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Company
Contact:
|
Investor
Relations Contact:
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Mr.
Jason Wong
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Mr.
Crocker Coulson
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Executive
Vice President
|
President
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China
Display Technologies, Inc.
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CCG
Elite Investor Relations
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Tel:
+852-9257-8928
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Tel:
+1-646-213-1915 (NY office)
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Email:
jason@suny.hk
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Email:
crocker.coulson@ccgir.com
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FOR
IMMEDIATE RELEASE
China
Display Technologies Issues
Guidance for 2008
Shenzhen,
China, April 8, 2008 - China Display Technologies, Inc. (OTC Bulletin Board:
CDYT) (“China Display”, or “the Company”), a leading manufacturer of
optoelectronic products, specializing in small- to mid-sized LED and CCFL
backlight units for LCD displays in China, today announced financial guidance
for 2008.
China
display has targeted revenue for 2008 to be in the range of $48.9 million
to
$55.4 million, an increase of approximately 50% to 70% from $32.6 million
in the
year ended December 31, 2007. Management attributes the strong growth to
increased sales to existing customers and new sales of large-size BLUs in
the
second half of 2008. Gross Margin is expected to remain at a level similar
to
2007. As a result of increasing investment in R&D, higher expenses
associated with being public and increased marketing expense, management
forecasts that operating margin for the year 2008 will decrease to around
14%
compared to 14.9% in 2007. Net income is expected to be between $6.8 million
and
$7.8 million, an increase of approximately 42% to 63% as compared to 2007
net
income of $4.8 million. This would equate to approximately $0.30 to $0.34
per
fully diluted share, based on a total of 22,973,402 million shares which
includes 4,070,200 shares issuable upon exercise of all existing warrants
as
well as conversion of all existing preferred stock. The ability of the Company
to achieve these targets will depend on its ability to obtain proceeds of
not
less than $5.3 million from exercise of 1,362,187 warrants in the second
quarter
and 2,708,013 warrants in the third quarter of 2008.
If
none
of the existing warrants were exercised in 2008, China Display has targeted
revenue for 2008 to be in the range of $44.0 million to $45.6 million, an
increase of approximately 35% to 40% from $32.6 million in the year ended
December 31, 2007. Net income would then be expected to be between $6.16
million
and $6.39 million, or $0.30 to $0.31 per diluted share, based on treasury
method
20,327,772 million shares.
“We
remain optimistic about our long-term outlook and that China Display will
be
able to continue to take advantage of the increasing demand for back light
displays as integral components to a myriad of electronic products,”
said
Mr.
Lawrence Chan, CEO of China Display,“We
expect our pace of development to increase based on recent improvements
of our production facilities and our continual development of new products,
such
as larger backlight units,” added Mr. Chan.
About
China Display Technologies, Inc.
China
Display Technologies, Inc. through its wholly-owned subsidiary Suny Electronics
(Shenzhen) Company Limited (“SUNY”) in China, designs, manufactures and markets
small- to mid-sized Light Emitting Diode (LED) and Cold Cathode Fluorescent
Lamp
(CCFL) backlights for various types of Liquid Crystal Displays (LCDs). Its
products have applications in electronic consumer products, such as mobile
phones, PDAs, GPS systems, portable DVD/VCD players, MP3s and MP4s, medical
equipment and household appliances with displays. SUNY was organized in November
2004 and started operations in 2005. It has experienced rapid growth and
became
a publicly-traded company, listed on the OTC market, through a reverse merger
in
September 2007. The Company has 800 employees, with manufacturing facilities
and
management located in Shenzhen, China.
Safe
Harbor Statement
This
release contains certain “forward-looking statements” relating to the business
of the Company and its subsidiary companies. These forward looking statements
are often identified by the use of forward-looking terminology such as
“believes, expects” or similar expressions. Such forward looking statements
involve known and unknown risks and uncertainties that may cause actual results
to be materially different from those described herein as anticipated, believed,
estimated or expected. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. The Company’s actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety
of
factors, including those discussed in the Company’s periodic reports that are
filed with the Securities and Exchange Commission and available on its website
(www.sec.gov).
All
forward-looking statements attributable the Company or to persons acting
on its
behalf are expressly qualified in their entirety by these factors other than
as
required under the securities laws. The Company does not assume a duty to
update
these forward-looking statements.
###