Net Revenues and Non-GAAP Net Income Exceeding Guidance
Net Revenues up 33% Q-o-Q, 156% Y-o-Y
Non-GAAP Net Income up 11% Q-o-Q, 202% Y-o-Y
Net Income up 30% Q-o-Q, 192% Y-o-Y
BEIJING, Aug. 29 /Xinhua-PRNewswire/ -- China Finance Online Co. Limited (Nasdaq: JRJC), a leading Chinese online financial information and listed company data provider, today announced its financial results for the second quarter ended June 30, 2008:
Q2 2008 Highlights
Second Quarter
2008 2007 Variance in %
1) Financial Data: (in thousands of U.S. dollars,
except per ADS data)
Net revenues $14,679 $5,723 156%
GAAP net income 4,561 1,562 192%
Non-GAAP net income 6,528 2,159 202%
GAAP net income per ADS
Basic $0.23 $0.08 188%
Diluted $0.20 $0.08 150%
Non-GAAP net income per ADS
Basic $0.33 $0.11 200%
Diluted $0.28 $0.11 155%
2) Operating Data:
Registered users 10,500,000 7,300,000 44%
Active paid individual
subscribers 100,600 37,400 169%
-- In the second quarter of 2008, Chinese stock market continued to
experience significant correction, with Shanghai Stock Exchange
Composite Index down additional 21% following a record-setting 34%
decline in Q1 2008. Despite the sharp decline in the stock market, the
Company’s core subscription service business still achieved solid
growth.
-- As a result, net revenues reached $14.68 million for Q2 2008, exceeding
the high end of the Company’s previous guidance of $13.0 to $13.50
million, up 156% year-over-year and 33% quarter-over-quarter.
-- Non-GAAP net income, which is defined as net income excluding stock-
based compensation expenses, was $6.53 million for Q2 2008, exceeding
the high end of the Company’s previous guidance of $5.5 to $6.0
million, up 202% year-over-year and 11% quarter-over-quarter. Non-
GAAP basic and diluted net income per share were $0.07 and $0.06,
respectively, and non-GAAP basic and diluted net income per ADS were
$0.33 and $0.28 for Q2 2008, respectively.
-- GAAP net income was $4.56 million for Q2 2008, up 192% compared to
$1.56 million for the second quarter of 2007. Basic and diluted GAAP
net income per share were $0.05 and $0.04, respectively. Basic and
diluted GAAP net income per ADS were $0.23 and $0.20 for Q2 2008,
respectively.
-- Registered user accounts of jrj.com and stockstar.com grew to 10.50
million, an increase of 700,000 from the previous quarter. Active
paid individual subscribers, which refer to individual investors who
subscribe for a fee to our products through downloading, via web or by
mobile phones, grew to 100,600 up 34% from the previous quarter. As
of June 30, 2008, our Hong Kong brokerage operation Daily Growth,
which was acquired in November, 2007, had approximately 1,100 customer
accounts.
Explanation of the Company’s non-GAAP financial measures and the related reconciliations to GAAP financial measures are included in the accompanying “Reconciliation to Unaudited Condensed Consolidated Statements of Operations”, “Non-GAAP Measures” and “Reconciliations from operating profit to EBITDA and adjusted EBITDA”.
Q2 2008 Financial Results
Net Revenues:
During the second quarter of 2008, China Finance Online reported net revenues of $14.68 million, exceeding the high end of the Company’s previous guidance of $13.0 to $13.5 million, compared to $5.72 million for the same period in 2007, and $11.06 million for the first quarter of 2008, up 156% year-over-year and 33% quarter-over-quarter. The increase is primarily due to the growth in subscription service fees from individual customers. Revenues from subscription service fees paid by individual customers were $13.13 million in the second quarter of 2008, representing 89% of net revenues for the quarter. Revenues from mobile value added services were $370,000, representing 3% of net revenues for the quarter. Revenues from subscription service fees paid by institutional customers were $267,000 in the second quarter of 2008, approximately 2% of net revenues for the quarter. Revenues from advertising-related business for the quarter contributed $758,000, representing 5% of net revenues for the quarter. Revenues from brokerage-related services, provided by Daily Growth, the Hong Kong securities brokerage firm which was acquired in November 2007, were $121,000 in the second quarter of 2008, representing 1% of net revenue for the quarter. Other revenues were $30,000, less than 1% of net revenues for the quarter.
