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Holdings (ticker: ASIA) met both consensus revenue and EPS estimates. Details:

Q2 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

  • Total revenue rose 20.3% to $27.1 million.
  • Net revenue rose 48.7% to $23.4 million, slightly above consensus of $23.1 million.
  • Revenue from software products and solutions rose 72.8% to $16.1 million.
  • Service revenue rose 17.3% to $7.1 million
  • Third-party revenue fell 46.1% to $3.8 million.
  • Gross margin was 41.1% versus 38.7%.
  • Total operating expenses rose 58.1% to $11.0 million.
  • Sales and marketing expenses rose 56.8% to $4.7 million.
  • G&A expenses rose 105.5% to $3.1 million.
  • R&D expenses rose 20.2% to $2.8 million.
  • Operating income fell 90.1% to $175,000.
  • Net income fell 59.1% to $829,000.
  • EPS was $0.02 versus $0.04, and consensus of $0.02.

Q3 Guidance

  • Net revenue of $21 - $23 million.
  • Lenovo-AsiaInfo to contribute 30% to net revenue.
  • Basic EPS of $0.01 - $0.02. Consensus estimate is $0.02.

ASIA chart.


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Source: AsiaInfo meets consensus; shows strong software revenue growth; expenses rise (ASIA 2Q05 earnings results)