Cogo Forecasts New Revenue Potential with Upgrade of China’s Mobile Networks to 3G
(Nasdaq: COGO), a leading provider of customized module design solutions and
engineering and technology services globally, today reconfirmed its commitment
to 3G and its forecast that the upgrade of
provide a new revenue potential for the company in 2009.
Cogo’s optimism regarding 3G is supported by current telecom industry
trends and news.
and forecasts 55 million CDMA mobile phone shipments in 2009. More than one
third of China Telecom’s existing PHS subscribers are expected to convert to
the next generation mobile phone technology this year.
The Chinese government’s award of 3G licenses to the three state-run
carriers will help fuel the telecom industry’s dramatic growth this year.
China Mobile, which owns 72% of the country’s wireless market, received a
license for TD-SCDMA, China Telecom for CDMA 2000, and China Unicom for WCDMA.
The upgrade of
both Cogo’s telecom and handset businesses with solid revenue potential for
2009.
Cogo has already seen results from partnerships with key telecom companies
such as Huawei, ZTE and Alcatel-Lucent, and the company expects to continue to
record revenue throughout the year. Cogo forecasts that Huawei and ZTE’s
share of the Chinese wireless telecom market will expand significantly in 3G
versus their current position in the 2G market.
Outlook for Cogo’s handset business also remains strong. Cogo is the sole
agent in
vendor, and its subsidiary, VIA Telecom, for the sales of its baseband CDMA
2000 technology used for handsets in the China Telecom network. Cogo was
already awarded VIA Telecom chipset design win from BYD,
original design manufacturers with customers including some of the world’s
leading mobile phone makers. The company expects growth of 3G technologies to
accelerate as demand increases for these higher content handsets offering new
features such as CMMB, a version of mobile television found in the domestic
Chinese market.
“Cogo has already begun to benefit from the roll out of networks in
which we would expect to continue throughout 2009, especially now that the
government has awarded its 3G licenses,” said
Cogo Group, Inc. “Our relationships with Huawei, ZTE, VIA, and other leading
technology and equipment providers will leave COGO well-positioned to benefit
from the upgrade of
About Cogo Group, Inc.:
Cogo Group, Inc. (Nasdaq: COGO) is a leading provider of customized module
and subsystem design solutions in
proxy to
ODMs and OEMs China. Cogo leverages these relationships and combines their IP
to create designs that Cogo then sells to electronic manufacturers. These
designs allow manufacturers to reduce their time to market for new products
and ultimately increase sales. Cogo Group focuses on the mobile handset,
telecommunications equipment and digital media end-markets for their
customized design modules while also offering business and engineering
services to their large telecom equipment vendor customers. Over the last
twelve years, Cogo has grown its customer list to include more than 1,000
manufacturers across the mobile handset, telecom equipment and consumer
markets, covering both multinational Chinese subsidiaries and Chinese domestic
companies. For more information, visit http://www.cogo.com.cn.
Safe Harbor Statement:
This press release includes certain statements that are not descriptions
of historical facts, but are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. These forward-looking statements may include
statements about our proposed discussions related to our business or growth
strategy such as growth in mobile handset business and cooperation with
Huawei, ZTE, Alcatel-Lucent, and VIA Technologies, which is subject to change.
Such information is based upon expectations of our management that were
reasonable when made but may prove to be incorrect. All of such assumptions
are inherently subject to uncertainties and contingencies beyond our control
and upon assumptions with respect to future business decisions, which are
subject to change. For a further description of other risks and uncertainties,
see our most recent Annual Report filed with the Securities and Exchange
Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of
filings made with the SEC are available through the SEC’s electronic data
gathering analysis retrieval system (EDGAR) at http://www.sec.gov/.
SOURCE Cogo Group, Inc.