This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SGOCO Group, Ltd. Announces Record Revenue For 2011 First Quarter

Gross Margin

With the increase in revenues, SGOCO’s gross profit for the first quarter of 2011 increased 133% to $7.3 million from $3.1 million for the first quarter of 2010. The gross margin as a percent of sales was 8.4% in the first quarter of 2011, compared to 16.1% in the first quarter of 2010 with the decline due to downward pressure on product prices, increased sales of lower margin OEM products and the growth of low margin component and outsourced item revenues. If general market prices stabilize and panel prices resume their declining trend, the Company expects gross margin improvement.

Operating Expenses

Selling, general and administrative expenses for the first quarter of 2011 were $1.6 million, a $0.2 million increase over the first quarter of 2010. The largest increase in selling, general and administrative expenses was for professional fees associated with being a public company.

Provision for Income Taxes

Income tax was $0.7 million compared to $0.3 million during the three months ended March 31, 2010.

Net Income and EPS

Net income for the first quarter of 2011 was $5.1 million, an increase of 826%, compared to $0.6 million recorded for the same period last year. Diluted EPS was $0.32 in the first quarter of 2011, compared to $0.06 in the first quarter of 2010. Of note, diluted EPS for the first quarter of 2011 was calculated based on 16,280,942 weighted average number of common shares as compared to 8,737,596 weighted average number of common shares for the first quarter of 2010.

Cash and Working Capital

As of March 31, 2011, the Company had cash and restricted cash of $33.0 million and working capital of $40.9 million, compared to $30.0 million and $38.7 million, respectively, as of December 31, 2010. The current ratio was 1.31 as of March 31, 2011 compared to 1.44 as of December 31, 2010.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $238.89 -3.60%
YHOO $36.29 -0.82%
AAPL $93.53 -1.40%
FB $116.15 -0.50%
GOOG $691.77 0.11%


Chart of I:DJI
DOW 17,720.33 -110.43 -0.62%
S&P 500 2,057.78 -18.03 -0.87%
NASDAQ 4,759.2590 -46.0320 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs