SHENZHEN, China, Dec. 5 /Xinhua-PRNewswire/ -- Diguang International Development Co., Ltd. (OTC Bulletin Board: DGNG) ("Diguang"), an emerging, China-based leader in the manufacture of CCFL and LED backlights for the LCD display industry, today announced that its President and CEO, Song Yi, has issued a letter to shareholders that is publicly available on the Company’s web site at http://www.diguangintl.com .
(Logo: http://www.prnasia.com/xprn/sa/200708301921.JPG )
Highlighting the Company’s return to profitability in the third quarter of 2007, following three quarters marked by industry-wide pricing pressure and oversupply issues, Mr. Song’s letter reviews strategies and policies that have supported the turnaround.
The key strategies are global positioning both in marketing and production, continued expansion of the Company’s backlight product lines from smaller formats into medium- and large-size formats, and keeping pace with an industry-wide shift from CCFL backlight technology into LEDs. "LED technology has advantages in energy savings, a smaller product profile, longer product lifetimes and a more favorable environmental scorecard that involves no mercury," notes the letter.
Mr. Song further states, "Larger-size products are usually associated with higher inventory costs. In order to avoid the risks of obsolescence and to keep our working capital from being tied up in inventory, we have adopted a consignment strategy, asking our customers to purchase parts for their own products."
Mr. Song hails the growing market demand for a new, mid-size backlight application, the digital photo frame, which he dubs "a perfect Christmas gift" and credits with helping to bring the Company’s plant in Guangdong to 100% capacity utilization. Bucking adverse industry trends, Diguang has added capacity over the past year and now has a manufacturing presence in each of the three most important display manufacturing regions in China.
To providing context for the large-volume mobile phone backlight order from Samsung SDI that the Company recently announced, Mr. Song briefly recaps Company history and concludes, "our trajectory is an exciting and promising one."
"One tactical approach will be to compete successfully in ‘upstream’ LED disciplines, such as LED chipmaking, LED packaging and driver IC design ... Another tactical thrust will be to expand in areas outside the TFT-LCD display industry, such as general LED lighting. And we expect our recently announced reorganization into discrete profit centers, each accountable for its own profit/loss profile, to empower our team members to excel in these initiatives," he states.
About Diguang International Development Co., Ltd.
Diguang, through its subsidiaries, specializes in the research, development, production, sale and distribution of backlights and backlight technologies. A backlight is the typical light source of a liquid crystal display (LCD). The Company is focused on providing LED and CCFL backlights for international producers of televisions, monitors, cellular phones, digital cameras, DVDs and other home appliances. Diguang currently develops an average of approximately 50 new products per month. Diguang is a Nevada corporation with its manufacturing subsidiary located in Shenzhen, PRC, and its sales and marketing subsidiary located in the British Virgin Islands.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the uncertainty of future Company results, the course of the Company’s relationships with customers, business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of backlights; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company’s periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.
For more information, please contact:
Company Contact:
T.C. Shen, Assistant to the President
Diguang International Development Co., Ltd.
Tel: +1-626-593-5486
Investor Relations Contact:
Sean Collins, Senior Partner
CCG Elite
Tel: +1-310-477-9800 x202
