Zacks_Analysts' Blog : Cogo Group Matches Estimates - Analyst Blog

COGO Group Inc (COGO) reported fourth quarter of 2009 earnings per share from continuing operations of 13 cents, matching the Zacks Consensus Estimate. Cogo posted revenue of $88.1 million, up 7% year-over-year and up 7.4% sequentially compared to the prior quarter.



In the fourth quarter, its industrial business represented nearly 16% of total business. This segment grew roughly 100% year-over-year and increased about 25% quarter-over-quarter. Digital media made up about 28% of total revenue. Its sales increased 1% year-over-year and 4% quarter-over-quarter.



Telecom represented 25% of total revenue, showing a sales decrease of 9% year-over-year, and increased 7% quarter-over-quarter. Service business represented about 1.4% of total revenue, with revenue increase of about 35% year-over-year, and about 7% quarter-over-quarter.



In the fourth quarter of 2009, Cogo added three blue chip and 22 SME customers. At the end of 2009, Cogo had 80 blue chip customers and 1,340 SME customers, up 4% and 2% from the previous quarter, and up 16% and 13% from the previous year respectively. More than 90% of these customers are long term repeating customers.



Average revenue per user (ARPU) from blue chip customers in the fourth quarter was $748,000, down 2% sequentially and down 5% from previous year period. ARPU from SME customers in the fourth quarter was USD 21,000, up 19% sequentially and down 12% year-over-year. Currently the company’s revenue is approximately 70% from blue chip customers and 30% from SME.



For the first quarter of 2010, the company expects that its revenue will be in the range of $70 million to $72 million. It expects gross margin to remain roughly stable for the first quarter, in the range of 14% to 15%. The company also announced a that it was authorized to repurchase of up to five million of its outstanding shares.
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