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T-Bay Holdings Reports First Nine Months and Third Quarter 2007 Results

2007-02-16 13:05 764

SHANGHAI, China, Feb. 15 /Xinhua-PRNewswire-FirstCall/ -- T-Bay Holdings, Inc. (OTC Bulletin Board: TBYH), a leading mobile telecommunications device designer, today announced financial results for its first nine months and third fiscal quarter ended December 31, 2006. Full details of the Company's year-end financial results are available in the Company's Form 10-QSB at http://www.sec.gov.

For the nine months ended December 31, 2006:

-- Revenues totaled $25,872,000, a 34.2% increase from revenues of

$19,284,000 for the same period in the previous fiscal year.

-- Gross profit was $13,421,000, an 11.9% growth as compared with

$11,993,000 during the same period in the previous fiscal year.

-- Net income totaled $8,309,000, a 5.0% increase as compared with

$7,915,000 for the same period in the previous fiscal year.

Third Quarter 2007 Financial Results:

* Revenues for the third quarter of fiscal 2007 totaled $11,212,000, a

42.8% increase from revenues of $7,851,000 for the third quarter of

fiscal 2006.

* Gross profit totaled $5,787,000 in the third quarter of fiscal 2007,

a decrease of 11.2% over gross profit of $6,517,000 in first quarter

of fiscal 2006.

* Net income totaled $3,732,000 in the third quarter of fiscal 2007, a

21.1% decrease from net income of $4,732,000 in the third quarter of

fiscal 2006. The Company reported earnings per share of $0.12 for

the third quarter of fiscal 2007, versus $0.16 for the third quarter

of fiscal 2006.

For the three months ended December 31, 2007, the 42.8% growth in revenue from $7,851,000 to $11,212,000 was mainly attributed to growth of sales of handsets and components. The revenue from sales of handsets and components was totaled $5,407,000 compared $565,000 for the same period of 2006, represented a 857% growth, accounted for 48.2% in total revenue, compared only 7.2% in the same period last year. The revenue from design services, which have higher profit margin, was down 20.3% from $7,286,000 to 5,805,000, accounted for 51.8% of total revenue.

Mr.Xiaofeng Li, the CEO of T-Bay commented, "The growth of revenue is due to more orders received for PCB and PCBA boards from our customers. On the other hand, in order to broaden and strengthen our product design portfolio, and taken into consideration the potential shift of business focus of one of our current chipset platform providers, we have entered into cooperation project with a new chipset platform supplier, i.e. VIA, MTK, since the second quarter of fiscal 2007. During the transition period with this new platform provider, the number of new phone designs we rolled out in the third quarter was lower than that during the same period last year. This has resulted in a decrease in net income during the third quarter. The cooperation with the new chipset platform provider is in good progress. Since we introduced the first VIA design solution to the market in November 2006 up to December 31, 2006, the revenue generated by VIA-based solutions accounted for 35.1% of our total design revenue. We anticipate the new series of design solutions based on VIA platforms will continue to become a strong driver of our design revenue.

Xiaofeng, Li added, "Our team worked with VIA chipset solutions very well and the transition period has taken only a few months. We expect to have strong revenue growth through the whole 4th Quarter. With more new solutions to be introduced, we continue to expect a 25-35% growth in net profit for the whole fiscal year ended 2007."

About T-BAY Holdings, Inc.

T-BAY conducts its mobile phone design business through its 95% owned subsidiary, Shanghai SunPlus Communication Technology Co., Ltd. ("SunPlus"). Established in October 2002, SunPlus is a Sino-foreign joint venture providing total solution and full-range design services to leading mobile handset brand owners in China. The broad spectrum of services that SunPlus provides include overall product design, mechanical design, module architecture design, software design, prototype production, product testing, manufacturing and after-sale technical support. The Company currently has a staff of 160, comprised mostly of engineers and software programmers.

SunPlus develops its mobile phone modules based mainly on the chipset platform provided by SKYWORKS. Currently, major customers of SunPlus include CECT, Panda Electronics and Siemens Mobile.

SunPlus was jointly formed by Wise Target International Limited, Amber Link International Limited and Shanghai Fanna Industrial Product Design Co., Ltd. Wise Target and Amber Link are 100% subsidiaries of T-BAY Holdings, Inc. and they altogether hold 95% shareholding in SunPlus.

Safe Harbor Statement

Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur.

For more information, please contact:

Jack Zeng

Tel: +86-135-0228-9836

Email: zeng888888@hotmail.com

Philip Wang

Tel: +86-21-2402-8587

Email: philipw@SunPluschina.com.cn

Source: T-Bay Holdings, Inc.
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