CDC Corporation (CHINA)

[EZ2]

lowline!! ~~~

Net loss in Q3 2007 was (U.S.)$7.1 million compared to net income of (U.S.)$3.2 million in Q3 2006. The drop in net income was primarily due to lower revenues of CDC Games and CDC’s MVAS business. In addition, the third quarter results were also affected by several one-time items including the following:
Sale of Ion Global – gain of $6.3 million
CDC Software restructuring – charge of $1.6 million
CDO (collateralized debt obligation) write-down – charge of $6.6 million
Pivotal lease restructure – gain of $3.8 million
Adjusted net income (a) for CDC Corporation was (U.S.)$5.3 million for Q3 2007, a decrease of 47 percent from (U.S.)$10.1 million in Q3 2006.
Adjusted diluted earnings per share (a) was (U.S.)$0.04 for Q3 2007 compared to (U.S.)$0.09 in Q3 2006.
During the third quarter, the company and its subsidiaries repurchased 1,139,200 common shares at an average price of (U.S.)$7.46 per share. Since the end of the third quarter, an additional 325,000 shares have been repurchased at an average price of (U.S.)$6.29 per share.
The company ended the quarter with cash and investments of $268.2 million and net cash of $66.5 million++.