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Hi lady*b,
Trying to learn here...
--Since there are many SEC filings (10k,8k,10q,10sb, just to name a few) out there on any given company, in your opinion what is the most important filings that an investor should pay attention most?
--Any tips on what to look for when reading these filings?
Thanks! your help is appreciated..
Aw, it's all dusty over here... *sniff*
BOARD: I am keeping this board's links in the ibox for reference and am happy to help anybody with fundamental analysis.
However, many posters here have followed both Serfdom and me
to a new board where we cover pinks to blues.
Please join us there for daily picks and great dissection of these picks: http://www.investorshub.com/boards/board.asp?board_id=3961
Feel free to use this board for strict f/a discussion and
securities that are worthy of such.
We had many great discoveries with these topics and found some great long plays.
Thanks for everybody's contributions and I look forward to learning about more great companies in the new year.
yeah, EZ it was moving nicely premarket! weeeeeeeeeee
brig ~~~ what's up !?!?!?!?!!!!!!
CDC CORPORATION CL-A (NasdaqGM:CHINA) Delayed quote data
Last Trade: $9.40
Trade Time: 9:54AM ET
Change: +0.44 (4.91%)
Prev Close: 8.96
Open: 9.15
Bid: 9.40 x 1500
Ask: 9.41 x 800
1y Target Est: 7.94
Day's Range: 9.13 - 9.58
52wk Range: 3.06 - 9.27
Volume: 2,145,076
Avg Vol (3m): 2,691,640
Market Cap: 998.35M
P/E (ttm): 76.50
EPS (ttm): 0.12
Div & Yield: N/A (N/A)
1d 5d 3m 6m 1y 2y 5y max
love the word "accretive" !!
CDC Buys Vis.align for Undisclosed Terms
Monday December 4, 10:20 am ET
CDC Buys Vis.align for Undisclosed Terms, Expects Deal to Be Accretive to 2007 Earnings
NEW YORK (AP) -- Hong Kong-based CDC Corp., a software company and owner of Chinese Internet portal China.com, said Monday its CDC Software subsidiary bought Vis.align Inc., a provider of information technology services.
The company did not give financial terms of the deal, which closed on Friday. Privately held Vis.align is based in West Chester, Pa.
CDC said the acquisition will help its software segment offer expanded services to its business customers.
Vis.align had 2005 sales of more than $20 million, CDC said. CDC added that it expects the acquisition to be accretive to its earnings in 2007.
The deal includes a two-year earn-out, which if achieved, will be paid in cash and CDC shares, the company said.
CDC's shares rose 17 cents to $9.04 in morning trading on the Nasdaq.
AOB has reacted very well to that, E. Closed today at $10.45
remember me ?? (FINL)
7:02AM Finish Line reports Q3 sales of $281.5 mln vs $280.2 mln consensus; sees EPS of -$0.06 to -$0.08 vs -$0.09 consensus (FINL) 13.03 : The co did not repurchase any shares of Class A Common Stock during Q3 under the current stock repurchase authorization, which expires December 31, 2007.
No team(I wish there was)just me working on it. :o) I've started thinking though maybe eventually, making it so people get a percentage of the ads on the pages they create. What do you think of this?
When I first started learning about trading, I found the information in all the books and articles I was reading to be overwhelming and confusing to keep organized in my head. I figured the best solution would be to start a wiki, to help straigten it out. But its since turned into more of a reference guide. Mainly I was thinking that if I found this useful, most likely others would to.
Once again thanks for your thoughts, I appreciate all and any.
Press Release Source: American Oriental Bioengineering, Inc.
American Oriental Bioengineering Announces Approval for Listing on New York Stock Exchange
Tuesday November 28, 8:30 am ET
Company Expects to Commence NYSE Trading in December 2006
NEW YORK, Nov. 28 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc., (Amex: AOB; NYSE Arca: AOB), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products in China, announced today it has received approval for listing on the New York Stock Exchange (NYSE). The Company anticipates its shares of common stock will begin trading on the NYSE on December 18, 2006. Until that time, the Company's shares will continue to trade on the American Stock Exchange and the NYSE Arca exchange under the symbol "AOB".
