Orsus Xelent Technologies 2004 Income at $8.7 Million on Revenues of $70.8 Million.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Orsus Xelent Technologies, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : ORXT), a China-based designer of mobile phones, today announced that, for the fiscal year ended December 31, 2004, it achieved net income of $8,699,000 on revenues of $70,822,000, compared to a net loss of $115,000 on revenues of $5,000 for 2003. Orsus Xelent was formed in May 2003, initiated product sales in April 2004 and commenced trading as a public entity via a reverse merger transaction finalized See finalization. on March 31, 2005. Using the current total of 29,756,000 fully 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. outstanding shares, the company had earnings of $0.292 per share in 2004, compared to a net loss of $0.004 per share in 2003. Total assets at December 31, 2004 exceeded $29.0 million, with no long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than . Orsus Xelent's revenue growth in 2004 was primarily the result of strong market demand within the PRC for moderately-priced, feature-rich mobile phones. The company's earnings performance in 2004 was mainly attributable to its strong revenue growth over 2003, profit margin efficiencies created by utilization of two strategic partners providing low-cost manufacturing capacity and extensive sales and distribution networks, and the company's exemption from income tax pursuant to PRC tax laws covering wholly-owned foreign investment enterprises (WOFIE). The company will benefit from full exemption from PRC enterprise income tax in 2005 and 2006 and 50 percent reduction from the PRC enterprise income tax through WOFIE from 2007 to 2009. President and chief executive officer, Mr. Wang Xin, said, "Orsus Xelent could derive significant growth in 2005 from the continuing rapid increase in mobile subscribers in the PRC, the continuing migration of Chinese consumers toward PRC-based cell phone manufacturers, and the expected government approval in China of 3G (Third Generation) high-speed mobile technology. "We plan to achieve optimum market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" by introducing a series of low to moderately priced new products with such popular features as music players, MPEG-4, PMP See point-to-multipoint and portable media player. PMP - Portable Media Player , 1-plus mega pixel cameras and intelligent handwriting. We will accelerate the speed of product launch to market in order to enhance our gross margins. As result, we expect our revenues and earnings will demonstrate steady growth in 2005." As of April 2005, the company held approximately one percent of the mobile phone market in the Peoples Republic of China. In 2004, the PRC added 64 million mobile phone users, bringing total year-end subscribers to 334 million, the largest for any nation in the world. This number is expected to reach over 500 million by 2007, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. research conducted by Nokia China. Orsus Xelent Technologies, Inc. is a designer of feature-rich mobile phones in the Peoples Republic of China. These features include 1.8-inch TFT (Thin Film Transistor) The term typically refers to active matrix screens on laptop computers. Active matrix LCD provides a sharper screen display and broader viewing angle than does passive matrix. See LCD and thin film. TFT - Thin Film transistor dual-color display, 2 hours video/10 hours audio recording, 300K to 1.3 million pixel photography, MP3 support, dual stereo speakers, multimedia messaging, 40 to 64 polyphonic The ability to play back some number of musical notes simultaneously. For example, 16-voice polyphony means a total of 16 notes, or waveforms, can be played concurrently. ring tones, flip-phone technology and innovative lightweight design The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . Orsus achieves optimum market penetration via collaboration with two strategic partners: CEC (Central Electronic Complex) The set of hardware that defines a mainframe, which includes the CPU(s), memory, channels, controllers and power supplies included in the box. Some CECs, such as IBM's Multiprise 2000 and 3000, include data storage devices as well. Cellular Limited provides low-cost production capacity as well as extensive sales and distribution networks; Beijing Xingwang Shidai Tech & Trading Co., Ltd. provides provincial distributors, city distributors and dealers with extensive sales networks throughout the PRC. For further information, please consult the company's web site: www.orsus-xelent.com. Information Regarding 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. : Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the 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. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.
Consolidated Statement of Operations
From
Year ended May 6, 2003 to
December 31, December 31,
2004 2003
USD'000 USD'000
Operating revenues:
Net sales 70,822 5
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Operating expenses:
Cost of sales 56,231 4
Sales and marketing 3,314 17
General and administrative 1,435 100
Research and development 586 -
Depreciation 598 3
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Total operating expenses 62,164 124
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Operating income (loss) 8,658 (119)
Interest expense (143) -
Other income, net 64 4
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Income (loss) before income taxes and
minority interest 8,579 (115)
Less: provision for income taxes - -
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Income (loss) before minority interest 8,579 (115)
Minority interest 120 -
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Net income (loss) 8,699 (115)
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