BEIJING, Nov. 30, 2010 /PRNewswire-Asia/ --China Finance Online Co., Ltd.
("China Finance Online", or the "Company") (Nasdaq: JRJC),the technology-driven,
user-focused market leader in China in providing vertically integrated financial
services and products including news, data, analytics and brokerage through web
portals, software systems, and mobile handsets,today announced its unaudited
financial results for the third quarter and nine months ended September 30,
2010.
2010 Third Quarter Financial and Operating Highlights
-- Registered user accounts increased to 18.46 million as of September 30,
2010, an increase of 40.7% from 13.12 million at September 30, 2009;
-- Active paid subscribers were approximately 144,600 as of September 30,
2010, an increase of 29.1% from the prior year period;
-- Gross margin in the third quarter of 2010 increased to 85.1% from 84.2%
in the comparable quarter of 2009;
-- Net income attributable to China Finance Online was $1.4 million for the
third quarter of 2010, compared with a net loss of $1.0 million in the
third quarter of 2009;
-- Excluding stock-based compensation expenses, non-GAAP net income
attributable to China Finance Online in the third quarter of 2010 was
$1.9 million, compared with non-GAAP net income of $0.6 million in the
third quarter of 2009.
2010 First Nine Months Financial Highlights
-- Total revenue for the first nine months of 2010 increased by 16.4%
year-over-year to $44.9 million from $38.6 million in the first nine
months of 2009;
-- Gross margin was 86.3% in the first nine months of 2010 compared with
84.8% in 2009;
-- Excluding stock-based compensation, non-GAAP net income attributable to
China Finance Online for the first nine months of 2010 was $5.8 million,
or non-GAAP diluted earnings per ADS attributable to China Finance
Online of $0.26, compared with a non-GAAP net income of $1.5 million, or
non-GAAP diluted per ADS of $0.07 during the first nine months of 2009.
Mr. Zhiwei Zhao, Chief Executive Officer of China Finance Online, Commented, "We
are pleased with our third quarter performance as the ongoing improvement in
operating efficiency continues to boost our net profits. Our existing
partnerships with key industry institutions have been strengthened through more
technological and marketing collaborations. Meanwhile, we continue to attract
and expand our registered user base to pave the way for sales and distribution
of our future products and value-added services."
Third Quarter Results
As of September 30, 2010, registered user accounts on the Company's web portals
(jrj.com and stockstar.com) were 18.46 million, an increase of 40.7% from 13.12
million at September 30, 2009. Active paid subscribers were approximately
144,600 as of September 30, 2010, a 29.1% gain from 112,000 at September 30,
2009. As of September 30, 2010, Daily Growth had approximately 2,140 customer
accounts.
Net revenues for the third quarter of 2010 were $14.4 million, compared with
$14.6 million for the comparable period in 2009. The main sources of the
Company's net revenues were from subscription fees from individual customers,
subscription fees from institutional customers, advertising revenues and
revenues from brokerage related services, and they contributed 78%, 4%, 12% and
6% to total revenues, respectively, compared to 80%, 3%, 8%, and 9% for the
comparable period in 2009. Revenues from institutional customers and revenues
from advertising have increased in the third quarter of 2010, compared to the
same period in 2009. Subscription fees from institutional customers increased
32.4%; the advertising revenues increased 55.1%.
For the third quarter of 2010, gross profit was $12.28 million compared with
$12.27 million for the comparable period in 2009. Gross margin for the third
quarter of 2010 increased to 85.1% from 84.2% for the comparable period in 2009.
General and administrative ("G&A") expenses for the third quarter of 2010 were
$2.5 million, or 17.5% of net revenues compared with $5.0 million, or 34.3% of
net revenues for the comparable period in 2009. The decrease in G&A expenses,
excluding stock-based compensation expenses, in both absolute value and as a
percentage of net revenues from the third quarter of 2009 was primarily due to
decrease in payroll costs as the Company continues to streamline operations
through efficiency enhancements. In addition, stock-based compensation related
to the activated shares of the performance-based restricted stock awards granted
in the third quarter of 2007 has been fully amortized. Excluding stock-based
compensation of $0.4 million, adjusted G&A expenses for the third quarter of
2010 were $2.1 million, or 14.8% of net revenues, compared with $3.4 million, or
23.4% of net revenues in the third quarter of 2009.