"We are proud to be among a very select group of China-based companies to list on the NYSE, as well as the first China-based pharmaceutical and nutraceutical company to list on the NYSE, and we expect this event to raise our visibility in the global financial markets. By transferring to one consolidated trading platform at the NYSE, we believe we can achieve greater price efficiency which will ultimately more accurately reflect shareholder value," said Tony Liu, Chairman and CEO of AOB. "We thank our partners at the American Stock Exchange and the NYSE Arca for the important role they played in our evolution. We are excited to move forward with this new chapter in our Company's history."
AOB's products are distributed throughout all 28 provinces in China. The market for pharmaceutical products in China is expected to be the world's largest by 2020, and is currently estimated at $50 billion. The Company listed on the American Stock Exchange in July 2005 and on the NYSE Arca in November 2005. Today, AOB has a market capitalization of over $600 million and net cash per share of $0.97 as of September 30, 2006. AOB reported third quarter 2006 revenue growth of 102% to $27.0 million and net income growth of 104% to $7.6 million versus the prior year's quarter.
"AOB provides many of the leading pharmaceutical and nutraceutical products in China, and is a known brand in one of the world's largest healthcare markets," said John A. Thain, CEO of NYSE Group, Inc. "On behalf of the NYSE Group, I am very pleased to extend our relationship with AOB as the company enters the next stage of growth and look forward to providing the highest levels of market quality to the company and its shareholders."
About American Oriental Bioengineering Inc.
American Oriental Bioengineering Inc. (AOB) is engaged in the development and production of plant-based pharmaceutical products and plant-based nutraceutical products widely distributed throughout China. For more information, visit http://www.bioaobo.com.
About NYSE Group, Inc.
NYSE Group, Inc. (NYSE: NYX - News) operates two securities exchanges: the New York Stock Exchange (the "NYSE") and NYSE Arca, Inc. (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. In the third quarter of 2006, on an average trading day, 2.2 billion shares, valued at $80.1 billion, were traded on the exchanges of the NYSE Group.
The NYSE is the world's largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies' common stock and other securities. On September 30, 2006, the operating companies listed on the NYSE represented a total global market capitalization of $23.1 trillion.
NYSE Arca operates NYSE Arca, Inc., the first open, all-electronic stock exchange in the United States, and has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca, Inc. is also an exchange for trading equity options. NYSE Arca's trading platforms provide customers with fast electronic execution and open, direct and anonymous market access.
NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance listing standards.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
--------------------------------------------------------------------------------
Source: American Oriental Bioengineering, Inc.
China.com Shareholders OK Timeheart Buy
Tuesday November 28, 7:48 am ET
China.com Shareholders Approve $15.7 Million Purchase of Timeheart
NEW YORK (AP) -- CDC Corp., owner of Chinese Internet portal China.com, said Tuesday the unit's shareholders unanimously approved its planned $15.7 million acquisition of Timeheart, which provides mobile services such as short messaging.
CDC, which also provides enterprise software applications and gaming services, said it expects the deal to add to earnings. The transaction is expected to close this week.
China.com said its CDC Mobile unit will operate the newly acquired business.
Timeheart, operating primarily in the northeastern and western provinces of China, logged a 2005 profit of about $3.5 million.
It's a challenging question for me, ehya. It seems you are attempting to cover every aspect of the markets which is commendable - yet a monster of an achievement. I suggest you find your biggest strength, and the markets need to get your niche in.
A great place for tools is http://www.investopedia.com
Feel it out and see what gets the most hits I suppose.
I'll keep checking on it to see if I have other ideas for you.
Do you have a large team working on it?
Ok - Thankyou so much for checking it out and providing me with some feedback. It's the first I've gotten from someone I don't know. :o)
So, yes its a site I started. I want the site to be a quickly accessible refernce guide for day trading information. I'm trying to focus it toward relevant, current information instead of historical information; which is what wikipedia seems more focused on. A good comparison would be the difference in our Apple Computer pages. Your right, there isnt to much on there yet, I have about 240 articles covering varying topics; you can explore them in more depth from the main page.
I added a link to the sec.gov site on my F/A page like you suggested.
If there is anything else you think of that might improve the site, please let me know or if you like make what ever changes you see fit.
Once again, thanks for checking it out, I really value your opinion on this.
