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Orsus Xelent Technologies is a profitable Beijing-based designer of economically priced feature-rich mobile phones. The Company?s business encompasses the design of mobile phone and digital circuits, software development, R&D of mobile phone integration technology, as well as mobile phone quality control and project management.
Orsus Xelent management is very impressive with their aggressive business strategy, their long-term vision for the Company and their ability to adapt to changing market trends. Their expertise in both hardware and software development is impressive. Since its business inception in April 2004, Orsus phones have sold more than 600,000 units, which accounted for over one percent of the total cellular phone market in the People?s Republic of China.
Today, Orsus offers eleven mobile phone models with high performance-to-price ratios to satisfy its customers? needs. Orsus owns its own proprietary platform, named Spreadrum and MTK, which enabled the Company to develop a series of low cost mobile phones with innovative functions. Orsus? products have received several awards for their innovative features and design.
INVESTMENT HIGHLIGHTS
Explosive Revenue Growth: Orsus experienced a stunning 457% and 776% comparable quarter revenue increase in Q1 and Q2 of FY2006 respectively. Revenue in Q3 of FY2006 also increased 56% compared to the same period in FY2005. Its revenues are anticipated to grow at an annually compounded rate of 30% over the next 3 years, while its EPS is anticipated to grow at an annually compounded rate of 70% during the same period.
200% Earnings Growth: Third Quarter 2006 net income was $2.3 million, compared to $1.9 million for the same period in 2005 and EPS of 0.08 cents, compared to EPS of 0.07 cents for the same period in 2005. For the nine months ended September 30, 2006 net income was 0.16 cents per share compared to 0.05 cents per share for the same period in 2005, representing a 200% increase.
Platform Technology Provides Important Competitive Advantage: Orsus has developed a unique software platform for the PRC?s Ministry of Commerce that could result in a recurring revenue stream of more than $60 million annually within the next 24-36 months. January 11th Orsus Xelent Announces Cooperation Intent Agreement for the first 20,000 Handsets From the State Administration for Industry and Commerce (SAIC), Hebei Province of the People's Republic of China (PRC) This software integration technology will position them as more than a pure cell-phone commodity player giving them an edge over many of their competitors.
FINANCIAL ANALYSIS
Strong Revenue Growth: Orsus experienced sharp growth in the first half of FY06. Revenue reached $8.3 million and $17 million
respectively in the first and second quarters of FY06, representing a 457% and 776% increase compared to the same period in FY05. This dramatic increase is can be attributed to distribution to new markets and CDMA handset sales. The proliferation of the first half of FY06, served as a primary growth driver for the Company. Overseas sales amounted to $8.5 million, accounted for nearly fifty percent of Q2 FY06 revenue, and approximately thirty-two percent of the first half of FY06 revenue. Meanwhile, sales of CDMA handsets reached approximately $7 million in the first half of FY06 compared to only $1
million in the entire FY05.
Sales of CDMA handsets continued to ramp up in Q3 of FY06, to $11 million, representing 55% of Q3 revenue. Q3 FY06 revenue reached $20 million, representing a 55% increase compared to the same period in FY05, and a 20% increase compared to the previous quarter. Revenues increased by 176% for the nine months ended September 30 compared to the same period in 2005. In addition, the revenue growth can be partly attributed to a heightened demand for GSM based phones as a result of telecommunication
industry reform in China, which in turn led to a reduction of monthly charges for GSM based phones.
Orsus experienced a decline in revenues in FY2005. Revenues decreased to $28.7 million in FY05, a fifty-nine percent decrease compared to the same period in FY04. The decrease was primarily due to the proliferation of a black market for cell phones as well as fierce competition in the RPC mobile phone market. In recent years, mobile phone manufactures invested heavily in R&D and production capacity to speed up launches of new mobile phones. As a result, a product?s lifecycle has become
shorter resulting in an oversupply of old models. In addition, competition from counterfeit products also adversely affected sales volume and contributed to an overall difficult market environment.
Orsus? has demonstrated an ability to adopt new strategies quickly and effectively to maneuver through difficult situations. The Company developed a new platform SpreadTrum and MTK in the second half of the 2006, which allowed Orsus to manufacture a series of low cost phones with advanced features. As a result, revenue increased from $3.4 million in the first half of FY05 to $25.2 million in the second half of 2005, representing an 88.02% in FY05 revenues.
