omniture

SINA Reports Fourth Quarter and Fiscal Year 2010 Financial Results

2011-03-02 16:58 2704

SHANGHAI, March 2, 2011 /PRNewswire-Asia/ -- SINA Corporation (Nasdaq: SINA), a leading online media company and mobile value-added service ("MVAS") provider for China and for the global Chinese communities, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2010.

Starting in the fourth quarter of 2009, in addition to the disclosure of GAAP results below, SINA's historical revenues and certain non-GAAP measures (namely, gross profit, operating expenses, income from operations and advertising gross margin) have been revised to exclude results from China Online Housing Technology Corporation ("COHT"), adjusted for the impact of the amended and restated advertising agency agreement on a pro forma basis as if the agreement had been effective at the beginning of the periods presented. These adjustments were made to reflect SINA injecting its online real estate advertising business into its majority-owned subsidiary COHT and exchanging its interest in COHT for approximately 33% interest in China Real Estate Information Corporation ("CRIC") upon the successful listing of CRIC on the NASDAQ Global Select Market in October 2009 ("CRIC Transaction"). Non-GAAP measures are described below and reconciled to the corresponding GAAP measures in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results".

Fourth Quarter 2010 Highlights

  • Net revenues grew 12% year over year to $110.0 million. Non-GAAP net revenues grew 12% year over year to $105.0 million, within the Company's guidance between $103 million and $106 million.
  • Advertising revenues and non-GAAP advertising revenues grew 30% year over year to a record $82.5 million, reaching the high end of the Company's guidance between $81 million and $83 million.
  • Non-advertising revenues decreased 21% year over year to $27.5 million. Non-GAAP non-advertising revenues decreased 25% year over year to $22.6 million, within the Company's guidance between $22 million and $23 million.
  • Net loss attributable to SINA for the fourth quarter of 2010 was $100.0 million, or $1.51 diluted net loss per share attributable to SINA. Net loss attributable to SINA included a write-down of $128.6 million related to an impairment of equity investment in CRIC. Non-GAAP net income attributable to SINA increased 60% year over year to $30.6 million, or $0.46 non-GAAP diluted net income per share attributable to SINA.

Fiscal 2010 Highlights

  • Net revenues grew 12% year over year to $402.6 million. Non-GAAP net revenues grew 17% year over year to $383.6 million.
  • Advertising revenues grew 28% year over year to $290.8 million. Non-GAAP advertising revenues grew 44% year over year to $290.8 million.
  • Non-advertising revenues decreased 14% year over year to $111.8 million. Non-GAAP non-advertising revenues decreased 26% year over year to $92.8 million.
  • Net loss attributable to SINA was $19.1 million, which included a write-down of $128.6 million related to an impairment of equity investment in CRIC. Net income attributable to SINA for fiscal 2009 was $411.9 million, which included a gain of $376.6 million resulting from the CRIC Transaction. Diluted net loss per share attributable to SINA was $0.29, compared to a diluted net income per share attributable to SINA of $6.95 from last year. Non-GAAP net income attributable to SINA increased 63% year over year to $113.9 million, or $1.73 non-GAAP diluted net income per share attributable to SINA.

"2010 has been a year of transformation for SINA. In addition to achieving significant growth in online advertising business and profitability, we have successfully built SINA microblog Weibo into the largest and most influential social media platform in China with user base increasing by more than 25 times in 2010. Total registered users for Weibo have now surpassed 100 million, doubling from four months ago," said Charles Chao, CEO of SINA. "As we move into 2011, we plan to leverage Weibo as the centerpiece of SINA's new media growth strategy and make significant investments to further enhance our leadership position in social media space and to best position SINA for an Internet world moving deeper into social networking and mobile Internet."

Fourth Quarter 2010 Financial Results

For the fourth quarter of 2010, SINA reported net revenues of $110.0 million, compared to $98.2 million for the same period last year. Non-GAAP net revenues for the fourth quarter of 2010 totaled $105.0 million, compared to $93.5 million for the same period last year. Advertising revenues and non-GAAP advertising revenues for the fourth quarter of 2010 were $82.5 million, compared to $63.2 million for the same period last year.