Revenues breakdown is summarized in the following table:
Three months ended
June 30, March 31, June 30,
2008 2008 2007
(In thousands of U.S. dollars)
1) Subscription service fees paid
by individual customers 13,133 89% 9,618 87% 4,667 81%
2) Revenues from mobile value added
services 370 3% 310 3% 334 6%
3) Subscription service fees paid by
institutional customers 267 2% 231 2% 258 5%
4) Revenues from advertising-related
business 758 5% 585 6% 396 7%
5) Revenues from brokerage-related
services 121 1% 153 1% n/a n/a
6) Revenues from others 30 <1% 158 1% 68 1%
Total net revenues
14,679 100% 11,055 100% 5,723 100%
Gross Profit:
Gross profit for the quarter was $12.58 million, compared to $4.64 million for the same period in 2007 and $9.34 million for the first quarter of 2008. Gross margin was 86% in the second quarter, compared to 81% in the same period of 2007 and 84% in the first quarter of 2008. The gross margin improvement was primarily due to cost leverage on increased sales and favourable sales mix.
A large portion of costs of revenue are website maintenance expenses, which consist of bandwidth costs, personnel-related expenses, server depreciation expenses, and content expenses for our jrj.com and stockstar.com websites. Website maintenance expenses for the second quarter of 2008 was $1.12 million in the quarter, compared to $730,000 from the second quarter of 2007 and $1.04 million for the previous quarter. As a percentage of net revenue, website maintenance expenses for the second quarter of 2008 were 8% in the quarter, compared to 13% for the second quarter of 2007 and 9% for the previous quarter.
Operating Expenses:
Operating expenses for the second quarter of 2008 totalled $9.0 million compared to $3.59 million for the same period in 2007 and $7.36 million from the previous quarter. The increase from Q1 2008 is primarily due to the increased professional fees, advertising fees, marketing promotion expenses related to the stock picking competition, as well as performance-based sales commissions. Excluding stock-based compensation of $1.97 million, operating expenses was $7.03 million for the second quarter of 2008, compared to $3.0 million for the second quarter of 2007 and $5.0 million for the first quarter of 2008. As a percentage of net revenue for the quarter, operating expenses excluding stock-based compensation was 48%, compared to 52% for the second quarter of 2007 and 45% for the first quarter of 2008.
-- General and administrative expenses for the quarter were $4.12 million,
compared to $1.79 million for the same period in 2007 and $3.92 million
from the previous quarter. The increase from the previous quarter is
primarily due to the professional fees. Excluding stock-based
compensation of $1.89 million, general and administrative expenses was
$2.23 million for the second quarter, compared to $1.25 million in the
second quarter of 2007 and $1.64 million in the previous quarter. As a
percentage of net revenue in the quarter, general and administrative
expenses excluding stock-based compensation for the second quarter was
15%, and decreased from 22% for the second quarter of 2007 and flat
from the first quarter of 2008.
-- Sales and marketing expenses for the second quarter were $3.64 million,
compared to $1.36 million for the same period in 2007 and $2.45 million
from the previous quarter. The increase from the previous quarter is
primarily due to the increase in advertising fees, marketing promotion
expenses associated with the stock picking competition, as well as
performance-based sales commissions. Excluding stock-based
compensation of $66,000, sales and marketing expenses was $3.57 million
for the second quarter, compared to $1.33 million in the second quarter
of 2007 and $2.38 million in the previous quarter. As a percentage of
net revenue in the quarter, sales and marketing expenses excluding
stock-based compensation for the second quarter was 24%, relatively
flat from the same quarter in 2007 and a slight increase from 22% for
the first quarter of 2008.
