SGOCO Group Ltd., a company focused on building its own brands and retail distribution network in the Chinese flat panel display market, including monitors, TVs, and application specific products, today announced its audited financial and operating results for the full year ended December 31, 2010.
Total revenue for 2010 increased 220.2 percent to a record $217.3 million, compared to $67.9 million reported for 2009. The company attributes the strong results primarily to the addition of new customers, backed by increased deals from existing customers, as well as strong growth in exports.
Gross margin was 5.1 percent compared to 14.9 percent.
Operating income increased 180.7 percent to $25.6 million as compared to $9.1 million reported for the year prior.
Net income was reported at $19.9 million, or $1.86 diluted earnings per share, up 178.4 percent over the $7.2 million, or $0.84 diluted earnings per share, reported for 2009.
As of December 31, 2010, cash and restricted cash was approximately $30 million and working capital was $38.7 million, compared to $11.4 million and $7.9 million as of December 31, 2009, respectively.
SGOCO’s business model is marketing-driven with multiple channels and multiple brands, and has three principal elements: 1) a distinct distribution channel in the form of a national network of independent retail outlets operating under the “SGOCO Image” name; 2) an actively-managed portfolio of brands that have strong local appeal; and 3) a world-class quality, design engineering, and product development capability that supports the company’s distribution channels and brand portfolio.
The company’s portfolio includes six different high quality brands which it distributes to the emerging Chinese consumer through more than 600 SGOCO Image retail partners. The company said it expects to increase its distribution network in 2011 and reach more than 1,000 SGOCO Image retail partners by the end of the year.
For more information visit www.sgocogroup.com