IDT International still in the red with HK$49.6mn loss

Yet the company’s turnover increased 16% to HK$1.62bn while oys gross profit climbed 8% to HK$532.7mn.

Consumer electronic products manufacturer and brand distributor IDT International Limited (“IDT International”) announced its annual results for the year ended 31 March 2011. The Group recorded a total turnover of HK$1,623.6 million, an increase of 16% when compared to HK$1,394.9 million last year. This was attributable both to a gradual recovery in the retail markets of the US and Europe, and to new products and services introduced during the year. The revenues from Oregon Scientific branded products increased by 3% to HK$791.7 million, whilst the products and services provided by ODM/OEM business surged by 33% to HK$831.9 million.

Gross profit was HK$532.7 million, a steady growth of 8% compared to HK$491.0 million last year. Implementing the “turn aging inventory into cash programme”, the prices of certain slow moving items were lowered during the year, which in turn led to a decrease in overall gross margin from 35% to 33%. This programme has helped to reduce the slower moving inventory. The overall loss attributable to owners of the Company was HK$49.6 million, which was a significant improvement over the attributable loss of HK$138.2 million last year. Net cash position amounted to HK$103.3 million.

Dr. Raymond Chan, Chairman and Group Chief Executive Officer of IDT International concluded, “Despite the uncertain global economic outlook, the Group is continuing to take active measures to invest in continuous Innovation and development of new higher margin products; streamlining operating costs and overheads through Value Manufacturing Services (VMS); strengthening ‘Oregon Scientific’ as a global lifestyle, smart living, brand mainly through integrated communication strategies, as well as for achieving synergies within our operations, extending and strengthening the network and distributors, to broaden market channel coverage and facilitate better market penetration as well as new markets. With the measures being taken by the management and our strong cash position, we are confident that the Group will continue to see substantial improvement, and turnaround to a healthy profit with a sound financial position.”