-- Product development expenses for the second quarter were $1.24 million,
compared to $443,000 for the same period in 2007 and $995,000 from the
previous quarter, which were primarily due to the increases in employee
compensation as a result of increased headcounts and server
depreciation expenses. Excluding stock-based compensation of $13,000,
product development expenses were $1.23 million, compared to $418,000
in the second quarter of 2007 and $972,000 in the previous quarter. As
a percentage of net revenue in the quarter, product development
expenses excluding stock-based compensation for the second quarter was
8%, increased from 7% in the second quarter of 2007 and decreased from
9% for the previous quarter.
Income from Operations:
Income from operations for the second quarter of 2008 was $3.58 million, compared to $1.05 million for the same quarter in 2007 and $1.97 million for the first quarter of 2008. Adjusted income from operations (non-GAAP), which is defined as income from operations excluding stock-based compensation expenses of $1.97 million, was $5.54 million for the quarter, compared to $1.65 million for the same quarter in 2007 and $4.34 million for the first quarter of 2008.
Net Income and Non-GAAP Net Income:
Net income was $4.56 million, compared to net income of $1.56 million for the second quarter of 2007 and $3.51 million for the first quarter of 2008. Net income margin was 31% for Q2 2008, compared to 27% for the same period in 2007 and 32% for the first quarter of 2008.
Total income tax benefit for the quarter was $88,000, compared to $150,000 for the same period in 2007 and $64,000 for the previous quarter.
Non-GAAP net income, which is defined as net income excluding stock-based compensation expenses, was $6.53 million for the second quarter of 2008, compared to $2.16 million for the second quarter of 2007, and $5.88 million for the first quarter of 2008. Excluding stock-based compensation expenses, non-GAAP net income margin for the second quarter of 2008 was 44%, compared to non-GAAP net income margin of 38% for the same period in 2007 and 53% for the first quarter of 2008.
As part of the net income for the second quarter, the Company recorded a net foreign exchange gain of $559,000, compared with $101,000 from the second quarter of 2007 and $870,000 from previous quarter.
Deferred Revenue:
Deferred revenue at the end of the second quarter of 2008, which represents prepaid service fees made by customers for subscription services that have not been rendered as of June 30, 2008, reached the Company’s historical high of $34.87 million, with current deferred revenue of $27.95 million and non-current deferred revenue of $6.92 million.
Cash and Cash Equivalents:
Balance of cash and cash equivalents was approximately $85.93 million at the end of the second quarter of 2008, including cash denominated in RMB with an equivalent to $66.93 million and cash denominated in other foreign currencies with an equivalent to $19.0 million.
Cash Flow:
Cash inflow from subscription services provided to individual customers was $16.72 million, compared to $8.18 million for the second quarter of 2007 and $15.04 million for the previous quarter.
Adjusted EBITDA (Non-GAAP):
Adjusted EBITDA (non-GAAP), which is defined as earnings before interest, taxes, depreciation, amortization, other non-operating income and stock-based compensation expenses, was $6.0 million for the second quarter of 2008, compared to $1.87 million in the second quarter of 2007 and $4.77 million in previous quarter.
Other Operating Metrics
As of June 30, 2008, the Company has 10.50 million registered user accounts on its two websites jrj.com and stockstar.com, compared to 9.8 million in the previous quarter, an increase of 700,000 quarter-on-quarter.
Active paid individual subscribers grew to 100,600 at the end of the second quarter 2008, up 34% from 75,300 in the previous quarter.
As of June 30, 2008, our Hong Kong based brokerage service Daily Growth, which was acquired in November 2007, had approximately 1,100 customer accounts.
Outlook for Third Quarter 2008 and Full Year of 2008
The Company currently expects to generate net revenues in an amount ranging from $15.5 million to $16.50 million for the third quarter of 2008, representing a 112% to 126% increase from the corresponding period in 2007.
The Company estimates non-GAAP net income, which represents net income excluding share-based compensation expenses, will be between $6.3 million and $7.1 million for the third quarter of 2008, representing a 111% to 138% increase from the corresponding period in 2007. Accordingly, non-GAAP net income per ADS for the third quarter of 2008 is expected to be in the range of $0.27 to $0.31 per ADS based on an estimated 23 million fully diluted ADSs.
