CDC Corp Beats on Adjusted Basis; Reports Solid Sequential MVAS Revenue Growth; Stock Flat in Early Trading (CHINA 3Q05 Earnings)

Nov.23.05 | About: CDC Corp. (CDCAQ)

CDC Corporation (ticker: CHINA) reported Q3 2005 results today that beat consensus adjusted earnings per share estimates. Key stats from the quarter:

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

  • Total revenue rose 31.3% to $61.9 million.
  • Software revenue rose 39.2% to $38.4 million.
  • Business services revenue rose 9.1% to $10.6 million.
  • Ad and marketing revenue rose 1.8% to $3.1 million.
  • MVAS revenue rose 43.6% to $9.8 million, and rose 14% sequentially.
  • Advanced mobile products (MMS, IVR and WAP) revenue rose 52% sequentially to $5.9 million.
  • SMS revenue fell 17% sequentially to $3.9 million.
  • Gross margin was 55.3% vs 54.0%.
  • Operating expenses rose 11.1% to $36.0 million.
  • SG&A expenses rose 17.7% to $25.8 million.
  • R&D expenses rose 43.7% to $5.7 million.
  • Operating loss of $1.7 million vs loss of $6.9 million.
  • GAAP net loss of $1.2 million vs loss of $8.3 million.
  • GAAP diluted loss per share of $0.011 vs loss of $0.079.
  • Non-GAAP net income rose 168.4% to $3.2 million.
  • Non-GAAP basic EPS of $0.029 vs $0.012, and vs consensus estimate of $0.02.

Balance Sheet
(as of September 30, 2005)

  • Cash and equivalents of $76.8 million.
  • Restricted cash of $3.7 million.
  • Debt securities of $126.0 million.

CHINA chart.