PacificNet misses by $0.01; re-iterates FY05 guidance; margins improve (PACT 2Q05 earnings results)

| About: Pacificnet Inc (PACT-OLD)

PacificNet (ticker: PACT) reported Q2 2005 earnings results that beat consensus revenue estimates but missed consensus EPS estimates by $0.01. Key stats from the quarter:


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

  • Revenue rose 33.0% to $10.75 million vs consensus estimate of $10.36 million.
  • Revenue rose 18.0% sequentially.
  • Value-added service revenue rose 142.0% sequentially to $3.2 million.
  • Outsourcing revenue rose 11.0% sequentially to $3.4 million.
  • Communications revenue fell 13.3% sequentially to $4.1 million.
  • Gross margin was 20.6% vs 16.0%.
  • SG&A expenses rose 17.9% to $1.0 million.
  • Operating income rose 223.9% to $1.1 million.
  • Operating margin was 10.5% vs 4.3%.
  • Net income rose 1,070.6% to $597,000, and rose 43.0% sequentially.
  • Net margin was 5.6% vs 0.6%.
  • EPS of $0.06 vs $0.01, below consensus estimate of $0.07.

Balance Sheet

  • Cash and equivalents of $5.4 million as of June 30, 2005.

Q3 Guidance

  • Revenue of $11 - $13 million vs consensus of $12.11 million.
  • Net income of $600,000 - $900,000.
  • EPS of $0.06 - $0.09 vs consensus of $0.09.

FY 2005 Guidance (Re-iterated)

  • Revenue of $45 and $50 million vs consensus of $46.5 million.
  • Net income of $2.8 - $4.2 million.
  • EPS of $0.25 - $0.38 vs consensus of $0.29.

PACT chart.

Pact815

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