Posts Tagged ‘chinese telecom’

Telestone Technologies Corporation (Nasdaq: TSTC) Buzz Stock of the Day

Tuesday, October 20th, 2009

The Chinese telecomm industry leader, Telestone Technologies Corporation (Nasdaq: TSTC) , announced Tuesday that it’s Wireless Fiber Distribution System (WFDS™) passed all testing procedures of the U.S. Federal Communications Commission (FCC), including all of the existing 2G and 3G systems in the U.S. The announcement Tuesday boosted share prices 31.4 percent to a high of $11.15 from Monday’s closing price of $8.48.

The company’s proprietary Wireless Fiber Distribution System, which provides for indoor multi-services access networks, had a successful debut at the April 2009 CTIA trade show in Las Vegas. Following the trade show, the company immediately began working towards FCC compliance. To achieve this, Telestone developed a team comprised of corporate-level officers, R&D and marketing personnel, as well a partner in the United States.

Last month, the WFDS technology passed all FCC required testing procedures and Telestone was given the green light to market the product in the United States, as well as Canada, and Central and South America. The FCC certification is a substantial achievement for Telestone’s efforts to gain market share in North and South America.

Mr. Daqing Han, Chairman and CEO of Telestone, commented, “The certification of Telestone’s WFDS(TM) technology by the FCC has removed the final hurdle for us to effectively launch our marketing initiatives throughout the Americas. In the coming months, we expect to secure new contracts in the U.S. from telecommunication carriers and through our local partners while expanding our reach to countries in Latin America. Diversifying our revenue base as we move into 2010 is an important goal and we expect positive margin enhancements through increased WFDS(TM) sales.”

Industry analysts believe Telestone Technologies is poised for substantial growth in the coming years. The Chinese government has announced it will spend $70 billion over the next three years on 3G initiatives, this, coupled with Telestone’s impressive goals to increase the company’s domestic market share from 5 percent to 33 percent suggests the company plans to capture a sizable share of the government funds allocated for wireless development.

Zoom Technologies (ZOOM)- Buzz Stock of the Day

Monday, September 14th, 2009

Shares of communication products maker, Zoom Technologies, Inc.(NASDAQ: ZOOM) were up as much as 140 percent in morning trading Monday from after the company announced second quarter financials for Gold Lion Holdings, a leading Chinese mobile phone manufacturer that Zoom acquired earlier this month.

For the second quarter of 2009, Gold Lion more than tripled its revenues to $53.1 million, compared to the same period last year. Furthermore, second quarter revenues were up 84 percent sequentially. The substantial revenue growth is due in large part to a significant order from one of Gold Lion’s existing customers.

“We are most pleased to report these outstanding quarterly results following the recently announced and shareholder approved transaction with Zoom Technologies,” said Lei Gu, Chairman and Chief Executive Officer of Gold Lion. “We believe these results reflect the burgeoning mobile telecommunications business in China and our ability to drive revenues and profit in this market.”

At a special meeting on September 8, shareholders of Zoom Technologies approved the acquisition of Gold Lion Holdings. The deal is expected to close by the end of September. Under the terms of the acquisition, Zoom shareholders will hold shares in two publicly traded companies, a vertically integrated China-based manufacturer of mobile telecommunication devices called Leimone United, Inc., and its US operating company Zoom Telephonics, which will retain substantially all of Zoom’s assets, liabilities, and current operations prior to the acquisition.

Revenues weren’t the only highlight in the Gold Lion’s second quarter results. The company reported a 147 percent increase in gross profit, and a $200,000 decline in operating expenses compared to the same period last year. Gross profit as a percentage of revenue, however dipped to 5.95 percent, from 10.95 percent in the same period a year ago, primarily because of low gross margins related to a significant order the company received during the quarter.

“These results further demonstrate the value of the transaction we expect to close in September,” said Zoom’s Chairman and CEO, Mr. Frank Manning. “The mobile phone market in China is growing rapidly, and we believe Gold Lion is well-positioned to benefit from this growth.”