BEIJING, Dec. 24, 2012 /PRNewswire/ -- SGOCO Group, Ltd. (Nasdaq: SGOC), ("SGOCO" or the "Company") a company focused on product design, distribution and brand development in the Chinese flat-panel display market, today announced: 1. Annual Shareholders Meeting The Company's annual shareholders meeting will be held on December 28, 2012, at 9:00 a.m. Beijing Time. The meeting will take place at the Company's Beijing office, located at Suite 1817, Beijing Silver Tower, Chaoyang District, Beijing, China. The matters to be voted on at the meeting are set forth in the Company's Proxy Statement filed with the U.S. Securities and Exchange Commission on November 26, 2012. Shareholders of record on November 16, 2012 will be eligible to vote at this meeting. 2. Update on Growth Initiatives The Company is transitioning to a "light-asset" business model. The Company is implementing several strategic initiatives that are expected to drive and contribute to its revenue and profit growth over the next 12-24 months: 1). Diversify Product Portfolio: SGOCO is expanding its existing flat-panel display product lines to include e-boards and smart phones. The Company is also in the stage of researching application specific products (ASPs) and integrated solution products. 2). Broaden Customer Base: SGOCO continues to expand into the US flat-panel display market through its US subsidiary, SGO Corp., in addition to its core Chinese domestic customer base. 3). Increase Brand Portfolio: SGOCO intends to further enhance its brand portfolio of five flat-panel display brands by signing licensing agreements with new brand owners. 4). Resource Optimization: SGOCO plans to continue its efforts to reduce costs and increase resource optimization to better serve customers and improve overall efficiency in the areas of management, sales, brand and product development. The change in the Company's business model from a "heavy asset" model to a "light asset" model is expected to shift the sales and distribution model from its current distributor-focus to a more diversified model including direct sales to the industry end-customers with its tailor-made ASP products. It is also anticipated the Company will change its sales and distribution team to meet its customers' evolving needs.
SGOCO Group (SGOC) plunged after the company reported unaudited preliminary results for the fourth quarter of the fiscal year 2013. The company, which designs, distributes and develops flat-panel displays, reported a 30.3% year-over-year decline in revenue to $44.2 million from $63.4 million. Net income plummeted 62.7% year over year to $1.2 million from $3.2 million, while earnings per share also dropped 63.2% to 7 cents from 19 cents. Gross profit fell 28.2% to $3.5 million from $4.9 million in the fourth quarter of 2012. SGOCO said in its statement that the sharp revenue decline comes from the "significant growth" the company had in the fourth quarter of 2012; the 2013 quarter, on the other hand, was "normal."