Sales and marketing expenses for the third quarter of 2010 were $6.35 million
compared with $6.42 million in the third quarter of 2009. Sales and marketing
expenses as a percentage of net revenues were 44.0% in the third quarter of
2010, in line with the same period in 2009.
Product development expenses for the third quarter of 2010 were $3.2 million
compared with $2.9 million in the same quarter in 2009. Product development
expenses as a percentage of net revenues was 21.9% compared with 19.7% in the
same quarter of the previous year. Management continues to invest in research
and development to ensure product superiority.
Total operating expenses for the third quarter of 2010, were $12.0 million
compared with $14.3 million in the third quarter of 2009. Selling, general and
administrative ("SG&A") expenses as a percentage of net revenues decreased to
61.6% in the third quarter of 2010 from 78.3% in the third quarter of 2009.
Excluding total stock-based compensation of $0.5 million, adjusted operating
expenses were $11.5 million in the 2010 third quarter, compared with adjusted
operating expenses of $12.7 million for the third quarter of 2009.
GAAP income from operations for the third quarter of 2010 was approximately
$0.33 million compared with a loss of $1.81 million in the third quarter of
2009. Non-GAAP income from operations, which excluded stock-based compensation
expenses, was $0.83 million for the 2010 third quarter, compared with a non-GAAP
loss of $0.17 million for the comparable period of 2009.
GAAP net income attributable to China Finance Online for the third quarter of
2010 was $1.35 million compared with a net loss of $1.03 million in the 2009
third quarter. Diluted GAAP net earnings per ADS attributable to China Finance
Online were $0.06 for the third quarter of 2010. Non-GAAP net income
attributable to China Finance Online, which excluded the stock-based
compensation expenses of $0.5 million, was $1.85 million for the 2010 third
quarter, compared with a non-GAAP net income of $0.60 million for the same
quarter of 2009. Diluted Non-GAAP net earnings per ADS attributable to China
Finance Online were $0.08 for the third quarter of 2010. Total diluted
outstanding ADSs were 22,970,713 at the end of September 2010.
As of September 30, 2010, total cash and cash equivalents and restricted cash
were $104.2 million. As of September 30, 2010, accounts receivable was $76.4
million, compared with $5.4 million as of December 31, 2009. Accounts receivable
resulting from IPO financing and margin business associated with Daily Growth,
the Company's Hong Kong brokerage firm, amounted to $71.4 million. Remainder of
the accounts receivable was mainly generated from the web portals' advertisement
business and Daily Growth's settlement operation.
The higher accounts receivable during the third quarter was mainly due to
increase in IPO financing. As the IPO activities remain vibrant in the Hong Kong
market, Daily Growth has been providing clients with IPO financing service
utilizing both internal capital and bank loans. Due to the short duration of IPO
subscription period, accounts receivable generated as a result of IPO financing
usually can be collected shortly after the initial transaction date. Accounts
receivable generated from IPO financing as of the September quarter end have
been collected by the beginning of October. Related bank loans have been repaid.
Daily Growth strictly enforces client screening and risk management. As of
today, there has been no bad debt resulting from IPO financing and margin
business since the acquisition of Daily Growth.
Total China Finance Online's shareholders' equity was $104.9 million as compared
with $97.4 million as of December 31, 2009.
The combined current and non-current deferred revenues at the end of the third
quarter of 2010, which represented prepaid service fees made by customers for
subscription services that have not been rendered as of September 30, 2010, were
$41.9 million.