Non-advertising revenues for the fourth quarter of 2010 totaled $27.5 million, compared to $35.0 million for the same period last year. MVAS revenues for the fourth quarter of 2010 amounted to $21.0 million, compared to $28.6 million for the same period last year. The year over year decline in MVAS revenues was primarily due to China Mobile implementing a series of measures in late 2009 and early 2010.

Gross margin for the fourth quarter of 2010 was 58%, up from 56% for the same period last year. Advertising gross margin for the fourth quarter of 2010 was 60%, up from 54% for the same period last year. Non-GAAP advertising gross margin for the fourth quarter of 2010 was 61%, compared to 60% for the same period last year. MVAS gross margin for the fourth quarter of 2010 was 39%, compared to 50% for the same period last year. The decline in MVAS gross margin was primarily due to product mix and increased revenue share with MVAS partners.

Operating expenses for the fourth quarter of 2010 totaled $36.5 million, compared to $58.2 million for the same period last year. Operating expenses for the fourth quarter of 2009 included $17.7 million in stock-based compensation, the majority of which related to the private equity financed shares issued to management and, to a lesser extent, related to accelerated vesting of certain restricted share units granted to key managers and employees to recognize their contribution in 2009. Non-GAAP operating expenses for the fourth quarter of 2010 were $33.7 million, compared to $34.9 million for the same period last year.

Operating income for the fourth quarter of 2010 was $27.0 million, compared to an operating loss of $3.4 million for the same period last year. Non-GAAP operating income for the fourth quarter of 2010 was $25.5 million, compared to $18.6 million for the same period last year. The increase in non-GAAP operating income was mainly due to operating leverage derived from the growth of SINA's advertising business.

Non-operating loss for the fourth quarter of 2010 was $125.2 million, compared to a non-operating income of $376.5 million for the same period last year. In accordance with US GAAP, the Company reassessed its investment in CRIC in the fourth quarter of 2010 and recognized an other-than-temporary impairment charge of $128.6 million. Further decline in the market value of CRIC from year end may require the Company to consider additional other-than-temporary impairment charges. Non-operating income for the fourth quarter of 2009 included a gain of $376.6 million from the CRIC Transaction. Equity income from CRIC for the fourth quarter of 2010 was $1.4 million, compared to no equity income from CRIC for the same period last year, as such item is reported one quarter in arrears. On a non-GAAP basis, equity income from CRIC for the fourth quarter of 2010 was $5.1 million, which was calculated based on non-GAAP net income attributable to CRIC following the same non-GAAP financial measures as the Company.

Provision for income taxes for the fourth quarter of 2010 was $1.9 million, compared to $1.0 million for the same period last year.

Net loss attributable to SINA for the fourth quarter of 2010 was $100.0 million, compared to a net income attributable to SINA of $372.1 million for the same period last year. Diluted net loss per share attributable to SINA for the fourth quarter of 2010 was $1.51, compared to a diluted net income per share attributed to SINA of $6.03 for the same period last year. Non-GAAP net income attributable to SINA for the fourth quarter of 2010 was $30.6 million, compared to $19.1 million for the same period of last year. Non-GAAP diluted net income per share attributable to SINA for the fourth quarter of 2010 was $0.46, compared to $0.31 for the same period last year.

  1. As of December 31, 2010, SINA's cash, cash equivalents and short-term investments totaled $882.8 million, compared to $821.5 million as of December 31, 2009. Cash flow from operating activities for the fourth quarter of 2010 was $34.2 million, compared to $34.3 million for the same period last year. Cash flow from operating activities for fiscal 2010 was $116.6 million, compared to $98.1 million for the year prior.

Investment

On February 28, 2011, SINA entered into a share purchase agreement with Maxpro Holdings Limited ("Maxpro") and Ever Keen Holdings Limited ("Ever Keen") to purchase 77.0 million ordinary shares (equivalent to 11.0 million American Depositary Shares ("ADS"), or approximately 19% of Mecox Lane's issued and outstanding shares) ("Purchase Shares") of Mecox Lane Limited ("Mecox Lane") for an aggregate purchase price of $66.0 million, or $0.8571 per share, equivalent to $6.00 per ADS ("Mecox Transaction"). SINA will have the right to nominate one member to Mecox Lane's board of directors. SINA will be subject to a one-year lock-up on the Purchase Shares from the closing date of the Mecox Transaction. Maxpro and Ever Keen also agreed to grant to SINA a two-year option from the closing date of the Mecox Transaction to purchase an additional 48.3 million ordinary shares (equivalent to 6.9 million ADS) of Mecox Lane with an exercise price of $1.1429 per share, equivalent to $8.00 per ADS. The Mecox Transaction is subject to customary closing conditions and is expected to be completed by the second quarter of 2011.

