SHANGHAI, China, Feb. 8 /Xinhua-PRNewswire/ -- 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, 2006.
Fourth Quarter 2006 Highlights
- Net revenues increased 9% year-over-year and increased 1% quarter-over-
quarter to $56.4 million, exceeding the Company's previous guidance
between $53.0 million and $56.0 million.
- Advertising revenues grew 43% year-over-year and 9% quarter-over-
quarter to $35.7 million, exceeding the Company's previous guidance
between $34.0 million and $35.0 million.
- Non-advertising revenues decreased 23% year-over-year and decreased 12%
quarter-over-quarter to $20.7 million, within the Company's previous
guidance between $19.0 million and $21.0 million.
- GAAP net income was $11.7 million or $0.20 diluted net income per
share, compared to $13.8 million or $0.24 diluted net income per share
in the same period last year.
- Non-GAAP net income was $15.2 million or $0.26 non-GAAP diluted net
income per share, compared to $12.4 million or $0.21 non-GAAP diluted
net income per share in the same period last year. Non-GAAP measures
are disclosed below and reconciled to the corresponding GAAP measures
in the section below titled "Reconciliation of Non-GAAP to GAAP
Results."
Fiscal 2006 Highlights
- Net revenues increased 10% year-over-year to $212.9 million.
- Advertising revenues grew 41% year-over-year to $120.1 million.
- Non-advertising revenues decreased 15% year-over-year to $92.8 million.
- GAAP net income was $39.9 million or $0.69 diluted net income per
share, compared to $43.1 million or $0.75 diluted net income per share
in fiscal 2005.
- Non-GAAP net income was $51.6 million or $0.88 non-GAAP diluted net
income per share, compared to $46.4 million or $0.79 non-GAAP diluted
net income per share in fiscal 2005.
"This was another quarter of strong performance and further demonstrates
SINA's position as the leading online advertising platform in China," said
Charles Chao, CEO of SINA. "2006 represents a year of excellent execution for
SINA. Our focus on the online media business has led to enhanced brand
recognition, strong user and traffic growth, and an impressive 44% year-over-
year increase in online advertising revenues in China. We begin 2007 with
continuing momentum from our online advertising business, which makes up 63%
of our total revenues as of this quarter."
Financial Results
For the fourth quarter of 2006, SINA reported net revenues of $56.4
million, compared to $52.0 million in the same period in fiscal 2005 and $56.1
million for the third quarter of 2006. Advertising revenues for the fourth
quarter of 2006 totaled $35.7 million, representing a 43% increase from the
same period last year and a 9% increase from last quarter. The growth in
advertising came mainly from China, which recorded advertising revenues of
$35.0 million for the fourth quarter of 2006, representing an increase of 45%
from the same period last year and 10% sequentially. The growth in
advertising revenues can be mostly attributed to the Beijing Auto Show,
advertising seasonality and the momentum generated from the World Cup earlier
in the year. Advertising revenues in the fourth quarter of 2006 represented
63% of total revenues, up from 48% in the same period last year.
Non-advertising revenues for the fourth quarter of 2006 totaled $20.7
million, a 23% decrease from the same period in 2005 and a 12% decrease over
the previous quarter. The decrease in non-advertising revenues came mostly
from the decline in MVAS revenues, which recorded $19.3 million for the fourth
quarter of 2006, representing a decline of 22% from the same period in 2005
and a decline of 11% from last quarter. The decline in MVAS revenues was
primarily due to the changes in operator policy announced in July 2006. SMS
revenues contributed to most of the year-over-year decline in MVAS revenues,
dropping 41% year-over-year to $10.8 million in the fourth quarter of 2006.
This was partially offset by IVR revenues, which grew 158% year-over-year to
$5.1 million, or 26% of total MVAS revenues, in the fourth quarter of 2006.
