China VoIP & Digital Telecom Inc., (OTCBB:CVDT) (the “Company”) today announced its preliminary 2009 financial results. These results were impacted by the government block of its VoIP services since late July 2009.
Mr. Kunwu Li, President and CEO of the Company, said, “We are disappointed by our 2009 financial results. The company’s communication business has suffered tremendously resulting in weak revenues and profits, as well as the great decrease in value of the relevant communication assets. The indefinite government block of VoIP services is a political need at this time and we cannot change the government’s policy. Fortunately, we completed the business transition in 2009, and now are focusing on providing our virtualization solutions and services.”
Mr. Li added, “Since 2008, our virtualization solutions and services have obtained strong supports from the Chinese governments, and we have had several breakthroughs in the virtualization field. Especially in the last quarter of 2009, the virtualization business brought revenues which accounted for 25% of the total revenue in 2009. We are excited to see our business transition showing initial success, and we are confident that the virtualization business will become our growth engine in 2010 and beyond.”
China VoIP & Digital Telecom will report the audited financial statements on March 31, 2010. Despite the initial success with the virtualization solutions and services (we entered into the industries covering government departments, power supply, healthcare, education, taxation, public security and Petrochemistry), there are still risks and uncertainties involved in the company’s new virtualization businesses which related to our marketing efforts and results in foregoing industries.About China VoIP & Digital Telecom Inc. China VoIP & Digital Telecom Inc. offers virtualization technology application in the People's Republic of China through its wholly owned subsidiary Jinan Yinquan Technology Co., Ltd and Beijing PowerUnique Technologies, Co., Ltd. Through the two subsidiaries, China VoIP & Digital Telecom is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its integral virtualization solutions and services in China and at this time is in the testing stages of other Information Technology products. More information can be found at www.chinavoip-telecom.com. About Virtualization Technology Virtualization is a proven software technology that is rapidly transforming the IT landscape and fundamentally changing the way people compute.