SCM) services to manufacturers and design houses. The company's SCM services include warehousing, delivery, import/export, and give its customers total transparency into their supply chains by delivering SinoHub SCM, a proprietary, Web-based software platform the company has been using for almost ten years. For more information, visit the Company's Web site at http://www.sinohub.com and the B2B Chips Web site at http://www.b2bchips.com.
Cautionary Statement Regarding Forward-looking Information
Some of the statements contained in this press release that are not historical facts constitute forward-looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," or "continue" or the negative of those terms. These statements involve risks known to the Company, significant uncertainties, and other factors, many of which cannot be predicted with accuracy and some of which may not even be anticipated, which may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by those forward-looking statements. Such risks, uncertainties and factors include, but are not limited to, the Company's ability to expand its customer base, the ability to access capital for such expansion, assumptions concerning future economic and competitive conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
Except as required by law, the company assumes no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future. For further information on factors which could impact SinoHub and the statements contained herein, see the "Risk Factors" included in Item 1A of the Company's Annual Report on Form 10-K filed with the Securities Exchange Commission on March 14, 2011. The company assumes no obligation to update and supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
SOURCE SinoHub, Inc.