Trunkbow International (NASDAQ:TBOW) provides telecom companies in China with application platforms on which they can offer the customers mobile applications. Trunkbow offers two types of technologies to the telecom companies: Mobile Value Added Solutions (MVAS) Technology platforms - a portfolio of mobile phone applications and Mobile Payment Solutions - a system that facilitates payment clearing between mobile users. Trunkbow sells these technologies to companies who resell them to the three large telecom companies in China. The telecom companies in turn offer the technologies to their subscribers who are the end consumers of it.
The continued rise in China's middle class has drive growth in the adoption of mobile phones in the region. As a result, the usage of mobile phone's in China has risen dramatically. This correspondingly has pushed up demand for Trunkbow's technology services which run on the phones. While Trunkbow does not sell directly to the end user, the rise in mobile phone usage will indirectly increase demand for Trunkbow.
The company's initial public offering of stock on the NASDAQ occurred on February 2, 2011. The company offered 4M shares each for $5. The initial price range for the deal was $5-$7, and the deal priced at the low end of the range. The offering raised $20M. The lead underwriter of the deal was Roth Capital.
For the full year 2009, Trunkbow's total revenue was $13.5M, a 4.7% increase over the figure for 2008. For the first 9 months of 2010, the company's total revenue was $10.9M, or a 22% increase over the figure for the same period in 2009. The company's net income for the first 9 months of 2010 was $5.3M. This corresponds to a 6% increase over the net income for the same period in 2009.