200% Earnings Growth for Nine Months Ended September 30 2006
Third Quarter 2006 net income was $2.3 million, compared to $1.9 million for the same period in 2005 and EPS of 0.08 cents, compared to EPS of 0.07 cents for the same period in 2005. For the nine months ended September 30, 2006 net income was 0.16 cents per share compared to 0.05 cents per share for the
same period in 2005, representing a 200% increase.
VALUATION AND CONCLUSION
We believe that Orsus is attractively valued compared to other companies in the industry. It is currently trading at a P/E (ttm) of 11.2 compared to the industry average P/E of 20.7 times. It has a P/B (mrq)of 3.7 compared to the industry average of 4.9. Orsus has a PEG ratio of 0.46 which indicates that the Company?s growth potential is higher than the market?s expectation. The Company?s revenue is expected to grow at a minimum annual compounded rate of 30% in the next three years, while EPS is expected to grow at a compounded annual rate of 71% on a fully-diluted basis over the next three years. We believe that Orsus has the potential to grow in excess of our estimates if they continue to penetrate overseas markets and execute on several large market opportunities, such as their specialized software applications for the SAIC of the PRC. Orsus may also have an opportunity to secure a contract with the PRC to provide cell-phone units for 3 million automobiles. These units would provide an important security link for the 2008 Beijing Olympics by transmitting data on a real-time basis to law enforcement
officials in the event of a security threat. A contract of this magnitude could drive revenues far beyond our estimates. Orsus anticipates generating $120 million in annual recurring revenue by FY09 from its integrated software solutions.
Important Disclosure: This information is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the information should not be construed as advice designed to meet particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1993 and in the interest of full disclosure, we call the readers attention to the fact that DreamTick-IR is an investor relations. DreamTick-IR has been compensated $5,000 cash a month for a 1 year period along with 50,000 stock options at $4.00 for the promotion of TSTC. DreamTick-IR has been compensated $4000 cash a month for a 1 year period along with 100,000 stock options at $2.00 for the promotion of ORS.
This is neither a solicitation nor an offer to Buy/Sell futures, options or equities. No representation is being made that any account/stock will or is likely to achieve profits or losses similar to those discussed. Futures, Options and Equities trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, options or equity markets. Don't trade with money you can't afford to lose. The past hypothetical or historical performance of any trading system or methodology is not necessarily indicative of future results. There is a serious risk of loss in trading futures, options and equities
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Orsus Xelent Technologies Signs Second Sales Contract for Specialized Application Devices
Thursday March 15, 8:00 am ET
PRC's Largest Investment Bank Places Initial Order for 10,000 Devices
NEW YORK, NY--(MARKET WIRE)--Mar 15, 2007 -- Orsus Xelent Technologies, Inc. (OTC BB [img]redface.gif[/img] RXT.OB - News), an emerging designer and manufacturer of award-winning mobile phones in The People's Republic of China (PRC), today announced a contract to sell 10,000 model X180 handsets to BOC International (China) Limited (BOCI China). A wholly owned Hong Kong-based subsidiary of the Bank of China, BOCI China has $1 Billion US in registered capital, making it the largest Investment Bank in the PRC. This is the second major contract announced by the company in 2007 to sell the Specialized Application Devices which use the China Unicom CDMA-1X wireless data network.
These Specialized Application Devices will act as mobile transaction terminals that are loaded with professional investment information and a trading software platform. They will provide the BOCI China's corporate clients real-time information about the price, movements and volumes of each stock or fund, and will enable securities trades from any location. The model X180 mobile phones feature state-of-the-art design and specialized application functions tailored to the specific operational requirements of the customer. The X180 features a 2.8-inch TFT touch screen, 1.3 mega pixel CMOS camera, SD Memory Card support, 128MB SRAM, Samsung 400M CPU, WAP 2.0, and CDMA 1x -- packaged in a sleek bar style design.
"BOCI China has indicated that this initial purchase of devices is intended for its clients in the Guangdong Provincial secondary market," stated Xavier Xin Wang, President and CEO of Orsus Xelent. "It anticipates expanding the roll-out of the devices to promote its business throughout the PRC, including Shanghai, Zhejiang and ten other areas, in the future. We expect that the rapid growth of China's investment industry will provide a sizeable market opportunity for our Specialized Application Devices."
With the rapid growth in the mobile communications industry in the PRC, ORXT has identified a market opportunity in delivering specialized applications. By incorporating features and functionality that are tailored to specific industry requirements, the company can increase the Return on Investment (ROI) for its customers. In February 2007, Orsus Xelent applied to the Chinese Trademark Bureau for the registration of "ProxLink" as an independent trademark covering the use of industry specific wireless applications. X180 products will be the first generation in the "ProxLink" solution set, which is expected to be a major source of revenue growth.
