Cogo Group Skyrockets After-Hours
Shares of Cogo Group (NASDAQ: COGO) are trading higher in the after-hours following the release of the company's Q4 earnings results. Currently, shares are higher by 62.37%, trading at $3.15; they ended the regular session higher by 6.30%, at $1.94.
Cogo Group reported Q4 adjusted EPS of $0.13 (GAAP loss of $0.99) on revenues of $169.5 million. Revenues increased 49.3% year over year.
Jeffrey Kang, CEO and Chairman of Cogo, remarked, "Cogo generated record revenue in both the fourth quarter of 2011 and the full year 2011, and we remained solidly profitable on a Non-GAAP basis in these uncertain economic times.”
“However, we expect that the tightened credit policy in China will continue to negatively affect our Small and Medium Enterprise business lines for the rest of 2012. While there are media reports of an impending loosening of credit policies for SMEs in China, we would not expect these changes to materially affect our business until 2013."
Cogo Group also announced that its founder, CEO and Chairman, Jeffrey Kang, proposed to the Cogo Board of Directors that he purchase a series of operating entities accounting for approximately 30% of Cogo's total assets, liabilities and revenue through his personal investment venture, Envision Global Group.
Cogo Group, Inc. provides customized module design solutions for a range of applications and markets, serving as a gateway for the technology component suppliers to access electronics manufacturers in the People's Republic of China.
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