SHANGHAI, China, Jan. 30 /Xinhua-PRNewswire-FirstCall/ -- T-Bay Holdings Inc. (OTC Bulletin Board: TBYH) today announced it is raising its 06-07 fiscal year net profit projection from 10-30% to 25%-35%. The rise of the net profit projection was attributed to the outstanding performance of the first nine months and the growth expectation of its new product line that was recently introduced.
For the six months ended September 30, 2006, T-Bay reported net revenue of US$14,660,000 with a net profit of US$4,578,000, representing a 28.2% and a 43.8% growth, respectively, compared to the same period of the previous fiscal year. The performance in the first half of this fiscal year sets a solid foundation to achieve the goal for the entire year.
The Company expects the new product line will be the strong driver for the second half of this fiscal year. Having experienced a lack of new products in the second quarter, the Company has recently launched several new solutions for the market place. Xiaofeng Li, CEO of T-Bay, said, "We expect the newly promoted solutions, along with previously introduced solutions, to bring approximately $16-18 million in revenue, with $8-9 million in net profits for the second half of this fiscal year, the best sales season, with the expectation of meeting our goal of $12.6-13.6 million in net profits, with a 25.0-34.7% growth for the entire fiscal year ended March 31, 2007."
Xiaofeng Li added, "The previous projection of a 10-30% growth was conservative because of taking into consideration that one of our partners may switch business focus. Now the Company has overcome a difficult period and we are ready for another fiscal year with anticipated new highs in the operation history."
About T-Bay Holdings Inc.
T-BAY conducts its mobile phone design business through its 95% owned subsidiary, Shanghai SunPlus Communication Technology Co., Ltd. ("SunPlus"). Established in October 2002, SunPlus is a Sino-foreign joint venture providing total solution and full-range design services to leading mobile handset brand owners in China. The broad spectrum of services that SunPlus provides include overall product design, mechanical design, module architecture design, software design, prototype production, product testing, manufacturing and after-sale technical support. The Company currently has a staff of 160, comprised mostly of engineers and software programmers.
SunPlus develops its mobile phone modules based mainly on the chipset platform provided by SKYWORKS. Currently, major customers of SunPlus include CECT, Panda Electronics and Siemens Mobile.
SunPlus was jointly formed by Wise Target International Limited, Amber Link International Limited and Shanghai Fanna Industrial Product Design Co., Ltd. Wise Target and Amber Link are 100% subsidiaries of T-BAY Holdings, Inc. and they altogether hold 95% shareholding in SunPlus.
Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: The statements in this press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur.