About BOC International (China) Limited (BOCI China)
BOC International Holdings Limited ("BOCI") is a wholly owned Hong Kong-based subsidiary of the Bank of China with registered capital of US$1bn, and 11 subsidiaries worldwide. Its businesses span across Europe and Asia. BOCI is the first investment bank established in China, and has operated overseas in accordance with international regulations, for over 20 years. It operates under the supervision of the regulatory authorities of the Mainland, Hong Kong and the United Kingdom, and understands the rules and modus operating of international capital markets. Today, BOCI has China's strongest professional investment banking team overseas, the biggest independent international placement network, the largest amount of assets under management and the most globalised of operations for Mainland investment banks operating abroad and in China.
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. 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 centers across the PRC, with additional offices in New York, Shanghai, Hong Kong, Shenzhen, and Tianjin..
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.
Important Disclosure: This information is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the information should not be construed as advice designed to meet particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1993 and in the interest of full disclosure, we call the readers attention to the fact that DreamTick-IR is an investor relations. DreamTick-IR has been compensated $5,000 cash a month for a 1 year period along with 50,000 stock options at $4.00 for the promotion of TSTC. DreamTick-IR has been compensated $4000 cash a month for a 1 year period along with 100,000 stock options at $2.00 for the promotion of ORS.
This is neither a solicitation nor an offer to Buy/Sell futures, options or equities. No representation is being made that any account/stock will or is likely to achieve profits or losses similar to those discussed. Futures, Options and Equities trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, options or equity markets. Don't trade with money you can't afford to lose. The past hypothetical or historical performance of any trading system or methodology is not necessarily indicative of future results. There is a serious risk of loss in trading futures, options and equities
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Orsus Xelent Technologies Obtains RMB 49,000,000 ($6.2 Million USD) Line of Credit From Beijing Rural Commercial Bank
Tuesday January 9, 8:00 am ET
NEW YORK, NY--(MARKET WIRE)--Jan 9, 2007 -- Orsus Xelent Technologies, Inc. (OTC BB [img]redface.gif[/img] RXT.OB - News) announced today that the Company has signed a Credit Line Agreement with the Beijing Rural Commercial Bank, Jun Bo Branch. Under the terms of the agreement, the Beijing Rural Commercial Bank, Bun Jo Branch will provide Orsus Xelent Technologies with a RMB 49,000,000 ($6.2 million USD) line of credit.
"Orsus has continued to expand its presence in China in both the traditional handset business as well as its new special application mobile device platforms. This credit line agreement indicates that domestic banks are paying close attention to Orsus Xelent Technologies' growth and demonstrates the company's ability to access capital in China at favorable terms," said Xavier Xin Wang, CEO of Orsus Xelent Technologies, Inc. Mr. Wang continued, "This access to capital also enhances Orsus Xelent's capability to handle new orders and increases in existing orders that the company anticipates receiving this year."
About Orsus Xelent Technologies
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. 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, and Tianjin.
About Beijing Rural Commercial Bank
The Beijing Rural Commercial Bank, China's first provincial-level joint-stock rural commercial bank, was established to replace the 51 year old Beijing Rural Credit Cooperative. By the end of 2005, the total capital of the new bank reached 128.233 billion Yuan, and its total revenue amounted to 3.573 billion RMB. The Beijing Rural Commercial Bank continues to focus on urban and rural markets, agricultural development, Small and Medium-Sized Enterprises (SMEs) and common citizens. The bank will also reinforce services for rural areas and continue to contribute to Beijing's economic and social development.
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.
Important Disclosure: This information is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the information should not be construed as advice designed to meet particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1993 and in the interest of full disclosure, we call the readers attention to the fact that DreamTick-IR is an investor relations. DreamTick-IR has been compensated $5,000 cash a month for a 1 year period along with 50,000 stock options at $4.00 for the promotion of TSTC. DreamTick-IR has been compensated $4000 cash a month for a 1 year period along with 100,000 stock options at $2.00 for the promotion of ORS.
