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Chinadotcom (ticker: CHINA), a Chinese enterprise software and solutions provider, posted a Q4 2004 EPS gain (excluding non-recurring items) of $0.03, meeting the consensus EPS estimate. Here are the details:


Q4 2004:
(all percentage changes and comparisons are sequential, unless stated otherwise)

  • Total revenue increased 13% to $54.2 million from $48.0 million. Consensus estimate was $56.2 million.
  • Gross profit increased 22% to $32.3 million from $26.4 million.
  • Gross margin was 60%, increasing from 55%.
  • Operating income was $0.6 million compared to an operating loss of $6.9 million.
  • Net loss was $8.0 million compared to a net loss of $6.2 million. This was due principally to a tax expense of $9.0 million, $7.4 million of which was non-cash and primarily related to the acquisitions of Pivotal Corporation and Ross Systems.
  • Non-GAAP net income was $3.6 million compared to Non-GAAP net income of $2.8 million.
  • Non-GAAP earnings per share were $0.033 compared to $0.027. Consensus EPS estimate was $0.03.
  • Non-GAAP net income excludes certain non-recurring or non-cash expenses including (i) amortization of purchased intangibles related to the acquisition of subsidiaries, (ii) restructuring charges and (iii) adjustments which relate to the tax impact of acquisitions.
  • Basic loss per share was $0.072 compared to a basic
    loss per share of $0.058.

FY2004:
(all percentage changes and comparisons are year-over-year, unless stated otherwise)

  • Total revenue increased 135% to $182.7 million from $77.9 million.
  • Gross profit increased 165% to $103.5 million from $39.0 million.
  • Gross margin was 57%, increasing from 50% in 2003.
  • Operating loss was $6.5 million compared to operating income of $235,000.
  • Income before taxes was $348,000 compared to $16.6 million.
  • Net loss was $10.6 million compared to net income of $15.5 million.

2005 Plan:

  • Acceleration of research and development programs for enterprise software products.
  • Addition of selected vertical market offerings for the company's enterprise software products.
  • Expansion of the sales and marketing network for enterprise software in the Asia Pacific region.
  • Development of new products and services for the existing 2.5G mobile networks and the proposed 3G mobile networks in China.
  • Development of specialized content, cultivating strategic partnerships and sponsoring key events for the china.com portal.
  • No financial guidance provided in the company's press release.

CHINA's stock market performance:
China39


Source: Chinadotcom (CHINA) misses rev estimates, CEO resigns, stock whacked (4Q04 earnings)