SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
October 10, 2007
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Date of Report (Date of earliest event reported)
SOYO GROUP, INC.
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(Exact name of registrant as specified in its charter)
Nevada 333-42036 95-4502724
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1420 South Vintage Avenue
Ontario, California 91761-3646
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(Address of principal executive offices, including zip code)
(909) 292-2500
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(Registrant's telephone number, including area code)
N/A
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act
Item 8.01 Other Events
SOYO Group Inc. today reported preliminary unaudited results for the third
quarter, which ended September 30, 2007, as well as updated revenue guidance for
the Fiscal year ending December 31, 2007. While results of the third quarter are
still being finalized, the Company expects to report record revenues, exceeding
$34,000,000, and blended gross margins of 13.5 percent. In addition, SOYO
estimates profits to total $1,000,000, or two cents per share for the quarter
ending September 30, 2007.
Nancy Chu, SOYO's Chief Financial Officer commented "We were very successful in
promoting our LCD monitors through a national chain of office super stores, and
our Prive product line sales in Canada were also significantly higher than
expected. Sales of our Le Vello furniture line and other high margin products
were in line with our expectations. As a result, our gross margin in dollars
were above our expectations, while our blended gross margin percentage was lower
than anticipated."
Ming Chok, SOYO's Chief Executive Officer stated in his letter to shareholders
"I believe that we can reach, or exceed, $50 MM in sales over the second half of
the year, while maintaining our 16 percent gross margin. By carefully monitoring
our expenses, we could earn as much as seven to eight cents per share on a fully
diluted basis in 2007."
SOYO now anticipates the fiscal years gross margin to be approximately 15
percent, and earnings of three cents per share for the fourth quarter. Based on
these results the company will adjust its year end projections to be $98 million
dollars in revenue and .07 EPS. Previously we had estimated annual revenues of
$88 million dollars and .07-.08 EPS. SOYO's shareholder letter stated that $50MM
and 16% were predicated on its ability to raise an additional $5 MM in capital.
The Company has not yet raised that capital and this is the reason we were not
able to maintain the 16 percent blended margin.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SOYO GROUP, INC.
(Registrant)
Date: October 10, 2007 By: /s/ MING CHOK
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Ming Chok, CEO
Date: October 10, 2007 By: /s/ NANCY CHU
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Nancy Chu, CFO