IDT INTERNATIONAL LIMITED For Immediate Release
(Hong Kong, 29 November 2010) - Consumer electronic products manufacturer and brand distributor IDT International Limited ('IDT International' or the 'Group') (HKEx code: 167) has announced its interim results for the six months ended 30 September 2010.
For the period under review, the Group recorded a total turnover of HK$814.4 million, a rise of 17% over the HK$695.0 million achieved in the same period last year. The increased turnover was attributable both to a recovery in the retail markets of America, Europe and to new products that were launched during the period.
Gross profit was HK$262.9 million, a growth of 7% compared to HK$245.4 million in the same period last year. Implementing the 'turn aging inventory into cash programme', the prices of specified slow moving items were lowered during the review period, thereby reducing this inventory. Overall gross margin was 32%.
For the period under review, the Group managed to decrease the loss attributable to the owners of the Company to HK$1.8 million, a significant improvement over the attributable loss of HK$26.4 million recorded last year.
During the period, IDT maintained its healthy cash position. As at 30 September 2010, the cash and bank balances of the group, including short term bank deposits, were HK$610.7 million.
Sales from the Oregon Scientific brand were HK$407.3 million, a rise of 11% compared to HK$366.2 million last year. The sales achieved were 50% of the Group's total sales in the current year. Oregon Scientific should continue to benefit from the economic recovery, as is reflected in the current increase of retail sales.
Sports and Outdoor, Health and Wellness are some of the future key product categories planned for the Oregon Scientific brand. A full range of new beauty products in our collection of massagers and aroma diffusers have been introduced in the Health and Wellness line. The successful launch of these new products has been confirmed through sales in prominent chain stores and TV shopping channels. A new range of Heart Rate Monitors, Pedometers and watch products with improved features and designs, targeted especially at female consumers, is about to be launched. Market focus will be placed on the Asia Pacific region, especially in China.
By product segment, LCD Consumer Electronic Products, Electronic Learning Products and Telecommunication and Other Products accounted for 48%, 27% and 25% respectively during the period under review.
Sales of this product segment rose by 15% to HK$389.6 million. The increase in sales was mainly the result of higher sales of Oregon Scientific branded products, up 7% to HK$144.8 million, whilst ODM/OEM sales were HK$244.8 million, a 21% rise compared to last year.
To increase its competitiveness, the Group continues to develop and design higher-end innovative products, incorporating new technologies. Close collaboration with technology partners and ongoing investment in research and development are strategies implemented to improve the competitiveness of new products.
Sales amounted to HK$223.3 million, down 5% compared with last year.
In the operations side, the Group continued to strengthen the outsourcing strategy, whilst at the same time streamlining the small factory operations, to improve the overall operational efficiency.
Sales have surged by 64% to HK$201.5 million compared to the same period last year. The business has recovered well and is on track to continue with orders from customers being stable and the outlook is also encouraging.
The demand for our conference phone is promising and shipment quantities have doubled. Moreover, the demand for the 'military' radio continues to increase. During the first half, the new 'action camera' product (ATC9K) was launched and won the 'Innovation 2010, Design and Engineering Award', which is a high level testimony to the Group's innovative efforts and market leadership in this segment.
Overall, continuous improvements are being made to uplift production efficiency and lowering the costs of production, to continue to enhance the profit margins.
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About IDT International:IDT International is a holding company whose shares are publicly listed on The Stock Exchange of Hong Kong Limited. Headquartered in Hong Kong, IDT International is engaged in the design, development, manufacture, sales and marketing of innovative consumer electronic products featuring state-of-the-art liquid crystal display and microprocessor technology. Its core businesses include LCD Consumer Electronic Products, Telecommunication Products and Electronic Learning Products. Marketing is undertaken globally through its sales and marketing offices in the US, Italy, the UK, Spain, France, Germany, Australia, Brazil, China, Japan and Hong Kong. Research and development resources have been established in both Hong Kong and China while its manufacturing facilities are centred in Xixiang, Shenzhen, China.
For more corporate and product information on the IDT Group and Oregon Scientific, please access our websites at http://www.idthk.com or http://www.oregonscientific.com
Strategic Financial Relations Limited
Eveline WAN Tel: (852) 2864 4822 Email: eveline.wan@sprg.com.hk
Joanne LAM Tel: (852) 2864 4816 Email: joanne.lam@sprg.com.hk
Liza NG Tel: (852) 2114 4914 Email: liza.ng@sprg.com.hk
Gladys KONG Tel: (852) 2864 4806 Email: gladys.kong@sprg.com.hk
Fax: (852) 2527 1196/ 2111 9089
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