omniture

SinoHub Reports Profits on Target after One Time Expenses, Sharply Increased Revenues

2008-08-15 11:20 1785

Company Benefits from Growth of Electronics Consumption in China

SHENZHEN, China, Aug. 15 /Xinhua-PRNewswire/ -- SinoHub, Inc.

(OTC Bulletin Board: SIHI) announced financial results for second quarter of 2008 and the six months ending June 30, 2008. The second quarter of 2008 was a transformational quarter for SinoHub. On May 14, 2008 a reverse take over (RTO) of Liberty Alliance, Inc., a Delaware C corporation that was a trading shell on the NASD OTCBB, was completed. As a result of this transaction, the corporate entity which was SinoHub, Inc. prior to the RTO was subsequently renamed SinoHub International, Inc. and Liberty Alliance, Inc. was renamed SinoHub, Inc.

Total revenue increased 117.3% to $13.2 million in Q2 2008 from $6.1 million in Q2 2007 due to continued strong demand for the Company’s services. Total revenue for the six months ended June 30th was $24.8 million, up 120.6% from the $11.3 million recorded in the year earlier period.

Net income for the second quarter of 2008 was $539,954 versus $964,577 million in the year-earlier period. Non-GAAP results showed Comprehensive Income (GAAP Net Income plus foreign currency translation gain) of $719,495 in the second quarter of 2008 versus $1,009,549 in the year earlier period. These results for Q2 2008 include a one time non-cash expense of $433,500 in the form of stock payments to consultants to facilitate the RTO transaction and there were one time cash expenses of roughly $146,000 associated with the RTO. Excluding these one time non-operational expenses, net income would have been $1.12 million in the second quarter of 2008, or a 16.1% gain over the year earlier period. Net income for the six months ended June 30th was $1.63 million compared to $1.66 million in the year earlier period.

Fully diluted earnings were $0.03 per share in Q2 2008 versus $0.05 per share in Q2 2007 based on an average of 19,191,978 common shares outstanding and options to purchase 449,767 common shares reserved for issuance under the Company’s incentive stock option plan in the second quarter of 2008 and 18,290,000 shares on a fully diluted basis in the second quarter of 2007.

A leading electronic components supply chain management (SCM) service provider, SinoHub provides SCM services to electronics manufacturers and component suppliers in the Peoples’ Republic of China. The company’s professional supply chain management platform integrates its proprietary, world-class online MIS software system (SinoHub SCM), logistics service centers located in key distribution/manufacturing cities in Hong Kong and China, and a service team of more than 100 people with extensive knowledge in electronics.

"The second quarter of 2008 showed accelerated revenue growth and this bodes well for future financial performance," said Willa Li, CFO of SinoHub, Inc. "Although we incurred some unusual expenses with our reverse merger we achieved our targets."

"Now that SinoHub is a public company in the U.S., we have many more options for funding, and we are receiving even more recognition of the value of our SCM platform," said Harry Cochran, CEO of SinoHub, Inc. "We believe that our growth rate will accelerate very significantly in the second half of 2008 based on continued strong demand for our services and greater financial resources, which will enable us to take advantage of more opportunities. The on-time opening on July 2nd of our new 26,500 square foot warehouse in Hong Kong has removed the only other constraint on our growth. Since most of our manufacturer customers are selling into the Chinese market, we do not anticipate any negative effect from slowdowns in some of the other world economies."

About SinoHub

SinoHub, Inc. was founded by veteran entrepreneur Harry Cochran and electronic component industry veteran Lei Xia to facilitate the electronics revolution in China by providing world-class services and transparent information access for all participants in the electronic components supply chain in China. For more information, please visit our Web site at http://www.sinohub.com .

Cautionary Statement Regarding Forward-looking Information

The statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws. Such statements include, but are not limited to, the company’s accelerated growth rate in the second half of 2008. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. SinoHub undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact:

SinoHub, Inc.

Nicole Cheung

Tel: +86-755-2601-2481

Email: nicole@sinohub.com

Source: SinoHub, Inc.
Related Stocks:
AMEX:SIHI
collection