In spite of the challenging external business environment, we remain confident that we can achieve our full year operating targets through solid and consistent execution. We reaffirm our 2008 revenue guidance of $56.0 million to $61.0 million, and our non-GAAP net income guidance of $25.0 million to $29.0 million, or $1.09 to $1.26 per ADS.
The above forecast reflects the Company’s current and preliminary view, which is subject to change. A number of important factors including, but not limited to, fluctuation in the Chinese stock market, could cause the actual results to differ materially from those contained in the above guidance.
Launch of Re-Designed Corporate Website
We are pleased to announce the official launch of our re-designed corporate website, http://www.chinafinanceonline.com , and a brand new Investor Relations section http://ir.chinafinanceonline.com . We believe the new websites will help us communicate with investors and analysts more efficiently and project a consistent and professional corporate image to the general public.
Conference Call
China Finance Online’s management team will host a conference call at 8:00PM Eastern Time on August 28, 2008 (or 8:00AM August 29, 2008 in the Beijing/HK time zone) following the announcement to discuss detailed operating results.
The conference call will be available on Webcast live and replay at: http://phx.corporate-ir.net/playerlink.zhtml?c=183451&s=wm&e=1925391 . The call will be archived for 12 months at this website.
The dial-in details for the live conference call: U.S. Toll Free Number
+1-877-847-0047, Hong Kong Dial In Number +852-3006-8101, and France Toll Free Number 0800-910-584, Password for all regions: 8457.
A replay of the conference call will be available from approximately 9:00PM Eastern Time on August 28, 2008 (or 9:00AM August 29, 2008 in the Beijing/HK time zone) to 9:00PM Eastern Time on September 04, 2008 (or 9:00AM September 05, 2008 in the Beijing/HK time zone). The dial-in details for the replay: U.S. Toll Free Number +1-877-847-0047, Hong Kong Dial In Number
+852-3006-8101, and France Toll Free Number 0800-910-584, Access code for all regions: 064692.
About China Finance Online Co. Limited
China Finance Online Co. Limited is the market leader in providing online financial and listed company data, information and analytics in China. Through its websites, http://www.jrj.com and http://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 internet or through mobile handsets. Through its subsidiary, Shenzhen Genius Information Technology Co. Ltd, the company provides financial information database and analytics to institutional customers including domestic securities and investment firms. Through its subsidiary, Daily Growth Investment Company Limited, the company provides securities brokerage services for stocks listed on Hong Kong Stock Exchange.
Safe Harbor Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that 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 not limited to, our historical and possible future losses, limited operating history, uncertain regulatory landscape in the People’s Republic of China, fluctuations in quarterly operating results, our ability to successfully compete against new and existing competitors, our reliance on relationships with Chinese stock exchanges and raw data providers, changes in accounting policies, our ability to successful acquire and integrate businesses and the impact of our investments on our financial results. Further information regarding these and other risks is included in China Finance Online’s annual report on Form 20-F for the year ended December 31, 2007, and other filings with the Securities and Exchange Commission. China Finance Online does not undertake any obligation to update any forward-looking statement, 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, net income per share, net income per ADS, and EBITDA, which are adjusted from results based on GAAP to exclude the stock-based compensation expenses primarily due to the adoption of SFAS 123R, 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.
Reconciliations of the Company’s non-GAAP financial measures to unaudited Condensed Consolidated Statements of Operations are set fourth after the "Condensed Consolidated Statements of Operations" included in this release.
