Earnings Call Excerpt
Cogo Group, Inc. (COGO)
Q3 2009 Earnings Call Transcript
November 4, 2009 4:30 pm ET
Executives
Jeffrey Kang – Chairman and CEO
Will Davis – SVP, Business Development and Chief Marketing Officer
Frank Zheng – Chief Financial Officer
Presentation
Will Davis
Thank you and good afternoon to everyone. My name is Will Davis, and I'd like to thank you all for joining us today to participate in Cogo's Third Quarter 2009 Earnings Conference Call.
After the market closed today, Cogo issued a press release reporting final unaudited financial results for the quarter ended September 30, 2009. This release can be accessed in the investor relations section of Cogo's website at www.cogo.com.cn and on most other financial websites.
The discussion today will be hosted by Jeffrey Kang, Chairman and CEO, who will discuss the Company’s business operations; Frank Zheng, our CFO, who will report the Company’s financials; and Will Davis, our Senior Vice President of Business Development and Chief Marketing Officer will discuss guidance.
Before we begin, I'd like to remind everyone that the call today may contain forward-looking statements regarding future events and the financial performance of the Company. We wish to caution you that such statements are just predictions, and actual results may differ materially as a result of the risks and uncertainties inherent in the Company's business. We refer you to documents that the Company files periodically with the SEC, specifically the most recently filed Form 10-K, as well as the Safe Harbor statement made in today’s press release. These documents contain important risk factors that could cause actual results to differ materially from those contained in the Company's current projections. Cogo assumes no obligation to revise the forward-looking information contained in today's call.
At this time, I'd like to turn the call over to Jeffrey. Jeffrey, the floor is yours.
Jeffrey Kang
Thank you, Will, and thanks to everyone for joining our earnings call. During the third quarter of 2009, Cogo posted revenue of $82 million in US dollars, up 9.7% year-over-year and up 11.5% sequentially. Our Non-GAAP EPS Diluted was 18 cents, which is up nearly 30% from the prior year period, which I believe is a tremendous achievement given the current global economic environment and relative to other technology companies. Cogo posted a gross margin of 14.4% and Non-GAAP operating margin of 8.7%, up from 7.7% in the second quarter. We continue to target gross margin of 15% and Non-GAAP operating margin of 10%.
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