Nine Month Results
Total net revenues for the first nine months ended September 30, 2010, increased
by 16.4% year-over-year to $44.9 million from $38.6 million in the first nine
months of last year. Gross profit for the first nine months of 2010, was $38.8
million, up 18.5% from the gross profit of $32.7 million in the same period last
year. Gross margin was 86.3% for the first nine months of 2010, compared with
84.8% in the comparable period in 2009. Net income attributable to China Finance
Online for the nine months of 2010, was $1.9 million, or diluted earnings per
ADS of $0.08, compared with a net loss of $3.6 million, or diluted net loss per
ADS of $0.17 during the first nine months of 2009. Excluding stock-based
compensation, non-GAAP net income attributable to China Finance Online for the
first nine months of 2010 was $5.8 million, or non-GAAP diluted earnings per ADS
of $0.26, compared with a non-GAAP net income of $1.5 million, or non-GAAP
diluted per ADS of $0.07 during the first nine months of 2009.
Business Outlook
The Company reiterates its expectation to increase the registered user accounts
to 20 million by year end 2010, up 43% from 14 million at the year end of 2009,
and up 82% from 11 million at the year end of 2008, respectively.
The Company updated its annual guidance for the year 2010 and expects net
revenues to exceed $59 million. The Company also updated its guidance of annual
non-GAAP net income attributable to China Finance Online, which excluded
stock-based compensations, to exceed $6.0 million.
The above forecast reflects the Company's current views, which are subject to
change. A number of important factors including, but not limited to,
fluctuations in the Chinese stock market, could cause the actual results to
differ materially from those contained in the above guidance.
"We remain cautious about the outlook of the fourth quarter as investor
confidence is far from full recovery due to the sluggish global growth and the
fluid domestic macroeconomic conditions. These mixed economic data and
investors' cautious sentiment may form some headwind to our subscription
business growth in the near term. However, in the long run, the Chinese market
will continue to attract more individual and institutional investors within and
beyond Mainland China. As investors are waiting for the return of bull market,
we are taking advantage of this period to streamline our operations and enhance
our robust online presence, superior product portfolio, and high-quality
financial database, which will further extend our market leadership," Mr. Zhao
concluded.
Implementation of "Provisional Regulations on Securities Investment Advisory"
and Its Impact on Our Business
In October 2010, the China Securities Regulatory Commission (the "CSRC")
promulgated the "Provisional Regulations on Securities Investment Advisory" and
"Provisional Regulations on Issuance of Securities Research Reports"
(collectively the "New Provisional Regulations"). The New Provisional
Regulations will become effective on January 1, 2011.
Firstly, the New Provisional Regulations will regulate securities advisory
software business (as defined below) and securities research reports issuance
activities. "Provisional Regulations on Securities Investment Advisory"
expressively states that business of providing securities advisory or other
similar service through software tools or any other terminal equipment
("securities advisory software business") should be subject to regulation by
CSRC. According to the New Provisional Regulations, securities advisory software
business should be regarded as securities investment advisory business and
should be subject to laws and regulations with respect to securities investment
advisory. Therefore, providers of such services should obtain securities
investment advisory license which we have acquired already.
Secondly, "Provisional Regulations on Securities Investment Advisory" allows
securities investment advisory institutions to provide, subject to regulatory
requirements, advices on specific securities and related investment products to
assist investors in making investment decisions and receive considerations from
such investors. We believe it will be advantageous for us to expand into new
investment areas and meet the various needs in investment advisory services
resulting from China's fast-growing number of individual investors.
Lastly, the New Provisional Regulations will improve the competition landscape
of the securities advisory software industry, though the regulatory effects will
materialize gradually. The New Provisional Regulations will eliminate unlicensed
participants which supply counterfeit, illegal or shoddy products or services
and will improve order in the market through enhanced regulations. The New
Provisional Regulations indicates the government's determination to standardize
the industry. Ultimately, the New Provisional Regulations will restrict the
activities of those participants without licenses and thus benefit industry
leaders, though a satisfactory result of the regulation may appear gradually
over a period of time.
Conference Call Information
The Company will host a conference call and a simultaneous webcast, on November
29, 2010 at 8:00 p.m. Eastern Time/November 30, 2010 9:00 a.m. Beijing Time.
Interested parties may participate in the conference call by dialing
approximately five to ten minutes before the call start time at U.S. Toll Free
Number +1-866-369-4113, Hong Kong Number +800-967-659, Singapore Number
+800-616-2160, or China Toll Free Landline Number +1080-0361-0133 (China South)
+1080-0611-0113(China North), and pass code for all regions is 635513.
