SHANGHAI, March 17 /PRNewswire-Asia/ -- SINA Corporation (Nasdaq GS: SINA), a leading online media company and mobile value-added service (MVAS) provider for China and for the global Chinese communities, today announced its preliminary, unaudited financial results for the fourth quarter and fiscal year ended December 31, 2008.
Fourth Quarter 2008 Highlights
-- Net revenues increased 44% year-over-year and declined 4%
quarter-over-quarter to $101.5 million, exceeding the Company's
previous guidance between $98.0 million and $101.0 million.
-- Advertising revenues grew 39% year-over-year and decreased 9%
quarter-over-quarter to $69.5 million, within the Company's previous
guidance between $69.0 million and $71.0 million.
-- Non-advertising revenues increased 56% year-over-year and 10%
quarter-over-quarter to $32.0 million, exceeding the Company's previous
guidance between $29.0 million and $30.0 million.
-- GAAP net income increased 46% year-over-year and 17%
quarter-over-quarter to $25.6 million. Diluted net income per share was
$0.42, compared to $0.29 for the same period last year and $0.36 last
quarter.
-- Non-GAAP* net income increased 44% year-over-year and 10%
quarter-over-quarter to $29.6 million. Non-GAAP diluted net income per
share was $0.49, compared to $0.34 for the same period last year and
$0.44 last quarter.
Fiscal 2008 Highlights
-- Net revenues increased 50% year-over-year to $369.6 million.
-- Advertising revenues grew 53% year-over-year to $258.5 million.
-- Non-advertising revenues increased 44% year-over-year to $111.1 million.
-- GAAP net income increased 54% year-over-year to $88.8 million. Diluted
net income per share was $1.47, compared to $0.97 for fiscal 2007.
-- Non-GAAP net income increased 52% year-over-year to $102.3 million.
Non-GAAP diluted net income per share was $1.69, compared to $1.12 for
fiscal 2007.
* 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."
"I am pleased to report a solid fourth quarter. For the year 2008, we have achieved outstanding results with record revenues and profits," said Charles Chao, CEO of SINA. "The spill-over of the global financial crisis into post-Olympic China has had a negative impact on the Chinese brand advertising market. Such impact has been severe in the first quarter of 2009, as many of our advertising customers have experienced delays in their budgeting process or advertising campaigns. Although we have seen significant rebound in market demand since the end of February, it is too soon to assess the overall growth trend for brand advertising in China for the rest of 2009. By leveraging our past experience in managing business cycles and our scale to afford critical, long-term investments, we believe we are well positioned for the market volatility and the opportunities beyond. In addition, our in-process merger with Focus Media's digital out-of-home business will further magnify SINA's scale, reach and market influence in China's new media space."
Preliminary Results May Be Subject to Material Adjustments
The Company's preliminary results for the fourth quarter of 2008 and for fiscal 2008 include $1.1 million and $12.6 million of foreign exchange gains mainly related to liquidation dividend distributions and capital repatriation from the closing of certain subsidiaries in the PRC ("foreign exchange gains"), which the Company recognized as other income under non-operating income. The Company and its independent accountant have recently determined that it is necessary to review the accounting treatment for the foreign exchange gains. If the Company concludes that the requirements for releasing cumulative translation adjustments of liquidated foreign subsidiaries and recognizing foreign exchange gains under Statement of Financial Accounting Standards No. 52, Foreign Currency Translation ("SFAS 52") and FASB Interpretation 37, Accounting for Translation Adjustments upon Sale of Part of an Investment in a Foreign Entity-an interpretation of FASB Statement No. 52 ("FIN 37") were not met, the Company will be required to defer such gains from non-operating income and net income in the current fiscal year.
Excluding the foreign exchange gains, fourth quarter 2008 and fiscal 2008 net income were $24.5 million and $76.2 million, respectively, and diluted net income per share were $0.41 and $1.26, respectively. Excluding the foreign exchange gains, fourth quarter 2008 and fiscal 2008 non-GAAP net income were $28.5 million and $89.7 million, respectively, and non-GAAP diluted net income per share were $0.47 and $1.48, respectively. Since the $12.6 million in foreign exchange gains for 2008 have been settled in US dollars as of December 31, 2008, the adjustments, if made, will not impact the Company's cash position, revenues or income from operations.