China Finance Online Co. Limited
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
Jun. 30 Dec. 31
2008 2007
Assets
Current assets:
RMB account 66,932 51,129
Foreign currency account 18,996 23,600
Cash and cash equivalents 85,928 74,729
Trust bank balances held on behalf of customers 4,778 2,850
Advance to employees 2,344 1,673
Accounts receivable, net 4,436 1,491
Prepaid expenses and other current assets 7,511 2,947
Deferred tax assets, current 363 1,130
Total current assets 105,360 84,820
Cost method investment 1,480 1,480
Property and equipment, net 8,229 5,455
Acquired intangible assets, net 1,905 1,938
Rental deposits 588 500
Goodwill 10,669 9,652
Deferred tax assets, non-current 856 14
Other deposits 25 25
Total assets 129,112 103,884
Liabilities and shareholders’ equity
Current liabilities:
Deferred revenue, current 27,953 20,457
Accrued expenses and other current liabilities 6,652 6,951
Amount due to customers for trust bank balances
held on behalf of customers 4,778 2,850
Accounts payable 769 764
Deferred tax liability, current 7 --
Income taxes payable 5 12
Total current liabilities 40,164 31,034
Deferred tax liability, non-current 192 352
Deferred revenue, non-current 6,920 4,665
Total liabilities 47,276 36,051
Minority interests -- 471
Total shareholders’ equity 81,836 67,362
Total liabilities, minority interests and
shareholders’ equity 129,112 103,884
China Finance Online Co. Limited
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of U.S. dollars, except per share data)
Three months ended Six months ended
Jun 30, Jun 30, Mar 31, Jun 30, Jun 30,
2008 2007 2008 2008 2007
Net revenues 14,679 5,723 11,055 25,734 9,719
Cost of revenues
(includes
share-based
compensation
expense of $0,
$0, $0, $0 and
$16,
respectively) (2,101) (1,079) (1,717) (3,818) (1,912)
Gross profit 12,578 4,644 9,338 21,916 7,807
Operating
expenses
General and
administrative
(includes
share-based
compensation
expenses
of $1,888, $540,
$2,276, $4,164,
and $866
respectively) (4,121) (1,789) (3,917) (8,038) (2,984)
Sales and
marketing
(includes
share-based
compensation
expenses
of $66, $32,
$67, $133 and
$57
respectively) (3,639) (1,360) (2,452) (6,091) (2,607)
Product
development
(includes
share-based
compensation
expenses
of $13, $25,
$23, $36 and
$51
respectively) (1,241) (443) (995) (2,236) (790)
Total operating
expenses (9,001) (3,592) (7,364) (16,365) (6,381)
Income from
operations 3,577 1,052 1,974 5,551 1,426
Interest income 345 253 344 689 507
Other income,
net (11) 6 2 (9) 68
Exchange gain,
net 559 101 870 1,429 101
Income before
income tax
benefit 4,470 1,412 3,190 7,660 2,102
Income tax
benefit 88 150 64 152 235
Purchased
pre-acquisition
earning -- -- 227 227 --
Minority
interests in
net income of
consolidated
subsidiary 3 -- 28 31 --
Net income 4,561 1,562 3,509 8,070 2,337
Income
attributable
to ordinary
shareholders 4,561 1,562 3,509 8,070 2,337
Income per share
Basic $0.05 $0.02 $0.04 $0.08 $0.02
Diluted $0.04 $0.02 $0.03 $0.07 $0.02
Income per ADS
Basic $0.23 $0.08 $0.18 $0.41 $0.12
Diluted $0.20 $0.08 $0.15 $0.35 $0.12
Weighted average
ordinary shares
Basic
98,829,766 95,676,903 98,646,281 98,738,024 95,205,935
Diluted
114,810,694 101,914,801 113,735,492 114,292,220 101,443,833
Weighted average
ADSs
Basic
19,765,953 19,135,381 19,729,256 19,747,605 19,041,187
Diluted
22,962,139 20,382,960 22,747,098 22,858,444 20,288,767
China Finance Online Co. Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Three months ended
Jun. 30, Jun. 30, Mar. 31,
2008 2007 2008
Cash flows from operating activities:
Net income 4,561 1,562 3,509
Adjustments to reconcile net
income to net cash provided
by operating activities:
Stock-based compensation 1,967 597 2,366
Depreciation and amortization 455 219 425
Deferred taxes (94) (165) (77)
Loss on disposal of property and equipment 11 -- --
Minority interests (3) -- (28)