Business Outlook

SINA estimates that its non-GAAP net revenues for the first quarter of 2011 to be between $93 million and $96 million, with non-GAAP advertising revenues to be between $71 million and $73 million and non-GAAP non-advertising revenues to be between $22 million and $23 million. Non-GAAP net revenues and non-GAAP non-advertising revenues exclude the recognition of $4.7 million in deferred license revenue related the CRIC Transaction.

Non-GAAP Measures

This release contains non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of SINA's performance, should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP"). The Company's non-GAAP financial measures may be defined differently than similar terms used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures.

Reconciliations of the Company's non-GAAP measures to the nearest GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results". These non-GAAP measures include non-GAAP revenues, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income attributable to SINA, non-GAAP diluted net income per share attributable to SINA and non-GAAP advertising gross margin.

The Company's management uses non-GAAP financial measures to gain an understanding of the Company's comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects. The Company's non-GAAP financial measures exclude certain items, including stock-based compensation, amortization of intangible assets, recognition of deferred revenues, COHT's adjusted results (for certain non-GAAP measures) and gain/loss resulting from the disposal, purchase or impairment of a business, investment or non-controlling interest in a subsidiary from its internal financial statements for purposes of its internal budgets. Non-GAAP financial measures are used by the Company's management in their financial and operating decision-making, because management believes they reflect the Company's ongoing business in a manner that allows meaningful period-to-period comparisons. The Company's management believes that these non-GAAP financial measures provide useful information to investors and others in the following ways:  1) in comparing the Company's current financial results with the Company's past financial results in a consistent manner, and 2) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does, if they so choose. The Company's management further believes the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains/losses and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of its core operating results and business outlook.

The Company's management believes excluding stock-based compensation from its non-GAAP financial measures is useful for itself and investors, as such expense will not result in future cash payment and is not an indicator used by management to measure the Company's core operating results and business outlook.

The Company's management believes excluding the amortization expense of intangible assets from its non-GAAP financial measures is useful for itself and investors, because they enable a more meaningful comparison of the Company's cash performance between reporting periods. In addition, such charges will not result in cash settlement in the future and is not an indicator used by management to measure the Company's core operating results and business outlook.

The Company's management believes excluding the recognition of deferred revenues, mostly relating to the license agreements resulting from the CRIC Transaction, from its non-GAAP financial measures is useful for itself and investors, because they enable a more meaningful comparison of the Company's revenue performance between reporting periods. In addition, such revenues will not result in cash settlement in the future and is not an indicator used by management to measure the Company's core operating results and business outlook.

The Company's management believes excluding COHT's results, adjusting for the impact of the amended and restated advertising agency agreement on a pro forma basis as if the agreement had been effective at the beginning of the periods presented, from its non-GAAP financial measures to reflect the spin off of COHT is useful for itself and investors, because they enable management and investors to gain a better understanding of the Company's comparative operating performance (when comparing such results with the current period or forecasts) and future prospects.

The Company's non-GAAP equity income from its interest in net income attributable to CRIC excludes stock-based compensation, amortization expense of intangible assets and gains from the purchase of a business, which are consistent with the Company's adjusted items to calculate non-GAAP measures.

The Company's management believes excluding gain/loss resulting from the disposal, purchase or impairment of a business, investment or non-controlling interest in a subsidiary from its non-GAAP financial measure of net income attributable to SINA is useful for itself and investors, because such gains/losses are not indicative of the Company's core operating results.

The non-GAAP financial measures have limitations. They do not include all items of income and expense that affect the Company's operations. Specifically, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and, with respect to the non-GAAP financial measures that exclude certain items under GAAP, do not reflect any benefit that such items may confer to the Company. Management compensates for these limitations by also considering the Company's financial results as determined in accordance with GAAP.

