SOURCE: CinTel Corp.

August 18, 2008 13:00 ET

CinTel Corporation Reports Second Quarter Fiscal Year 2008 Results

LOUISVILLE, KY--(Marketwire - August 18, 2008) - CinTel Corp. (OTCBB: CNCN), Louisville, Kentucky, a leading semiconductor and LCD assembly manufacturer, today reported its financial results for the second quarter and six months ended June 30, 2008.

Revenues for the quarter ended June 30, 2008 were $53,567,094, an increase of $22,435,283, or 72%, compared to $31,131,811 for the three months ended June 30, 2007. Gross Profit for the quarter was $4,303,397, an increase of $2,434,794, or 130%, compared to $1,868,603 for the same period last year. Net loss for the quarter was $1,820,032, compared to $1,389,131 for the same period last year.

For the six months ended June 30, 2008, revenues were $106,214,013, as increase of $54,138,057, or 118%, compared to $45,631,757 for the six months ended June 30, 2007. Gross profit for the six months ended June 30, 2008 was $6,444,199, an increase of $4,246,804, or 193% compared to $2,197,395 for the same period last year. Net loss for the quarter was $4,415,753, compared to $1,730,368 for the same period last year.

CinTel's Chief executive Officer, Kwang Hee Lee, stated, "We continued to experience strong growth throughout all of our revenue streams with substantial increases in finished goods, merchandise and services. Our production capabilities enable us to grow organically and provide us with new business opportunities, all of which we believe will complement our business model. In connection with our ongoing focus to improve operations and align expenses with our sales, we achieved a $7,593 profit from our operations in the second quarter."



                                    Three Months Ended  Three Months Ended
                                      June 30,  2008      June 30, 2007
                                    ------------------  ------------------
Revenues:
   Finished goods                   $       50,297,931  $       30,145,254
   Merchandise                               1,585,805                 325
   Services                                  1,683,358             986,232
                                    ------------------  ------------------
                                            53,567,094          31,131,811
Cost of revenue:
   Finished goods                           46,815,905          28,642,582
   Merchandise                               1,434,083                 316
   Services                                  1,013,709             620,310
                                    ------------------  ------------------
                                            49,263,697          29,263,208
                                    ------------------  ------------------

Gross profits                                4,303,397           1,868,603

Operating expenses:
   General and administrative
    expenses                                 4,113,545           1,703,890
   Research and development                          -                   5
   Depreciation and amortization               182,259             111,321
                                    ------------------  ------------------
                                             4,295,804           1,815,216
                                    ------------------  ------------------

Income (loss) from operations                    7,593              53,387

Other income (expenses):
   Interest income                           1,095,329             132,824
   Other income expenses                      (522,786)                  -
   Net gain (loss) from sale of
    assets                                     (21,456)                  -
   Interest expenses                        (2,273,560)           (651,948)
   Share of loss from equity
    investment                                 (90,855)           (433,645)
   Net gain from sale of
    short-term investment                       65,165                   -
   Amortization of
    deferred financing fees                          -            (140,273)
   Foreign currency transaction
    gain (loss)                                112,808                   -
                                    ------------------  ------------------
                                            (1,635,355)         (1,093,042)
                                    ------------------  ------------------
Loss before income taxes
 and non-controlling interest               (1,627,762)         (1,039,655)

Income tax expense (Note 13)                  (110,622)             (8,313)
Non-controlling interest                       (81,648)           (341,163)
                                    ------------------  ------------------
                                              (192,270)           (349,476)
                                    ------------------  ------------------
Net loss                                    (1,820,032)         (1,389,131)



About CinTel Corp. (www.cintelcorp.com)

CinTel Corp., a technology holdings company, is an emerging global leader in the area of semiconductors and displays. CinTel has created a conglomeration of technology products to include NAND flash memory packaging, LCD assembly, semiconductor packaging and testing specialists, as well as a total solution provider for memory applications for home appliances, semiconductor and TFT-LCD application products. CinTel serves major markets especially in China, Korea and the US. Typical customers include Samsung Electronics, Hynix and Fairchild.

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