Ok- So I just checked it out. Little start up site with nothing much on it and less than 1500 views so far.
Looks like there is some potential there, fwiw.
Hmmmmmmmm. Is this by chance a site of yours?
In my opinion, any site that can put you on the right path with numbers and links is a start, but ultimately it should all come down to one very important site for the hard core facts and fundies: http://www.sec.gov
Hi lady,
what do you think of wikistock.com for F/A info?
TEAM F/A BOARD TO BE UNDER CONSTRUCTION THIS WEEKEND. Time for a makeover. :) Please visit us at the FAT CATS board in the meantime. Thanks. (Fat Cats) http://www.investorshub.com/boards/board.asp?board_id=3961
Bridget
SHAZAM!!!!!!!!!
BINGO !!
CDC CORPORATION CL-A (NasdaqGM:CHINA) Delayed quote data
After Hours: 7.58 +0.51 +7.21%
CDC swings to quarterly income; revenue gains
By Ruth Mantell
Last Update: 4:39 PM ET Nov 14, 2006
SAN FRANCISCO (MarketWatch) -- CDC Corp. (CHINAcdc corp shs a
CHINA ) after Tuesday's closing bell said it swung to third-quarter net income, as revenue gained, of $3.1 million, or 2 cents a share. For the same period in the prior year, the enterprise software company reported a net loss of $1.24 million, or a penny a share. Before items, quarterly per-share income rose to 9 cents from 3 cents in the prior year. CDC said revenue for the third quarter rose to $78.2 million from $61.9 million in the prior year. For fiscal 2006, the company sees revenue of $303 million to $307 million, and adjusted income of $32 million to $33.3 million. For fiscal 2007, the company sees revenue of $401 million to $411 million, and adjusted income of $55 million to $60 million.
.
EDU-New Oriental Announces Expansion into Professional Certification Preparation
Monday November 13, 8:00 am ET
Leader in Chinese Private Education Enters New Growth Market
BEIJING, Nov. 13 /Xinhua-PRNewswire/ -- New Oriental Education and Technology Group Inc. (NYSE: EDU - News), the largest provider of private educational services in China, today announced the establishment of the Beijing New Oriental North Star Training School. The new school is the first step in New Oriental's expansion into the professional certification preparation field, which includes preparation for the PRC bar, Certified Public Accountant (CPA) and civil service exams.
ADVERTISEMENT
''China's rapid growth in recent years has created large demand for certified professionals by Chinese and multinational companies as well as government agencies,'' said New Oriental's Chairman and Chief Executive Officer, Mr. Michael Yu. ''The result has been a corresponding increase in demand for high quality professional certification preparation courses and materials, which New Oriental is in a unique position to provide.''
http://biz.yahoo.com/prnews/061113/cnm017.html?.v=12
brig ~~ what do you think of CMP ?
Morningstar.com
Consider Salting This Stock Away
Monday November 13, 6:00 am ET
By Paul A. Larson
One of the features of our StockInvestor newsletter is that I routinely publish detailed notes from our visits with companies that are of interest. In mid-September, analyst Parvathy Krishnan, my colleague Josh Peters over at DividendInvestor, and I all traveled to Kansas City to meet with the management of Hare Portfolio holding Compass Minerals. We met with new CEO Angelo Brisimitzakis and longtime CFO Rod Underdown for nearly three hours to talk about the business.
Compass Minerals is a salt miner that gets about half of its revenues from rock salt used primarily for highway deicing, one third of its revenues from general trade salt used for human consumption and other industrial uses, and the balance from sulfate of potash, a salt primarily used in specialty fertilizers.
The Source of Compass' Moat
What got me interested in Compass in the first place was the fact that the company operates the largest salt mine in North America as well as the largest salt mine in the U.K., and these mines are the lowest-cost producers in their respective markets. After meeting with management, I got much greater clarity into the structure of the competitive advantage, and I'm glad to report the advantages are exceptionally sustainable.
Salt is one of the most plentiful commodities on the planet, but it can be economically mined only in a relatively few places. Plus, with a low value/weight ratio, transportation costs are critical. The good news is Compass has very good water transportation infrastructure nearby; its main mine in Goderich, Ontario--responsible for just under half the company's production--is literally under Lake Huron with an on-site deep-water port. Plus, the ore bodies the firm is mining are inherently low-cost. Management explained that the vein it is mining at Goderich is over 100 feet thick. This compares favorably with two competing mines under Lake Erie in Ohio that are of a smaller scale with only about a 30-foot-thick vein.
