Asia Time Reports 2008 Second Quarter Financial Results.Reports 82.7% Year-over-Year Revenue Growth and $3.2 Million in Net Income HONG KONG Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. & LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- Asia Time Corporation (Amex:TYM TYM Thank You Much TYM Tao Yeu Mai (Vietnamese: People Loving People; Vietnam microfinance) TYM Total Yeast & Mold Count ) ("Asia Time") today announced financial results for the second quarter ended June 30, 2008. Second Quarter Financial Highlights * Revenue growth of 82.7% year-over-year to $38.1 million, compared with $20.9 million for the second quarter of 2007 * 71.1% increase in watch movements segment sales; and complete watch segment sales more than doubled year-over-year * Net income of $3.2 million, or $0.11 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with second quarter 2007 net income of $1.2 million, or $0.05 per diluted share "We are pleased to report another quarter of notable growth driven by increased sales of both our watch movements and completed watches," said Kwong Kai kai Noun NZ informal food [Maori] kai noun N.Z. (informal) food, grub (slang) provisions, fare, board, commons, eats (slang Shun Shun In Chinese mythology, one of the three legendary emperors, along with Yao and Da Yu, of the golden age of antiquity (c. 23rd century BC), singled out by Confucius as models of integrity and virtue. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Asia Time. "We are expanding our capabilities in both our core quartz quartz, one of the commonest of all rock-forming minerals and one of the most important constituents of the earth's crust. Chemically, it is silicon dioxide, SiO2. movements and complete watch and emerging mechanical watch business segments where we see significant growth opportunities. "In addition to diversifying and expanding our own quartz movement and complete watch product portfolio, as we go forward we plan to produce and assemble mechanical watch movements and complete watches for direct sales to international brand names. The high growth mechanical watch market is vastly under-supplied and requires highly sophisticated production and skilled labor. We believe we will be at an immediate competitive advantage by being one of the highly skilled volume producers of mechanical watches in China," Mr. Kwong added. "During the second quarter we identified two potential acquisition targets. One of the targets is a full-range manufacturer of plastic and metal watch parts and the other is a supplier of analog watches. If we are to acquire the former, we believe it will contribute to our strategy of producing low-end quartz movements in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. . If we are to acquire the latter, we believe it will result in an increased production of mechanical watches." 2008 Second Quarter Financial Results Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the second quarter ended June 30, 2008 increased 82.7% to $38.1 million, compared with $20.9 million for the second quarter ended June 30, 2007. Second quarter gross profit more than doubled to $5.3 million, compared with $2.3 million for the second quarter of 2007. Gross margin was 13.8% for the second quarter of 2008, compared with 11.3% for the second quarter of 2007. The increase in gross margin was primarily attributable to an increase in sales of high-end products and improved economies of scale. Sales of watch movements increased 71.1% to $32.5 million for the second quarter of 2008 from $19.0 million for the second quarter of 2007. Sales of completed watches increased to $5.6 million for the second quarter of 2008 from $1.9 million for the second quarter of 2007. Administrative and other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. totaled $727,000 for the second quarter of 2008, compared with $559,000 for the second quarter of 2007. The increase in the 2008 period was primarily due to an increase in professional fees related to reporting requirements as a public company and additional employees and upgraded staff benefits. Income taxes for the second quarter of 2008 were $669,000, or 1.8% of net sales, compared with $314,000, or 1.5% of net sales, for the second quarter of 2007. The increase in income taxes was primarily due to an increase in operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . The taxation rate decreased from 17.5% for the second quarter 2007 to 16.5% for the second quarter of 2008. Net income for the second quarter of 2008 was $3.2 million, or $0.11 per diluted share, based on 28.8 million weighted average shares outstanding. This compares with second quarter 2007 net income of $1.2 million, or $0.05 per diluted share, based on 25.4 million weighted average shares outstanding. Year-to-Date Financial Results Net sales for the six months ended June 30, 2008 increased 78.5% to $75.0 million, compared with $42.0 million for the period ended June 30, 2007. Gross profit for the first half of 2008 increased 96.6% to $11.0 million, compared with $5.6 million for the first half of 2007. Administrative and other operating expenses for the first half of 2008 totaled $2.3 million and included a stock-based business consulting fee of $700,000. This compares with administrative and other operating expenses of $2.6 million for the first half of 2007. The 2007 period includes a one-time recognition of $1.7 million of stock-based compensation pursuant escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. shares provided to Mr. Kwong related to a January 2007 private placement. Year-to-date net income was $5.7 million, or $0.21 per diluted share, based on 27.1 million weighted average shares outstanding. This compares with net income of $1.0 million, or $0.04 per diluted share, based on 24.6 million weighted average shares outstanding for the first half of 2007. Balance Sheet and Financing At June 30, 2008, Asia Time's cash and cash equivalents totaled $1.8 million and total assets were $64.0 million. Working capital totaled $30.9 million. Financial Targets Asia Time reiterated its financial targets and expansion strategies: * Target 30% growth in both revenue and net earnings for 2008 and 2009; * Increase focus on the complete watch market in China; * Expand sales force in China to reach the Eastern and Northern regions; and * Pursue strategic acquisitions of China-based facilities for low-cost, in-house manufacturing capabilities. About Asia Time Corporation Asia Time is a watch movement and watch distributor headquartered in Hong Kong. The Company distributes watch movement components used in the manufacture and assembly of watches to a wide variety of timepiece manufacturers. Asia Time markets more than 350 products from over 30 vendors, including such market leaders as Citizen, Seiko and Ronda. For more information, please visit www.asiatimecorp.com. To be added to the Company's email distribution for future news releases, please send your request to asiatime@finprofiles.com. Forward Looking Statements This press release contains certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ," as defined in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to, our dependence on a limited number of suppliers, cyclicality of our business, decline in the value of our inventory, significant order cancellations or delays, competitive nature of our industry, vulnerability of our business to general economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , our ability to obtain all necessary government certifications and/or licenses to conduct our business, changes in the laws of the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China that affect the Company's operations, costs and expenses related to our bond and warrant financing; development of a public trading market for the Company's securities, cost of complying with current and future governmental regulations and the impact of any changes in the regulations on the Company's operations and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . The risks included here are not exhaustive. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 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