ONTARIO, Calif., Oct. 11, 2007 (PRIME NEWSWIRE) -- SOYO Inc. (OTCBB:SOYO), an innovative provider of computer and consumer electronics products, reports preliminary unaudited results for the third quarter, which ended September 30, 2007, as well as updated revenue guidance for the fiscal year ending December 31, 2007. While results of the third quarter are still being finalized, the Company expects to report record revenues, exceeding $34,000,000, and a blended gross margin of 13.5 percent. In addition, SOYO estimates profits to total $1,000,000, or two cents per share for the quarter ended September 30, 2007.
Nancy Chu, SOYO's Chief Financial Officer commented, "We were very successful in promoting our LCD monitors through a national chain of office super stores, and our Prive product line sales in Canada were also significantly higher than expected. Sales of our Le Vello furniture line and other high margin products were in line with our expectations, however our margins suffered due to our increased revenues, which were much higher than anticipated. As a result, our gross margin in dollars were above our expectations, while our blended gross margin percentage was lower than anticipated."
Ming Chok, SOYO's Chief Executive Officer, stated in his letter to shareholders, "I believe that we can reach, or exceed, $50MM in sales over the second half of the year, while maintaining our 16 percent gross margin. By carefully monitoring our expenses, we could earn as much as seven to eight cents per share on a fully diluted basis in 2007."
SOYO now anticipates the fiscal year's gross margin to be approximately 15 percent, and earnings of three cents per share for the third quarter. Based on these results the company will adjust its year-end projections to be $98 million in revenue and $.07 EPS. Previously, SOYO had estimated annual revenues of $88 million and $.07-.08 EPS. SOYO's shareholder letter stated that $50MM and 16% were predicated on its ability to raise an additional $5MM in capital. The Company has not yet raised that capital and this is the reason it was not able to maintain the 16 percent blended margin.
About SOYO Inc.
SOYO, Inc. is an innovative provider of consumer electronics such as, LCD Monitors, LCD Televisions, Bluetooth, Portable Storage, LCD Furniture and broadband telecommunications products and services. Headquartered in Ontario, California, with additional sales offices in South America, SOYO sells its products through an extensive network of authorized distributors, resellers, system integrators, VARs, retailers, mail-order catalogs and e-tailers. Products are sold under the SOYO, Dragon, Onyx, Dymond, Honeywell, Le Vello, and Prive brand names. For more information, please visit http://www.soyo.com.
"Safe Harbor" Statement
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the company. The words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions, are intended to identify forward-looking statements within the meaning of the Securities Act of 1933, as amended. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the availability of components and successful production of the company's products, general acceptance of the company's products and technologies, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, general economic risks and uncertainties, and various other information detailed from time to time in the company's filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Please refer to the company's filings at http://www.sec.gov.
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