FAB Universal Reports Profit For Q3; Updates Guidance For 2013

(RTTNews) - FAB Universal Corporation (FU), a distributor of digital media and entertainment, Wednesday reported profit for the third quarter over loss in the same period last year as revenue grew substantially. The company said that the year-over-year comparisons largely reflect the acquistion of DEI LTD on Septmber 26, 2012. Based on year to date performance, and including expected reinvestments in the licensing and kiosk business during the fourth quarter, the company revised its revenue and earnings guidance for the full year.

"FAB Universal recorded another strong quarter, driven by continued momentum in our digital business which includes our high-margin Intelligent Media Kiosk network," said Chris Spencer, CEO. "We added over 2,400 new kiosks to our network during the quarter and now have kiosks in 40 cities across China with a total installed base of 16,820 terminals."

The company posted profit of $7.29 million, or $0.35 per share, compared with a loss of $4.95 million, or $0.51 per share, a year earlier.

Revenue of the company rose to $29.75 million from $1.74 million a year ago. Revenue from wholesale business unit and retail business unit grew from none to $14 million and $2.5 million, respectively. Revenue from the digital business unit increased to $13.3 million from $1.7 million a year ago.

The company revised its 2013 forecast for revenue to $102 million to $105 million and earnings to $19 million to $21 million.

Currently, the stock is trading in the pre-market hours up 22.53 percent, or $1.32, at $7.18 on the NYSE.