This is neither a solicitation nor an offer to Buy/Sell futures, options or equities. No representation is being made that any account/stock will or is likely to achieve profits or losses similar to those discussed. Futures, Options and Equities trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, options or equity markets. Don't trade with money you can't afford to lose. The past hypothetical or historical performance of any trading system or methodology is not necessarily indicative of future results. There is a serious risk of loss in trading futures, options and equities
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Do the math on this:
300,000 mobile devices to meet SAIC's requirements in less than 18 months. Each specialized mobile device (X180) will be priced at $400 US per unit?that?s 120 Million dollars, and requires replacement every two years.
Press Release Source: Orsus Xelent Technologies, Inc.
Orsus Xelent Announces Cooperation Intent Agreement for 20,000 Handsets From the State Administration for Industry and Commerce (SAIC), Hebei Province of the People's Republic of China (PRC)
Thursday January 11, 8:00 am ET
Order Launches Planned National Rollout of SAIC Mobile Device Software Platform
NEW YORK, NY--(MARKET WIRE)--Jan 11, 2007 -- Orsus Xelent Technologies, Inc. (OTC BB [img]redface.gif[/img] RXT.OB - News), a designer and manufacturer of award-winning mobile phones for the Asian market, today announced the award of a Cooperation Intent Agreement naming it the primary mobile devices provider for the State Administration for Industry & Commerce (SAIC), Hebei Province of the People's Republic of China. The SAIC in the Hebei Province will provide a handset to each member of its field staff, and anticipates it will procure 20,000 Specialized Application Devices in 2007. Because SAIC Hebei Province has appointed China Unicom Hebei branch the operator for the Specialized Application Devices, ORXT and China Unicom Hebei Procurement Branch also completed procurement contracts for the handsets.
The model X180 mobile phones feature state-of-the-art design and specialized application functions tailored to the specific operational requirements of the SAIC. The X180 features a 2.8-inch TFT touch screen, 1.3 mega pixel CMOS camera, SD Memory Card support, 128MB SRAM, Samsung 400M CPU, WAP 2.0, and CDMA 1x -- packaged in a sleek candy bar style design. Advanced functions, such as voice recording, GPS-One function, electrical compass, and embedded ICEP software are tailored for China's special application users.
The platform utilizes the CDMA 1X wireless data networks of China Unicom to integrate commercial and government information resources. This includes a customized digital administration system for SAIC departments that provides easy access for SAIC's professional law-enforcement teams. It provides technical support for SAIC officials to conduct mobile law-enforcement, commercial tax enforcement, and food safety monitoring. The public can also access useful business information through the ICEP with the proper device for a per use charge.
The SAIC expects the adoption of this new system will be completed within 18 to 20 months, at which time approximately 560,000 SAIC law-enforcement officials will be equipped with these new specialized mobile devices. As the designated main device provider, Orsus Xelent estimates it will deliver more than 300,000 mobile devices to meet SAIC's requirements in less than 18 months. The PRC has mandated that it will no longer provide paper documents for information on companies in China. Information must now be accessed online. Each specialized mobile device (X180) will be priced at $400 US per unit, and requires replacement every two years. China Unicom's Central Procurement Branch has completed the procurement contracts for the handsets with the Hebei Province Administration, and will be responsible for completing the Specialized Application Devices' delivery and the payment of goods.
"Our position as the main provider of devices to the SAIC establishes Orsus Xelent as the nation's leader for specialized application mobile devices. This provides us with a considerable amount of credibility and a significant advantage as we look to expand our business into the larger commercial markets," said Xin Wang, President and CEO of Orsus Xelent.
Hongwei Zhao, Chief Financial Officer of Orsus Xelent, added, "This contract will be a major contributor towards Orsus realizing its goal of significant top line growth while simultaneously expanding operating margins in 2007. We will continue to expand our core business through new domestic sales channels as well as our foreign sales initiative."
About the State Administration for Industry & Commerce (SAIC)
The State Administration for Industry & Commerce (SAIC) of the People's Republic of China is the authority directly under the State Council in charge of market supervision and regulation. It drafts and promulgates guidelines, and enforces policies, laws, rules, and regulations related to public and private industry and commerce.
About China Unicom
China Unicom Company Limited has more than 112 million wireless subscribers, making it the world's second largest CDMA operator, third largest GSM operator, and a leading provider of paging, long-distance, broadband data, and mobile communications services to the People's Republic of China (PRC). The company reported more than $11 billion in sales in 2005, and is traded on the New York Stock Exchange.
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. 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
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.