For fiscal 2006, SINA reported net revenues of $212.9 million, compared to
$193.6 million in 2005. Advertising revenues for fiscal 2006 totaled $120.1
million, an increase of 41% from 2005. The growth in advertising came mostly
from China, which generated $116.9 million in advertising revenues for fiscal
2006, representing a year-over-year growth of 44%. Non-advertising revenues
for fiscal 2006 amounted to $92.8 million, a decrease of 15% from 2005. The
decline in non-advertising revenues came mostly from MVAS, which generated
$86.3 million in revenues for fiscal 2006, representing a 12% year-over-year
decline.
Gross margin for the fourth quarter of 2006 was 62%, down from 66% in the
same period last year and 64% in the last quarter. Gross margin for the
fourth quarter of 2006 included a $1.1 million, or 2% of total revenues,
write-off of prepaid license fees related to the iGame business, based on
management's assessment of the game business during the quarter. Advertising
gross margin for the fourth quarter of 2006 was 65%, compared to 69% in the
same period last year and 65% in the previous quarter. Advertising gross
margin in the fourth quarter of 2006 included stock-based compensation, which
was equivalent to 1% of advertising revenues. Excluding this item,
advertising gross margin in the fourth quarter of 2006 was 66%, compared to
69% in the same period last year. The decline in gross margin can be mainly
attributed to the increase in web production and bandwidth costs. MVAS gross
margin for the fourth quarter of 2006 was 61%, compared to 62% for the same
period in 2005 and last quarter.
Gross margin for fiscal 2006 was 63%, down from 67% from fiscal 2005.
Advertising gross margin for fiscal 2006 was 65%, compared to 67% for fiscal
2005. Advertising gross margin in fiscal 2006 includes $1.7 million in stock-
based compensation or 1% of advertising revenues. MVAS gross margin for
fiscal 2006 was 60%, compared to 66% in the prior year. The decrease in gross
margin was primarily related to higher transmission and content costs.
Operating expenses for the fourth quarter of 2006 totaled $24.5 million,
an increase of 5% from the same period last year. Operating expenses for the
fourth quarter of 2006 include $1.8 million in stock-based compensation and
$0.4 million in amortization expense of intangible assets, while the operating
expenses for the fourth quarter of 2005 include $0.5 million in amortization
expense of intangible assets. Excluding these items, operating expenses for
the fourth quarter of 2006 were $22.4 million, a decline of 2% from the fourth
quarter of 2005. The decline was mainly due to lower marketing expenses.
Operating expenses for fiscal 2006 were $98.5 million, an 11% increase
from 2005. Operating expenses for fiscal 2006 include $7.7 million in stock-
based compensation and $1.8 million in amortization expense of intangible
assets, while operating expenses for fiscal 2005 include $3.2 million in
amortization expense of intangible assets. Excluding these items, operating
expenses for 2006 were $89.0 million, an increase of 4% from fiscal 2005. The
year over year increase was mainly due to higher payroll-related expenses,
such as management bonus and sales commissions, and higher bad debt expenses,
partially offset by lower marketing expenses.
Net income for the fourth quarter of 2006 was $11.7 million or $0.20
diluted net income per share, compared to $13.8 million or $0.24 for the same
period last year. Net income for the fourth quarter of 2006 includes $1.1
million write-off of prepaid license fees, while net income for the fourth
quarter of 2005 includes a $2.6 million gain from the sale of an online
auction joint venture, both of which were excluded in the non-GAAP results.
Non-GAAP net income for the fourth quarter of 2006 was $15.2 million or $0.26
non-GAAP, compared to $12.4 million or $0.21 in the same period last year.
Net income for fiscal 2006 totaled $39.9 million or $0.69 diluted net
income per share, compared to $43.1 million or $0.75 diluted net income per
share in fiscal 2005. Non-GAAP net income for fiscal 2006 was $51.6 million
or $0.88 non-GAAP diluted net income per share, compared to $46.4 million or
$0.79 diluted net income per share for fiscal 2005.
As of December 31, 2006, SINA's cash, cash equivalents and investments in
marketable securities totaled $362.8 million, compared to $300.7 million and
$345.3 million as of December 31, 2005 and September 30, 2006, respectively.
