This is really great news. Note how it is specifically stated that this will lead do increased revenues and critically increased margins as well.
SGOCO Unveils New Products for the High-end Market
April 9, 2014 8:00 AM ET
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NAME LAST CHNG % CHNG
SGOC 2.54 +0.16 +6.73
BEIJING, April 9, 2014 /PRNewswire/ -- SGOCO Group, Ltd. SGOC ("SGOCO" or the "Company"), a company focused on product design, distribution and brand development in the display market, today announced the launch of a new flat screen display unit to target high-end markets, along with two upgraded versions of its Parts-In-One PC ("PIO").
The new flat screen display unit conforms to SGOCO's new display design features, emphasizing a stylish, slim appearance while remaining lightweight and affordable for high-end consumers. The 21.5 inch model, framed with precious metals, comes in white, silver or gold.
PIO is a touch-screen, user-friendly PC that is built in to a flat screen monitor. The design is excellent for consumers who wish to enjoy the flexibility to configure and build their own PC system in the same vein as a traditional PC. SGOCO is set to launch two new versions of their PIO in May 2014, and the new version features 27 and 32 inch models. Both models feature a high resolution LED display, support 1080 progressive scanning, a pre-1.3 megapixel camera, high fidelity stereo and surround sound performance, and a high compatibility motherboard that can accommodate Micro ATX and Mini ITX, among others.
Since the soft launch of their All-In-One PC ("AIO") and PIO in June last year, the sleek design of their AIO and PIO has attracted a whole new market for SGOCO's products, and quickly became key drivers for revenue growth and margin expansion in the second half of the year. These new versions of PIO will target China's internet cafes, which number over 100,000, and will be distributed through SGOCO's robust distribution channel to thousands
Looks like great news - they are anticipated good revenues from these products. Great to know - buying opportunity. This company rarely releases pumping news so I am anticipating stock moving well. News also came in am hours so thinking today and tomorrow will be good - wonder if shorts will cover
Focus on the first and last lines here which relate to improving their chronic problem with the low gross profit margin.
Mr. David Xu, President and Chief Executive Officer of SGOCO, commented, "We delivered revenue growth and margin expansion compared with 2012 full year results despite a slowdown in global and China TV growth in 2013. "
Mr. Xu continued, "When reviewing 2013 performance in the context of the past year, it is clear that SGOCO is executing strongly on the right strategy. We took several steps to position SGOCO for future success in the past year. We expanded the scale of our business by adding a sales office in Shenzhen. We strengthened our R&D capability by adding top new talents in late 2013. We increased the speed of product launches, optimization and upgrades to respond to consumer market trends. And more significantly, we differentiated our display products and solution from the competitive low-end display market and gain new market share by developing products featuring designer style, high performance and affordability such as AIO and PIO."
This really helps your credibility. Their sales have been decent, but where they have been hurting more is on profit margin. Do you see this improving their margins? There was a statement in their unaudited earnings release that they were coming out with products that were in effect more upscale and that should be helping increasing their gross profit margin.