With only three mines that can realistically supply roadway deicing salt to the wider Great Lakes area, and Compass' mine being greatly cost-advantaged versus the other two, it's clear where the moat is and how the high returns on capital are generated.
Management explained that in the mainland U.K.--where the firm has a mine that is responsible for about 10% of the company's production--there are no imports of rock salt (thanks largely to transport cost) and only three mines in the country. Compass' main competitor in the U.K. is mining a vein that is at an extreme cost disadvantage to Compass. Underdown said this rival has 13 times the number of employees that Compass has at its mine, even though Compass runs the larger mine. Compass' mine is also more than 10 times larger than the other competitor.
In an interesting twist, they also explained how they are indirectly in the real estate business in the U.K. Because real estate is so scarce and valuable there, Compass is starting to use the old parts of the U.K. mine for tangential and high-return businesses like document and waste storage. And because the mine is more than 160 years old, there is plenty of subterranean space.
The rest of the firm's mines operate on what we believe is more or less a level playing field with the competition. But with only two competing companies in North America, even a merely average mine can still generate solid returns.
About Salt
There are a couple things inherently attractive about the salt industry today. First and foremost, it is an oligopoly. Rohm and Hass (NYSE:ROH - News) and private company Cargill provide the only meaningful competition. Quite simply, oligopolistic companies tend to have moats. Second, salt is unlike other commodity natural resource industries where companies are always on the resource-replacement treadmill. All of Compass' mines are projected to have in excess of 100 years worth of reserves at today's production levels. Any oil or metal mining company would kill to have this sort of reserves stability.
While the sale of rock salt is obviously dependent on the weather, sales are not economically sensitive. Especially given our increasingly litigious society, roads and sidewalks will still need to be cleared of snow and ice no matter if the economy is booming or if it is slowing. Plus, Brisimitzakis explained that a large chunk of the company's sales are to government agencies, which are generally not too price-sensitive. Brisimitzakis correctly pointed out that the quickest way for a mayor to get unelected is to not effectively clear the roads.
Finally, I personally like that Compass is a bit of an oddball company to follow. There are only two competitors, with one being private and the other being a large chemicals conglomerate. Wall Street does not have any analysts focused purely on salt, so this stock flies a bit under the radar and has a greater chance of periodically being mispriced.
Porter's Five Forces for Compass
Looking at the economic moat through the lens of the Porter's Five Forces model, Compass looks quite favorably positioned:
* Degree of rivalry: Low (Oligopoly)
* Threat of substitutes: Nearly zero (No economical alternatives to salt)
* Supplier power: Not applicable (Mother Earth is the supplier)
* Buyer power: Low (Many small buyers)
* Barriers to entry: Very high (Huge incumbent cost advantage)
Future Cash-Flow Plans
One of the reasons we flew down to Kansas City was to see what exactly management had planned for the cash flow the company is currently generating. When a new CEO comes in to a small, well-run company, I'm always worried about the possibility that he or she will start "empire building" by reinvesting the cash in low-return, no-moat businesses.
Thankfully, Brisimitzakis appears to have the proper strategy by taking a sort of Hippocratic oath in saying his first principle is to "do no harm." In his eyes, this means focusing his efforts on operating the existing business more efficiently and with lower cost. I hope our pleas for the company to stick to its knitting resonated with management.
This likely means that the first priority of excess cash flow will continue to be reducing the cost of its debt, since Compass does remain highly leveraged financially. The firm refinanced at lower rates a large chunk of debt in late 2005, and it has still more bonds outstanding with a staggering 12% coupon, a remnant from its days of being the subject of a leveraged private equity buyout. These high-coupon bonds are callable in 2007, and Brisimitzakis and Underdown said reducing the rate the firm is paying is highly important. They did, however, say they were comfortable with the absolute level of the debt being carried, given the relative stability of the underlying business and its cash flow.