Important Disclosure: This information is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the information should not be construed as advice designed to meet particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1993 and in the interest of full disclosure, we call the readers attention to the fact that DreamTick-IR is an investor relations. DreamTick-IR has been compensated $5,000 cash a month for a 1 year period along with 50,000 stock options at $4.00 for the promotion of TSTC. DreamTick-IR has been compensated $4000 cash a month for a 1 year period along with 100,000 stock options at $2.00 for the promotion of ORS.
This is neither a solicitation nor an offer to Buy/Sell futures, options or equities. No representation is being made that any account/stock will or is likely to achieve profits or losses similar to those discussed. Futures, Options and Equities trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, options or equity markets. Don't trade with money you can't afford to lose. The past hypothetical or historical performance of any trading system or methodology is not necessarily indicative of future results. There is a serious risk of loss in trading futures, options and equities
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Orsus Xelent Technologies Approved for Listing on the American Stock Exchange (AMEX)
Wednesday May 9, 1:46 pm ET
NEW YORK, NY--(MARKET WIRE)--May 9, 2007 -- Orsus Xelent Technologies, Inc. (OTC BB: ORXT.OB), a rapidly growing designer and manufacturer of award winning mobile phones in The People's Republic of China (PRC), announced today that its common shares have been approved for listing on the American Stock Exchange (AMEX), and are expected to begin trading at the open on May 10, 2007 under the ticker symbol "ORS."
This approval is contingent upon the Company being in compliance with all applicable listing standards on the date it begins trading on American Stock Exchange, and may be rescinded if the Company is not in compliance with such standards.
Another Key Step Forward
Mr. Xavier Xin Wang, president and CEO of Orsus Xelent, stated, "This good news of our AMEX approval comes on the heels of the record results we recently reported for 2006, growing revenues 137.3% to $68,108,000, pre tax net income 126.7 % to $7,965,000, while net income per share reached $0.23 compared to $0.12 a year earlier."
He continued, "We believe that a listing on the AMEX is another key step forward for us which will significantly raises awareness of our company among U.S. investors and investors around the world. In turn, this should help broaden our investor base and improve liquidity in the shares, which should benefit all shareholders."
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. 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 centers across the PRC, with additional offices in New York, Shanghai, Hong Kong, Shenzhen, and Tianjin.
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.
Important Disclosure: This information is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the information should not be construed as advice designed to meet particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1993 and in the interest of full disclosure, we call the readers attention to the fact that DreamTick-IR is an investor relations. DreamTick-IR has been compensated $5,000 cash a month for a 1 year period along with 50,000 stock options at $4.00 for the promotion of TSTC. DreamTick-IR has been compensated $4000 cash a month for a 1 year period along with 100,000 stock options at $2.00 for the promotion of ORS.
This is neither a solicitation nor an offer to Buy/Sell futures, options or equities. No representation is being made that any account/stock will or is likely to achieve profits or losses similar to those discussed. Futures, Options and Equities trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, options or equity markets. Don't trade with money you can't afford to lose. The past hypothetical or historical performance of any trading system or methodology is not necessarily indicative of future results. There is a serious risk of loss in trading futures, options and equities
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Orsus Xelent 2007 First Quarter Results
Orsus Xelent Technologies Reports 2007 First Quarter Results
Tuesday May 15, 1:07 pm ET
Sales in the Period Grew 139.14%; Pre-Tax Net Income Increased 43.45%; EPS Rose From $0.038 to $0.042; Sees 2007 Revenues Growing at Least 30% With Strong Contribution From Specialized Application Devices
NEW YORK, NY--(MARKET WIRE)--May 15, 2007 -- Orsus Xelent Technologies, Inc. (AMEX [img]redface.gif[/img] RS - News), a rapidly growing designer and manufacturer of award-winning mobile phones in The People's Republic of China (PRC), today announced results for its first quarter ended March 31, 2007.
Mr. Xavier Xin Wang, President and CEO of Orsus Xelent Technologies, Inc. ("Orsus Xelent"), stated, "We were pleased with the continuing strong growth achieved in the quarter in our traditional public use cellular phone market, which translated into a 139.14% increase in sales over the first quarter of 2006. While our gross profit margin in the period was somewhat lower than for the same period last year, in a fast growing, but highly competitive environment, it compared favorably with our average gross profit margin for all of 2006. Additionally, we saw a favorable improvement in net profit, which in the current year includes a provision for payment of income taxes."
