Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener.

On March 16, 2009, Cogo Group ( COGO) reported that its Q4 FY08 earnings plunged 87.5%, hurt by a share-based compensation expense of $1.50 million and acquisition-related costs of $4.33 million. Net income decreased to $759,000 or $0.02 per share from $6.06 million or $0.15 per share in Q4 FY07. On a non-GAAP basis, net income slipped 24.3% to $6.60 million or $0.18 per share from $8.72 million or $0.22 per share a year ago. The latest quarterly results beat the consensus estimate of $0.17 per share.

Net revenue increased 16.1% to $82.34 million from $70.90 million a year ago. Product-wise, revenue from mobile handset sales, which account for 32.0% of total revenue, increased 6.7% to $26.30 million. Revenue from telecommunication equipment sales, which contribute 28.9% of total revenue, grew 10.2% to $23.80 million. Revenue from digital media products, which comprise 29.6% of total revenue, rose 35.3% to $24.40 million. Component sales relating to the Industrial Application Business, which account for 8.5% of total revenue, stood at $7.00 million, while revenue from its Services Business, which represents 1.0% of total revenue, was $0.80 million.

For the latest fourth quarter, the company reported a 23.7% increase in cost of sales to $70.61 million. As a result, its gross profit margin deteriorated 527 basis points to 14.24% from 19.51%, due to an unfavorable product mix, reflecting growing demand in the lower gross margin handset market.

For FY08, net income fell 32.7% to $14.06 million or $0.36 per share from $20.90 million or $0.55 per share in FY07. Annual sales were up 25.7% to $287.22 million from $228.46 million a year ago.

Looking forward to Q1 FY09, COGO reiterated its non-GAAP EPS guidance to be in the range of $0.12 and $0.13, on revenue of $60.00 million to $65.00 million.

If you liked this article you might like

Cogo Group Inc. Stock Upgraded (COGO)

Cogo Group Inc. Stock Upgraded (COGO)

Cogo Group Inc. Stock Downgraded (COGO)

J.C. Penney, GM: After-Hours Headlines

Cogo Group Stock Soars (COGO)