SOURCE: Orsus Xelent Technologies, Inc.

Orsus Xelent Technologies, Inc.

November 15, 2010 16:05 ET

Orsus Xelent Announces 2010 Third Quarter Results; Achieves Small Gain on Substantially Reduced Revenues

NEW YORK, NY--(Marketwire - November 15, 2010) - Orsus Xelent Technologies, Inc. (NYSE Amex: ORS), a designer and manufacturer of award-winning mobile phones for the Asian market, today announced results for its 2010 third quarter and nine months ended September 30, 2010. 

Revenues in this year's third quarter decreased significantly year over year from $19,125,000 to $5,907,000. The Company achieved a gain in the quarter of $117,000 compared with net income of $1,370,000 or $.05 per share in the third quarter last year.

For the first nine months of 2010, the Company reported revenues decreased to $19,971,000 from $62,181,000 in the same period year over year. The Company incurred a net loss on the lower revenues of ($585,000), compared to net income of $5,812,000, or $.19 per share, for the same period in 2009.

The Company said results in the recent quarter were affected by a decline in demand in the market for low-priced, non 3-G products, a major focus of the Company, as many of the larger telecom companies have focused on gaining market share in the rural areas of China. Additionally, the Company's distributors experienced a decline in the number of anticipated large orders from their major customers.

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 fingerprint recognition and touch-screen displays. The Company also 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 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. and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
(In thousands, except number of shares and per share data)
(Unaudited)
 
    Three months ended September 30,   Nine months ended September 30,
    2010   2009   2010   2009
Net sales $ 5,907 $ 19,125 $ 19,971   62,181
                 
Cost of sales   5,474   17,053   18,466   53,928
                 
Gross profit   433   2,072   1,505   8,253
                 
Operating expenses:                
Selling expenses   21   40   83   213
General and administrative expenses   70   164   212   533
Research and development expenses   4   4   13   32
Depreciation and amortization   6   12   21   54
Allowance for doubtful accounts   -   -   (251)   -
Total Operating Expenses   101   220   78   832
                 
Income from operations   332   1,852   1,427   7,421
                 
Other income/(expenses)                
Interest expense   (215)   (270)   (1,005)   (758)
Other (expenses)/income, net   -   -   (1,252)   17
                 
(Loss)/income before income tax expense   117   1,582   (830)   6,680
                 
Income tax (expenses)/benefit                
Current tax expense   0   212   0   868
Deferred taxes benefit   -   -   245   0
                 
Net (loss)/income   117   1,370   (585)   5,812
                 
Other comprehensive income                
Foreign currency translation adjustment   726   59   917   302
                 
Comprehensive (loss)/income $ 843   1,429 $ 332   6,114
(Loss)/earnings per share:                
Basic and diluted $ 0.03 $ 0.05 $ 0.01 $ 0.2
                 
Weighted average number of common shares outstanding - basic and diluted   30,256,000   29,756,000   30,256,000   29,756,000

Contact Information

  • PRC:
    Orsus Xelent Technologies, Inc.
    Guoji Liu
    CEO
    Tel: 010-85653777
    Fax: 010-85653666

    US:
    Ken Donenfeld
    kdonenfeld@dgiir.com
    Tel: 212-425-5700
    Fax: 646-381-9727