Because the requirements for releasing cumulative translation adjustments of liquidated foreign subsidiaries and recognizing foreign exchange gains are complex and the amount of work required to address such issue is time consuming, the Company has not yet reached a conclusion on such accounting treatment. There can be no assurance that any of the foreign exchange gains for 2008 will be recognized in the current fiscal year under SFAS 52 and FIN 37. The Company expects to disclose its conclusion on accounting for the foreign exchange gains by the filing of the Company's report on Form 20-F for fiscal 2008.
Financial Results
For the fourth quarter of 2008, SINA reported net revenues of $101.5 million, compared to $70.7 million in the same period in 2007 and $105.4 million for the third quarter of 2008. Advertising revenues for the fourth quarter of 2008 totaled $69.5 million, representing a 39% increase from the same period last year and a 9% decline from last quarter. Advertising revenues in China in the fourth quarter of 2008 reached $68.7 million, an increase of 40% year over year and a decline of 9% sequentially.
Non-advertising revenues for the fourth quarter of 2008 totaled $32.0 million, a 56% increase from the same period in 2007 and a 10% increase over the previous quarter. MVAS revenues amounted to $30.0 million for the fourth quarter of 2008, representing a 61% increase from the same period in 2007 and an 11% increase quarter over quarter.
For fiscal 2008, SINA reported net revenues of $369.6 million, compared to $246.1 million in 2007. Advertising revenues for fiscal 2008 totaled $258.5 million, an increase of 53% from 2007. Advertising revenues from China reached $255.1 million for fiscal 2008, representing a year-over-year growth of 54%. Non-advertising revenues for fiscal 2008 amounted to $111.1 million, an increase of 44% from 2007. The growth in non-advertising revenues came mostly from MVAS, which generated $103.3 million in revenues for fiscal 2008, representing a 47% increase year-over-year.
Gross margin for the fourth quarter of 2008 was 60%, down from 62% for the same period last year and up from 57% last quarter. Advertising gross margin for the fourth quarter of 2008 was 64%, compared to 64% in the same period last year and 58% for the previous quarter. Non-GAAP advertising gross margin for the fourth quarter of 2008 was 65%, flat over the same period last year and up from 59% last quarter. Lower advertising gross margin in the third quarter of 2008 can be mainly attributed to incremental increases in content and labor costs associated with the coverage of the 2008 Beijing Olympic Games. MVAS gross margin for the fourth quarter of 2008 was 50%, compared to 56% for the same period in 2007 and 53% last quarter. The decline in MVAS gross margin was primarily due to increased costs related to revenue sharing arrangements.
Gross margin for fiscal 2008 was 59%, down from 62% for fiscal 2007. Advertising gross margin for fiscal 2008 was 61%, compared to 62% for fiscal 2007. Non-GAAP advertising gross margin was 63% for fiscal 2008, flat over fiscal 2007. MVAS gross margin for fiscal 2008 was 54%, compared to 58% in the prior year. The decline in MVAS gross margin was primarily due to increased costs related to revenue sharing arrangements.
Operating expenses for the fourth quarter of 2008 totaled $39.3 million, an increase of 39% from the same period last year and a decline of 2% from last quarter. Non-GAAP operating expenses, which exclude stock-based compensation and amortization of intangible assets, were $36.2 million for the fourth quarter of 2008, an increase of 40% from the fourth quarter of 2007 and a decline of 2% from last quarter. The year-over-year increase in operating expenses was mainly due to increases in headcount, bonus and other payroll-related expenses as well as higher marketing expenditures.
Operating expenses for fiscal 2008 were $144.7 million, an increase of 44% from fiscal 2007. Non-GAAP operating expenses were $132.3 million for 2008, an increase of 43% from fiscal 2007. The year-over-year increase in operating expenses primarily relates to higher market expenditures and higher headcount, bonus and other payroll-related expenses.
Income from operations for the fourth quarter of 2008 was $21.5 million, compared to $15.7 million for the same period last year and $20.1 million from last quarter. Non-GAAP income from operations for the fourth quarter of 2008 was $25.6 million, compared to $18.7 million for the same period last year and $24.2 million from last quarter.