A replay of the conference call will be available shortly after the conclusion
of the event through 11:00 p.m. Eastern Time on December 6, 2010 (or 12:00 p.m.
December 7, 2010 Beijing Time). The dial-in details for the replay: U.S. Toll
Free Number +1-866-572-7808, Singapore Number +800-101-2157 or China Toll Free
Number 800-876-5013, Hong Kong & all other countries Dial Number +852-3012-8000.
Access code: 635513.
The conference call will be available on webcast live and replay at:
http://tinyurl.com/3989euk
About China Finance Online
China Finance Online Co. Limited is the technology-driven, user-focused market
leader in China in providing vertically integrated financial services and
products including news, data, analytics and brokerage through web portals,
software systems, and mobile handsets. Through its web portals, www.jrj.com and
www.stockstar.com, the Company provides individual users with subscription-based
service packages that integrate financial and listed-company data, information
and analytics from multiple sources with features and functions such as data and
information search, retrieval, delivery, storage and analysis. These features
and functions are delivered through proprietary software available by download,
through the internet or through mobile handsets. Through its subsidiary, Genius,
the Company provides financial information database and analytics to
institutional customers including domestic securities and investment firms.
Through its subsidiary, Daily Growth, the Company provides securities brokerage
services for stocks listed on Hong Kong Stock Exchange.
Safe Harbor Statement
This press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Among other
things, the quotations from management in this press release and the Company's
strategic operational plans and business outlook, contain forward-looking
statements. Such statements involve certain risks and uncertainties that could
cause actual results to differ materially from those in the forward-looking
statements. The Company believes that the Chinese economy continues to expand;
however, the expansion may be uneven with certain sectors being affected more
than others with resulting volatility in the Chinese equity market which could
influence the Company's operating results in the coming quarters. Further
information regarding these and other risks is included in the Company's filings
with the U.S. Securities and Exchange Commission, including its annual report on
Form 20-F. The Company does not undertake any obligation to update any
forward-looking statement as a result of new information, future events or
otherwise, except as required under applicable law.
Non-GAAP Measures
To supplement the unaudited condensed consolidated financial information
presented in accordance with Accounting Principles Generally Accepted in the
United States of America ("GAAP"), the Company uses non-GAAP measures of income
from operations, net income, diluted net income per ADS, which are adjusted from
results based on GAAP to exclude the stock-based compensation expenses due to
the adoption of authoritative pronouncement, which became effective on January
1, 2006. The non-GAAP financial measures are provided to enhance the investors'
overall understanding of the Company's current and past financial performance in
on-going core operations as well as prospects for the future. These measures
should be considered in addition to results prepared and presented in accordance
with GAAP, but should not be considered a substitute for or superior to GAAP
results. Management uses both GAAP and non-GAAP information in evaluating and
operating business internally and therefore deems it important to provide all of
this information to investors. For more information on these non-GAAP financial
measures, please see the table captioned "Reconciliation of the Company's GAAP
financial measures to Non-GAAP financial measures" set forth at the end of this
release.
Contact:
Julie Zhu
China Finance Online Co., Ltd.
