Comtech Group posts US$6.06 mln 4Q net earnings

Shenzhen-based provider of customized module and subsystem design solutions, Nasdaq-listed Comtech Group Inc., posted 2007 fourth quarter net earnings of US$6.06 million, or 15 cents a share, which is 32.6% or US$1.49 million higher than a year earlier.

For the fourth quarter of 2007, adjusted earnings per share for the quarter rose 6 cents to 22 cents from 16 cents a year ago. Revenue for the quarter ended Dec. 31 rose by US$22.4 million or 46.3% to US$70.9 million from US$48.5 million a year earlier.

For the full year 2007, the company earned a revenue of US$228.5 million, a 34.7% increase compared to US$ 169.6 million in 2006.

The strong fourth quarter results were attributed to significant business expansion in all business segments including digital media, mobile handset and telecom infrastructure.

Comtech has an optimistic 2008 outlook for the business despite the US slowdown and predicts adjusted earnings per share in 2008 of 90 cents on revenue of US$285 million. The majority of Comtech's business comes from the Chinese domestic market. The demand from their end markets will result in strong growth in 2008. This growth is expected to be driven by strong consumer spending in China and vigorous growth in the emerging market of India.