Cash flow from operating activities for the fourth quarter of 2006 was $14.9
million, compared to $14.4 million for the same period last year. For fiscal
2006, cash flow from operating activities was $63.1 million, compared to $58.3
million for fiscal 2005.
Business Outlook
The Company estimates that its total revenues for the first quarter of
2007 will be between $48.0 million and $50.0 million, with advertising
revenues to be between $31.0 million and $32.0 million and non-advertising
revenues to be between $17.0 million and $18.0 million.
Based on unvested shares as of the end of 2006 and excluding any new
shares that may be granted, the Company estimates its stock-based compensation
for the first quarter of 2007 to be between $2.2 million to $2.4 million and
for fiscal 2007 to be between $8.2 million and $9.2 million.
Excluding the impact of any new accounting standards or tax regulations,
such as FIN 48 Accounting for Uncertainty in Income Taxes, which became
effective for the Company on January 1, 2007, the Company expects its
applicable effective tax rate for 2007 to be approximately 10%.
Management Promotions and Changes
The Company announced today that Tong Chen, Senior Vice President and
Chief Editor, who has been with the Company since 1997, has been promoted to
Executive Vice President and Chief Editor, and Hong Du, Vice President, Sales
& Marketing, who has been with the Company since 1999, has been promoted to
Senior Vice President, Sales & Marketing.
Separately, Benjamin Tsiang, Executive Vice President in charge of SINA
international operations, has decided to resign from the Company for personal
reasons. Mr. Tsiang has agreed to serve as Senior Advisor to the Company.
Change of Filing Status
The Company announced that, effective immediately, it will satisfy its
reporting obligations under Section 13(a) of the U.S. Securities Exchange Act
of 1934 by filing reports with the Securities and Exchange Commission (SEC) on
form available for use by Foreign Private Issuers ("FPI"). SINA currently
meets the requirements of an FPI as defined under the Securities Act of 1933,
as amended, and the Securities Exchange Act of 1934, as amended. As a result
of the change announced today, after the completion of filings related to
fiscal 2006, which include a report on Form 10-K and proxy statement, the
Company will no longer file its periodic reports with the SEC on Form 10-K and
Form 10-Q or current reports on Form 8-K. Instead, the Company will file its
future annual reports, beginning with the report for the fiscal year ending
December 31, 2007, on Form 20-F, and current reports on Form 6-K, which forms
are applicable to FPIs.
Non-GAAP Measures
This release contains non-GAAP financial measures. These non-GAAP
financial measures, which are used as measures of the Company'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 "Reconciliation of Non-GAAP
to GAAP Results." These non-GAAP measures include non-GAAP gross profit, non-
GAAP operating expenses, non-GAAP income from operations, non-GAAP net income,
non-GAAP diluted net income per share 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 special
items, including stock-based compensation charges, write off of prepaid
license fees, amortization of intangible assets, amortization of convertible
debt issuance cost, gain and loss on the sale of business and investments, and
gain and loss on investments, 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 understanding and
evaluating the Company's current operating performance and future prospects in
the same manner as management does, if they so choose, and 2) in comparing in
a consistent manner the Company's current financial results with the Company's
past financial results. The Company's management further believes the non-
GAAP financial measures provide useful information to both management and
investors by excluding certain expenses, gains and losses (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 otherwise unrelated to
the Company's core operating results. Non-GAAP financial measures that exclude
stock-based compensation also enhance the comparability of results against
prior periods.
The Company's management believes excluding the non-cash write off of
prepaid license fees from its non-GAAP financial measures is useful for itself
and investors as such expense does not impact cash earnings and is not
indicative of the Company's core operating results and business outlook.
The Company's management believes excluding the non-cash amortization
expense of intangible assets resulting from business acquisitions from its
non-GAAP financial measures of operating expenses, income from operations and
net income and excluding the non-cash amortization expense of intangible
assets resulting from equity-method investments from its non-GAAP financial
measure of net income are 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.
