2Q08 Revenue Reached $3.14 Million and 1H08 Revenue Achieved $5.14 Million
2Q08 EBITDA Reached $0.7 Million and 1H08 EBITDA Achieved $1.4 Million
JINAN, Shandong, China, Aug. Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- China VoIP & Digital Telecom Inc. (OTC Bulletin Board: CVDT) and its wholly owned subsidiary Yinquan Technology Inc, a leading provider of broadband telephone and information services, today announced strong audited
second-quarter and first half 2008 financial and operational results.
During the three months ended June 30, 2008, CVDT achieved record revenue of $3,135,963, an increase of 147% or $1,868,096 compared to $1,267,867 during the same period of 2007.
During the six months ended June 30, 2008, CVDT achieved record revenue of $5,135,754, an increase of 128% or $2,879,703 compared to $2,256,001 in the same period of 2007.
The increase in revenue was mainly driven by the expansion of CVDT’s customer base and the enhancement of revenue per customer. The company’s value-added service offerings such as call centers also contributed to the revenue improvement.
EBITDA for the quarter was a record $701,008, a 355% increase compared to $154,189 in the same quarter of 2007. In the first half of 2008, the company’s EBITDA reached $1,410,448, increased 383% compared with $292,218 in the first half of 2007.
CVDT reported earnings per share of $0.10 in 2Q08, compared to $0.0025 in the same period last year.
In releasing the company’s financial results, Mr. Kunwu Li, CVDT’s CEO, commented, "In the first half of 2008, we saw growth in our customer base and improvement in our business. We will launch a new product -- the International Business Communication Center (IBCC) platform -- in the middle of August to fuel our growth in the second half of 2008. We believe 2008 will be an important year for us as CVDT continues to progress on the right track. We will consistently execute on our corporate development strategies to enhance our business through organic growth and mergers and acquisitions activity.”
Mr. Li reiterated the company’s full-year expectations of $16 million in revenue and $4.6 million in EBITDA. He stated that due to the seasonality in CVDT’s business, the fourth quarter is normally the strongest quarter during the year. He added, "The new products and services which will be launched in the next few months should help grow the company’s revenue in the later part of 2008. CVDT continues to focus on providing its customers unique products and quality services, which should give us sustainable growth in 2008 and beyond."
About China VoIP & Digital Telecom Inc.
China VoIP & Digital Telecom Inc. offers Voice over the Internet Protocol telecommunications service in People’s Republic of China through its wholly owned subsidiary Jinan Yinquan Technology Co., Ltd. Through Jinan Yinquan, China VoIP is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its NP Soft Switch system in China and is currently in the testing stage of other Information Technology products.
More information can be found at http://www.chinavoip-telecom.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as ‘believe,’ ‘expect,’ ‘may,’ ‘will,’ ‘should,’ ‘project,’ ‘plan,’ ‘seek,’ ‘intend,’ or ‘anticipate’ or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People’s Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact:
Yinquan Investor Contact:
Michelle Wong
Tel: +86-531-8702-7114
Email: michellewong@yinquan
Great Wall Research LLC
John Armstrong
Tel: +1-203-536-1928
Email: jarmstrong@greatwallresearch.com
