Comba Annnounces 2007 Interim Results(39471)

COMBA ANNOUNCES 2007 INTERIM RESULTS
REVENUE AND NET PROFIT UP BY 32% AND 68% RESPECTIVELY

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RECORDED REMARKABLE GROWTH IN GLOBAL MARKET
ACHIEVES LONG-TERM GROWTH WITH CONTINUAL INNOVATION

Financial Highlights (For the six months ended 30 June) (unaudited):

HKD 000	2007	2006	Change
Revenue	777,821	589,490	+31.9%
Gross profit	322,639	252,788	+27.6%
Profit attributable to shareholders	76,386	45,561	+67.7%
Basic earnings per share (HK cents)	9.09	5.46	+66.5%

(6 September 2007 Hong Kong) Comba Telecom Systems Holdings Limited ( Comba or the Group , Hong Kong stock code: 2342), a leading wireless enhancement solutions provider, announced today its unaudited interim results for the six months ended 30 June 2007.
During the period under review, the Group s revenue and gross profit surged remarkably by 31.9% and 27.6% to HKD777.8 million and HKD322.6 million respectively compared to the same period last year. Profit attributable to shareholders recorded robust year-on-year growth of 67.7% to HKD76.4 million and basic earnings per share was HKD9.09 cents. The Board of Directors did not propose to distribute any interim dividend for the six months ended 30 June 2007.
Mr. Tony TL Fok, Comba s Chairman and President, said, The first half of 2007 is another period of remarkable growth for Comba. Benefited from the continual global demand growth in the mobile market, together with our new products launch and global business expansion, Comba has once again achieved remarkable top-line and bottom-line growth.
For the first half of 2007, with continued increase in wireless enhancement capital expenditure by the China Mobile Group for network optimization amid strong subscriber growth and rural expansion, coupled with Comba s broadened product and solution portfolio, revenue generated from the China Mobile Group surged by 41.3% compared to the corresponding period and accounted for 69.8% of the Group s revenue.
The Group continued to offer a wide range of products through its solid global sales platform during the period with revenue generated from international market recorded a year-on-year increase of 52.2%, accounting for 8.3% of the Group s revenue. Furthermore, the Group signed a supply agreement with a European mobile operator in respect of its multi-carrier tower mounted boosters, demonstrating Comba s capabilities in developing top quality products and expanding its customer base to renowned global mobile operators.
During the period, revenue generated from the Group s wireless enhancement business increased by 27.9% compared to the same period last year. While antennas and subsystems business continued achieving significant growth with revenue from its BTS antennas more than tripled, which significantly contributed to the Group s business growth.
The global 2G market is expected to continue to grow in the next few years, especially in the emerging markets. As a result, cost effective products and solutions are expected to be in great demand in the next few years.
As for 3G, the Group has already developed products for all three 3G standards, namely, TD-SCDMA, WCDMA and CDMA 2000. Different 3G products and solutions have been deployed in various countries around the world.

For China market, Comba remains cautiously optimistic about the revenue from the TDSCDMA rollout in the next couple of years, given the various types of TD products developed by the Group and the potential increase in number of cities for the trial networks. It is expected that income contributed from TD-SCDMA will be strong in the future. In the recent central procurement programme for TD-SCDMA carried out in China, the Group has successfully qualified as an approved vendor of wireless enhancement equipment. The Group has already started TD indoor upgrade projects in certain cities in China. In addition, the Group has also qualified as an approved vendor in the China Telecommunications Corporation s tendering programme for indoor distribution systems. Moreover, the Group has developed TD Remote Radio Units for a leading core equipment manufacturer in the PRC.
Mr. Fok concluded, We believe that the key for Comba s long term development and continuous growth is to enhance and maintain its core technical competency and to broaden our product portfolio. The global market expansion and the development of BTS antennas and subsystems and DMS products for wireless transmissions are all important diversification strategies to fuel our long term growth.

Comba Annnounces 2007 Interim Results

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