AsiaInfo Misses by $0.01; Restructuring Continues (ASIA 3Q05 Earnings)

AsiaInfo Holdings (ticker: ASIA) reported Q3 2005 earnings results today that missed consensus EPS estimates (1 analyst) by $0.01. Key stats from the quarter:

Q3 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

• Total revenue rose 26.1% to $25.2 million, but fell 7.0% sequentially.
• Net revenue (total revenues net of third party hardware cost) rose 53.0% to $22.0 million, but fell 7.0% sequentially.
• Software products and solutions revenue rose 58.7% to $15.3 million.
• Service revenue rose 46.8% to $6.3 million.
• Third party hardware revenue fell 40.1% to $3.6 million.
• Gross margin was 43.5% vs 41.8%.
• Operating expenses rose 43.6% to $11.4 million.
• Sales and marketing expenses rose 73.4% to $5.4 million.
• General and administrative expenses rose 5.6% to $2.5 million.
• R&D expenses rose 35.4% to $3.1 million.
• Amortization expenses rose 165.6% to $401,000.
• Operating loss of $428,000 vs gain of $423,000.
• Net income fell 91.4% to $427,000. Q3 2004 net income included one-time investment gain of $4.0 million.
• Diluted EPS of $0.01 vs $0.11, and vs consensus estimate (1 analyst) of $0.02.

Balance Sheet (as of September 30, 2005)

• Cash and equivalents of $79.0 million.
• Restricted cash of $15.5 million.
• Short-term investments of $53.8 million.

Q4 Guidance

• Net revenue of $18 - $20 million (equivalent to a year-over-year decrease of 13% to 22% and a quarterly decrease of 9% to 18%).
• Earnings per basic share of $0.00 - $0.01 (excluding impairment charges and associated diversified costs relating to the disposal of non-core businesses of $18 million to 23 million).
• On GAAP basis, loss per basic share of $0.38 - $0.49.

FY 2005 Guidance

• Net revenue of $86 - $88 million.
• Earnings per basic share of $0.06 - 0.07 (excluding impairment charges and associated diversified costs).
• On GAAP basis, loss per basic share of $0.33 - $0.46.

Related

• ASIA's Q2 Results.

ASIA chart.