(all percentage changes and comparisons are year on year, unless stated otherwise)
- Revenue rose 58.2% to $56.2 million versus consensus estimate of $54.0 million (1 analyst).
- Revenue breakdown: software up 120.9% to $37.2 million, mobile services up 12.9% to $7.3 million, business services down 4.7% to $9.4 million, and advertising down 1.8% to $2.3 million.
- Non-SMS product revenue which includes WAP, IVR and MMS products was 47% of total MVAS revenue versus 6%, and 27% in Q4 2004.
- Gross margin was 54.2% versus 52.8%.
- SG&A rose 85.0% to $25.0 million.
- R&D rose 608.3% to $4.8 million.
- Operating expenses rose 105.5% to $33.8 million.
- Operating loss of $3.3 million versus operating gain of $2.3 million.
- Loss before taxes of $2.4 million versus income before taxes of $5.1 million.
- Net loss of $3.7 million versus gain of $4.3 million.
- Basic loss per share of $0.034 versus gain of $0.042.
- Non-GAAP net income of $1.2 million versus $6.0 million.
- Non-GAAP EPS of $0.011 versus $0.058.
- Consensus EPS estimate of $0.03 (1 analyst).
Note on Operating Expenses
- Increase in operating expenses was primarily driven by consolidating results of Go2joy and Ross Systems, which were acquired in May and August 2004, respectively, and a full quarter of Pivotal which was acquired in late February 2004.
- Non-GAAP net cash and equivalents, net of total debt, were $226 million at March 31, 2005.
Executive Chairman and CEO Dr. Raymond Ch'ien
The company is pleased with this week's release of Pivotal 5.7 and early
market reception of the suite of new offerings from Ross Systems. We will
continue to differentiate ourselves in the enterprise software mid-market by
offering innovative products and services that quickly deliver value for our
We have sharpened our focus on providing consumersCDC Corporation chart.
in China with compelling portal content that will increasingly help drive
usage of the innovative products and services we offer on our various mobile