China Digital Media Corporation (CDGT.OB) has completed its acquisition of Arcotect Digital Technology Limited.
Arcotect Digital Technology Limited and its China operating subsidiary Arcotect Technology (Guangzhou) Limited is the sole contractor and operator of digital television services in Nanhai, a city in the Guangdong province.
During the first full year of operations in fiscal year 2004, Arcotect recorded revenues of $3.9 million and earned a modest net income of $1.9 million.
The city of Nanhai has approximately 400,000 paying Cable TV subscribers which it plans to migrate from analog television to digital television. Thus far, the company had migrated around 100,000 subscribers from analog television to digital television by installing a digital set-top-box into subscriber's premises.
Arcotect currently employs approximately 200 people to support the existing operations.