The Company's management believes excluding non-cash amortization expense
of issuance cost relating to convertible bonds from its non-GAAP financial
measure of net income is useful for itself and investors as such expense does
not have any impact on cash earnings.
The Company's management believes excluding gains and losses on the sale
of a business and investments from its non-GAAP financial measure of net
income is useful for itself and investors because such gains and losses are
not indicative of the Company's core operating results.
The Company's management believes excluding gains and losses on investment
from its non-GAAP financial measure of net income is useful for itself and
investors because the Company does not typically invest in common stock of
other companies. Therefore, these charges are otherwise unrelated to the
Company's ongoing business operations.
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 today to
present an overview of the Company's financial performance and business
operations for the fourth quarter and fiscal year ended December 31, 2006. The
dial-in number for the call is 617-801-9702. The pass code is 61729864. A live
Webcast of the call will be available from 8:00 p.m. - 9:00 p.m. ET on
Wednesday, February 7, 2007 (9:00 a.m. - 10:00 a.m. Beijing Time on February
8, 2007). The call can be accessed through SINA's corporate web site at
http://corp.sina.com. The call will be archived for 12 months on SINA's
corporate web site at http://corp.sina.com. A replay of the conference call
will be available through February 14, 2007 at midnight eastern time. The
dial-in number is 617-801-6888. The pass code for the replay is 34193300.
About SINA
SINA Corporation (Nasdaq: SINA) is a leading online media company and
value-added information service (VAS) provider for China and for global
Chinese communities. With a branded network of localized web sites targeting
Greater China and overseas Chinese, SINA provides services through five major
business lines including SINA.com (online news and content), SINA Mobile
(mobile value-added services), SINA Online (community-based services and
games), SINA.net (search and enterprise services) and SINA E-Commerce (online
shopping). Together these provide an array of services including region-
focused online portals, mobile value-added services, search and directory,
interest-based and community-building channels, free and premium email, online
games, virtual ISP, classified listings, fee-based services, e-commerce and
enterprise e-solutions.
Safe Harbor Statement
This announcement contains forward-looking statements that relate to,
among other things, SINA's expected financial performance (as described
without limitation in the "Business Outlook" section and in quotations from
management in this press release) and SINA's strategic and operational plans.
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 uncertain regulatory landscape in the People's Republic of China,
the changes by mobile operators in China to their policies for MVAS, the
Company's ability to develop and market other MVAS products, fluctuations in
quarterly operating results, the Company's reliance on online advertising
sales and MVAS for a majority of its revenues, the Company's reliance on
mobile operators in China to provide MVAS, any failure to successfully develop
and introduce new products and any failure to successfully integrate acquired
businesses. Further information regarding these and other risks is included in
SINA's Annual Report on Form 10-K for the year ended December 31, 2005 and its
recent quarterly reports on Form 10-Q, as well as in its other filings with
the Securities and Exchange Commission.
SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. Dollar in thousands, except per share data)
Three months ended Twelve months ended
Dec. 31, Sept. 30, Dec. 31,
2006 2005 2006 2006 2005
Net revenues:
Advertising $35,735 $25,010 $32,697 $120,067 $84,999
Non-advertising 20,670 26,940 23,362 92,787 108,553
56,405 51,950 56,059 212,854 193,552
Cost of revenues:
Advertising (a) 12,581 7,782 11,333 42,529 27,627
Non-advertising 9,076 9,976 8,715 36,881 35,480
21,657 17,758 20,048 79,410 63,107
Gross profit 34,748 34,192 36,011 133,444 130,445
Operating expenses:
Sales and marketing (a) 12,460 13,753 12,210 49,972 51,690
Product development (a) 4,888 4,230 5,082 19,573 15,268
General and
administrative (a) 6,756 4,835 7,832 27,172 18,820
Amortization of
intangibles 415 475 468 1,820 3,159
24,519 23,293 25,592 98,537 88,937
Income from operations 10,229 10,899 10,419 34,907 41,508
Non-operating income:
Interest and other income 2,441 1,757 2,156 8,549 6,551
Gain (loss) on sale of
business and
investments, net 373 2,649 (134) 2,033 4,136
Gain (loss) on investment
in Tidetime Sun, net 123 (435) (270) (147) (3,175)
Loss on equity
investments - (390) (185) (690) (2,810)
Amortization of
convertible debt
issuance cost (171) (171) (172) (685) (685)
2,766 3,410 1,395 9,060 4,017
Income before income taxes 12,995 14,309 11,814 43,967 45,525
Provision for income taxes (1,273) (550) (1,095) (4,051) (2,410)
Net income $11,722 $13,759 $10,719 $39,916 $43,115
Basic net income per share $0.22 $0.26 $0.20 $0.74 $0.82
Diluted net income per share $0.20 $0.24 $0.19 $0.69 $0.75
Shares used in computing
basic net income per share 54,103 53,208 53,690 53,696 52,485
Shares used in computing
diluted net income per
share 58,780 58,814 58,419 58,549 58,792
Net income used for diluted
net income per share
calculation:
Net income $11,722 $13,759 $10,719 $39,916 $43,115
Amortization of convertible
debt issuance cost 171 171 172 685 685
$11,893 $13,930 $10,891 $40,601 $43,800
(a) Stock-based compensation
included under SFAS 123R
was as follows:
Cost of revenues -
advertising $475 $- $568 $1,743 $-
Sales and marketing 366 - 531 1,511 -
Product development 491 - 606 1,808 -
General and
administrative 897 - 1,001 4,412 -
$2,229 $- $2,706 $9,474 $-
SINA CORPORATION
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(U.S. Dollar in thousands, except per share data)
Three months ended
December 31, 2006
Non-GAAP
Actual Adjustments Results
475 (a)
1,113 (f)
Gross profit $34,748 $1,588 $36,336
(1,754)(a)
(415)(b)
Operating expenses $24,519 $(2,169) $22,350
2,229 (a)
1,113 (f)
415 (b)
Income from operations $10,229 $3,757 $13,986
2,229 (a)
1,113 (f)
415 (b)
171 (c)
(373)(d)
(123)(e)
Net income $11,722 $3,432 $15,154
Diluted net income per share $0.20 $0.26
Shares used in computing diluted
net income per share 58,780 58,780
Net income used in computing diluted
net income per share:
Net income $11,722 $15,154
Amortization of convertible debt
issuance costs 171 -
$11,893 $15,154
Gross margin - advertising 65% 1% 66%
SINA CORPORATION
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(U.S. Dollar in thousands, except per share data)
Three months ended
December 31, 2005
Non-GAAP
Actual Adjustments Results
Gross profit $34,192 $- $34,192
(475)(b)
Operating expenses $23,293 $(475) $22,818
475 (b)
Income from operations $10,899 $475 $11,374
475 (b)
171 (c)
(2,649)(d)
435 (e)
176 (b)
Net income $13,759 $(1,392) $12,367
Diluted net income per share $0.24 $0.21
Shares used in computing diluted
net income per share 58,814 58,814
Net income used in computing diluted
net income per share:
Net income $13,759 $12,367
Amortization of convertible debt
issuance costs 171 -
$13,930 $12,367
Gross margin - advertising 69% 0% 69%
SINA CORPORATION
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(U.S. Dollar in thousands, except per share data)
Three months ended
September 30, 2006
Non-GAAP
