My Pick...ORXT...the Company's financial results for the quarter ended September 30, 2006.
Revenues were $45.9 million for the nine months ended September 30, 2006, representing a sharp increase of 176.45% as compared to the same period in 2005. Revenues for the three months ended September 30, 2006 were $20.5 million, representing a 55.92% increase over the same period in 2005. After experiencing reform in the cellular phone market in the first half of 2005, the Company adjusted its business model, market position and strategy, improved its technology, and the quality of its products. The Company believes that because of these efforts it is better prepared to take advantage of a rejuvenated cellular phone market in the Public's Republic of China.
For the nine months ended September 30, 2006, gross profit was $8.2 million, which represents an increase of $5.3 million or 158.39% as compared to the gross profit of $3.3 million for the same period in 2005. The gross profit in the third quarter of 2006 was $3.8 million representing 6.33% growth over the second quarter of 2006 and a slight decline of 0.40%, as compared with the third quarter of 2005.
Net income for the nine months ended September 30, 2006 was $4,647,000, or 10.12% of revenue, which represents a 223% increase compared to the same period in 2005. Net income for the three months ended September 30, 2006 was $2,366,000, which represents 51% of total net profit for the first nine months of 2006. The net income for the third quarter 2006 represents an increase of 20.84%, compared to the same period in 2005. The substantial increase in net profit is due to the Company's adjustment of its marketing strategy and improvements in the cellular phones market in this quarter.
"This was a very robust quarter for us. Our CDMA product revenues were up considerably and our new marketing strategy produced superb results. We continue to be optimistic in our profit expectations for the third quarter," said Xavier Xin Wang, President and CEO of Orsus Xelent.
