Linktone Ltd. (LTON) rises on Q3 results

Posted on: November 30th, 2010
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Shares of value added telecom service provider, Linktone Ltd. (Nasdaq: LTON) were up about 29 percent in mid-day trading on Wednesday after the company announced strong revenue growth and a slight decrease in third quarter profit, over the same period last year.

Linktone reported GAAP net income of $600,000 or $0.02 per ADS for the third quarter, compared to $700,000 or $0.02 per ADS in the third quarter of last year. Gross revenue increased 43 percent to $19.8 million from $13.8 million a year ago.

Linktone anticipates gross revenues to fall in a range between $20 million and $21 million in Q4 of this year.

Cash and cash equivalents as well as short-term investments available for sale totaled $89.2 million, or $2.12 per fully diluted ADS, as of September 30, 2010, compared with $88.1 million as of June 30, 2010.

“As a result of effective marketing initiatives and our efforts to differentiate our services during the highly competitive season of summer school vacation, we achieved another strong quarter, with revenue from all segments of VAS data-related services, audio-related services and sales of licensed edutainment and entertainment products achieved sequential growth,” Chief Executive Officer Hary Tanoesoedibjo said in a statement. “Our healthy cash balance remains a valuable asset as we continue to assess opportunities for growth, expansion and diversification.”

Linktone seeks to capitalize on the opportunity created by the demand for mobile data services in China by offering a wide range of content and applications to mobile phone users in China and Southeast Asia. Linktone’s business model is based on revenue-sharing relationships with China’s telecom operators, including China Mobile and China Unicom, the two major mobile operators, and China Telecom and China Netcom, the two major PHS operators in China. Linktone offers a diversified portfolio that includes SMS-based wireless value added services, including ringtones, icons and screen savers, multiplayer games, horoscopes, jokes, fan clubs and news.

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Tongxin International (TXIC) continues nosedive with lowered forecast and executive changes

Posted on: November 20th, 2010
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Tongxin International Ltd. (OTCBB: TXIC) a China-based manufacturer of engineered vehicle components for the automotive industry, continues its downward spiral, reaching a 52-week low of 1.68 Friday, plummeting over 81 percent year-to-date, after announcing lowered revenue guidance and executive management changes amid speculation of plans to go private.

Tongxin International, which specializes in the manufacture of engineered vehicle body structures (“EVBS”) and stamped parts for the commercial automotive industry, today announced revenue guidance for the fiscal year ended December 21, 2010 lowered by $50 million dollars, to a range of $100 million- $110 million. This lowered guidance can be contributed to an anticipated drop in orders from international customers in Vietnam, due to a decrease in market share due to in-house production of cabs. Additionally, the impact of the cessation of certain government sponsored stimulus programs throughout 2010, the slower than anticipated or delayed startup of two new models as wells as a drop in sales.

Additionally, Tongxin announced Rudy Wilson was removed as Chief Executive Officer of the Company, but will remain as a Director, and Jackie Chang was removed as Chief Financial Officer and Chief Accounting Officer of the Company.

In the newly vacated postition, William E. Zielke has been appointed Chief Executive Officer and Chief Administrative Officer of Tongxin International Ltd.  In connection with Mr. Zielke’s appointment, Mr. Zhang Duanxiang was appointed Chairman of the Company. Zielke, a Director of the Company, has been involved in the China automotive market for 14 years, with over 30 years automotive experience including an expatriate assignment in Europe, and serving on the boards of various corporations.

Lastly, Tongxin International addressed speculation that the Company plans to go private, stating there is no truth to such rumors.

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Network-1 (NSSI) records remarkable quarterly results

Posted on: November 15th, 2010
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Network-1 Security Solutions, Inc. (OTCBB: NSSI) enjoyed heavy volume Monday after announcing favorable financial results and operating highlights for the quarter ended September 30, 2010. Heavily influencing these positive quarterly results was the settlement agreement reached by Network-1 in its patent infringement litigation against Adtran, Inc, Cisco Systems, Inc. and Cisco-Linksys, LLC, (collectively, “Cisco”), Enterasys Networks, Inc., Extreme Networks, Inc., Foundry Networks, Inc., and 3Com Corporation, Inc.

Based on the settlement reached, the companies listed above will pay Network-1 aggregate upfront payments of approximately $32 million and have also agreed to license Network-1’s Remote Power Patent for its full term, which expires in March 2020. Additionally, Cisco agreed to pay royalties, beginning in 2011, based on its sales of Power over Ethernet (“PoE”) products up to maximum royalty payments per year of $8 million through 2015 and $9 million per year through 2020.

Commenting on the impact of the litigation settlement and financial reports, Chairman and CEO of Network-1, Corey M. Horowitz said, “It was a very notable quarter for Network-1. We successfully resolved our second litigation over our Remote Power Patent and now have 11 licensees to this important technology, including some of the largest technology companies in the world. There are over two hundred companies selling PoE equipment and we look forward to successfully licensing them as we have demonstrated the quality of our intellectual property as well as our perseverance in defending it.’

Network-1 reported revenues of $32,560,000 for the three months ended September 30, 2010, a figure that includes $32,320,000 received from the settlement of patent litigation in July 2010. Network-1 reported net income of $21,805,000 or $0.89 per share for the three months ended September 30, 2010 as compared to a net loss of ($457,000) or $(0.07) for the same period in 2009.

“We continue to be presented with exciting opportunities in the IP commercialization and monetization space,” continued Mr. Horowitz. “Our knowledge, discipline and experience combined with our resources opens many doors in this fast growing business. Increasingly, companies are seeking to monetize their intellectual property portfolios, resulting in some large and well-publicized transactions, and Network-1 believes that it can be an effective participant in such endeavors.”

Share prices have grown immensely in the past six months, skyrocketing 117.5 percent from a low of .80 in May to the current price of 1.74.

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Medical Connections (MCTH) announces positive third quarter 2010 results

Posted on: November 15th, 2010
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Shares prices for Medical Connections Holdings, Inc. (OTCBB: MCTH) are currently hovering around 41 cents, up nearly 17 percent from 35 cents a week ago, on news that the Company would report favorable quarterly financial results. Today the company announced operating results for the third quarter of 2010, a 46 percent increase in revenue, combined with a 33 percent decrease in operating expense improve Medical Connection’s bottom line by 44 percent.

Anthony Nicolosi, President of Medical Connections, expressed his thoughts on the quarterly results, stating “We are pleased to see that our efforts have resulted in a record-breaking quarter for Medical Connections. Our focus on quality revenue growth and expense containment are certainly delivering positive results.”

Specifically, the Company recorded revenue increasing 46 percent to $2,264,713, up $711,814 from $1,552,899 the same quarter a year ago, while also decreasing operating expenses $736,287 to $1,495,232, or 33 percent, during the same period.

Nicolosi continued, “In addition, we are continuing our efforts towards acquiring a healthcare staffing company that best fits our operating strategy. We would like to express our appreciation to our shareholders for their support of management changes that have clearly resulted in considerable improvements for our Company. “

Medical Connections, Inc. is a national provider of medical recruitment and staffing services, headquartered in Boca Raton, Florida, and specializes in identifying and placing talented individuals within the healthcare industry, such as: nurses, pharmacists, specialists, physicians, and hospital management executives.

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