CDC Corporation (CHINA)

[EZ2]

CDC Swings to 3Q Loss on Games Decline
Friday December 14, 9:37 am ET
CDC Swings to 3Q Loss on Decline in Video Games and Cell Phone Downloads

ATLANTA, Ga. (AP) -- Chinese software company CDC Corp. said Friday it swung to a third-quarter loss on a decline in sales of its video games and mobile phone downloads.
The company lost $7 million or 6 cents per share, compared with a profit of $3.2 million or 3 cents per share in the same quarter last year.

Excluding depreciation, amortization and other one-time items, the company earned $5.3 million, or 4 cents a share, compared with $10.1 million or 9 cents per share last year.

Revenue rose 27.9 percent to $100 million from $78.2 million in the same quarter last year.

Analysts, on average, were expecting earnings of 8 cents per share on revenue of $100.7 million, according to a poll by Thomson Financial.

The company said it had a 23 percent sales decline in its video game sector because of pirating and a dispute with a game development and server company.

It said its mobile download business dropped 58 percent as the cell phone industry was hurt by regulatory changes.