SinoHub’s Q3 Net Income Down 56.7% YoY PDF Print E-mail
Written by Chelsey Drysdale   
Monday, 14 November 2011 12:01

SHENZHENSinoHub reported third-quarter net sales of $52 million, down 7.3% year-over-year.

The year-over-year decrease was primarily attributable to a decline in sales in the company's ICM business segment. Sales in the ICM business segment in the third quarter were $16.9 million, down 11.4% year-over-year.

Total net income for the quarter was $2.6 million, down 56.7% year-over-year.

Net sales from the electronic component sales and supply chain management services segment for the third quarter were $35.1 million, down 4.4% compared to the third quarter of 2010. The primary reason for the decrease in the ECSS business segment was the increasing maturity of the 2G market and the lack of clear leadership in the 3G market, the firm says.

The company has begun the process of shifting the electronic component sales portion of its ECSS segment, which constitutes most of this segment, to a brokerage model. This should result in much lower revenue, but much higher gross margins, SinoHub says.

“Our results for the third quarter were largely in line with our expectations, as we continued to be impacted by the decline in ICM revenue following the cut back in orders from a major customer in the second quarter,” said SinoHub's CEO, Harry Cochran. “We have successfully broadened our base of smaller ICM customers placing higher margin orders, which led to an improvement in our ICM gross profit margin from the low in the previous quarter. We have also made significant inroads with a number of large developing market mobile phone operators.”

The company reiterates its sales outlook of approximately 2.5 million mobile phones in 2011, and its full-year 2011 revenue guidance of approximately $195 million. 

Last Updated on Monday, 14 November 2011 19:23
 

Columns

Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

Read more...
 
The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.

Read more...
 

Features

Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Read more...
 
Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.

Read more...
 

Search

Search

Login

CB Login

Language

Language

English French German Italian Portuguese Russian Spanish
 

Products

Techspray Introduces Fine-L-Kote High Viscosity AR Conformal Coating
Fine-L-Kote high viscosity AR acrylic conformal coating reportedly widens the process window and flexibility. Can use as-is for dipping or thin down for spray systems. Is for selective spray systems...