First Quarter Results
For the three months ended March 31, 2007, revenues were $20,009,000 compared to $8,367,000 in the first quarter of 2006, an increase of 139.14%. The company said that sales of its "traditional" GSM products remained stable and accounted for 32% of total revenues in this period. The company noted that China Unicom's promotion of CDMA products and enhancements to CDMA network coverage have spurred demand, and helped drive sales of CDMA products to 68% of total revenues in the quarter. At the same time, products such as the company's C8000, M5 and M6 phones contain a number of advanced features, are ultra thin and contain a wide use of decorative metals, which are highly attractive to consumers.
Gross profit margin in the first quarter was 18.33%, a 4.07% decrease compared with 22.40% in the same period last year. The company attributed the decline in the quarter to increased price cutting and increased sales of low-end products, which was stimulated by reduced monthly charges by PRC telecommunication operators. The company noted, however, that the first quarter gross profit margin was in line with the full year 2006 gross profit margin of 18.9%.
For the three months ended March 31, 2007, net income increased 9.67% to $1,247,000, compared to $1,137,000 in the same period last year which produced earnings per share in the first quarter of 2007 of $0.042 compared with $0.038 in the first quarter of 2006. In both periods the number of shares outstanding was 29.76 million. The company noted that it paid $384,000 in income taxes in the 2007 first quarter, while in the first quarter last year, as a foreign controlled entity it was exempt from income taxes. Pretax net income in the 2007 quarter rose 43.45% compared to the first quarter of 2006. Additionally, the company said that, excluding the Allowance for Obsolete Inventory and Account Receivables, first quarter net income in 2007 was $2,782,000, representing an increase of 144.68% over first quarter net income in the same period of the prior year, and resulting in a profit margin of 13.90%.
Other Key Events in The Quarter
During the quarter, the company continued its strategy of direct cooperation with telecommunications operators in the PRC and the company's customization strategy to meet the needs of its customers. As previously announced, the company entered into a cooperation agreement with China Unicom to produce cellular phones equipped with Specialized Application Devices that utilize the China Unicom CDMA-IX wireless network. In addition, the company also announced:
-- In January: the award of a cooperation intent Agreement, naming it the primary mobile devices provider for the State Administration for Industry & Commerce (SAIC), Hebei Province of the People's Republic of China. The SAIC in the Hebei Province will provide a handset to each member of its field staff, and anticipates it will procure 20,000 Specialized Application Devices in 2007. The SAIC expects the adoption of this new system will be completed within 18 to 20 months, at which time approximately 560,000 SAIC law enforcement officials will be outfitted with cellular phones equipped with Specialized Application Devices. As the designated main device provider, Orsus Xelent estimates it will deliver more than 300,000 mobile devices to meet SAIC's requirements in less than 18 months. Each cellular phone equipped with Specialized Application Device (X180) will be priced at $400 U.S. per unit, and will require replacement every two years.
-- In March: a contract with Huayuan Run Tong (Beijing) Technology Co., Ltd ("HYRT") to embed the company's mobile terminals with HYRT's software and sell 10,000 model X180 handsets to BOC International (China) Limited (BOCI China), the largest Investment Bank in the PRC, which indicated that this initial purchase of devices is intended for its clients. The company anticipates expanding the rollout of the devices to promote its business throughout the PRC in the future, including Shanghai, Zhejiang and ten other areas.
The company also said that its cooperation with China Mobile has advanced and China Mobile is going to act as an agent for the company's cellular phones. The company expects this cooperation to become much closer with the aim of becoming one of the mobile suppliers to China Mobile.
Early in the quarter the company announced a $6.2 million line of credit from Beijing Rural Commercial Bank.
After the end of the quarter, in what it views as a very significant event, the company announced in May that it had received approval for listing and began trading its shares on the American Stock Exchange. This followed the company's earlier announcements of its record results for 2006, the substantial strengthening of its corporate governance compliance measures and the expansion of its Board of Directors.
During the quarter, the company established a new marketing and sales division for its Specialized Application Devices for which it sees excellent growth potential and which will play an increasingly important role in differentiating the company and upgrading its sales ability.
Looking Ahead
Mr. Xavier Xin Wang, President and CEO, commented, "Looking ahead, we see another very good year for Orsus Xelent. We anticipate revenue growth of at least 30% in a continuing strong cellular market in the PRC, as we pursue our growth strategy focused on meeting the needs of our telecommunications operators and their customers. In particular, we continue to see a growing demand for our Specialized Application Devices, with current expectations that sales orders for our X180 product could reach 70,000 units in 2007. We also will continue to focus on cost reductions which should translate into further improvements in net profit margins."
