for Key 2007 Financial Results
WAYNE, Pa. and AUSTIN, Texas, Feb. 15 /Xinhua-PRNewswire-FirstCall/ --
Ascend Acquisition Corp. ("Ascend") (OTC Bulletin Board: ASAQ; ASAQU; ASAQW),
a special purpose acquisition company, today provided estimates of key
financial results from its merger partner, e.PAK Resources (S) Pte. Ltd.
("ePAK"), for the fourth quarter and fiscal year ended December 31, 2007.
These estimates are based on ePAK's unaudited financial statements for these
periods and are subject to modification in connection with the completion of
ePAK's audit for 2007.
Fourth Quarter 2007 Estimates
Based on ePAK's unaudited financial statements, ePAK's net sales for the
three months ended December 31, 2007 were approximately $13.9 million, an
increase of 38% from net sales of approximately $10.1 million for the same
period in 2006. This growth was primarily driven by sales of wafer shippers,
wafer transport media and data storage devices to new customers and an
increase in sales to existing customers. Sales of IC handling products also
increased during the quarter.
Based on ePAK's unaudited financial statements, gross profit for the
fourth quarter of 2007 was approximately $5.1 million, an increase of 41.7%
from gross profit of approximately $3.6 million for the same period in 2006.
Gross margin was approximately 36.8%, or 0.9% higher than the gross margin of
35.9% for the same quarter of 2006. The improvement in gross margin was due
to the increased contribution of higher margin wafer products to the product
sales mix, which was partially offset by higher outsourcing costs resulting
from the full capacity status of ePAK's manufacturing facilities.
Full Year 2007 Estimates
Based on ePAK's unaudited financial statements, ePAK's net sales for the
year ended December 31, 2007 were approximately $46.7 million, up 29.1% from
approximately $36.1 million in 2006. Gross profit for 2007 was approximately
$16.4 million in 2007, up 25.2% from approximately $13.1 million in 2006.
Gross margin during 2007 was approximately 35.0% compared to approximately
36.1% in 2006.
Steve Dezso, ePAK's president, stated, "ePAK achieved strong growth in
revenues and gross profit in 2007 despite our capacity constraints. Our gross
margin in 2007 was slightly lower than in 2006 due to higher raw material
costs, large scale facilities expansion, and high cost subcontract
manufacturing due to demand outpacing internal capacity. In the fourth
quarter, margins showed improvement as selling prices were adjusted to
compensate for raw material costs. Further improvements are anticipated as
our manufacturing capacity is expanded to fill available space and the need
for high cost subcontracting will be reduced."
Based on ePAK's unaudited financial statements, at December 31, 2007, ePAK
had cash and cash equivalents of approximately $2.7 million, total assets of
approximately $41.7 million, short-term bank borrowings of approximately $7.3
million and long-term debt, including the current portion, of approximately
$1.5 million. ePAK's unaudited financial statements reflect that during 2007
ePAK generated approximately $14.9 million of cash flow from operations, up
from approximately $12.4 million in 2006. ePAK's cash flow from operations
remained strong, despite the need to increase inventories in order to support
its rapid revenue growth. In 2007, ePAK had capital expenditures of
approximately $5.6 million, which was used to triple its manufacturing space
to 600,000 square feet and install new equipment.
"In 2008, we expect to see continued revenue growth across all product
lines and regions from both new and existing customers. Our high-margin wafer
business will be the main driver behind our anticipated growth, and we will
continue to develop new products and work closely with our customers to
engineer, design and deliver solutions that meet their mission critical
needs," commented Mr. Dezso.
Mr. Rice stated, "Following the completion of the merger, ePAK will have
about $35 million in cash, providing management with the resources it needs to
expand its business to meet existing demand and pursue strategic acquisitions.
We are confident that our stockholders will agree that ePAK is an exciting,
high growth company with an excellent future."
In July 2007, Ascend entered into a definitive agreement to acquire ePAK.
Under the terms of the agreement, as amended, at the closing of the
transaction, our public company will become a Bermuda public company and
acquire 100% of the outstanding capital stock of ePAK. Upon completion of the
transaction, which is expected in the second quarter of 2008, the resulting
public company will be named ePAK International Ltd. It is expected that ePAK
International's common stock and warrants will trade on the NASDAQ Global
A registration statement and proxy statement under Form S-4 has been filed
under the issuer name "EPAK INTERNATIONAL LIMITED" with the Securities and
Exchange Commission in connection with the proposed acquisition of ePAK and
redomestication of the public company to Bermuda. STOCKHOLDERS OF ASCEND AND
OTHER INTERESTED PERSONS ARE ADVISED TO READ, WHEN AVAILABLE, THE FINAL
PROSPECTUS AND DEFINITIVE PROXY STATEMENT IN CONNECTION WITH THE TRANSACTIONS
AND THE SOLICIATION OF PROXIES FOR THE SPECIAL MEETING OF ASCEND'S
STOCKHOLDERS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Once ePAK's audit for fiscal 2007 is completed, audited financial
statements for such year will be filed as part of ePAK International Limited's
registration and proxy statement under Form S-4. This audit is expected to be
completed by the end of March 2008.
The final prospectus and definitive proxy statement will be mailed to
Ascend's stockholders as of a record date to be established for voting on the
merger and redomestication. These documents also will be available without
charge online at the Securities and Exchange Commission's Internet site
(http://www.sec.gov) and by mail through requests to Ascend Acquisition Corp.,
435 Devon Park Drive, Bldg. 400 Wayne, PA 19087, Attention: T. Anderson.
Stockholders and other interested persons can also read Ascend's final
prospectus, dated May 11, 2006, for a description of the security holdings of
Ascend's directors and officers and of EarlyBirdCapital, Inc., the
underwriters of Ascend's initial public offering, and their respective
interests in the successful consummation of the proposed transactions.
About e.PAK Resources (S) Pte. Ltd.
ePAK is a full-service designer, manufacturer and supplier of precision
engineered products and solutions for the automated transport and handling of
semiconductor and electronic devices. ePAK's product areas include front-end
wafer handling, back-end IC transport, and end-system sub-assembly handling.
The Company's products are sold globally to top tier global customers
including semiconductor companies, system OEMs, and IC assembly and test
operations. The company's low cost, large-scale manufacturing operations in
Shenzhen, the People's Republic of China ("PRC") are centrally located to the
semiconductor industry. ePAK's executive offices are located in Austin, Texas
and the Company maintains nine sales and applications engineering offices
About Ascend Acquisition Corporation
Ascend Acquisition Corp. was formed on December 5, 2005 for the purpose of
effecting a merger, capital stock exchange, asset acquisition or other similar
business combination with an operating business. Ascend's registration
statement for its initial public offering was declared effective on May 11,
2006 and the offering closed on May 22, 2006, generating net proceeds of
approximately $38.5 million from the sale of 6.9 million units, including the
full exercise of the underwriters' over-allotment option and the sale of
166,667 units to the Ascend's Chairman and CEO, Don K. Rice. Each unit was
comprised of one share of Ascend common stock and two warrants, each with an
exercise price of $5.00. As of January 31, 2008, Ascend held approximately
$40.8 million in a trust account maintained by an independent trustee, which
will be released to Ascend upon the consummation of the business combination.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 about Ascend, ePAK and
their combined business after completion of the proposed business combination.
These forward-looking statements are based on current expectations and
projections about future events. These forward-looking statements are subject
to known and unknown risks, uncertainties and assumptions about us that may
cause actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance
or achievements expressed or implied by such forward-looking statements. In
some cases, you can identify forward-looking statements by terminology such as
"projected," "may," "will," "should," "could," "would," "expect," "plan,"
"anticipate," "believe," "estimate," "continue," or the negative of such terms
or other similar expressions. Factors that might cause or contribute to such a
discrepancy include, but are not limited to changes to ePAK's preliminary
unaudited financial results reported in this press release following the
completion of the audit, ePAK's ability to grow future revenues and earnings,
changes in demand for ePAK's products, market acceptance of the ePAK's
products, changes in the laws of the People's Republic of China that affect
ePAK's operations, and other factors that may be detailed from time to time in
Ascend's filings with the United States Securities and Exchange Commission and
other regulatory authorities.
For more information, please contact:
Ascend Acquisition Corporation
Don K. Rice, Chairman and CEO
ePAK International Inc.
Steve Dezso, CEO
CCG Investor Relations
Crocker Coulson, President
SOURCE Ascend Acquisition Corp.
Don K. Rice of Ascend Acquisition Corporation, +1-610-519-1336, or
email@example.com; or Steve Dezso of ePAK International Inc., +1-512- 231-8083, or firstname.lastname@example.org; or Crocker Coulson of CCG Investor Relations for
Ascend Acquisition Corp., +1-646-213-1915, or email@example.com
-0- Feb/15/2008 14:30 GMT
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