Sinohub PR, 3/30/12
Shenzhen-based electronic component supply chain management (SCM) service provider SinoHub (NYSE Amex: SIHI) today announced its financial results for the fourth quarter and year ended December 31, 2011, with revenue for Q4 2011 up 11.8% YoY to USD 65.3 mln from USD 58.5 mln in the same year ago period. Total revenue for the year ended December 31, 2011 was USD 196.2 mln, down 0.3% from USD 196.7 mln in 2010.
Net loss attributable to shareholders for Q4 2011 was USD 0.5 mln, compared to a net profit of USD 6.8 mln in 2010. Net income for the year ended December 31, 2011 decreased 66.2% to USD 6.7 mln.
Revenues from ECSS, including procurement-fulfillment, spot component sales and supply chain management services, decreased 53.2% YoY to USD 16.8 mln in Q4 2011. The primary reason for the decrease in the ECSS business segment was the increasing maturity of the 2G market and the lack of clear leadership in the 3G market. Revenue from Integrated Contract Manufacturing (ICM) in Q4 2011 was USD 48.5 mln, up 115.6% YoY.
ECSS revenues for full year 2011 were USD 105.1 mln, down 22.4% from USD 135.5 mln in the fiscal year 2010. ICM revenues for full year 2011 increased 48.9% to USD 91.1 mln from USD 61.2 mln in 2010. Over half of the sales in the ICM segment for 2011 were recorded in Q4, marking substantial recovery in sales volume from the loss of SinoHub's largest customer in Q2 2011, which led to a low level of sales in Q2 and Q3.
SinoHub is focused on expanding its ICM business segment by gaining new customers in Southeast Asia where it started and by entering new markets (primarily North and South America). Sinohub has formed a joint venture company, CiaoHub, in Brazil and, subject to receipt of sufficient financing by CiaoHub, CiaoHub will be building a factory there to produce mobile phones and tablets, which is expected to open this year. Sinohub sales efforts of mobile communication devices made in China have already commenced with global provider of telecommunications products and services Ciao Telecom.
SinoHub is providing full-year 2012 revenue guidance of approximately USD 200 mln, compared to USD 196.2 mln for the full-year 2011 as growth in the ICM business is offset by a decline in the ECSS business. The forecasts reflect SinoHub's current and preliminary view, which is subject to change.
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