Purchased pre-acquisition earning -- -- (227)
Changes in assets and liabilities:
Accounts receivable (2,643) (382) (199)
Prepaid expenses and other current assets(3,777) 641 (1,456)
Advance to employees (1,013) -- 443
Trust bank balances held on behalf
of customers (1,585) -- (342)
Rental deposits (34) (1) (36)
Deferred revenue 4,214 3,290 3,717
Accounts payable 29 -- (285)
Amount due to customers for trust bank
balances held on behalf of customers 1,585 -- 342
Accrued expenses and other current
liabilities 669 642 (1,268)
Income taxes payable (76) 15 67
Net cash provided by operating activities 4,266 6,418 6,951
Cash flows from investing activities:
Acquisition of minority interest (628) -- --
Purchase of property and equipment (2,269) (943) (771)
Net cash used in investing activities (2,897) (943) (771)
Cash flows from financing activities:
Proceeds from stock options
exercised by employees 312 250 121
Proceeds from exercise of options
granted to non-employees -- 192 --
Proceeds from capital injection 1,006 -- --
Net cash provided by financing activities 1,318 442 121
Effect of exchange rate changes 843 735 1,368
Net increase in cash and cash equivalents 3,530 6,652 7,669
Cash and cash equivalents,
beginning of quarter 82,398 49,500 74,729
Cash and cash equivalents, end of quarter85,928 56,152 82,398
China Finance Online Co. Limited
RECONCILIATIONS OF NON-GAAP MEASURES TO UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. Dollar in thousands, except per share data)
Three months ended Jun. 30, 2008
Reported Adjusted
US GAAP Adjustment Non-GAAP
Net revenues 14,679 14,679
Cost of revenues (2,101) (2,101)
Gross profit 12,578 12,578
Operating expenses
General and administrative (4,121) 1,888 (a) (2,233)
Sales and marketing (3,639) 66 (a) (3,573)
Product development (1,241) 13 (a) (1,228)
Total operating expenses (9,001) 1,967 (7,034)
Income from operations 3,577 1,967 5,544
Interest income 345 345
Other income, net (11) (11)
Exchange gain, net 559 559
Income before income tax benefit 4,470 1,967 6,437
Income tax benefit 88 88
Minority interests in net income
of consolidated subsidiary 3 3
Net income 4,561 1,967 6,528
Net income per share
Basic $0.05 $0.02 $0.07
Diluted $0.04 $0.02 $0.06
Net income per ADS
Basic $0.23 $0.10 $0.33
Diluted $0.20 $0.09 $0.28
Weighted average ordinary shares
Basic 98,829,766 98,829,766
Diluted 114,810,694 114,810,694
Weighted average ADSs
Basic 19,765,953 19,765,953
Diluted 22,962,139 22,962,139
(a) Exclude total share-based compensation expense of $1,967.
Non-GAAP Measures
Three months ended Jun. 30,
2008
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Income from operations 3,577 1,967 5,544
Three months ended Jun. 30,
2007
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Income from operations 1,052 597 1,649
Three months ended Mar. 31,
2008
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Income from operations 1,974 2,366 4,340
Three months ended Jun. 30,
2008
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Net income 4,561 1,967 6,528
Three months ended Jun. 30,
2007
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Net income 1,562 597 2,159
Three months ended Mar. 31,
2008
(U.S. Dollar in thousands)
GAAP Non-GAAP
Result Adjustment Results
(a)
Net income 3,509 2,366 5,875
(a) The adjustment is for share-based compensation expenses.
Reconciliations from operating profit to EBITDA and adjusted EBITDA
Three Three Three
months months months
ended ended ended
Jun. 30, Jun. 30, Mar. 31,
2008 2007 2008
(U.S. Dollar in thousands)
Net income 4,561 1,562 3,509
Adjustment
Interest income (345) (253) (344)
Income tax benefit (88) (150) (64)
Other income and expenses (551) (107) (1,127)
Depreciation 375 146 347
Amortization of intangibles 80 73 78
EBITDA 4,032 1,271 2,399
Share-based compensation 1,967 597 2,366
Adjusted EBITDA 5,999 1,868 4,765