Income from operations for 2008 was $74.6 million, compared to $51.0 million last year. Non-GAAP income from operations for 2008 was $90.5 million, compared to $60.9 million last year.
Interest and other income for the fourth quarter of 2008 was $5.9 million, compared to $3.7 million from the same period last year and $7.1 million from last quarter. Other income for the fourth quarter of 2008 included $1.1 million in foreign exchange gains as described above.
Interest and other income for fiscal 2008 was $25.9 million, compared to $12.7 million last year. Other income for 2008 included $12.6 million in foreign exchange gains as described above.
For the fourth quarter of 2008, provision for income taxes was $1.8 million, compared to $1.9 million from the same period last year and $4.4 million from last quarter. On January 1, 2008, a new Enterprise Income Tax ("EIT") Law came into effect in China. For the first three quarters of 2008, the Company made an income tax provision without considering the tax benefits as a qualified new or high technology enterprise, because the Company was uncertain whether it was entitled to such tax benefits under the new EIT. During the fourth quarter of 2008, certain subsidiaries of the Company were reaffirmed as qualified new or high technology enterprises under the new EIT. Consequently, the Company made a provision for income taxes based on its reaffirmed status for fiscal 2008 and recorded the preferential tax benefits of certain subsidiaries in the fourth quarter of 2008.
For fiscal 2008, provision for income taxes was $14.0 million, compared to $6.5 million for fiscal 2007. The increase in provision for income taxes was mainly due to higher income earned in 2008 as well as higher effective tax rate due to expired tax holidays. Effective tax rate for fiscal 2008 was 14%, compared to 10% for fiscal 2007.
Net income for the fourth quarter of 2008 was $25.6 million, an increase of 46% from the same period last year and 17% from last quarter. Diluted net income per share for the fourth quarter of 2008 was $0.42 compared to $0.29 in the same period last year and $0.36 last quarter. Non-GAAP net income was $29.6 million for the fourth quarter of 2008, an increase of 44% from the same period last year and 10% from the previous quarter. Non-GAAP diluted net income per share for the fourth quarter of 2008 was $0.49, compared to $0.34 in the same period last year and $0.44 last quarter.
Net income for fiscal 2008 totaled $88.8 million or $1.47 diluted net income per share, compared to $57.7 million or $0.97 diluted net income per share for fiscal 2007. Non-GAAP net income was $102.3 million for fiscal 2008 or $1.69 non-GAAP diluted net income per share, compared to $67.1 million or $1.12 non-GAAP diluted net income per share for fiscal 2007.
As of December 31, 2008, SINA's cash, cash equivalents and short-term investments totaled $603.8 million, compared to $478.0 million at the end of last year. Cash flow from operating activities for the fourth quarter of 2008 was $46.9 million, compared to $31.9 million for the same period last year and $26.9 million for last quarter. For fiscal 2008, cash flow from operating activities was $124.1 million, compared to $89.1 million for fiscal 2007.
Business Outlook
The Company estimates that its total revenues for the first quarter of 2009 will be between $73 million and $77 million, with advertising revenues to be between $43 million and $46 million and non-advertising revenues to be between $30 million and $31 million. The foregoing estimates take into account, among other considerations, the recent slow down of the Chinese economy, the current global financial and credit market crisis and its current and anticipated impact on the Chinese economy and the low visibility that the Company currently has on its advertising business.
Excluding any new shares that may be granted, the Company estimates its stock-based compensation for the first quarter of 2009 to be between $3 million to $4 million.
Announced Merger
On December 22, 2008, the Company announced that it entered into a definitive agreement with Focus Media Holding Limited ("FMCN") to acquire substantially all of the assets of FMCN's digital out-of-home advertising networks, including LCD display network, poster frame network and certain in-store network. The transaction is intended to combine the new media platform of the two companies in China to provide more effective and integrated marketing solutions to customers. The transaction is subject to customary closing conditions and certain regulatory approvals and is expected to be completed in the first half of 2009. Based on the December 22, 2008 announcement, SINA will issue 47 million newly issued ordinary shares to FMCN as consideration for the acquired assets. FMCN will then distribute SINA shares to its shareholders shortly after the closing.