+86-10-5832-5288
ir@jrj.com
Shiwei Yin/Kevin Theiss
Grayling
646-284-9474
shiwei.yin@grayling.com
kevin.theiss@grayling.com
Tables follow
China Finance Online Co. Limited
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
Sep. 30, Dec. 31,
2010 2009
--------- ---------
Assets
------
Current assets:
---------------
RMB account 83,294 93,753
----------- ------ ------
Foreign currency account 6,513 13,638
------------------------ ----- ------
Cash and cash equivalents 89,807 107,391
------------------------- ------ -------
Restricted cash 14,363 -
--------------- ------ ---
Trust bank balances held on behalf of
customers 15,667 13,310
------------------------------------- ------ ------
Accounts receivable, net - others 4,946 2,645
--------------------------------- ----- -----
Accounts receivable, net - Margin clients 71,439 2,724
----------------------------------------- ------ -----
Trading securities 88 68
------------------ --- ---
Prepaid expenses and other current assets 6,077 4,281
----------------------------------------- ----- -----
Deferred tax assets, current 3,415 3,237
---------------------------- ----- -----
Total current assets 205,802 133,656
-------------------- ------- -------
Cost method investment 1,480 1,480
---------------------- ----- -----
Property and equipment, net 8,761 10,268
--------------------------- ----- ------
Acquired intangible assets, net 4,447 4,779
------------------------------- ----- -----
Rental deposits 714 725
--------------- --- ---
Goodwill 12,817 12,603
-------- ------ ------
Deferred tax assets, non-current 1,886 1,879
-------------------------------- ----- -----
Other deposits 246 219
-------------- --- ---
Total assets 236,153 165,609
------------ ------- -------
Liabilities and equity
----------------------
Current liabilities:
--------------------
Deferred revenue, current (including deferred
revenue, current of the consolidated variable
interest entities without recourse to China
Finance Online Co., Ltd. $10,328 and $9,090
as of September 30,2010 and December
31,2009,respectively) 29,110 30,620
---------------------------------------------- ------ ------
Accrued expenses and other current liabilities
(including accrued expenses and other current
liabilities of the consolidated variable
interest entities without recourse to China
Finance Online Co., Ltd. $1,466 and $1,272 as
of September 30,2010 and December
31,2009,respectively) 8,267 8,245
---------------------------------------------- ----- -----
Bank loan 64,043 -
--------- ------ ---
Amount due to customers for trust bank
balances held on behalf of customers 15,667 13,310
-------------------------------------- ------ ------
Accounts payable (including accounts payable
of the consolidated variable interest
entities without recourse to China Finance
Online Co., Ltd. $30 and $12 as of September
30,2010 and December 31,2009,respectively) 140 102
--------------------------------------------- --- ---
Deferred tax liability, current 128 -
------------------------------- --- ---
Income taxes payable (including income taxes
payable of the consolidated variable interest
entities without recourse to China Finance
Online Co., Ltd. $77 and $123 as of September
30,2010 and December 31,2009,respectively) 64 124
---------------------------------------------- --- ---
Total current liabilities 117,419 52,401
------------------------- ------- ------
Deferred tax liability, non-current 969 995
----------------------------------- --- ---
Deferred revenue, non-current (including
deferred revenue, non-current of the
consolidated variable interest entities
without recourse to China Finance Online Co.,
Ltd. $4,247 and $4,852 as of September
30,2010 and December 31,2009,respectively) 12,793 14,547
---------------------------------------------- ------ ------
Total liabilities 131,181 67,943
----------------- ------- ------
Noncontrolling interests 60 259
------------------------ --- ---
Total China Finance Online Co., Limited
Shareholders' equity 104,912 97,407
--------------------------------------- ------- ------
Total liabilities and equity 236,153 165,609
---------------------------- ------- -------
China Finance Online Co. Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of U.S. dollars, except per share data)
Three months ended
Sep.30, Sep.30,
2010 2009 Jun.30, 2010
Net revenues 14,425 14,577 15,273
Cost of revenues (2,145) (2,309) (2,101)
Gross profit 12,280 12,268 13,172
Operating expenses
General and administrative
(includes share-based
compensation expenses of $394,
$1,599, $1,722, $3,675 and
$4,881, respectively) (2,531) (5,004) (3,651)
Sales and marketing (includes
share-based compensation
expenses of $62, $21, $62,
$156 and $89, respectively) (6,348) (6,416) (6,931)
Product development (includes
share-based compensation
expenses of $43, $13, $44,
$109, and $47, respectively) (3,161) (2,873) (3,310)
Total operating expenses (12,040) (14,293) (13,892)
Subsidy income 91 219 85
Income (loss) from operations 331 (1,806) (635)
Interests income 373 379 356
Investment gain 145 - 344
Other income, net (13) (70) (10)
Exchange gain, net 353 8 134
Income (loss) before income tax
benefit 1,189 (1,489) 189
Income tax benefit (provision) 50 456 131
Net income (loss) 1,239 (1,033) 320
Less: Net loss attributable to
the non-controlling interest (114) - (58)
Net Income (loss) attributable
to China Finance Online Co.,
Limited 1,353 (1,033) 378
Net income (loss)per share
attributable to China Finance
Online Co., Limited
Basic 0.01 (0.01) 0.00
Diluted 0.01 (0.01) 0.00
Net income (loss) per ADS
attributable to China Finance
Online Co., Limited.
