Reigncom Enjoys a 59.7% Rise in Sales, Operating in the Black for the Fourth Straight Quarter

Sales revenue in the third quarter of 2008 was KRW 54.21 billion, operating profit KRW 1.52 billion

• Robust sales in both the second and third quarter were supported by steady sales of MP3/4 players including the E100, electronic dictionaries like D30 and D28, and a range of new products

• Increase in overseas sales; largest amount during the past year posted in the third quarter

• Plans to expand sales in both domestic and foreign markets on the strength of new products and by upgrading existing lines

On October 24, Reigncom (www.reigncom.com, Myoung Woo Lee, CEO) announced that its sales had remained strong in the third quarter, while other earnings indicators had also improved.

Sales jumped 59.7% year-on-year in the third quarter of 2008 to reach KRW 54.21 billion, while operating profit and net profit were posted at KRW 1.52 billion and KRW 1.26 billion, respectively. As well, Reigncom operated in the black for the fourth straight quarter. 

This is a significant achievement, given that Reigncom was operating in the red just over a year ago. The company recorded an operating profit for the third quarter that was equivalent to the average of the first and the second quarters, which is noteworthy, as the third quarter is typically a slack season. This indicates that the company is faring well despite the current economic conditions, which can hardly be described as favorable.

Reigncom¡¯s cumulative sales for the first half of the year reached KRW 155.52 billion, which is a 34.6% increase year-on-year. Aggregate operating profit was KRW 4.69 billion, and aggregate net profit KRW 3.99 billion.

Reigncom attributes its robust earnings to its expanded MP3/4 player lines (including the MP4 players launched in the first quarter and the E100), as well as steady sales of various spectrums of electronic dictionaries, including D30C, D30Fe, and D30J. New products released in the second and third quarters, including Volcano T7, Lplayer and SPINN, also contributed to the increased sales.

In addition, Reigncom¡¯s overseas sales increased in the third quarter, leading the company to post its highest quarterly overseas sales amount within the past year. Reigncom plans to strengthen its growth momentum in both domestic and foreign markets on the strength of the new products it intends to roll out in the fourth quarter, as well as by upgrading its existing product lines. In the fourth quarter, the company will earnestly release SolP products, which it considers to be future growth engines, and this is expected to further boost both sales and profits in the future.

CEO Lee said, ¡°Our robust earnings performance in the third quarter was possible because we came up with differentiated products while opening up new foreign markets, despite uncertain external conditions.¡± He added, ¡°Though the global economy is in a very difficult state, at Reigncom we intend to take this as an opportunity, and make every effort to maintain stable growth in both domestic and foreign markets, while preparing for new IT businesses of the future.¡±