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

Montage Technology Responds To Allegations In Gravity Research Report

SHANGHAI, China, Feb. 10, 2014 (GLOBE NEWSWIRE) -- Montage Technology Group Limited (Nasdaq:MONT) ("Montage"), a global fabless provider of analog and mixed-signal semiconductor solutions addressing the home entertainment and cloud computing markets, today issued a statement addressing allegations contained in a purported research report issued by a firm that goes by the name of Gravity Research.

In direct response to certain allegations in the report, the company issued the following statements in support of the integrity of its business and financial statements:

Regarding Allegations about the Montage Sales Model:

As evident in Montage's filings with the U.S. Securities and Exchange Commission, revenue from sales through distributors is recognized on a "sell-through" basis, meaning revenue is recognized when delivery is made to Montage's more than 160 end customers worldwide. However, Gravity Research's report ignores this fact and appears to attempt to mislead the reader to incorrectly believe that Montage has a "sell-in" sales model, in which revenue is recognized when sold to the distributor, rather than when actually distributed to an end-customer. This sell-through approach applies to both the company's set-top box manufacturer customers and our memory module manufacturer customers.

Additionally, because a significant amount of our revenue flows through LQW Technology Company Ltd. ("LQW") as well as other distributors to end customers, the due diligence conducted by third parties in connection with the company's initial public offering  and recently completed secondary offering process also addressed our relationship with LQW, including an interview with the General Manager of LQW in connection with our initial public offering.  

Regarding Allegations about the Montage Revenue Reporting:

Gravity Research additionally alleges: "We do not believe that Montage's claimed revenue is real, and we do not believe that Montage has sufficient scale to be genuinely profitable. We also believe that Montage's business began deteriorating in the past and continued deteriorating to the point at which Management elected to invent LQW and go public on the US market."

1 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community


Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs