ACL Semiconductors Inc. Reports Third Quarter 2012 Financial Results

     ACL Semiconductors Inc. Reports Third Quarter 2012 Financial Results

PR Newswire

HONG KONG, Nov. 19, 2012

HONG KONG, Nov. 19, 2012 /PRNewswire/-- ACL Semiconductors Inc. (ACLO.OB)
("ACL"), an integrated China-based designer, manufacturer and distributor of
advanced technologies spanning smartphone and semiconductor components,
reported unaudited financial results for the quarter ended September 30, 2012.

Mr. Chung-Lun Yang, Chairman and Chief Executive Officer of ACL Semiconductors
Inc., commented, "We have strengthened our product design, manufacturing and
distribution capabilities with the recent acquisition of USmart, an integrated
smartphone component supplier to OEM customers. ACL remains active in the
semiconductor components and supply market through ATMD, our joint venture
with Tomen Devices."

Mr. Yang concluded, "We believe that we are well positioned to leverage our
strong sales and distribution network serving customers across mainland China
and penetrating multiple emerging markets inclusive of India, Indonesia,
Russia and select countries in Africa. We have a robust R&D team focused on
delivering divergent solutions, inclusive of software platforms and other
components, to all smartphone buyers."

Recent Developments

On September 28, 2012, the Company acquired Jussey, a company incorporated in
British Virgin Islands, which owns 100% equity interest in eVision Telecom
Limited ("eVision"), a Hong Kong incorporated company, and 80% equity interest
in USmart Electronic Products Limited ("USmart"), a Hong Kong incorporated
company, which wholly owned Dongguan Kezheng Electronics Limited ("Kezheng"),
a wholly foreign-owned enterprise ("WFOE") organized under the laws of the
PRC. Through this acquisition, the Company has diversified its product
portfolio and customers' network, obtained design and manufacturing
capabilities, and tapped into the expanding telecommunication industry with
access to the 3G baseband licenses.

Third Quarter 2012 Results

Net revenue for the quarter ended September 30, 2012 was $49.5 million, as
compared to revenue of $74.0 million for the same period last year. Third
quarter 2012 net sales decreased due to the migration of the Samsung products
business to ATMD, a joint venture formed in April 2012 in which ACL retained a
30% stake, as well as the reduced demand in the DRAM market.

Gross profit for the third quarter 2012 was $862,000, as compared to $2.9
million in the same period of 2011. Gross profit margin for the third quarter
2012 was 1.7%, compared to a gross profit margin of 5.0% for the third quarter
2011. Reduced average selling prices of DRAM in the third quarter 2012 have
impacted gross margin and the low gross profit margin.

Operating expenses for the third quarter 2012 were $1.2 million, down from
$1.5 million for third quarter 2011. The decrease was mainly due to lower
directors' remuneration and entertainment expenses. Other income for the third
quarter 2012 was $1.5 million, up from other expenses of $90,000 for the same
period last year. The year-over-year increase in other income was mainly due
to the write back in the 2012 quarter of bad debt provision of $1.6 million.

Net income for the quarter ended September 30, 2012 was $1.2 million, compared
to a net income of $1.9 million in the same period last year. Earnings per
diluted share were $0.04 for the quarter ended September 30, 2012, compared to
earnings per diluted share of $0.07 in the same period last year.

About ACL Semiconductors Inc.

ACL Semiconductors is an integrated China-based designer, manufacturer and
distributor of advanced technologies spanning smartphone and semiconductor
components. Through the September 2012 acquisition of USmart Electronics
Products, ACL has become a one-stop solution provider of smartphone components
serving OEM customers spanning local China mobile phone companies and
established telecom carriers. Following the formation of the ATMD joint
venture with Tomen Devices in April 2012, ACL has retained a 30% stake in the
business focused on supplying Samsung semiconductors and LCD products in
Greater China.

Forward-Looking Statements

This information contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. In particular, when used in
the preceding discussion, the words "plan," "confident that," "believe,"
"scheduled," "expect," or "intend to," and similar conditional expressions
are intended to identify forward-looking statements within the meaning of the
Act and are subject to the safe harbor created by the Act. Such statements are
subject to certain risks and uncertainties and actual results could differ
materially from those expressed in any of the forward-looking statements. Such
risks and uncertainties include, but are not limited to, market conditions,
the availability of components and successful production of the company's
products, the process of the new joint venture with Tomen, general acceptance
of the company's products and technologies, competitive factors, timing, and
other risks described in the company's SEC reports and filings.

Investor Contacts:
Kun Lin Lee                        Stephanie Carrington
 
Chief Financial Officer   The Ruth Group

ACL Semiconductors Inc.              +1-646-536-7017

+1-408-981-9363 scarrington@theruthgroup.com

+852-3666-9939

klee@atlantic.com.hk

SOURCE ACL Semiconductors Inc.

Website: http://www.acl-semicon.com