New Oriental Education & Technology drops 4% with 40% decline in revenue

• New Oriental Education & Technology (EDU -3.9%) FQ3 revenue took a dip of 48% Y/Y dip and was at $614.09M.
• Cost of revenues decreased by 30.9% Y/Y to $372.7M.
• Operating loss was $141.2M vs. an income of $101.5M prior.
• Operating margin for the quarter was negative 23.0%, compared to 8.5% prior.
• Cash and cash equivalents of $1,466.8M.
• Net loss was $122.4M, compared to an income of $151.3M.
• The total number of schools and learning centers was 847, a decrease of 778 from previous quarter.
• "Our domestic test preparation business targeting adults and university students recorded a rapid growth of approximately 59% year-over-year. Simultaneously, we are actively exploring various new business opportunities, including non-academic tutoring, intelligent learning system and devices, study tour and research camp, educational materials and digitalized smart study solutions, as well as exam preparation courses designed for students with junior college diplomas to obtain bachelor's degrees. These new businesses are at their early stage but we firmly believe they present a bright future for the Company, and we are confident that by leveraging our brand recognition and educational resources accumulated over our operating history, these new businesses will start to contribute meaningful revenue from the next fiscal year." commented Michael Yu, New Oriental's Executive Chairman.
• During first week of the month, 'company one-for-ten reverse stock split'
• Previously: New Oriental Education & Technology Non-GAAP EPS of -$0.56, revenue of $614.09M (April 26)