Borqs Reports Strong Growth, Ready to Delve into Electric Vehicle Business
Borqs reported strong sales growth and higher income in the first quarter on Tuesday evening. This month, the Chinese software company is preparing to take ownership of Kadi, a maker of software for electric vehicle modules.
Borqs Technologies Inc. (Nasdaq: BRQS) reported on Tuesday evening that its revenue soared 87 percent in the first quarter to $58.3 million from $31.2 million for the same period last year.
The Beijing-based company, a producer of software and products for the Internet of Things (IoT), said both of its businesses, the cloud solutions developer and mobile network operator, showed positive trends, the former growing 103 percent to $50.4 million, and the latter gaining 22 percent to $7.9 million.The combined gross margin for the first quarter was 15 percent, compared with 13 percent a year ago.
Net income in the first three months was $1.4 million, or 5 cents per American depositary share, in contrast to $18,000, or a loss of 5 cents per share, year-over-year.
The company said it anticipated similar growth in its businesses for the full year.
In a statement, Borqs also said that by mid-May, the company would finalize its acquisition of 60 percent of Shanghai Kadi Machinery Technology Co. Ltd., a Chinese developer of software and hardware for electric vehicle control modules.
In January, when the partnership with Kadi was first announced, chief executive officer of Borqs, Pat Chan, said: "Our acquisition of Kadi will enhance Borqs' internet-of-things solutions for automobiles, and provide a comprehensive product line of IoT modules for electric vehicles. I trust that we are only seeing the tip of the iceberg for IoT products in this industry.