EX-99.1 2 v109580_ex99-1.htm Unassociated Document
Exhibit 99.1
 
 
 
PRESS RELEASE          
 
Orsus Xelent Exceeds Forecast With a 32% Advance in 2007
Revenues To a Record $89.9 Million;
Also Reports Full Year Net Income Increased 44% To $9.7 Million
 
Company Says Gains Were Fueled By Strong Fourth Quarter Sales of Mid-Level And High-Level GSM Phones
 
NEW YORK, NY—April 1, 2008 -- Orsus Xelent Technologies, Inc. (AMEX:ORS - News), a designer and manufacturer of award-winning mobile phones for the Asian market, today announced that, exceeding its forecast, revenues in the year ended December 31,2007, grew 32.03% to $89,923,000 from $68,108,000 in 2006.

The Company also reported a 44.14% increase in net income for the period, saying it grew from $6,718,000 in 2006, or 23¢ per share, to $9,683,000 or 33¢ per share in 2007.

The 2007 full year results, according to the Company, were bolstered by record fourth quarter results. Mr. Xavier Wang, president and CEO of Orsus Xelent commented, “Given some of the uncertainties in the market in the fourth quarter, related to the anticipated shifts in 2008 in the Chinese telecommunications industry, I think our performance was especially notable. Our team showed that it could move very nimbly from a focus on sales of operator-tailored, special application mobile phones in the first half of the year, to the sale of traditional GSM handsets in the second half and fourth quarter of the year, while also maintaining a strong focus on cost containment.”

Reflecting this, the Company said that its record fourth quarter revenues were led by the sales of mid-level and high-level GSM phones, which met the high demand in the market and accounted for most of the sales in the period.

The Company added that its success in containing costs was a consequence of several key steps it took during the year. In particular, it noted that its shift to outsourced R&D helped synchronize its product development with consumer preferences and permitted it to shorten the industrial cycle for its products. It also transferred after sale servicing to its OEM manufacturers which had a further positive effect on cost reduction. It also focused on streamlining its human resources, eliminating redundancies that existed at the Company.

“Looking ahead,” Mr.Wang stated, “we are intent on pursuing and fulfilling the next key step in our development, which is to become more independent in manufacturing our own product and accessories, and perhaps to take on some outside OEM for other brands.”

In this regard, the Company said that it is continuing efforts to close the acquisition of “Lemon Times” and expects to do so in the first half of 2008. As described in previous announcements, the acquisition is expected to provide the Company with significant manufacturing and R&D capability.

Mr. Wang continued, “I think we accomplished a lot in 2007, demonstrating that we have a young, but very strong team that knows the market in which we operate. As we aim to add our own manufacturing capability, our focus also will continue to be on building brand awareness, profitability and competitiveness. In 2008, we expect to see stable growth development driven by our acquisition plans, the new generation technologies, and further penetration and utilization of the traditional sales channels for Orsus Products.”

He concluded, “Be assured we remain optimistic about our outlook and the continuing success of our Company and, within the next few weeks intend to provide more detailed thoughts and regarding anticipated developments and the outlook for the year.”
 
About Orsus Xelent Technologies, Inc.
 
Incorporated in the State of Delaware and headquartered in Beijing, China, Orsus Xelent Technologies, Inc. is an emerging designer and manufacturer of award-winning mobile phones for the Asian market, primarily the People's Republic of China (PRC). The Company's business encompasses the design of mobile phones, related digital circuits, and software development, and it is a recognized pioneer in mobile phone integration technology. It introduced the region's first wristwatch-style cellular phone, and it continues to break new ground with state-of-the-art phones that include advanced features such as finger print recognition and touch-screen displays. Increasingly, the Company is focused on developing and marketing, under its Proxlink trademark, special application mobile phones for specialized users in a wide variety of professions in business and government. Since the Company's launch in 2004, it has established "Orsus" as a popular brand and achieved a significant share of the world's largest mobile phone market. It maintains more than 179 service call centers across the PRC, with additional offices in New York, Shanghai, Hong Kong, Shenzhen, and Tianjin. For more information, please visit the Company's web site: www.orsus-xelent.com. 
 
Information Regarding Forward-Looking Statements
 
Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.
 

 
Orsus Xelent Technologies, Inc.

 
 
Twelve months ended
December 31, 2007
Twelve months ended
December 31, 2006
Comparison
$000
% of Revenue
$000
% of Revenue
$000
%
Operating Revenues-Net Sales
89,923 
68,108 
-  
21,815 
32.03% 
Cost of sales
74,174 
82.49% 
55,226 
81.09% 
18,948 
34.31% 
Sales & marketing expenses
553 
0.61% 
1,045 
1.53% 
(492) 
(47.08%) 
General & admin. expenses
1,290 
1.43% 
793 
1.16% 
497 
62.67% 
R&D expenses
340 
0.38% 
255 
0.37% 
85 
33.33% 
Depreciation
142 
0.16% 
175 
0.26% 
(33) 
(18.86%) 
Allowance for obsolete inventories
875 
0.97% 
1,387 
2.04% 
(512) 
(36.91%) 
Allowance for trading deposit receivable
923 
1.03% 
767 
1.13% 
156 
20.34% 
Impairment of Fixed Assets
71 
0.08% 
454 
0.67% 
(383) 
(84.36%) 
Finance cost
989 
1.10% 
116 
0.17% 
873 
752.59% 
Other net income
765 
0.85% 
75 
0.11% 
690 
920.00% 
Pre-tax profit
11,331 
12.60% 
7,965 
11.69% 
3,366 
42.26% 
Income tax
1,648 
1.83% 
1,247 
1.83% 
401 
32.16% 
Net Income
9,683 
10.77% 
6,718 
9.86% 
2,965 
44.14% 
Earnings per Share
           
Basic and diluted (US$)
0.33 
 
0.23 
     
Weighted average number of shares outstanding
29,756,000 
 
29,756,000 
     
 
 
CONTACT:
 
Orsus Xelent Technologies, Inc.
Xavier Xin Wang
President & CEO
 
PRC:
Tel 010-85653777
Fax 010-85653666
 
US:
Investors:
Tel: 212-402-7803
Fax: 212-425-6951
 
Press:
Tel: 212-425-5700
Fax: 212-425-6951