SHENZHEN,
For the quarter ended
"The fourth quarter was the best in our company's history. We have
achieved historic quarterly net revenue and profit figures. These results are
a testament to the company's overall quality and its ability to deliver
consistently strong results, despite certain of our end markets not growing as
fast as anticipated," said
The Company expects to report pro forma diluted earnings per share
("non-GAAP EPS"), excluding share-based compensation expense and acquisition
related costs consisting of the amortization of purchased intangible assets,
of approximately
Non-GAAP EPS for 2007 is expected to be at least
"As for 2008, I am confident that our strategies for sustained growth are
working. Downturns in the US economy have little effect on Comtech because of
our focus on the Chinese domestic market, which remains strong due to robust
consumer spending, and other emerging markets, such as
Comtech will host a teleconference on
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Interested parties may dial toll-free 1-800-762-8779 if dialing
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15 minutes prior to the start of the call. There will be a playback available
until
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About Comtech Group, Inc.:
Comtech Group, Inc. (Nasdaq: COGO) is a leading provider of customized
module and subsystem design solutions in
For further information contact: Comtech Investor Relations www.comtech.com.cn/investorinfo.html communications@comtech.com.cn H.K.: +852 2730 1518 U.S.: +1 (646) 291 8998 Fax: +86 (755) 2674 3522
Safe Harbor Statement:
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about our proposed discussions related to financial guidance and our business or growth strategy such as growth in digital media, mobile handset and telecom businesses, as well as our potential acquisitions which are subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. For a further descriptions of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings, including our most recent S-1 Form and/or S-3. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov.
About Non-GAAP Financial Measures:
To supplement Comtech's consolidated financial results presented in accordance with GAAP, Comtech uses the following measures defined as non- GAAP financial measures by the SEC: 1) non-GAAP net income, which is net income excluding share-based compensation expenses and acquisition related costs such as amortization of purchased intangible assets, 2) non-GAAP basic and diluted earnings per share, which is basic and diluted earnings per share excluding share-based compensation expenses and acquisition related costs such as amortization of purchased intangible assets, 3) non-GAAP income from operation, which is income from operation excluding share-based compensation expenses and acquisition related costs such as amortization of purchased intangible assets and 4) non-GAAP operating margin, which is operating margin excluding share-based compensation expenses and acquisition related costs such as amortization of purchased intangible assets. The presentation of these non- GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
Comtech believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses and acquisition related costs such as amortization of purchased intangible assets that may not be indicative of its operating performance from a cash perspective. Comtech believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Comtech's historical performance and liquidity. Comtech computes its non-GAAP financial measures using the same consistent method from quarter to quarter. Comtech believes these non- GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income, non-GAAP basic and diluted earnings per share , non-GAAP income from operation and non-GAAP operating margin is that these non-GAAP measures exclude share-based compensation charges and acquisition related costs such as amortization of purchased intangible assets that have been and will continue to be for the foreseeable future a recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Tables Attached COMTECH GROUP, INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (UNAUDITED) For the year For the year ended ended Dec 31, 2007 Dec 31, 2006 Earnings per share $ $ GAAP net income per share - Diluted 0.54 0.47 share-based compensation expense and acquisition related costs consisting of the amortization of purchased intangible assets per share 0.17 0.06 Non-GAAP net income per share - Diluted 0.71 0.53 For three For the three months ended months ended Dec 31, 2007 Dec 31, 2006 Earnings per share $ $ GAAP net income per share- Diluted 0.16 0.13 share-based compensation expense and acquisition related costs consisting of the amortization of purchased intangible assets per share 0.06 0.03 Non-GAAP net income per share- Diluted 0.22 0.16
SOURCE Comtech Group, Inc.