Cogo Group Inc. (COGO) reported second-quarter revenues of $73.6 million, an increase of 7.9%, compared to $68.2 million in the corresponding quarter last year. 

The net revenue breakdown is as follows: $23.6 million, or 32.0% of total revenue for mobile handsets, similar to the year-ago quarter; $18.6 million, or 25.2% of total revenue for telecommunications equipment, representing a 6.9% decrease year over year; and $21.8 million, or 29.6% of total revenue for digital media products, similar to the prior-year quarter.
 
Income from operations was $2.3 million, down 60.5%, compared to $5.8 million in the year-ago period. Operating margin for the quarter was 3.1% versus 8.6% in the prior-year quarter.
 
Net income attributable to Cogo Group for the second quarter was $2.5 million or EPS attributable to Cogo Group of 7 cents on a U.S. GAAP basis, compared to net income attributable to Cogo Group of $6.5 million, or EPS attributable to Cogo Group of 16 cents in the year-ago period.
 
The Company continues to be in a strong financial position with a current ratio of 4.0 to 1. Inventory turnover was 31 days. The company had bank borrowings of $4.4 million while total equity was $215.9 million as of Jun 30.

Based on current visibility and new business in the pipeline, management has provided revenue guidance of $79-80 million for the third quarter and Non-GAAP EPS attributable to Cogo Group of 16 to 17 cents, which excludes expenses related to stock-based compensation and amortization.

The Zacks Consensus Estimate for the third quarter currently stands at 12 cents, including expenses for FAS 123(R).

Cogo Group and its subsidiaries provide customized module design solutions for a diverse set of applications and end markets, serving as a gateway for technology component suppliers to access leading electronics manufacturers in China.

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