Updates 2007 EPS Guidance
NEW YORK, Jan. 31 /Xinhua-PRNewswire-FirstCall/ -- Global Sources Ltd. (Nasdaq: GSOL) today announced preliminary fourth quarter 2007 revenue of approximately $60.8 million and full year 2007 revenue of approximately $182.0 million. In addition, the company adjusted its fourth quarter and full year 2007 GAAP earnings guidance, introduced fourth quarter 2007 non-GAAP earnings guidance and adjusted full year 2007 non-GAAP earnings guidance.
(Logo: http://www.prnasia.com/sa/200708071747.jpg )
Merle A. Hinrichs, chairman and CEO of Global Sources, said: "Our full year 2007 revenue of approximately $182.0 million was up 16% as compared to 2006 and is within our guidance range. While our fourth quarter revenue was slightly lower than expected, our online business performed very well, driven by sales in mainland China. We expect online revenue and mainland China revenue to grow by more than 20 percent and 28 percent, respectively, as compared to the fourth quarter of 2006. While our revenues for our export media were on target, our print revenues for our Chinese-language titles were lower than expected."
Financial Guidance
In the fourth quarter of 2007, Global Sources sold all of its and its wholly-owned subsidiary, Trade Media Holdings', equity interests in HC International, Inc. for a gain of approximately $2.4 million. Global Sources will also record an impairment charge of $3.1 million for the write-down of its investment in Blue Bamboo, which it acquired in the third quarter of 2007.
Hinrichs continued: "We remain excited about our opportunities in the domestic B2B China market and the Blue Bamboo team resources available to us. During 2008, we expect to announce several new Chinese-language online initiatives under the Global Sources brand. Due to the future growth anticipated from these opportunities and our resulting shift in focus to maximize their full potential, we decided to write down the entire investment in Blue Bamboo. We do not anticipate any other material adjustments to our fourth quarter and full year 2007 earnings."
As a result of the gain from the sale of HC shares and the write-down of Blue Bamboo, Global Sources now expects fourth quarter 2007 GAAP earnings per diluted share to be $0.16. Included in this figure is a non-cash compensation expense of $3.6 million. For the full year 2007, the company now expects GAAP earnings per diluted share to be $0.49, which includes non-cash compensation expense of $7.8 million. It is Global Sources' policy to value its non-cash stock based compensation expense based on the actual share price of the just completed quarter, which was $28.22 on December 31st, 2007, compared to $22.17 on September 28th, 2007, the figure used when guidance was previously given on November 15th, 2007. The non-cash compensation charge is a charge in its income statement and a corresponding credit to its additional paid-in capital account in its balance sheet. Hence, there is no impact on shareholders' equity.
On a non-GAAP basis, which excludes the aforementioned charge and gain, Global Sources is introducing guidance for the fourth quarter of $0.17 per diluted share and is adjusting its 2007 non-GAAP guidance to $0.54 per diluted share for the year.
EPS Chart
Please refer to http://xprnnews.xfn.info/GSOL/20080131/HKTH006.pdf for the EPS chart. The chart depicts actual full year earnings and full year earnings guidance for the time period 2005-2007 as adjusted to reflect the bonus share issue announced in December 2007.
Fourth Quarter and Year-End 2007 Conference Call
The company is scheduled to announce its fourth quarter and full-year 2007 results on March 11th, at which time it will also hold a conference call. Conference call access details will be announced in a separate release.
About Global Sources
Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business is facilitating trade from Greater China to the world, using a wide range of English-language media. The other business segment facilitates trade from the world to Greater China, and trade within China, using Chinese-language media.
The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 657,000 active buyers source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 230 countries.
The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on 2 million products and more than 170,000 suppliers annually through 14 online marketplaces, 13 monthly magazines, over 100 sourcing research reports and 10 specialized trade shows which run 32 times a year across nine cities.
Suppliers receive more than 27 million sales leads annually from buyers through Global Sources Online ( http://www.globalsources.com ) alone.
Global Sources has been facilitating global trade for 37 years. Global Sources' network covers more than 69 cities worldwide. In mainland China, Global Sources has over 2,100 team members in more than 44 locations, and a community of over 1 million registered online users and magazine readers for Chinese-language media.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.
Global Sources Press Contact in Asia:
Camellia So
Tel: +852-2555-5021
Email: cso@globalsources.com
Global Sources Investor Contact in Asia:
Eddie Heng
Tel: +65-6547-2850
Email: investor@globalsources.com
Global Sources Press Contact in U.S.:
James W.W. Strachan
Tel: +1-480-664-8309
Email: strachan@globalsources.com
Global Sources Investor Contact in U.S.:
Christiane Pelz & Moriah Shilton
Lippert/Heilshorn & Associates, Inc.
Tel: +1-415-433-3777
Email: investor@globalsources.com