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137% Increase in Revenues Compared to Prior Year
Press Release Source: Orsus Xelent Technologies, Inc.
Orsus Xelent Technologies Announces Fiscal Year 2006 Results
Monday April 2, 8:00 am ET
137% Increase in Revenues Compared to Prior Year
NEW YORK, NY--(MARKET WIRE)--Apr 2, 2007 -- Orsus Xelent Technologies, Inc. (OTC BB [img]redface.gif[/img] RXT.OB - News), an emerging designer and manufacturer of award-winning mobile phones in The People's Republic of China (PRC), today announced results for the fourth quarter and for the fiscal year ended December 31, 2006.
Revenues were $68,108,000 in 2006, an increase of 137.3% over the $28,705,000 reported for fiscal year 2005. Sales of CDMA phones represented 37% of sales, or $25,044,000 million a 398% increase over the $5,032,000 recorded in the previous year. GSM sales of $43,064,000 maintained a consistent 63% share of revenues as compared to the prior period. Revenues for the three months ended December 31, 2006 were $22,207,000, representing an 83.5% increase over the $12,101,000 reported for the same period in 2005. In fiscal year 2006, the Company adjusted its business model, market position and strategy, improved its technology, and the quality of its products to position itself to take advantage of a rejuvenated cellular phone market in the PRC.
For the year ended December 31, 2006, gross profit was $12,882,000, which represents an increase of $6,449,000 or 100% over the gross profit of $6,433,000 for the same period in 2005. The gross profit margin for 2006 was 18.9%, a decrease of 3.5% from the 22.4% reported for 2005. This decrease was attributed to competitive price cutting, lower margins from overseas sales and increased sales of low-end products. The gross profit in the fourth quarter of 2006 was $4,234,000 compared to $3,210,000, representing 31.9% growth over the same period in the prior year, and a gross profit margin of 19.1%.
Fiscal year 2006 net income was $6,718,000, or $0.23 per share, compared to $3,492,000, or $0.12 per share, reported in the prior year. However, because the company paid income taxes of $1,247,000 in 2006 and just $21,000 in 2005, the comparison is skewed. Income before tax was $7,965,000 in 2006 and $3,513,000, an improvement of 126.7% year over year. Net income in 2006 was also impacted by allowances for obsolete inventories and doubtful accounts and disposal of old moulds which totaled $2,608,000. If taxes and allowances were removed, net profit would have been $10,573,000 representing an increase of $6,833,000, or 82.7% as compared to the net income $3,740,000 of 2005 (other than the provision). This would equate to a net profit margin of 15.5% for 2006 compared to the 13% in 2005.
Net income for the fourth quarter was $2,070,000 after payment of $1,087,000 in income taxes compared to $2,053,000 in 2005 in which an income tax credit of $2,000 was recorded. Income before tax of $3,157,000 million in 2006 represented an increase of 53.1% over the same period in the prior year. Taxes were paid in this period because of the law within the PRC for foreign controlled entities that provides them with a 100% exemption from taxes in their first two years of becoming foreign controlled entity. This two year period expired for Orsus Xelent in this period hence the reason for paying taxes in this period as compared to the same period in the prior year.
"We are pleased to report the strong growth in revenue that has resulted from our efforts to restructure our business model, reduce costs and reposition our company. Year over year comparisons are impacted by the fact we are now incurring income tax costs, but if we factor in those costs, our net profit margins show improvement which we believe can be continued in 2007," stated Xavier Xin Wang, President and CEO of Orsus Xelent. Mr. Wang added, "We expect that growing demand for our Specialized Application Devices will make significant revenue contributions in 2007 and further improve gross profit margins. We have also focused on strengthening our corporate governance compliance and have expanded our Board of Directors in order to meet the requirements of listing on a U.S. exchange later this year."
Important Disclosure: This information is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the information should not be construed as advice designed to meet particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1993 and in the interest of full disclosure, we call the readers attention to the fact that DreamTick-IR is an investor relations. DreamTick-IR has been compensated $5,000 cash a month for a 1 year period along with 50,000 stock options at $4.00 for the promotion of TSTC. DreamTick-IR has been compensated $4000 cash a month for a 1 year period along with 100,000 stock options at $2.00 for the promotion of ORS.
