Orsus Xelent Technologies, Inc. (ORS) our designer and manufacturer of mobile phones for the Asian market, announced that its first quarter revenues declined about 4.8% compared with the same period last year to $19.7 million. However, the Company’s net income rose 11.4% to $2.2 million or 7 cents per share.
In these market circumstances, that’s a great performance! These numbers can largely be attributed to significant reductions in operating expenses primarily because of the success of its T303 customized phone model designed for the telecom operators sector, which contributed nearly 50% of sales. This large quantity of product permitted cost reductions while meeting the needs of the operators and ultimately consumers.
Mr. Guoji Liu, who was named CEO of Orsus on April 2, 2009, said that sales volume of mobile phones in China is up about 10% from the fourth quarter of 2008, but still down 11% from the same period last year.
Mr. Liu added, “In the first quarter we believe we have established a basis for further revenue development in subsequent periods, leading to what we continue to believe will be at least a 15% full year increase in revenues over prior year results.”
New management is doing a great job in getting Orsus back on track. This Company is growing its earnings even in difficult times and its stock is still only trading at a P/E of 1.77.
Currently we’re looking at a 43% profit since we recommended the stock in January of this year. With these results and outlook however, we’re in no hurry to sell. In fact, if you haven’t bought any yet, this is an excellent moment. Buy recommendation.