IDT INTERNATIONAL LIMITED
[For Immediate Release]
(Hong Kong, 27 November 2009) -- Consumer electronic products manufacturer and brand distributor IDT International Limited ("IDT International" or the "Group") (HKEx code: 167) today announced its interim results for the six months ended 30 September 2009.
Revenue was HK$695.0 million, a drop of 24% compared with the same period last year. The decline was mainly attributable to slack retail market particularly in Americas and Europe. Gross profit was HK$245.4 million. To cope with the sluggish consumer demand across global markets, the Group initiated a "turn inventory into cash programme". It lowered the prices of certain slow moving items during the review period, which led to a decrease in overall gross margin from 41% to 35%, but helped to clear some of the slower moving inventory. Loss attributable to owners of the Company was HK$26.4 million, compared with profit of HK$8.6 million for the corresponding period last year.
The Group maintained healthy financial position during the period. As at 30 September 2009, the cash and bank balances were HK$635.4 million, the inventory balance was HK$297.0 million, increased by 19% compared to that of 31 March 2009. The increase in stock level was primarily to cater for the increase demand of the products in the second half of the financial year.
The Directors do not recommend payment of interim dividend for the six months ended 30
September 2009 (2008: nil).
Sales from the Oregon Scientific brand was HK$366.2 million, a reduction of 33% compared with the same period last year, representing 53% of the Group's total sales. New product categories launched in the reporting period, including "Wellness and Health" and innovative weather station products. Oregon Scientific was also expanded into emerging markets including China and those in Asia Pacific regions while new distribution partners and customers were identified in Europe and Asia to drive development of the new strategic Wellness and Health product category. E-commerce on-line platform in its website has been set up so as to reach consumers directly through its websites.
IDT International Announces FY2009/2010 Interim Results
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LCD Consumer Electronic ProductsSales of the segment amounted to HK$337.4 million, down by 18% compared with the same period last year, representing 49% of the Group's turnover. The decline in sales was mainly the result of decreased sales from Oregon Scientific. However, there was slightly growth in sales of ODM products. The uncertain economic environment has prompted consumers to trim spending or delay buying decisions.
Electronic Learning ProductsSales of the segment amounted to HK$234.9 million, a 33% decrease compared with the same period last year, representing 34% of the Group's turnover. The decline was mainly attributable to the decreased sales from Oregon Scientific, which saw a shrink in orders from certain toy retailers in the US and Europe. However, sales to existing and new private label customers reported growth. For the segment, the Group has continued to develop new product categories and a new line of children's learning products under a new toy license will be launched.
Telecommunication and other ProductsSales decreased by 22% to HK$122.7 million and accounted for 18% of the Group's turnover. The dwarfed ODM sales were the result of intensive competition in cordless phone product prices and slack customer demand in the US and Europe during the review period. However, it recorded improved sales from Oregon Scientific. With markets on the general pick up, the Group recently launched a New Marine Radio and new Cordless Phone products and are waiting to see the response of the markets.
Outlook
The Group is encouraged to see signs of recovery in the global economy, but it does not expect consumer confidence in the US and European markets to return in the short term. Thus, the Group will focus on growing business in emerging markets such as Mainland China.
The Group will continue to drive innovation and develop new product categories such as Wellness and Health, and Sports & Fitness and strengthen Oregon Scientific as a global lifestyle smart living brand. It plans to expand to new markets and new channels, explore new networks, and recruit distributors to broaden channel coverage and facilitate better market penetration. Moreover, it will continue to achieve productivity gain by strengthening centralised supply chain management and improving its operational efficiency.
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IDT International is a holding company whose shares are publicly listed on The Stock Exchange of Hong Kong Limited. Headquartered in Hong Kong, IDT International and member company, IDT Holdings (Singapore) Limited (listed on The Singapore Exchange Securities Trading Limited), are engaged in the design, development, manufacture, sales and marketing of innovative consumer electronic products featuring state-of-the-art liquid crystal display and microprocessor technology. Its core businesses include LCD Consumer Electronic Products, Telecommunications Products and Electronic Learning Products. Marketing is undertaken globally through its sales and marketing offices in the US, Italy, the UK, Spain, France, Germany, Australia, Brazil, China, Japan and Hong Kong. Research and development resources have been established in both Hong Kong and China while its manufacturing facilities are centred in Xixiang, Shenzhen, China.
For more corporate and product information on the IDT Group and Oregon Scientific, please access our websites at http://www.idthk.comor http://www.oregonscientific.com
For press enquiries:Strategic Financial Relations Limited
Eveline WAN Tel: (852) 2864 4822 Email: eveline.wan@sprg.com.hk Joanne LAM Tel: (852) 2864 4816 Email: joanne.lam@sprg.com.hk Jacky CHOI Tel: (852) 2114 4953 Email: jacky.choi@sprg.com.hk Gladys KONG Tel: (852) 2864 4806 Email: gladys.kong@sprg.com.hk Fax: (852) 2527 1196/ 2111 9089
Website : www.sprg.com.hk
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