The board of directors of the Comba Telecom Systems Holdings Ltd. informed the shareholders of the company and potential investors that the group anticipates to report a loss in the results for the six months ended June 30, 2012, which is primarily attributable to the factors: because of the postponement of certain investment activities and inspection process conducted by the PRC telecommunications operators, some of the group's projects Revenues were not recognized in the Reporting Period and that may result in a decline in the Group's revenue of some major products as compared to the same period last year; The overall gross profit margin of the Group may be decreased due to the increase in the cost of sales caused by the inflation, the increasingly fierce competition in the telecommunications industry and the unrealized sales scalability of new products and new businesses; Continuous investment in the development and expansion of product offerings as well as global expansion of sales and service networks of the Group resulted in the surge in operating costs.