IDT Announces FY2012/2013 Annual Results

For Immediate Release

For Immediate Release

IDT International Announces FY2012/2013 Annual Results * * * Effective Cost Control Measures Maintain Healthy Financial Position

(Hong Kong, 26 June 2013) - Consumer electronic products manufacturer and brand distributor IDT International Limited ("IDT International" or the "Group") (HKEx code: 167) announced its annual results for the year ended 31 March 2013.
Due to the continued slow recovery of the global economy, the Group's total turnover slightly decreased by 1.2% to HK$1,578.2 million, when compared to HK$1,597.1 million recorded last year. The revenue of Oregon Scientific-branded products rose by 7.0% to HK$797.9 million from HK$745.7 million last year, while the revenue of ODM/OEM products decreased by 8.4% to HK$780.3 million from HK$851.4 last year.
Gross profit was HK$441.8 million, when compared to HK$484.5 million last year. The loss for the year under review was reduced by 4.9% to HK$28.9 million, compared to the loss of HK$30.4 million for the year ended 31 March 2012.
The Group continued to exercise stringent cost controls while implementing streamlining measures. However, due to the advertising and promotion expenses for launching its first kids' tablet, MEEP!, total operating expenses actually only recorded a slight decrease. Total operating expenses of the Group, including research and development, distribution and selling, and general administration amounted to HK$510.2 million, a reduction of 1.6% against HK$518.5 million recorded last year.

Business Review Oregon Scientific

With the launch of MEEP! in the American and European markets, sales revenues from Oregon Scientific (OS) climbed by 7.0% to HK$797.9 million, compared with HK$745.7 million for last year. The amount represented 50.6% of the Group's total sales revenues. Moreover, OS successfully entered markets in Russia and Japan during the past year through recruiting qualified distributors and sales agents as well as partnering with other well-known brands on co-branding projects.
In the Electronic Learning Products category, the launch of its first tablet for kids, MEEP! with its Android operating system, offers various educational and infotainment applications for children, and also features a parental control function.
In the Time and Weather category, OS has also developed the Anywhere Weather Station

IDT International Announces FY2012/2013 Annual Results

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which enables weather data detected by sensors to be stored in cloud servers and wirelessly accessed anywhere through the internet. As for the Wellness & Beauty product category, OS has also launched the illumi Ambient Wakeup Light with a downloaded illumi sleep app, which monitors the sleep cycle and wakes users up most naturally at the ideal time. The launch of the Ssmart Watch series within the Sports, Fitness and Healthcare ("SFH") category during the year offers smartwatch functions with additional sports applications designed for sports lovers to monitor and share their sporting performances via smartphones.
During the year, OS was recognised for its superior design and innovation with several international awards. The Ssmart Watch RA900 garnered the Red Dot Design Award 2012 along with the "ATC Chameleon," the world's first dual-lens action video camera which captures both the motion and emotion of the users. OS was also honoured with the Red Dot Design Award 2012 for the Time & Wireless Charging Station, the iF Product Award 2012 for the illumi Ambient Wakeup Light and the NanoActiv Skin Restoring System, and the Hong Kong Electronic Industries Association ("HKEIA") Bronze Award for Innovation and Technology for the MEEP! tablet.
In line with OS' marketing strategy of promoting the "Smart Living" concept, OS' key products will be developed for both online and offline use. Advancing forward from the successful launch of the first generation of MEEP!, OS is scheduled to launch MEEP!X2 in time for the Christmas gift season in 2013. Smart devices will also be introduced to monitor, share and store fitness activities and sports performance data while Wellness and Beauty products still remain as the Group's principal focus for the Asia market.

Value Manufacturing Services

Revenue from the Value Manufacturing Services Division ("VMS") declined by 8.4% to HK$780.3 million mainly due to the decline in sales from some of its key customers in Europe and the continued challenging economic environment.
SFH remains as the largest product category which accounted for 60.1% of total VMS turnover. With the Group's strong technical and engineering competence in new product development, the sales from the SFH product category increased by 32.6% during the year under review as compared with the last financial year.
The VMS Division will focus on development and sales of core products that contribute better margins, as well as prospect for more new customers. VMS will continue to invest in developing the technology platforms for healthcare, energy monitoring and management products while exercising stringent control over operating costs to maintain margins. Because of the strong technical competency, VMS is able to partner with some of the leading global brands to develop and manufacture their products.

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Dr Raymond Chan, Chairman and Group Chief Executive Officer of IDT International concluded, "While growth in the European countries is lagging behind, the economic recovery in the US is proceeding ahead. The Group will continue proactive cost control measures aimed at maintaining its margins. We will further streamline our internal operations and overseas organisational structure to reduce operating costs and expenses while investing in innovative products and expansion to new markets to generate added revenue streams. By advancing in these two directions based on our strong business foundation, we are confident and well positioned to capture opportunities to maximise profitability."

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About IDT International:

IDT International is a holding company whose shares are publicly listed on The Stock Exchange of Hong Kong Limited. Headquartered in Hong Kong, IDT International is engaged in the design, development, manufacture, sales and marketing of innovative consumer electronic products featuring state-of-the-art liquid crystal display and microprocessor technology. Its core businesses include LCD Consumer Electronic Products, Telecommunication Products and Electronic Learning Products. Marketing is undertaken globally through its sales and marketing offices in the US, Italy, the UK, Spain, France, Germany, Australia, Brazil, China, Japan and Hong Kong. Research and development resources have been established in both Hong Kong and China while its manufacturing facilities are centred in Xixiang, Shenzhen, China.

For more corporate and product information on the IDT Group and Oregon Scientific, please access our websites at http://www.idthk.comor http://www.oregonscientific.com

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