One silver lining of being a company just out of a private equity situation is that management believes it has plenty of high-return internal growth opportunities. When the company was owned by entities that had a two- to three-year investment time horizon, they did not invest in business opportunities that may have had a payoff beyond that time frame. After all, you don't do a custom paint job on a home you plan on selling soon. But now that long-term owners are in place, long-term projects with long-term returns--like expanding production and upgrading large-scale equipment--can begin.
While Brisimitzakis and Underdown obviously could not make any promises on this front, they did appear to respect the continuing importance of paying a regular dividend.
The Bottom Line
While Compass only has a narrow economic moat rating due to the commodity nature of its business, it is clearly on the narrow-wide borderline. I also like that the competitive advantages look to be very long-lived.
One of the cornerstone ideas of being a value investor is that if you would not be happy to buy the entire company, you should not buy a single share of the stock. All three of us who traveled to Kansas City agreed that we'd gladly buy all of this company if we had the means and the price was right. (Anyone care to loan me a couple hundred million?) I think coming out of the meeting with this feeling bodes well for the position owned in the Hare Portfolio.
This article originally appeared in the October issue of StockInvestor.
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EGY: VAALCO Energy's 3rd Quarter Net Income Climbs 14%
Thursday November 9, 9:15 am ET
HOUSTON, Nov. 9 /PRNewswire-FirstCall/ -- VAALCO Energy, Inc. (NYSE: EGY - News), announced that for the third quarter of 2006 its net income was $13.6 million, or $0.22 per diluted share, up 14% from its net income of $11.9 million, or $0.20 per diluted share, for the comparable period in 2005. Revenues were $25.6 million in the third quarter of 2006, compared with $26.2 million in the third quarter of 2005.
ADVERTISEMENT
VAALCO sold 391,000 net barrels of crude oil equivalent at an average price of $65.50 per barrel during the third quarter of 2006, compared to 451,000 net barrels of crude oil equivalent at an average price of $58.71 per barrel in the third quarter of 2005.
For the nine months ended September 30, 2006, the Company earned $35.1 million, or $0.58 per diluted share, an increase of 45% from VAALCO's earnings of $24.2 million, or $0.41 per diluted share, in the nine months ended September 30, 2005. Nine-month revenues increased 25% to $82.5 million from $66.0 million.
Crude oil sales for the nine months ended September 30, 2006 were 1,277,000 net barrels of oil equivalent compared with 1,311,000 net barrels for the nine months ended September 30, 2005. Average crude oil sales prices increased 28% to an average $64.54 per barrel of oil equivalent for the nine months ended September 30, 2006.
Robert L. Gerry, III, Chairman and CEO, stated, "During the third quarter, the Etame field offshore Gabon, West Africa, continued to perform well for the Company. We completed the installation of the drilling platform in the adjacent Avouma field and the pipeline that will tie Avouma to the Etame production facilities. We are currently drilling two development wells in Avouma and hope that this field will become a new source of revenue later this year.
"To expand our exploration portfolio, earlier this month we signed a Production Sharing Agreement with the Government of Angola for a 40% interest in the 1.4 million-acre Block 5 concession offshore Angola. That represents our third exploration concession, along with Etame and the onshore Mutamba Iroru concession in Gabon."
Financial results:
(Unaudited - in thousands of dollars)
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
2006 2005 2006 2005
Revenues 25,640 26,240 82,452 65,983
Operating costs
and expenses 5,352 4,743 17,009 16,238
Operating Income
(Loss) 20,288 21,497 65,443 49,745
Other Income
(Expense) 649 171 1,243 475
Income tax
expense (6,280) (8,306) (27,077) (23,089)
Income (loss) from
discontinued
operations 488 (25) (241) (16)
Minority Interest
in earnings
of subsidiaries (1,555) (1,434) (4,314) (2,952)
Net Income 13,590 11,903 35,054 24,163
Basic Income per
Common Share $0.23 $0.21 $0.61 $0.48
Diluted Income per
Common Share $0.22 $0.20 $0.58 $0.41
Discretionary cash flow, a non-GAAP financial measure of the amount of cash generated that can be used for working capital, debt service or future investments, was $17.2 million and $45.5 million for the three months and nine months ended Sept. 30, 2006, respectively.