Conference Call

SINA will host a conference call at 8:00 p.m. Eastern Time to present an overview of the Company's financial performance and business operations. A live webcast of the call will be available from 8:00 p.m. - 9:00 p.m. Eastern Time on Tuesday, March 1, 2011 (9:00 a.m. – 10:00 a.m. Beijing Time on March 2, 2011). The webcast can be accessed through the Company's corporate website at http://corp.sina.com. A dial-in to the conference is also available. Dial-in details are as follows:

   US:

 

+1 617 847 8704

 

 

   UK:

 

+44 207 365 8426

 

 

Hong Kong:

 

+852 3002 1672

 

 

Password for all regions:

 

62003091

 

 

 

 


A replay of the conference call will be available through midnight Eastern Time, March 8, 2011. The dial-in number is + 1 617 801 6888 (International). The pass code for the replay is 38750315.

About SINA

SINA Corporation (NASDAQ GS: SINA) is a leading online media company and mobile value-added service provider for China and for the global Chinese communities. With a branded network of localized websites targeting Greater China and overseas Chinese, the Company provides services through five major business lines including SINA.com (online news and content), SINA Mobile (MVAS), SINA Community (Web 2.0-based services, social networking services (SNS) and games), SINA.net (search and enterprise services) and SINA E-Commerce (online shopping). Together these business lines provide an array of services, including region-focused online portals, MVAS, SNS, blog, audio and video streaming, album, online games, email, search, classified listings, fee-based services, e-commerce and enterprise e-solutions. The Company generates the majority of its revenues from online advertising and MVAS offerings, and, to a lesser extent, from search and other fee-based services.

Safe Harbor Statement

This announcement contains forward-looking statements that relate to, among other things, SINA's expected financial performance and SINA's strategic and operational plans (as described, without limitation, in the "Business Outlook" section, in the discussion on MVAS gross margin and in quotations from management in this press release). SINA may also make forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in its proxy statements, in its offering circulars and prospectuses, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. SINA assumes no obligation to update the forward-looking statements in this release and elsewhere. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, SINA's limited operating history, the current global financial and credit market crisis and its impact on the Chinese economy, the uncertain regulatory landscape in the People's Republic of China, fluctuations in the Company's quarterly operating results, the Company's reliance on online advertising sales and MVAS for a majority of its revenues, any failure to successfully develop, introduce, drive adoption and monetize new features and products, including Weibo and MVAS products, the Company's reliance on mobile operators in China to provide MVAS, changes by mobile operators in China to their policies for MVAS, any failure to successfully integrate acquired businesses, risks associated with CRIC, including the merger of SINA online real estate business with CRIC, and any failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA's Annual Report on Form 20-F for the year ended December 31, 2009 and its other filings with the Securities and Exchange Commission.

Contact:

 

 

Cathy Peng

 

 

SINA Corporation

 

 

Phone: 8610-82628888 x 3112

 

 

Email: ir@staff.sina.com.cn

 

 

 



SINA CORPORATION

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

(U.S. Dollar in thousands, except per share data)

 

 

 

 

 

Three months ended

 

 

Twelve months ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2010

 

 

2009

 

 

2010

 

 

2010

 

 

2009

 

 

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

   Advertising

 

$   82,451

 

 

$   63,187

 

 

$   80,994

 

 

$  290,814

 

 

$  227,895

 

 

   Non-advertising

 

27,503

 

 

34,999

 

 

27,252

 

 

111,803

 

 

130,672

 

 

 

109,954

 

 

98,186

 

 

108,246

 

 

402,617

 

 

358,567

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

   Advertising  (a)

 

32,971

 

 

28,857

 

 

30,269

 

 

116,295

 

 

99,835

 

 

   Non-advertising

 

13,478

 

 

14,584

 

 

13,465

 

 

52,115

 

 

58,457

 

 

 

46,449

 

 

43,441

 

 

43,734

 

 

168,410

 

 

158,292

 

 

Gross profit

 

63,505

 

 

54,745

 

 

64,512

 

 

234,207

 

 

200,275

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

   Sales and marketing (a)

 

20,230

 

 

26,429

 

 

21,132

 

 

77,996

 

 

85,133

 

 

   Product development (a)

 

9,696

 

 

10,607

 

 

8,684

 

 

34,048

 

 

33,777

 

 

   General and administrative (a)

 

6,296

 

 

18,221

 

 

5,914

 

 

22,585

 