Basic 0.06 (0.05) 0.02
Diluted 0.06 (0.05) 0.02
Weighted average ordinary
shares
Basic 108,724,478 105,621,910 108,134,184
Diluted 114,853,565 105,621,910 113,577,713
Weighted average ADSs
Basic 21,744,896 21,124,382 21,626,837
Diluted 22,970,713 21,124,382 22,715,543
Nine months ended
Sep. 30, Sep. 30,
2010 2009
Net revenues 44,932 38,611
Cost of revenues (6,144) (5,872)
Gross profit 38,788 32,739
Operating expenses
General and administrative
(includes share-based
compensation expenses of $394,
$1,599, $1,722, $3,675 and
$4,881, respectively) (10,360) (12,958)
Sales and marketing (includes
share-based compensation
expenses of $62, $21, $62,
$156 and $89, respectively) (19,649) (17,602)
Product development (includes
share-based compensation
expenses of $43, $13, $44,
$109, and $47, respectively) (9,421) (7,853)
Total operating expenses (39,430) (38,413)
Subsidy income 330 436
Income (loss) from operations (312) (5,238)
Interests income 1,064 980
Investment gain 710 -
Other income, net (90) (111)
Exchange gain, net 503 8
Income (loss) before income tax
benefit 1,875 (4,361)
Income tax benefit (provision) (204) 804
Net income (loss) 1,671 (3,557)
Less: Net loss attributable to
the non-controlling interest (199) -
Net Income (loss) attributable
to China Finance Online Co.,
Limited 1,870 (3,557)
Net income (loss)per share
attributable to China Finance
Online Co., Limited
Basic 0.02 (0.03)
Diluted 0.02 (0.03)
Net income (loss) per ADS
attributable to China Finance
Online Co., Limited.
Basic 0.09 (0.17)
Diluted 0.08 (0.17)
Weighted average ordinary
shares
Basic 108,020,937 104,814,081
Diluted 113,786,226 104,814,081
Weighted average ADSs
Basic 21,604,187 20,962,816
Diluted 22,757,245 20,962,816
China Finance Online Co. Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
Three months ended
------------------
Sep. 30, Jun. 30,
2010 Sep.30, 2009 2010
--------- ------------ ---------
Cash flows from operating
activities:
-------------------------
Net income (loss) 1,239 (1,033) 320
----------------- ----- ------ ---
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
----------------------------
Stock-based compensation 499 1,633 1,828
------------------------ --- ----- -----
Depreciation and amortization 910 751 884
----------------------------- --- --- ---
Gain from sales of trading
securities (146) - (344)
-------------------------- ---- --- ----
Deferred taxes (127) (596) (168)
-------------- ---- ---- ----
Loss on disposal of property
and equipment 2 - 15
---------------------------- --- --- ---
Changes in assets and
liabilities:
---------------------
Accounts receivable-others (509) (399) (634)
-------------------------- ---- ---- ----
Accounts receivable-Margin
clients (58,434) (1,785) (9,242)
-------------------------- ------- ------ ------
Prepaid expenses and other
current assets (349) 2,314 (574)
-------------------------- ---- ----- ----
Trust bank balances held on
behalf of customers 12,723 (2,143) (22,036)
--------------------------- ------ ------ -------
Rental deposits 6 - 34
--------------- --- --- ---
Deferred revenue (1,421) 1,572 (1,256)
---------------- ------ ----- ------
Accounts payable (227) (152) 190
---------------- ---- ---- ---
Amount due to customers for
trust bank balances held on
behalf of customers (12,723) 2,143 22,036
---------------------------- ------- ----- ------
Accrued expenses and other
current liabilities (632) 270 1,690
-------------------------- ---- --- -----
Income taxes payable 10 (4) (32)
-------------------- --- --- ---
Net cash provided by (used in)
operating activities (59,179) 2,571 (7,289)
------------------------------ ------- ----- ------
Cash flows from investing