CBZ regarding insider purchases: http://www.fool.com/news/commentary/2006/commentary06110821.htm?source=eptyholnk303100&logvisit=...
I think they will do well. Pull up a 2 year chart. You have permission to post it here.
Lady - RICK question
Today they announced +18% YoY nightclub sales...are they going to do well? Chart is scary. Maybe it's that acquisition?
EGY: VAALCO Energy Announces Signing of PSA With Angola
EGY
$8.13
-0.19 -2.3%
Released : Tuesday, November 07, 2006 2:48 PM
HOUSTON, Nov. 7 /PRNewswire-FirstCall/ -- VAALCO Energy, Inc. (NYSE: EGY), (the "Company) announced today that the official signing of the Production Sharing Agreement (PSA) for Block 05/06 offshore Angola occurred on November 2, 2006 in Luanda, Angola.
VAALCO has a 40% interest in the block, and will be the operator of the concession for its partners Interoil Exploration & Production ASA (40%) and Sonangol (20%).
Block 5 covers an offshore area of approximately 1.4 million acres. During the 1980's and 1990's twelve wells were drilled on the block with at least five successfully discovering hydrocarbons, though none of the discoveries were developed at that time. A 3D survey has been shot and VAALCO and its partners are preparing to reprocess and interpret the data in anticipation of exploratory drilling in the later part of 2007 or early 2008.
In connection with the award of the block, VAALCO will pay a signing bonus of $10.5 million. The block has a term of four years during which two exploration wells must be drilled. A further three-year extension is available for a commitment of additional seismic work and two additional exploration wells.
This press release includes "forward-looking statements" as defined by the U.S. securities laws. Forward-looking statements are those concerning VAALCO's plans, expectations, and objectives for future drilling, completion and other operations and activities. All statements included in this press release that address activities, events or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete well. These statements are based on assumptions made by VAALCO based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond VAALCO's control. These risks include, but are not limited to, inflation, lack of availability goods, services and capital, environmental risks, drilling risks, foreign operational risks and regulatory changes. Investors are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. These risks are further described in VAALCO's annual report on form 10K/SB for the year ended December 31, 2003 and other reports filed with the SEC which can be reviewed at http://www.sec.gov , or which can be received by contacting VAALCO at 4600 Post Oak Place, Suite 309, Houston, Texas 77027, (713) 623-0801.
SOURCE VAALCO Energy, Inc.
CONTACT: W. Russell Scheirman of VAALCO Energy, Inc., +1-713-623-0801
Copyright 2006 PR Newswire
Provider:
CHINA: ($6.58) CDC Corporation Boosts Guidance Upwards for 2006
Tuesday November 7, 6:08 am ET
Second Upward Revision in Four Months
BEIJING and ATLANTA, Nov. 7 /Xinhua-PRNewswire-FirstCall/ -- CDC Corporation (Nasdaq: CHINA) focused on enterprise software applications, mobile applications and online games, today announced that based on preliminary financial data, the company expects total revenues for the fiscal year ended December 31, 2006 to be in the range of US$303 million to US$307 million, an increase of over 24 percent over 2005's revenues. The company anticipates *adjusted net income to be in a range of $32.0 million to $33.3 million, an increase of over 100% over 2005's results. This is the second time in four months that the company has upwardly revised its fiscal year outlook.
"Once again, we are pleased to revise our full year estimates," said Peter Yip, CEO of CDC Corporation. "Our confidence in our 2006 numbers stems from both robust organic growth as well as the synergies being realized from acquisitions we have made, which have exceeded our expectations."
The company anticipates reporting third quarter results the week of November 13 2006.
*Adjusted Financial Measures
To supplement the financial measures prepared in accordance with United States generally accepted accounting principles ("GAAP"), the company uses Non-GAAP financial measures for net income and other line items, which are adjusted from results based on GAAP. These Non-GAAP measures are provided to enhance the user's overall understanding of the company's current financial performance and its prospects for the future. The company believes the Non-GAAP results provide useful information to both management and investors. Although the company continues to report GAAP results to investors, it believes the inclusion of Non-GAAP financial measures provides further clarity in its financial reporting. These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies, and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP measures.
