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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 First Quarter 2007 Results
Gross Profit Up 94.7% and Net Income Up 246.8% Year-over-Year
SHANGHAI, China, Aug. 16 /PRNewswire-FirstCall/ -- T-Bay Holdings, Inc. (OTC Bulletin Board: TBYH - News), a leading mobile telecommunications device designer, today announced financial results for its first fiscal quarter ended June 30, 2006. Full details of the Company's year-end financial results are available in the Company's Form 10-QSB at http://www.sec.gov.
First Quarter 2007 Financial Highlights:
Revenues for the first quarter of fiscal 2007 totaled $3,862,000, a
24.7% increase from revenues of $3,098,000 for the first quarter of
fiscal 2006.
* Gross profit totaled $3,221,000 in the first quarter of fiscal 2007, an
increase of 94.7% over gross profit of $1,654,000 in first quarter of
fiscal 2006. The gross profit margin for the first quarter of fiscal
2007 increased to 83.4%, from 53.4% in the first quarter of fiscal 2006.
* Net income totaled $1,928,000 in the first quarter of fiscal 2007,
increasing 246.8% from net income of $556,000 in the first quarter of
fiscal 2006. The Company reported earnings per share of $0.06 for the
first quarter of fiscal 2007, versus $0.02 for the first quarter of
fiscal 2006.
* As of the end of the first quarter of fiscal 2007, cash and equivalents
totaled $4,577,000 and shareholders' equity totaled $19,824,000.
Weighted average shares outstanding were 30,088,000 for the first
quarter of fiscal 2007.
Financial Performance:
Revenues in the first quarter of fiscal 2007 increased 24.7% to $3,862,000, versus revenues of $3,098,000 in the first quarter of fiscal 2006.
The revenue increase was driven by both continued royalties on 2006 products and sales and royalties of several of the new series introduced during the first quarter of fiscal 2007. Gross profit increased 94.7% in the first quarter of fiscal 2007 to $3,221,000, from $1,654,000 in the first quarter of fiscal 2006. The increase reflects sharply higher gross margins of 83.4% in the first quarter of fiscal 2007, versus 53.4% in the first quarter of fiscal 2006. The increase is attributable to the strategic decision that T-Bay made at the beginning of fiscal 2006 to shift its focus from the production and sales of cell phones to the higher margin intelligent design solutions services market. The percentage of revenue from the lower-margin sales of handsets decreased to 10.9% in the first quarter of fiscal 2007 from 39% in the first quarter of fiscal 2006.
Net income rose 246.8% in the first quarter of fiscal 2007 to $1,928,000 from $556,000 in the first quarter of fiscal 2006, reflecting the 94.7% increase in gross profit. Earnings per share increased 200% to $0.06 in the first quarter of fiscal 2007 versus $0.02 in the first quarter of fiscal 2006.
Driven primarily by the increase in net income, net cash generated from operating activities totaled $3,122,000 in the first quarter of fiscal 2007, versus $109,000 in the first quarter of fiscal 2006. The company invested approximately $3.3 million during the first quarter of fiscal 2007 in equipment for mobile phone research, development and quality testing.
"We've had another very strong quarter, stemming from our decision in early fiscal 2006 to focus the Company on design services and de-emphasize the lower-margin production and sale of cell phones," said Xiaofeng Li, T-Bay's chief executive officer.
Xiaofeng Li continued, "Our revenues increased 24.7% this quarter from both royalties on 2006 products and the successful introduction of several new product lines. Even more important financially, our gross margins climbed to an extraordinary 83.4% in this quarter, as cell phone sales decreased to 10.9% of total revenues, versus 39% in the first quarter of 2006. This factor drove gross profits up 94.7%, further driving a net income gain of nearly 247% in the quarter. Net cash generated from operating activities totaled $3,122,000 in the first quarter. This, along with our strong cash balance, enabled R&D investment of $3.3 million during the quarter, to further fuel new product development."
"Our strong record of new design sales, coupled with our entry into
additional markets outside of China, suggests that an annual earnings growth
rate approaching 30% is more likely over the next several years," stated
Xiaofeng Li.
COMPARATIVE RESULTS
For Quarter Ended
6/30/06 6/30/05
Revenue $3,862,000 $3,098,000
Gross Profit 3,221,000 1,654,000
Gross profit margin (%) 83.4% 53.4%
Net Income 1,928,000 556,000
Earnings per share 0.06 0.02
Weighted average shares
outstanding 30,088,000 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.
Contact Information
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.
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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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