Share Repurchase Program
Under the $100 million share repurchase program approved by the Company's Board of Directors, as of March 16, 2009, the Company has purchased approximately 2.5 million shares in the open market at an average price of $20.37 for a total consideration of $50.0 million. The Company expects to continue the repurchase program with the remaining $50.0 million on an opportunistic basis.
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 charge, amortization of intangible assets, amortization of convertible debt issuance costs, gain/loss on the sale/purchase of business/investment and gain/loss on the sale of minority interest in subsidiary 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 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 from its non-GAAP financial measures is 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 gain/loss on the sale/purchase of a business/ investment and gain/loss on the sale of minority interest in subsidiary from its non-GAAP financial measure of net income is useful for itself and investors, because such gains/losses are not indicative of the Company's core operating results.
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 9:00 p.m. Eastern Time on March 16, 2009 to present an overview of the Company's financial performance and business operations. A live Webcast of the call will be available from 9:00 p.m. - 10:00 p.m. ET on Monday, March 16, 2009 (9:00 a.m. - 10:00 a.m. Beijing Time on March 17, 2009). The call can be accessed through the Company's corporate web site at http://corp.sina.com . A dial-in to the conference is also available. The number is +1-866-770-7051 (US) or +1-617-213-8064 (International) and the pass code is 65315821. A replay of the conference call will be available through March 23, 2009 at midnight Eastern Time. The dial-in number is +1-888-286-8010 (US) or +1-617-801-6888 (International). The pass code for the replay is 30870407.
About SINA
SINA Corporation (NASDAQ GS: SINA) is a leading online media company and mobile value-added service provider for China and for the global Chinese communities. With a branded network of localized websites targeting Greater China and overseas Chinese, the Company provides services through five major business lines including SINA.com (online news and content), SINA Mobile (MVAS), SINA Community (Web 2.0-based services and games), SINA.net (search and enterprise services) and SINA E-Commerce (online shopping). Together these business lines provide an array of services, including region-focused online portals, MVAS, social networking service (SNS), blog, audio and video streaming, album, online games, email, search, classified listings, fee-based services, e-commerce and enterprise e-solutions. The Company generates the majority of its revenues from online advertising and MVAS offerings, and, to a lesser extent, from search and other fee-based services.
Safe Harbor Statement
This announcement contains forward-looking statements that relate to, among other things, SINA's expected financial performance and SINA's strategic and operational plans (as described without limitation in the "Business Outlook" section and in quotations from management in this press release). 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 current global financial and credit market crisis and its impact on the Chinese economy, the recent slower growth of the Chinese economy during the latter half of 2008, the uncertain regulatory landscape in the People's Republic of China, including 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 the Company's 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 20-F for the year ended December 31, 2007 and 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
September
December 31, 30, December 31,
2008 2007 2008 2008 2007
Net revenues:
Advertising $69,518 $50,130 $76,205 $258,499 $168,926
Non-advertising 32,020 20,559 29,209 111,088 77,201
101,538 70,689 105,414 369,587 246,127
Cost of revenues:
Advertising (a) 25,152 18,017 32,138 100,008 63,466
Non-advertising 15,566 8,735 13,117 50,327 31,236
40,718 26,752 45,255 150,335 94,702
Gross profit 60,820 43,937 60,159 219,252 151,425
Operating expenses:
Sales and marketing (a) 21,421 15,198 22,264 79,784 50,555