The Company defines adjusted net income as net income adjusted for certain purchase accounting related charges and restructuring expenses. The purchase accounting related charges are primarily related to the non-cash amortization of acquisition related intangibles and non-cash tax charges related to our utilization of acquired tax net operating loss carry forwards. Restructuring charges typically result as we consolidate acquired companies to achieve operational synergies. The Company cannot at this point in time, without unreasonable efforts, quantify such purchase accounting related charges and restructuring expenses.
A reconciliation of 2005 adjusted net income to GAAP can be found in the Company's earnings release for the full year 2005 dated April 12, 2006.
EBITDA excludes interest income and expenses, taxes, depreciation, amortization of acquired intangible assets, restructuring charges and stock based compensation expenses.
The estimates presented in this press release are preliminary and are based on management's belief and best estimate and assume the completion of certain acquisitions in Q4, 2006.
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Mobile focused on mobile applications, CDC Games focused on online games, and China.com focused on portals for the greater China markets. For more information about CDC Corporation (Nasdaq: CHINA), please visit www.cdccorporation.net .
About CDC Software
CDC Software, The Customer-Driven Company(TM), is a provider of comprehensive enterprise software applications and services designed to help businesses thrive and become customer-driven market leaders. The company's industry-specific solutions are used by more than 5,000 customers worldwide within the manufacturing, financial services, health care, home building, real estate, and wholesale and retail distribution industries. CDC Software's product suite includes Pivotal CRM (customer relationship management), c360 CRM add-on products, industry solutions and development tools for the Microsoft Dynamics CRM platform, Ross ERP (enterprise resource planning) and SCM (supply chain management), MVI real-time performance management, IMI warehouse management and order management, Platinum China HR (human resource) and business analytics solutions. CDC Software is ranked number 18 on the Manufacturing Business Technology 2006 Global 100 List of Enterprise and Supply Chain Management Application vendors. For more information, please visit: www.cdcsoftware.com .
About China.com Inc.
China.com Inc. (stock code: 8006; website: www.inc.china.com), a leading MVAS and Internet services company operating principally in China was listed on the GEM of the Stock Exchange of Hong Kong Limited on March 9, 2000. In December 2000, China.com Inc. was admitted as a constituent stock of the Hang Seng IT and IT Portfolio Indices.
About CDC Games
CDC Games Limited is focused on building a diversified mix of online game assets and strategic alliances and is a business unit of CDC Corporation. CDC Games is one of the market leaders of online and mobile games in China with over 37 million registered users.
About CDC Mobile
CDC Mobile is focused on providing MVAS products to subscribers in China and is a business unit of CDC Corporation.
Cautionary Note Regarding Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding future revenues and other statements that are not historical fact, the achievement of which involve risks, uncertainties and assumptions. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward- looking statements, including the following: (a) the ability to realize strategic objectives by taking advantage of market opportunities in targeted geographic markets; (b) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of current, new and potential customers, suppliers and strategic partners; (c) the effects of restructurings and rationalization of operations; (d) the ability to address technological changes and developments including the development and enhancement of products; (e) the ability to develop and market successful Advanced Mobile Products; (f) the entry of new competitors and their technological advances; (g) the need to develop, integrate and deploy enterprise software applications to meet customer's requirements; (h) the possibility of development or deployment difficulties or delays; (i) the dependence on customer satisfaction with the company's software products and services; (j) continued commitment to the deployment of the enterprise software solutions; (k) risks involved in developing software solutions and integrating them with third-party software and services; (l) the continued ability of the company's enterprise software solutions to address client- specific requirements; (m) demand for and market acceptance of new and existing enterprise software and services and the positioning of the company's solutions; and (n) the ability of staff to operate the enterprise software and extract and utilize information from the company's enterprise software solutions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Further information on risks or other factors that could cause results to differ is detailed in filings or submissions with the United States Securities and Exchange Commission made by CDC Corporation in its Annual Report for the year ended December 31, 2005 on Form 20-F filed on June 21, 2006. All forward- looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward-looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise.
For More Information:
Investor Relations
Monish Bahl
CDC Corporation
Tel: +1-678-259-8510
Email: monishbahl@cdcsoftware.com
Media Relations
Scot McLeod
CDC Corporation
Tel: +1-770-351-9600
Email: ScotMcLeod@cdcsoftware.com
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