 

40,025

 

 

   Amortization of intangibles

 

249

 

 

2,904

 

 

240

 

 

3,335

 

 

4,138

 

 

 

36,471

 

 

58,161

 

 

35,970

 

 

137,964

 

 

163,073

 

 

Income (loss) from operations

 

27,034

 

 

(3,416)

 

 

28,542

 

 

96,243

 

 

37,202

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income:

 

 

 

 

 

 

 

 

 

 

 

  Interest and other income, net

 

2,255

 

 

1,467

 

 

3,355

 

 

8,804

 

 

8,371

 

 

  Earnings from equity investments, net

 

1,127

 

 

-

 

 

1,570

 

 

12,604

 

 

-

 

 

  Gain on sale of business and impairment in equity investment

 

(128,554)

 

 

375,055

 

 

-

 

 

(128,554)

 

 

375,055

 

 

 

(125,172)

 

 

376,522

 

 

4,925

 

 

(107,146)

 

 

383,426

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(98,138)

 

 

373,106

 

 

33,467

 

 

(10,903)

 

 

420,628

 

 

Provision for income taxes

 

(1,921)

 

 

(1,012)

 

 

(2,226)

 

 

(8,436)

 

 

(8,323)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(100,059)

 

 

372,094

 

 

31,241

 

 

(19,339)

 

 

412,305

 

 

  Less: Net income (loss) attributable to the noncontrolling interest

 

(73)

 

 

(11)

 

 

(69)

 

 

(245)

 

 

410

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to SINA

 

$  (99,986)

 

 

$  372,105

 

 

$   31,310

 

 

$  (19,094)

 

 

$  411,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share attributable to SINA

 

$     (1.62)

 

 

$     6.55

 

 

$     0.51

 

 

$    (0.31)

 

 

$     7.53

 

 

Diluted net income (loss) per share attributable to SINA

 

$     (1.51)

 

 

$     6.03

 

 

$     0.48

 

 

$    (0.29)

 

 

$     6.95

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing  basic

 

 

 

 

 

 

 

 

 

 

 

  net income per share attributable to SINA

 

61,626

 

 

56,810

 

 

61,249

 

 

61,216

 

 

54,722

 

 

Shares used in computing diluted

 

 

 

 

 

 

 

 

 

 

 

  net income per share attributable to SINA

 

66,389

 

 

61,704

 

 

65,825

 

 

65,908

 

 

59,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Stock-based compensation included was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues - advertising

 

$      590

 

 

$    3,532

 

 

$      566

 

 

$    2,989

 

 

$    5,415

 

 

 

Sales and marketing

 

522

 

 

4,361

 

 

479

 

 

2,369

 

 

5,999

 

 

 

Product development

 

383

 

 

2,839

 

 

333

 

 

1,812

 

 

4,124

 

 

 

General and administrative

 

1,592

 

 

13,111

 

 

1,377

 

 

6,232

 

 

17,825

 

 

 

 

 

 

 

 

 

 

 

 

 



SINA CORPORATION

 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(U.S. Dollar in thousands)

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

 

2010

 

 

2009

 

 

Assets

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$    643,619

 

 

$    746,423

 

 

 

Short-term investments

 

 

239,216

 

 

75,095

 

 

 

Accounts receivable, net

 

 

89,843

 

 

74,999

 

 

 

Other current assets

 

 

35,981

 

 

22,381

 

 

 

     Total current assets

 

 

1,008,659

 

 

918,898

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

33,289

 

 

23,022

 

 

Goodwill and intangible assets, net

 

 

85,574

 

 

87,740

 

 

Investments

 

 

508,113

 

 

580,606

 

 

Other assets

 

 

455

 

 

3,576

 

 

Total assets

 

 

$    1,636,090

 

 

$    1,613,842

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

 

$     3,963

 

 

$       1,918

 

 

 

Accrued liabilities

 

 

128,050

 

 

108,970

 

 

 

Income taxes payable

 

 

17,011

 

 

14,526

 

 

 

Convertible debt

 

 

99,000

 

 

99,000

 

 

 

    Total current liabilities

 

 

248,024

 

 

224,414

 

 

 

 

 

 

 

 

 

Long-term deferred revenue

 

 

145,274

 

 

164,019

 

 

