Attached files
| file | filename |
|---|---|
| 8-K - Orsus Xelent Technologies Inc | v206995_8k.htm |
Exhibit 99.1
Orsus
Xelent Anticipates 2010 Sales of Approximately $25.1 Million and Small Fourth
Quarter Profit;
Shareholders
Approve Authorization for a Reverse Split
Beijing, China--(January 3, 2011)-
- Orsus Xelent
Technologies, Inc. (NYSE
Amex: ORS), a China-based designer and
manufacturer of award-winning mobile phones for the Asian market, announced
today the Company anticipates sales for the year ended December 31, 2010 of
approximately $25.1 million (unaudited), compared with $77.4 million in
2009. The Company said that preliminary unaudited results for the
fourth quarter 2010 indicate sales in the period of $5.1 million, on which the
Company achieved a small net profit of approximately $235,000. As a
consequence, the Company anticipates trimming its net loss in 2010 to ($349,775)
compared with a reported net loss in 2009 of approximately ($6.4
million). The Company expects to report audited results on March 31,
2011.
Competitive
Environment
Mr. Guoji
Liu, the CEO of the Company, explained that of the 400,950 cell phones sold by
the Company in 2010, approximately 71% were low margin products sold for between
RMB 500 to RMB 1,200, as the Company sought to maintain market position in the
midst of the continuing market reshuffling by the major telecom
carriers. The overall number of cell phone users in China was up
15.7% during the year. However, in the fourth quarter, as telecom
networks were upgraded, competition was particularly fierce in smart phones on
3-G platforms as the telecom carriers launched a series of campaigns to build
market share with ultra-cheap phones. Low end CDMA phone sales
also increased as many customers shifted to them from Xiao Linton
phones. According to Mr. Liu, the Company was slow to react to the
shift in the market, and did not penetrate the carriers to gain subsidies
achieved by other cell phone makers.
Hopeful
About 2011
Looking
ahead, Mr. Liu said, “In 2011 the Company will be more attuned to the needs of
the carriers and cooperate with them on their needs for low-end
devices.” He added, “At the same time, we also will try to increase
our sales of high-end devices to increase our profit margins. To
support this, we plan to spend more on R& D to build devices on advanced
platforms in line with anticipated industry trends, and modulate our business
strategy as we are hopeful we will achieve better results during the
year.”
Other
Matters
The
Company reported that more than two-thirds of shareholders approved a proposal
at the Annual Meeting of shareholders on December 30, 2010, to permit the Board
of Directors to authorize a reverse split of the Company’s common stock with a
ratio of up to 30 to 1. Shareholders also elected five directors and
approved the appointment of independent auditors.
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.
Contact:
PRC
Orsus
Xelent Technologies, Inc.
Guoji
Liu
CEO
Tel:
010-85653777
Fax:
010-85653666