Global Sources reports preliminary fourth quarter results within guidance

2009-02-04 13:38 917

-- Fourth quarter 2008 results conference call scheduled for March 12 --

-- Management to present at CLSA Asia Investors’ Forum on Feb. 10 and at ROTH Capital Partners Conference on Feb. 17 --

NEW YORK, Feb. 4 /PRNewswire-Asia-FirstCall/ Global Sources Ltd.

(Nasdaq: GSOL) ( ) expects the fourth quarter 2008 results to meet the guidance it provided on Nov. 13, 2008:

-- Revenues are expected to be between $63.0 million and $64.0 million.

-- GAAP earnings per share are expected to be between $0.12 and $0.13.

-- Non-GAAP earnings per share are expected to be between $0.14 and $0.15.

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Global Sources’ chairman and CEO, Merle A. Hinrichs, said: "As expected the fourth quarter 2008 proved to be a difficult environment; however, we continue to believe we will achieve our revenue and earnings guidance provided in November. Revenue for the quarter is expected to grow 4% to 5%, compared to the fourth quarter of 2007, driven by online revenue that is expected to increase by approximately 14%.

"Looking ahead, business remains challenging and it is uncertain when global trade will recover. However, we do expect revenue for the first half of 2009 to decline compared to the first half of 2008, but we believe we will still be profitable. We have a long track record of profitably, and we remain committed to prudent expense management and shareholder value.

"Global Sources is very well positioned for when the market improves. China is expected to remain the primary supplier to the world for consumer products and is a very attractive market opportunity. We have a well differentiated, end-to-end product offering, strong sales representation and a highly experienced management team. In addition, we have a very strong balance sheet with the financial and operating flexibility to weather the economic challenges."

Global Sources’ non-GAAP metrics

Management believes non-GAAP metrics are useful measures of operations and provides GAAP to non-GAAP reconciliation tables in the Company’s earnings press releases. Global Sources defines non-GAAP net income as net income excluding non-cash, stock-based compensation (SBC) expense or credit, gains or losses on acquisitions and investments, and/or impairment charges, for all historical and future references to non-GAAP metrics. Non-GAAP EPS is defined as non-GAAP net income divided by the weighted average of diluted common shares outstanding.

February 2009 Conference Participation

Chairman and CEO, Merle A. Hinrichs, is scheduled to present at the following conferences in February 2009:

-- CLSA Asia Investors’ Forum: Tuesday, Feb. 10 at 9:30 a.m. PT / 12:30

p.m. ET at the Four Seasons Hotel in Las Vegas.

-- ROTH Capital Partners Conference: Tuesday, Feb. 17 at 2:00 p.m. PT /

5:00 p.m. ET at the Ritz-Carlton Hotel in Dana Point, California.

A replay of both Global Sources’ audio presentations will be available at Global Sources’ Investor Relations website for 90 days. In addition, the ROTH Capital Presentation is scheduled to be webcast live.

Conference call for Global Sources fourth quarter 2008 earnings on March 12

Chairman and CEO, Merle A. Hinrichs, and Eddie Heng, CFO, are scheduled to conduct a conference call at 8:00 a.m. ET on March 12, 2009 (8:00 p.m. on March 12, 2009 in Hong Kong) to review these results in more detail. To participate please call at least 10 minutes in advance to ensure all callers are placed into the call at start time. Investors in the United States may participate in the call by dialing (888) 212-8315, and international participants may dial (1-706) 643-0144. Investors in Hong Kong may call (852) 3011-4522. A live webcast of the conference call is scheduled to be available on Global Sources’ corporate site at .

For those who cannot listen to the live broadcast, a webcast replay of the call is scheduled to be available on the company’s corporate site for 30 days. A telephone replay of the call is also scheduled to be available through March 16, 2009. To listen to the telephone replay, dial (800) 642-1687, or dial (1-706) 645-9291 outside the United States, and enter pass code 83730628#. For those in the Hong Kong area, the replay dial-in number is (852) 3011-4541, and the pass code is 83730628#.

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 uses English-language media to facilitate trade from Greater China to the world. The other business segment utilizes Chinese-language media to enable companies to sell to, and within Greater China.

The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 753,000 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 4.3 million products and more than 196,000 suppliers annually through 14 online marketplaces, 13 monthly magazines, over 100 sourcing research reports and 9 specialized trade shows which run 27 times a year across eight cities.

Suppliers receive more than 43 million sales leads annually from buyers through Global Sources Online ( ) 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 2,800 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


Global Sources Press Contact in U.S.

James W.W. Strachan

Tel: +1-480-664-8309


Global Sources Investor Contact in Asia

Investor Relations Department

Tel: +852-2555-4777


Global Sources Investor Contact in U.S.

Kirsten Chapman & Timothy Dien

Lippert/Heilshorn & Associates, Inc.

Tel: +1-415-433-3777


Source: Global Sources
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