Other long-term liabilities

 

 

2,266

 

 

2,710

 

 

 

    Total liabilities

 

 

395,564

 

 

391,143

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

SINA shareholders' equity

 

 

1,239,308

 

 

1,221,727

 

 

 

Noncontrolling interest

 

 

1,218

 

 

972

 

 

 

    Total shareholders' equity

 

 

1,240,526

 

 

1,222,699

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

 

$          1,636,090

 

 

$          1,613,842

 

 

 

 

 

 

 

 



SINA CORPORATION

 

 

UNAUDITED SEGMENT INFORMATION

 

 

(U.S. Dollar in thousands)

 

 

 

 

 

 

Three months ended

 

 

Twelve months ended

 

 

 

 

December 31

 

 

September
30,

 

 

December 31

 

 

 

 

2010

 

 

2009

 

 

2010

 

 

2010

 

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$  82,451

 

 

$  63,187

 

 

$     80,994

 

 

$  290,814

 

 

$  227,895

 

 

 

Mobile related

 

21,007

 

 

28,596

 

 

20,658

 

 

86,183

 

 

119,341

 

 

 

Others

 

6,496

 

 

6,403

 

 

6,594

 

 

25,620

 

 

11,331

 

 

 

 

$ 109,954

 

 

$  98,186

 

 

$     108,246

 

 

$  402,617

 

 

$  358,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$  32,971

 

 

$  28,857

 

 

$     30,269

 

 

$  116,295

 

 

$   99,835

 

 

 

Mobile related

 

12,787

 

 

14,207

 

 

12,741

 

 

49,612

 

 

56,851

 

 

 

Others

 

691

 

 

377

 

 

724

 

 

2,503

 

 

1,606

 

 

 

 

$  46,449

 

 

$  43,441

 

 

$      43,734

 

 

$  168,410

 

 

$  158,292

 

 

 

 

 

 

 

 

 

 

 

 

 



SINA CORPORATION

 

 

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

 

 

(U.S. Dollar in thousands, except per share data)

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

Three months ended

 

 

 

 

December 31, 2010

 

 

December 31, 2009

 

 

September 30, 2010

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

Non-GAAP

 

 

 

 

Actual

 

 

Adjustments

 

 

Results

 

 

Actual

 

 

Adjustments

 

 

Results

 

 

Actual

 

 

Adjustments

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising revenues

 

$    82,451

 

 

 

 

$     82,451

 

 

$     63,187

 

 

 

 

$    63,187

 

 

$     80,994

 

 

 

 

$    80,994

 

 

Non-advertising revenues

 

27,503

 

 

(4,916)

 

(c)

 

22,587

 

 

34,999

 

 

(4,686)

 

(c)

 

30,313

 

 

27,252

 

 

(4,687)

 

(c)

 

22,565

 

 

Revenues

 

$    109,954

 

 

$      (4,916)

 

 

$    105,038

 

 

$     98,186

 

 

$     (4,686)

 

 

$    93,500

 

 

$    108,246

 

 

$    (4,687)

 

 

$   103,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,037

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

590

 

(a)

 

 

 

 

 

(4,686)

 

(c)

 

 

 

 

 

566

 

(a)

 

 

 

 

 

 

 

(4,916)

 

(c)

 

 

 

 

 

495

 

(g)

 

 

 

 

 

(4,687)

 

(c)

 

 

 

Gross profit

 

$     63,505

 

 

$      (4,326)

 

 

$     59,179

 

 

$    54,745

 

 

$     (1,154)

 

 

$    53,591

 

 

$      64,512

 

 

$    (4,121)

 

 

$     60,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,080)

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,497)

 

(a)

 

 

 

 

 

(2,904)

 

(b)

 

 

 

 

 

(2,189)

 

(a)

 

 

 

 

 

 

 

(249)

 

(b)

 

 

 

 

 

(10,231)

 

(g)

 

 

 

 

 

(240)

 

(b)

 

 

 

Operating expenses

 

$    36,471

 

 

$      (2,746)

 

 

$    33,725

 

 

$    58,161

 

 

$    (23,215)

 

 

$     34,946

 

 

$     35,970

 

 

$     (2,429)

 

 

$     33,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,117

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

3,087

 

(a)

 

 

 

 

 

2,904

 

(b)

 

