Acorn International Reports Strong Revenue; Shares Up 6%
Acorn International Inc. (NYSE: ATV) has announced strong sales and income for the first quarter, sending its stock higher on the day.
The Shanghai-based marketing and branding company, which develops, promotes, and sells self-branded and third-party products through e-commerce channels in China, reported Wednesday that it enjoyed a strong quarter during the three months through March.
In response to the news, the stock in Acorn rose more than 6 percent to $26.58 per American depositary share.
The company said its revenue reached $9.2 million during the first quarter, up 69 percent year-over-year. Net income was $4.8 million compared with net loss of $200,000 a year ago.
Operating expenses increased from $3.8 million last year to $6.1 million, while costs of revenue were $2.6 million, up 58 percent from a year ago, according to the report.
"During the quarter, our Babaka brand of posture correction products generated the highest quarterly sales in recent history. This was driven by expansion on third-party e-commerce B2C platforms and the successful promotion of core products through digital media in China. Acorn Fresh, which offers high-quality, fresh food products via e-commerce, also generated strong sales growth," Acorn's chief executive officer, Jacob Fisch, said in the report.
"Going forward, Acorn will continue to focus on building brands and growing e-commerce," Fisch said. "To support this growth, we are also focused on the continued development of Acorn Entertainment and Acorn Streaming. Consistent with our prior disclosure, we currently do not anticipate any meaningful impact on our business associated with the trade tensions between the U.S. and China as virtually all of our revenue is generated within China."
As of March 31, the company had $17.6 million in cash, cash equivalents, and restricted cash, it reported.
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