MOBI Development Co Ltd Comments On FY 2012 Earnings Guidance

MOBI Development Co Ltd announced that for fiscal 2012, it expects to record a loss in its unaudited consolidated management accounts. The loss was mainly attributable to the following: Because of the decline in demand sharply of international equipment providers particularly European customers and the postponement of certain investment activities and inspection process conducted by the PRC telecommunications operators, and that may result in decline in the Company's revenue of some products as compared to the same period last year; The overall gross profit margin of the Group may be decreased due to the increase in the cost of sales caused by the inflation, the increasingly fierce competition in the telecommunications industry, the unrealized sales scalability of new products and new businesses and the decline in demand of international and domestic customers regarding the old product discount clearing inventory; and looking forward the market opportunities of 3G and 4G in future, the Company continuous investment in 3G and 4G development and expansion of product offerings together with the increase in prospective study expenditures resulted in the surge in the research and development expenditures.