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Newsroom - Clients - TBYH
The following news and investment research items reflect some of the recent business activity for selected clients of Empire Relations Group, Inc. Additional information for investment research can be found in the featured clients section. News and investment research are for informational purposes only.
T-BAY Holdings, Inc.
T-Bay Holdings Reports Fiscal 2006 Year End Results
Gross Profit Up 64.7%; EPS Up 112.5%
EAGLE, Idaho, July 17 /PRNewswire-FirstCall/ -- T-Bay Holdings, Inc. (OTC Bulletin Board: TBYH - News), a leading mobile telecommunications device designer, today announced its financial results for the fiscal year ended March 31, 2006. Full details of the Company's year-end financial results are available in the Company's Form 10-KSB at http://www.sec.gov.
Full Year 2006 Financial Highlights:
Revenues for the year ended March 31, 2006 totaled $25,527,000, a 24.6% decrease from revenues of $33,864,000 for the year ended March 31,
2005.
Gross profit totaled $15,915,000 in fiscal 2006, an increase of 64.7%
over gross profit of $9,661,000 in fiscal 2005. The gross profit
margin for the full year of 2006 increased to 62.3%, from 28.5% for the
full year of 2005.
Net income totaled $10,082,000 at year-end 2006, increasing 128% from
net income of $4,421,000 at year-end 2005. The Company reported
earnings per share of $0.34 for fiscal 2006, versus $0.16 for
fiscal 2005.
As of year-end 2006, cash and equivalents totaled $4,673,000 and
shareholders' equity totaled $17,837,000. Weighted average shares
outstanding increased to 29,273,000 for fiscal 2006 from 26,988,000 for
fiscal 2005.
Financial Performance:
Revenues in fiscal 2006 declined 24.6% to $25,527,000, versus revenues of $33,864,000 in fiscal 2005. T-Bay made a strategic decision at the beginning of fiscal 2006 to shift its focus from the production and distribution of cell phones in China to the higher margin intelligent design solutions services market. As a result, gross profit increased 64.7% in fiscal 2006 to $15,915,000, despite lower revenues in the period. The Company's gross profit margin increased sharply in 2006 to 62.3%, versus 28.5% in fiscal 2005.
Net income rose 128% in fiscal 2006 to $10,082,000 from $4,421,000 in fiscal 2005, reflecting the 64.7% increase in gross profit. Driven primarily by the increase in net income, net cash generated from operating activities totaled $3,863,000 in fiscal 2006, versus $954,000 in fiscal 2005.
"These strong financial results are a testimony to the wisdom of our decision to strategically refocus the Company on higher margin design services. We succeeded in attracting new partners and customers, as our award-winning design team provided 25 new products in fiscal 2006, to which the marketplace responded very favorably. As a result, earnings, cash balances, retained earnings, and shareholders' equity all increased significantly in FY2006," said Xiaofeng Li, T-Bay's chief executive officer.
Xiaofeng Li continued, "The Chinese market is the largest in the world, with about 50 million new phones currently sold each year. Sales and royalties on our 2006 products alone should create earnings growth of at least 10% in fiscal 2007 but emerging catalysts suggest that an earnings growth rate approaching 30% is entirely possible for 2007."
"Through investments in R&D and a planned increase in capital expenditures, we are on track to market up to 35 total design solutions in fiscal 2007, a 40% increase in new products, including two 3G phones. In addition to offering new products, we are also continuing to add new customers and plan to aggressively enter additional markets in Eastern European and South America in fiscal 2007," stated Xiaofeng Li.
COMPARATIVE RESULTS
For Fiscal Year Ended
3/31/06 3/31/05
Revenue $25,527,000 $33,864,000
Gross Profit 15,915,000 9,661,000
Gross profit margin (%) 62.3% 28.5%
Net Income 10,082,000 4,421,000
Earnings per share 0.34 0.16
Weighted average shares outstanding 29,273,000 26,988,000
About T-BAY Holdings, Inc.
T-BAY conducts its mobile phone design business through its 95% owned subsidiary, Shanghai SunPlus Communication Technology Co., Ltd. ("SunPlus"). Established in October 2002, SunPlus is a Sino-foreign joint venture providing total solution and full-range design services to leading mobile handset brand owners in China. The broad spectrum of services that SunPlus provides include overall product design, mechanical design, module architecture design, software design, prototype production, product testing, manufacturing and after-sale technical support. The Company currently has a staff of 160, comprised mostly of engineers and software programmers.
SunPlus develops its mobile phone modules based mainly on the chipset platform provided by SKYWORKS. Currently, major customers of SunPlus include CECT, Panda Electronics and Siemens Mobile.
SunPlus was jointly formed by Wise Target International Limited, Amber Link International Limited and Shanghai Fanna Industrial Product Design Co., Ltd. Wise Target and Amber Link are 100% subsidiaries of T-BAY Holdings, Inc. and they altogether hold 95% shareholding in SunPlus.
Safe Harbor Statement
Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur.
Investor Relations:
Equity Performance Group
Gary Geraci
(617) 723-2373
gary@equityperfgp.com
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About T-BAY Holdings
T-BAY Holdings, Inc. owns 95% of Shanghai Sunplus Communication Technology Co., LTD. (“Sunplus”). Sunplus is a leading telecommunications device design company specializing in products in the cellular phone, MP3 players, PDA's and other hand-held electronic products.
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