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Summary
conference date: May 25, 2006
for quarter ending: March 31, 2006 (1st quarter)
Overview: Revenues and EPS continue to grow as new initiatives hope for traction.
Basic data:
First quarter revenue was $64.4 million, up 15% from 56.2 million year-earlier, and up 3% sequentially from $62.3 million. CDC Software revenue was $53 million and China.com revenue was $11.5 million. Net income was $1.5 million GAAP and $5.9 million non-GAAP.
Guidance:
$71.1 million in revenue for this 2nd quarter, up 10% from the prior year. Openicon notes CHINA hase a history of seasonal variability with the 2nd calendar quarter normally the strongest. So we think the 3rd quarter will be down from the 2nd.
Conference Highlights:
Previously announced news items that were recapped include an alliance with Microsoft to sell CRM software in China; plans to spend $20 million on a franchis partnership program; ongoing share repurchase program; and hopes to separate company into two independently traded companies centered around the software division and china.com .
The China.com revenue grew 19.8 % from year earlier, with most of this attributed to cell phone value-added service sales. They hope to make China.com both a gateway for outsiders into China and a place where Chinese shop for foreign goods. Their game offering is very positive but does not seem to have created a significant income stream.
Q&A:
ONYX? They still have an outstanding offer for ONYX, and hope the shareholders will pressure management to accept it.
OpenIcon Analyst Conference Summaries Main Page
Disclaimer: Our analyst summaries may include both our condensations of statements made by company representatives and our own analysis. They are not covered by any warranty. We cannot guarantee anything said by company representatives is true. Before making or terminating an investment you should always verify any factual basis of your decision from multiple independent sources.
Copyright 2006 William P. Meyers