Actual Adjustments Results
568 (a)
Gross profit $36,011 $568 $36,579
(2,138)(a)
(468)(b)
Operating expenses $25,592 $(2,606) $22,986
2,706 (a)
468 (b)
Income from operations $10,419 $3,174 $13,593
2,706 (a)
468 (b)
172 (c)
134 (d)
270 (e)
145 (b)
Net income $10,719 $3,895 $14,614
Diluted net income per share $0.19 $0.25
Shares used in computing diluted
net income per share 58,419 58,419
Net income used in computing diluted
net income per share:
Net income $10,719 $14,614
Amortization of convertible debt
issuance costs 172 -
$10,891 $14,614
Gross margin - advertising 65% 2% 67%
Twelve months ended
December 31, 2006
Non-GAAP
Actual Adjustments Results
1,743 (a)
1,113 (f)
Gross profit $133,444 $2,856 $136,300
(7,731)(a)
(1,820)(b)
Operating expenses $98,537 $(9,551) $88,986
9,474 (a)
1,113 (f)
1,820 (b)
Income from operations $34,907 $12,407 $47,314
9,474 (a)
1,113 (f)
1,820 (b)
685 (c)
(2,033)(d)
147 (e)
499 (b)
Net income $39,916 $11,705 $51,621
Diluted net income per share $0.69 $0.88
Shares used in computing diluted
net income per share 58,549 58,549
Net income used in computing diluted
net income per share:
Net income $39,916 $51,621
Amortization of convertible debt
issuance costs 685 -
$40,601 $51,621
Gross margin - advertising 65% 1% 66%
(a) To adjust stock-based compensation charges
(b) To adjust amortization of intangible assets
(c) To adjust amortization of convertible debt issuance cost
(d) To adjust (gain) loss on the sale of business and investments
(e) To adjust (gain) loss on investment in Tidetime Sun
(f) To adjust a write-off of game license
Twelve months ended
December 31, 2005
Non-GAAP
Actual Adjustments Results
Gross profit $130,445 $- $130,445
(3,159)(b)
Operating expenses $88,937 $(3,159) $85,778
3,159 (b)
Income from operations $41,508 $3,159 $44,667
3,159 (b)
685 (c)
(4,136)(d)
3,175 (e)
367 (b)
Net income $43,115 $3,250 $46,365
Diluted net income per share $0.75 $0.79
Shares used in computing diluted
net income per share 58,792 58,792
Net income used in computing diluted
net income per share:
Net income $43,115 $46,365
Amortization of convertible debt
issuance costs 685 -
$43,800 $46,365
Gross margin - advertising 67% 0% 67%
(a) To adjust stock-based compensation charges
(b) To adjust amortization of intangible assets
(c) To adjust amortization of convertible debt issuance cost
(d) To adjust (gain) loss on the sale of business and investments
(e) To adjust (gain) loss on investment in Tidetime Sun
(f) To adjust a write-off of game license
SINA CORPORATION
UNAUDITED SEGMENT INFORMATION
(U.S. Dollar in thousands)
Three months ended Twelve months ended
Dec. 31, Sept. 30, Dec. 31,
2006 2005 2006 2006 2005
Net revenues
Advertising $35,735 $25,010 $32,697 $120,067 $84,999
Mobile related 19,304 24,803 21,811 86,257 98,070
Others 1,366 2,137 1,551 6,530 10,483
$56,405 $51,950 $56,059 $212,854 $193,552
Cost of revenues
Advertising $12,581 $7,782 $11,333 $42,529 $27,627
Mobile related 7,617 9,491 8,313 34,255 33,814
Others 1,459 485 402 2,626 1,666
$21,657 $17,758 $20,048 $79,410 $63,107
SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollar in thousands)
December 31, December 31,
2006 2005
Assets
Current assets:
Cash, cash equivalents and
investments in marketable
securities $362,751 $300,689
Accounts receivable, net 45,031 33,940
Other current assets 10,330 12,380
Total current assets 418,112 347,009
Property and equipment, net 27,101 22,207
Long-term investments 1,170 3,977
Goodwill and intangible assets, net 90,534 92,354
Other assets 1,892 3,174
Total assets $538,809 $468,721
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,614 $1,582
Accrued liabilities 41,993 43,235
Income taxes payable 7,389 4,282
Convertible debt 100,000 -
Total current liabilities 150,996 49,099
Convertible debt - 100,000
Total liabilities 150,996 149,099
Shareholders' equity 387,813 319,622
Total liabilities and shareholders'
equity $538,809 $468,721