activities:
-------------------------
Purchase of trading securities (526) - (1,384)
------------------------------ ---- --- ------
Proceeds from sales of trading
securities 687 - 1,654
------------------------------ --- --- -----
Restricted cash - - (14,106)
--------------- --- --- -------
Purchase of property and
equipment (234) (1,696) (368)
------------------------ ---- ------ ----
Proceeds from disposal of
fixed assets - - 4
------------------------- --- --- ---
Acquisition of cost method
investment - - (257)
-------------------------- --- --- ----
Net cash used in investing
activities (73) (1,696) (14,457)
-------------------------- --- ------ -------
Cash flows from financing
activities:
-------------------------
Proceeds from stock options
exercised by employees 288 40 26
--------------------------- --- --- ---
Bank loan 58,588 2,839 5,356
--------- ------ ----- -----
Net cash provided by financing
activities 58,876 2,879 5,382
------------------------------ ------ ----- -----
Effect of exchange rate
changes 761 27 279
----------------------- --- --- ---
Net increase in cash and cash
equivalents 385 3,781 (16,085)
----------------------------- --- ----- -------
Cash and cash equivalents,
beginning of quarter 89,422 100,628 105,507
-------------------------- ------ ------- -------
Cash and cash equivalents, end
of quarter 89,807 104,409 89,422
------------------------------ ------ ------- ------
Non-GAAP Measures
Three months ended
Sep. 30, 2010
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Income (loss) from operations 331 499 830
Three months ended
Sep. 30, 2009
(U.S. Dollar in thousands)
Non-GAAP
GAAP Adjustment Results
Result
(a)
Income (loss) from operations (1,806) 1,633 (173)
Three months ended
Jun. 30, 2010
(U.S. Dollar in thousands)
Non-
GAAP GAAP
Result Adjustment Results
(a)
Income (loss) from operations (635) 1,828 1,193
Nine months ended
Sep. 30, 2010
(U.S. Dollar in thousands)
Non-
GAAP GAAP
Result Adjustment Results
(a)
Income (loss) from
operations (312) 3,940 3,628
Nine months ended
Sep. 30, 2009
(U.S. Dollar in thousands)
Non-
GAAP GAAP
Result Adjustment Results
(a)
Income (loss) from
operations (5,238) 5,017 (221)
Three months ended
Sep. 30, 2010
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Net income (loss) attributable
to China Finance Online Co.
Limited 1,353 499 1,852
Diluted net income (loss) per
ADS attributable to China
Finance Online Co. Limited 0.06 0.02 0.08
Three months ended
Sep. 30, 2009
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Net income (loss) attributable
to China Finance Online Co.
Limited (1,033) 1,633 600
Diluted net income (loss) per
ADS attributable to China
Finance Online Co. Limited (0.05) 0.08 0.03
Three months ended
Jun. 30, 2010
(U.S. Dollar in thousands)
Non-
GAAP GAAP
Result Adjustment Results
(a)
Net income (loss) attributable
to China Finance Online Co.
Limited 378 1,828 2,206
Diluted net income (loss) per
ADS attributable to China
Finance Online Co. Limited 0.02 0.08 0.10
Nine months ended
Sep. 30, 2010
(U.S. Dollar in thousands)
Non-
GAAP GAAP
Result Adjustment Results
(a)
Net income (loss) attributable
to China Finance Online Co.
Limited 1,870 3,940 5,810
Diluted net income (loss) per
ADS attributable to China
Finance Online Co. Limited 0.08 0.18 0.26
Nine months ended
Sep. 30, 2009
(U.S. Dollar in thousands)
Non-
GAAP GAAP
Result Adjustment Results
(a)
Net income (loss) attributable
to China Finance Online Co.
Limited (3,557) 5,017 1,460
Diluted net income (loss) per
ADS attributable to China
Finance Online Co. Limited (0.17) 0.24 0.07
(a) The adjustment is for share-based compensation expenses.
Source: China Finance Online Co., Ltd.