This is neither a solicitation nor an offer to Buy/Sell futures, options or equities. No representation is being made that any account/stock will or is likely to achieve profits or losses similar to those discussed. Futures, Options and Equities trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, options or equity markets. Don't trade with money you can't afford to lose. The past hypothetical or historical performance of any trading system or methodology is not necessarily indicative of future results. There is a serious risk of loss in trading futures, options and equities
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Tuesday May 29, 8:50 am ET
Orsus Xelent Expects 15,000 Unit Delivery of Its X180 Specialized Application Mobile Phones to Unicom Huasheng in June; Values Anticipated Full 50,000+ Unit Order at More Than $20 Million; Confirmation Letter of Procurement Paves the Way for Initial Deliveries to SAIC and Others Through China Unicom
NEW YORK, NY--(MARKET WIRE)--May 29, 2007 -- Orsus Xelent Technologies, Inc. (AMEX [img]redface.gif[/img] RS - News), a designer and manufacturer of award-winning mobile phones for the Asian market, which has been selected as the main mobile devices provider for the State Administration For Industry & Commerce (SAIC) of the People's Republic of China, today said it shortly expects to begin partial fulfillment of an anticipated 50,000+ unit order from Unicom Huasheng, valued upon completion at more than USD $20 million, for its X180 mobile phones featuring Specialized Application functions. The main customer for the initial order will be the SAIC via China Unicom.
According to the Company, the recently received confirmation Letter of Procurement for 50,000+ X180 phones to be delivered to Unicom Huasheng Telecommunications Technology Co. Ltd., an indirectly owned subsidiary of China Unicom, indicates a first delivery of 15,000 units, which Orsus expects will take place in mid-June. Orsus said the letter from Unicom Huasheng also confirms that the approval process for the final agreement for the Special Application mobile phone project and related purchase order contracts is underway and that a delivery schedule for the full order will be negotiated as a next step.
Pursuing Its Specialized Application Devices Strategy
Mr. Xavier Xin Wang, President and CEO of Orsus Xelent, commented, "We see our Specialized Application Devices as a key element of our growth strategy and are very pleased with the continuing progress being made. As previously announced, we believe that in 2007 we will sell at least 70,000 Special Application Devices, which should grow over time to more than 300,000 customized mobile devices operating on an ICEP software platform to meet the SAIC's requirements." Mr. Wang added, "As we have already indicated, we further anticipate replacement of the SAIC units every two years and the potential for recurring revenues from monthly access charges."
The Model X180 Special Application Mobile Phone
The Model X180 mobile phones feature state-of-the-art design and specialized application functions tailored to the specific operational requirements of the SAIC, stock securities firms, logistics firms etc. The X180 features a 2.8-inch TFT touch screen, 1.3 mega pixel CMOS camera, SD Memory Card support, 128MB SRAM, Samsung 400M CPU, WAP 2.0, and CDMA 1X -- packaged in a sleek design. Advanced functions, such as voice recording, GPS-One function, electronic compass, and embedded Industry and Commerce Enforcement Platform (ICEP) software are tailored for China's special application users.
The platform utilizes the CDMA 1X wireless data networks of China Unicom to integrate commercial and government information resources. This includes a customized digital administration system for SAIC departments that provides easy access for SAIC's professional law-enforcement teams. It provides technical support for SAIC officials to conduct mobile law-enforcement, commercial tax enforcement, and food safety monitoring. The public can also access useful business information through the ICEP with the proper device for a per use charge.
About Unicom Huasheng Telecommunications Technology Co, Ltd.
Unicom Huasheng, the 99.50% indirectly owned subsidiary of China Unicom, was incorporated on 1 July 2005 and is principally engaged in sales of handsets and telecommunication equipment and provision of technical services. Huasheng has been selling CDMA mobile handsets to Unicom Group since October 2005.
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. 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.
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.
Important Disclosure: This information is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the information should not be construed as advice designed to meet particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1993 and in the interest of full disclosure, we call the readers attention to the fact that DreamTick-IR is an investor relations. DreamTick-IR has been compensated $5,000 cash a month for a 1 year period along with 50,000 stock options at $4.00 for the promotion of TSTC. DreamTick-IR has been compensated $4000 cash a month for a 1 year period along with 100,000 stock options at $2.00 for the promotion of ORS.
This is neither a solicitation nor an offer to Buy/Sell futures, options or equities. No representation is being made that any account/stock will or is likely to achieve profits or losses similar to those discussed. Futures, Options and Equities trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, options or equity markets. Don't trade with money you can't afford to lose. The past hypothetical or historical performance of any trading system or methodology is not necessarily indicative of future results. There is a serious risk of loss in trading futures, options and equities
