Seeking Alpha

AsiaInfo (ticker: ASIA) reported Q4 2005 earnings results earlier today. The company recently revised guidance in anticipation of a weaker than expected quarter.

Q4 Results

  • Gross revenue fell 31% y-o-y to $19.8 million, and fell 15% sequentially.
  • Net revenue (total revenues net of third party hardware cost) fell 20% y-o-y to $16.5 million, and fell 18% sequentially. Management's recently guided for $16.0 - $17.0 million.
  • Software products and solutions revenue fell 17% y-o-y to $12.7 million, and fell 15% sequentially.
  • Service revenue fell 24% y-o-y to $3.7 million, and fell 25% sequentially.
  • Gross margin was 24% vs 39% in Q4 2004, and 47% in Q3 2005.
  • Net loss from continuing operations was $28.1 million vs net income of $1.2 million in Q4 2004.
  • Net loss from continuing operations of $0.61 per basic share vs gain of $0.03 per basic share in Q4 2004.
  • Note: Net revenue shortfall due to lower than expected shipment volume for the Lenovo- AsiaInfo business unit's security products. The company also took a one-time $11.7 million charge in Q4. Q1 2006 Guidance

  • Net revenue of $16 - $18 million.
  • Security products and services business will post an operating loss of $3 - $4 million.
  • Loss per basic share of $0.04 - $0.05.
  • Comment: A transcript of tonight's conference call will be posted here after the call.

    Source: Key Stats From AsiaInfo's Q4 Results (ASIA)