SHENZHEN, China, May 15, 2013 /PRNewswire/ -- Cogo Group, Inc. ("Cogo" or the "Company") (Nasdaq: COGO), a leading gateway for global semiconductor companies to access the industrial and technology sectors in China, today announced its preliminary unaudited financial results for the quarter ended March 31, 2013.
Revenue in the first quarter was approximately $182.4 million, compared to $169.3 million reported in the first quarter of 2012. Gross margin for the first quarter was between 6.2% and 6.7%.
Total cash, including pledged bank deposits, was $143.3 million at the end of the first quarter of 2013, up from $141.5 million as of December 31, 2012. Bank borrowings decreased from $98.6 million as of December 31, 2012 to $81.2 million as of March 31, 2013. Net cash was $62.1 million as of March 31, 2013.
During the trading days of January 1, 2013 to May 13, 2013, the Company repurchased approximately 1.6 million shares of its ordinary shares at an average price per share of approximately $2.02 and a total cost of more than $3.2 million pursuant to the current stock repurchase program. Cogo has repurchased almost 5.2 million shares since September 24, 2012 under the current repurchase program, and there are approximately 4.8 million shares left of the 10 million shares authorized for the program. Cogo continues to view share buybacks as a strategic use of cash."While management is pleased with the Company's business growth and sustainable profitability, we are disappointed with the Company's stock performance, which is currently trading at far below its net asset value. The Company's end market is still growing but competition has intensified. Therefore, pressure on our gross margin is rising and the Company may require more working capital to sustain growth. In light of the foregoing, management has been contemplating a long-term balanced strategy. Among other initiatives, we are currently exploring new service business opportunities that would provide higher margins. It remains management's top priority to improve shareholder value," said Mr. Jeffrey Kang, CEO and Chairman of Cogo. Cogo 2013 Q1 Earnings Results Conference Call Date/ Time: May 15, 2013 (Wednesday) @ 8:00 PM (ET) Conference Call: Toll-Free 1-877-941-4774Toll/International 1-480-629-9760