 

 

 

 

2,755

 

(a)

 

 

 

 

 

 

 

249

 

(b)

 

 

 

 

 

(4,686)

 

(c)

 

 

 

 

 

240

 

(b)

 

 

 

 

 

 

 

(4,916)

 

(c)

 

 

 

 

 

10,726

 

(g)

 

 

 

 

 

(4,687)

 

(c)

 

 

 

Income (loss) from operations

 

$    27,034

 

 

$      (1,580)

 

 

$    25,454

 

 

$     (3,416)

 

 

$     22,061

 

 

$    18,645

 

 

$     28,542

 

 

$     (1,692)

 

 

$     26,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,087

 

(a)

 

 

 

 

 

13,117

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

249

 

(b)

 

 

 

 

 

2,904

 

(b)

 

 

 

 

 

2,755

 

(a)

 

 

 

 

 

 

 

(4,916)

 

(c)

 

 

 

 

 

(4,686)

 

(c)

 

 

 

 

 

240

 

(b)

 

 

 

 

 

 

 

3,614

 

(e)

 

 

 

 

 

10,726

 

(g)

 

 

 

 

 

(4,687)

 

(c)

 

 

 

 

 

 

 

128,554

 

(f)

 

 

 

 

 

(375,055)

 

(h)

 

 

 

 

 

3,569

 

(e)

 

 

 

Net income (loss) attributable to SINA

 

$   (99,986)

 

 

$     130,588

 

 

$     30,602

 

 

$   372,105

 

 

$   (352,994)

 

 

$    19,111

 

 

$      31,310

 

 

$      1,877

 

 

$    33,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share attributable to SINA

 

$      (1.51)

 

 

 

 

$       0.46

 

 

$       6.03

 

 

 

 

$       0.31

 

 

$        0.48

 

 

 

 

$       0.50

 

 

Shares used in computing diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  net income per share attributable to SINA

 

66,389

 

 

 

 

66,389

 

 

61,704

 

 

 

 

61,704

 

 

65,825

 

 

 

 

65,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

60%

 

 

1%

 

 

61%

 

 

54%

 

 

6%

 

 

60%

 

 

63%

 

 

0%

 

 

63%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




 

 

Twelve months ended

 

 

Twelve months ended

 

 

 

 

December 31, 2010

 

 

December 31, 2009

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

Non-GAAP

 

 

 

 

Actual

 

 

Adjustments

 

 

Results

 

 

Actual

 

 

Adjustments

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising revenues

 

$   290,814

 

 

 

 

$   290,814

 

 

$    227,895

 

 

(25,702)

 

(d)

 

$   202,193

 

 

Non-advertising revenues

 

111,803

 

 

(18,975)

 

(c)

 

92,828

 

 

130,672

 

 

$     (4,686)

 

(c)

 

125,986

 

 

Revenues

 

$   402,617

 

 

$     (18,975)

 

 

$   383,642

 

 

$    358,567

 

 

$    (30,388)

 

 

$   328,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,920

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

265

 

(b)

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,686)

 

(c)

 

 

 

 

 

 

 

2,989

 

(a)

 

 

 

 

 

(20,409)

 

(d)

 

 

 

 

 

 

 

(18,975)

 

(c)

 

 

 

 

 

495

 

(g)

 

 

 

Gross profit

 

$   234,207

 

 

$     (15,986)

 

 

$   218,221

 

 

$    200,275

 

 

$    (19,415)

 

 

$   180,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,717)

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,138)

 

(b)

 

 

 

 

 

 

 

(10,413)

 

(a)

 

 

 

 

 

(8,117)

 

(d)

 

 

 

 

 

 

 

(3,335)

 

(b)

 

 

 

 

 

(10,231)

 

(g)

 

 

 

Operating expenses

 

$     37,964

 

 

$     (13,748)

 

 

$    124,216

 

 

$  163,073

 

 

$    (40,203)

 

 

$   122,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,637

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

4,403

 

(b)

 

 

 

 

 

 

 

13,402

 

(a)

 

 

 

 

 

(4,686)

 

(c)

 

 

 

 

 

 

 

3,335

 

(b)

 

 

 

 

 

(12,292)

 

(d)

 

 

 

 

 

 

 

(18,975)

 

(c)

 

 

 

 

 

