HARTCOURT - Germany/Europe

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NEWS !! Hartcourt Announces Third Quarter 2006 Results

SHANGHAI, CHINA--(MARKET WIRE)--Apr 17, 2006 -- The Hartcourt Companies, Inc. (OTC BB:HRCT.OB - News), (Frankfurt:900009.F - News), today announced its third quarter 2006 results as of February 28, 2006.

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Revenue was US$9 million for the third quarter ended February 28, 2006, comprised of primarily Samsung computer products. Revenue was 5% lower compared to a year ago same period, due to slower consumer demands. Gross margin decreased 5 points due to heavy retail promotion activities of Samsung computer products in December 2005. Operating expenses lowered to US$1.8 million, a 67% reduction compared to a year ago, a result of tight control over expenditures.

Due to the on-going dispute over the distribution agreement between our operating subsidiary Control Tech, a distributor of high end video conference products and its major supplier Radvision, we had no sales in the current quarter. We recorded a goodwill impairment charge of US$1.08 million as prescribed by SFAS No. 142. We further made a provision of US$0.5 million on Control Tech's inventory. As such, we had a net loss of US$1.5 million in the third quarter of 2006.

We are currently conducting a re-audit of our 2003 financial results. The re-audit is expected to be completed in May, 2006.

Details of this financial report can be found in our 10Q filing on www.sec.gov.


quelle:
http://biz.yahoo.com/iw/060417/0123280.html