CinTel Corporation Reports Fiscal Year End 2007 Financial and Operating Results

SOURCE:

CinTel Corp.

2008-04-01 05:30:00

CinTel Corporation Reports Fiscal Year End 2007 Financial and Operating Results

LOUISVILLE, KY–( EMWNews – April 1, 2008) – CinTel Corp. (OTCBB: CNCN), a leading

semiconductor and LCD assembly manufacturer, today announced financial and

operating results for the year end December 31, 2007.

For the year (twelve months ended December 31, 2007):

The Company reported total revenue for the year of $218,234,855. Finished

Goods represented $208 million in revenue, Merchandise was $2.7 million and

Services was $7.3 million. Gross profit was $19,455,396 and loss from

operations was $5,289,861. In accordance with U.S. generally accepted

accounting principles (GAAP), net loss for the year was $8,436,224.

CinTel’s President and CEO, Sang Don Kim, stated, “We are very pleased to

report our annual sales and operating results included record revenue of

just under $220 million. The accomplishments in 2007 included the

acquisition of strategic companies and integration of our products and

services. We also think that we can do more to capitalize on the

opportunities available to us and have successfully implemented corporate

initiatives that will allow our subsidiaries to leverage their assets to

increase production.

“Our 2008 initiatives include Phoenix Semiconductor Telecommunication

Suzhou (“PSTS”) China, to commence a major production expansion project.

This will allow PSTS to expand its production capacity by approximately 20

million pieces of memory products per year. PSTS’ management anticipates

that this will result in an aggregate increase of approximately $19 million

to the revenue stream of PSTS of which CinTel will recognize a significant

portion. Phoenix Digital Tech (“PDT”) is currently building a new expanded

manufacturing plant in Asan, Kyungki-Do, Korea. The new facilities will

effectively increase production capacity by four times of the current

capacity and will incorporate our current offerings and expanded Factory

Automation division upgrades. PDT expects to increase sales by

approximately $114 million during the first 12 months of operation from the

new facilities,” concluded Mr. Sang Don Kim.


                   CINTEL CORP. AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS

                YEARS ENDED DECEMBER 31, 2007 AND 2006





                                                               Restated

                                                               (Note 20)

                                                   2007          2006

                                              -------------  -------------

Revenues:

    Finished goods                            $ 208,142,199  $  16,210,675

    Merchandise                                   2,747,652      4,785,720

    Services                                      7,345,004        138,402

                                              -------------  -------------

                                                218,234,855     21,134,797

Cost of revenue:

    Finished goods                              191,819,888     15,936,096

    Merchandise                                   2,641,869      4,327,766

    Services                                      4,317,702              -

                                              -------------  -------------

                                                198,779,459     20,263,862

                                              -------------  -------------



Gross profits                                    19,455,396        870,935



Operating expenses:

    General and administrative expenses          23,519,649      2,568,989

    Research and development                              -         19,045

    Depreciation and amortization                 1,225,608        271,111

                                              -------------  -------------

                                                 24,745,257      2,859,145

                                              -------------  -------------



Loss from operations                             (5,289,861)    (1,988,210)



Other income (expenses):

    Interest income                               1,949,846        786,677

    Rental and other income                         341,991              -

    Net loss from sale of assets                   (531,003)      (117,496)

    Interest expenses                            (4,419,567)      (372,177)

    Impairment loss on investment                (5,074,539)             -

    Share of income (loss) from equity

     investment                                  (2,695,028)        16,393

    Amortization of deferred financing fees               -        (90,000)

    Foreign currency transaction gain (loss)        (83,015)        58,836

                                              -------------  -------------

                                                (10,511,315)       282,233

                                              -------------  -------------

Loss before income taxes and

 non-controlling interest                       (15,801,176)    (1,705,977)



Income tax benefit (expense) (Note 13)            1,382,769        (52,664)

Non-controlling interest                          5,982,183        (27,220)

                                              -------------  -------------

                                                  7,364,952        (79,884)

                                              -------------  -------------



Net loss                                         (8,436,224)    (1,785,861)



Other comprehensive income (loss):

     Foreign currency translation adjustments     3,638,757        591,604

     Unrealized loss on investment                  (61,667)      (722,409)

                                              -------------  -------------

                                                  3,577,090       (130,805)

                                              -------------  -------------



Other comprehensive loss before

 non-controlling interest                        (4,859,134)    (1,916,666)

About CinTel Corp. (www.cintelcorp.com)

CinTel Corp., a technology holdings company, is an emerging global leader

in the area of semiconductors and displays. CinTel has created a

conglomeration of technology products to include NAND flash memory

packaging, LCD assembly, semiconductor packaging and testing specialists,

as well as a total solution provider for memory applications for home

appliances, semiconductor and TFT-LCD application products. CinTel serves

major markets especially in China, Korea and the US. Typical customers

include Samsung Electronics, Hynix and Fairchild.

Contact:
JD Sparks
Executive Vice President
jdsparks@cintelcorp.com
502-657-6077

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