China Display Technologies (CDYT.OB) is a leading manufacturer of opto-electronic products, specializing in small and mid-sized LED and CCFL backlight units for products using LED light-source technology in China. This LED technology allows for a higher level of output than other types of panel displays. It has become the technology of choice in today’s display market, with global demand increasing at a rate of 10 – 15% a year. The company manufactures these products through its wholly-owned subsidiary, Suny Electronics, which is based in Shenzhen, China.
China Display’s products have applications in electronic consumer products such as mobile phones, PDAs, GPS systems, MP3s and MP4s, medical equipment, and household appliances. In the small and medium-sized LED backlight-unit manufacturing area, mobile phone displays continue to represent the majority of shipments. While this market remains very attractive and profitable, the company is now developing a large-sized backlighting unit, targeting the LCD-TV market which is considered to enjoy a relatively high profit margin.
China Display’s first quarter 2008 results were stellar with revenues of $6.7 million; up over 46% from first quarter 2007’s $4.6 million. Gross profit was up nearly 50% to $1.5 million, as compared to last year’s $1 million. And as of March 30, 2008 the company had $4.6 million cash on their books.
China Display’s CEO Lawrence Chan stated in the earnings release “We continue to benefit from a rapidly growing market for backlight unit products, resulting from increased consumption of end products and expanded applications for LCDs on all kinds of machines and electronics.”
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