10,726

 

(g)

 

 

 

Income from operations

 

$   96,243

 

 

$      (2,238)

 

 

$    94,005

 

 

$     37,202

 

 

$     20,788

 

 

$     57,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,402

 

(a)

 

 

 

 

 

22,596

 

(a)

 

 

 

 

 

 

 

3,335

 

(b)

 

 

 

 

 

4,313

 

(b)

 

 

 

 

 

 

 

(18,975)

 

(c)

 

 

 

 

 

(4,686)

 

(c)

 

 

 

 

 

 

 

6,647

 

(e)

 

 

 

 

 

10,726

 

(g)

 

 

 

 

 

 

 

128,554

 

(f)

 

 

 

 

 

(375,055)

 

(h)

 

 

 

Net income (loss) attributable to SINA

 

$  (19,094)

 

 

$   132,963

 

 

$    113,869

 

 

$  411,895

 

 

$   (342,106)

 

 

$    69,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share attributable to SINA

 

$      (0.29)

 

 

 

 

$       1.73

 

 

$       6.95

 

 

 

 

$       1.18

 

 

Shares used in computing diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

  net income per share attributable to SINA

 

65,908

 

 

 

 

65,908

 

 

59,259

 

 

 

 

59,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - advertising

 

60%

 

 

1%

 

 

61%

 

 

56%

 

 

0%

 

*

 

56%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)  To adjust stock-based compensation related to employee incentives.

(b)  To adjust amortization of intangible assets.

(c)  To adjust the recognition of deferred revenue mostly related to the license agreements resulting from the CRIC Transaction.

(d)  To exclude COHT’s results, adjusting for the impact of the amended and restated advertising agency agreement on a pro
   forma basis as if the agreement had been effective at the beginning of the period presented.

(e)  To adjust share of CRIC's GAAP to Non-GAAP reconciling items, net of share of amortization of CRIC's intangibles not on
   CRIC's books.

(f)  To adjust impairment of equity investment in CRIC

(g)  To adjust stock-based compensation related to the private equity financed shares issued to management

(h)  To adjust gain/loss on the disposal of business and investments

* Rounding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



UNAUDITED RECONCILIATION OF SINA'S SHARE OF CRIC'S NON-GAAP TO GAAP RESULTS

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

Twelve months ended

 

 

 

 

December 31, 2010

 

 

September 30, 2010

 

 

December 31, 2010

 

 

 

 

Actual

 

 

Adjustments

 

 

Non-GAAP Results

 

 

Actual

 

 

Adjustments

 

 

Non-GAAP Results

 

 

Actual

 

 

Adjustments

 

 

Non-GAAP Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To adjust stock-based compensation

 

 

 

$       1,327

 

 

 

 

 

 

$       1,311

 

 

 

 

 

 

$       5,239

 

 

 

 

 

To adjust amortization expenses of intangible

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 assets resulting from business acquisitions

 

 

1,503

 

 

 

 

 

 

1,485

 

 

 

 

 

 

6,161

 

 

 

 

 

To adjust gains from the purchase of a business:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income from investment in affiliates*

 

 

 

-

 

 

 

 

 

 

-

 

 

 

 

 

 

(7,155)

 

 

 

 

 

 Gain from settlement of pre-existing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 relationship with COHT

 

 

 

-

 

 

 

 

 

 

-

 

 

 

 

 

 

(701)

 

 

 

 

 

Equity income from CRIC

 

$        2,222

 

 

$         2,830

 

 

$       5,052

 

 

$       2,491

 

 

$    2,796

 

 

$       5,287

 

 

$     16,169

 

 

$       3,544

 

 

$    19,713

 

 

 

Share of amortization of CRIC's intangibles not

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 on CRIC's books

 

$        (784)

 

 

$          784

 

 

$           -

 

 

$        (773)

 

 

$        773

 

 

$           -

 

 

$      (3,103)

 

 

$       3,103

 

 

$           -

 

 

 

 

$       1,438

 

 

$        3,614

 

 

$       5,052

 

 

$       1,718

 

 

$    3,569

 

 

$       5,287

 

 

$    13,066

 

 

$       6,647

 

 

$      19,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Represents the excess of fair value over the carrying amount recognized as a result of acquisition of COHT.

 
Source: SINA Corporation
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