ONTARIO, Calif., Dec. 23, 2008 (GLOBE NEWSWIRE) -- SOYO Inc. (OTCBB:SOYO) today announced its updated financial guidance for fiscal years 2008 and 2009. The Company's current projections for 2008 are top line revenue of $100-105 million; profits will break even. For 2009, management projects total revenue will be approximately $110 million, with approximately $2 million in profit and $0.04 earnings per share.
"With the expectation by consumer electronics marketing experts that the sector will experience continued price erosion in 2009, my strategy is to use SOYO's unique strengths to grow our revenues by 5-10%, return the Company to profitability and be well positioned for the next economic growth cycle," said SOYO Director and CEO, Ming Chok, "Specifically, my management team and I have developed five key goals for 2009. We believe that our success in accomplishing these goals will enable us to gain market share, minimize risks and position the Company for accelerated growth once the economy improves."
SOYO's goals for 2009 include:
* Licensing the SOYO brand in Latin American countries and exploring licensing opportunities in other countries; * Developing additional stable markets for SOYO and Honeywell products; * Improving bottom line profits with Bluetooth and other high margin product lines; * Developing products for the industrial sales channel; * Fine tuning the customer base to reject credit risks.
The Company is close to licensing the SOYO name in South America for various LCD products. Although the revenue from these licensing deals is expected to be relatively small compared to overall revenues, the revenues are expected to be recurring and continue to grow in future years. The Company has also begun to explore the potential of profitably selling SOYO products into other markets and sees similar opportunities as when it entered into an agreement with Wal-Mart Canada in 2006.
SOYO's success in developing the Bluetooth and LeVello furniture line of products helped improve gross margins in 2008. Management believes the Company can continue to develop high margin products, which will contribute to growing both gross margins and bottom line profits.
Management believes it has unique opportunities to profitably enter the industrial consumer electronic products market. With minimal changes to the Company's current technology and manufacturing, it can produce commercial monitors and other products as early as first quarter 2009. SOYO plans to debut the first of these new products at the CES show in January.
Other important events for 2009 include applying for "Free Trade Zone" (FTZ) status; strengthening strategic oversight, corporate governance and business opportunities. Following its move to the new multipurpose commercial business facilities, SOYO began working on obtaining FTZ status, which if approved, will help the Company by lowering tariffs, quotas, taxes and other bureaucratic requirements.
SOYO is working to strengthen its strategic oversight, corporate governance and business opportunities by bringing industry experts to join its Board of Directors. In addition, the Company plans to conduct its second public annual meeting and open house in 2009, as well as continue with quarterly earnings calls.
"We plan to boldly enter 2009 with our largest exhibit ever at the Consumer Electronics Show (CES) 2009," Ming Chok stated. "The 2008 show was a huge success and we are excited to demonstrate our new line of products to our partners and customers." The CES is held in Las Vegas from January 8-11 and SOYO's exhibit will be in Booth Central # 15238 in the Las Vegas Convention Center, Central Hall.
About SOYO Inc.
SOYO, Inc. is a leading global provider of computer, consumer electronics, and broadband telecommunications products and services. Headquartered in Ontario, Calif., with sales offices in Latin America. For more information about the company and its products, please call 909-292-2500 or visit our Web site at http://www.SOYO.com .
"Safe Harbor" Statement
This release contains certain statements that may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. The words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions, are intended to identify forward-looking statements. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the availability of components and successful production of the company's products, successful performance of internal plans, the impact of competitive services and pricing, general economic risks and uncertainties, and various other information detailed from time to time in the company's filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Please refer to the company's filings at www.sec.gov.