Product development (a) 8,279 5,905 8,693 30,371 21,942
General and
administrative (a) 9,235 6,903 8,709 33,179 26,738
Amortization of
intangibles 411 258 411 1,337 1,176
39,346 28,264 40,077 144,671 100,411
Income from operations 21,474 15,673 20,082 74,581 51,014
Non-operating income:
Interest and other
income, net 5,910 3,748 7,089 25,923 12,731
Investment gains (loss) -- -- (779) 2,358 830
Amortization of
convertible debt
issuance cost -- -- -- -- (342)
5,910 3,748 6,310 28,281 13,219
Income before income taxes 27,384 19,421 26,392 102,862 64,233
Provision for income taxes (1,788) (1,910) (4,429) (14,042) (6,504)
Net income $25,596 $17,511 $21,963 $88,820 $57,729
Basic net income per share $0.46 $0.32 $0.39 $1.59 $1.05
Diluted net income per
share $0.42 $0.29 $0.36 $1.47 $0.97
Shares used in computing
basic net income per share 56,100 55,477 55,964 55,821 55,038
Shares used in computing
diluted net income per
share 60,277 60,545 60,639 60,474 60,020
Net income used for diluted
net income per share
calculation:
Net income $25,596 $17,511 $21,963 $88,820 $57,729
Amortization of convertible
debt issuance cost -- -- -- -- 342
$25,596 $17,511 $21,963 $88,820 $58,071
(a) Stock-based compensation
included under SFAS 123R
was as follows:
Cost of revenues -
advertising $839 $543 $834 $3,251 $1,788
Sales and marketing 509 350 482 2,107 1,234
Product development 514 352 428 1,984 1,593
General and administrative 1,718 1,515 1,887 6,967 4,097
SINA CORPORATION
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(U.S. Dollar in thousands, except per share data)
Three months ended
December 31, 2008
Non-GAAP
Actual Adjustments Results
839 (a)
89 (b)
Gross profit $60,820 $928 $61,748
(2,741) (a)
(411) (b)
Operating expenses $39,346 $(3,152) $36,194
3,580 (a)
500 (b)
Income from operations $21,474 $4,080 $25,554
3,569 (a)
470 (b)
Net income $25,596 $4,039 $29,635
Diluted net income per share $0.42 $0.49
Shares used in computing diluted
net income per share 60,277 60,277
Net income used in computing diluted
net income per share:
Net income $25,596 $29,635
Amortization of convertible debt
issuance costs -- --
$25,596 $29,635
Gross margin - advertising 64% 1% 65%
Three months ended
December 31, 2007
Non-GAAP
Actual Adjustments Results
543 (a)
Gross profit $43,937 $543 $44,480
(2,217)(a)
(258)(b)
Operating expenses $28,264 $(2,475) $25,789
2,760 (a)
258 (b)
Income from operations $15,673 $3,018 $18,691
2,760 (a)
258 (b)
Net income $17,511 $3,018 $20,529
Diluted net income per share $0.29 $0.34
Shares used in computing diluted
net income per share 60,545 60,545
Net income used in computing diluted
net income per share:
Net income $17,511 $20,529
Amortization of convertible debt
issuance costs -- --
$17,511 $20,529
Gross margin - advertising 64% 1% 65%
Three months ended
September 30, 2008
Non-GAAP
Actual Adjustments Results
834 (a)
88 (b)
Gross profit $60,159 $922 $61,081
(2,797) (a)
(411) (b)
Operating expenses $40,077 $(3,208) $36,869
3,631 (a)
499 (b)
Income from operations $20,082 $4,130 $24,212
3,628 (a)
469 (b)
779 (d)
Net income $21,963 $4,876 $26,839
Diluted net income per share $0.36 $0.44
Shares used in computing diluted
net income per share 60,639 60,639
Net income used in computing diluted
net income per share:
Net income $21,963 $26,839
Amortization of convertible debt
issuance costs -- --
$21,963 $26,839
Gross margin - advertising 58% 1% 59%
Twelve months ended
December 31, 2008
Non-GAAP
Actual Adjustments Results
3,251 (a)
266 (b)
Gross profit $219,252 $3,517 $222,769
(11,058)(a)
(1,337)(b)
Operating expenses $144,671 $(12,395) $132,276
14,309 (a)
1,603 (b)
Income from operations $74,581 $15,912 $90,493
14,295 (a)
1,513 (b)
779 (d)
(3,137)(e)
Net income $88,820 $13,450 $102,270
Diluted net income per share $1.47 $1.69
Shares used in computing diluted
net income per share 60,474 60,474
Net income used in computing diluted
net income per share:
Net income $88,820 $102,270
Amortization of convertible debt
issuance costs -- --
$88,820 $102,270
Gross margin - advertising 61% 2% * 63%
Twelve months ended
December 31, 2007
Non-GAAP
Actual Adjustments Results
1,788 (a)
Gross profit $151,425 $1,788 $153,213
(6,924)(a)
(1,176)(b)
Operating expenses $100,411 $(8,100) $92,311
8,712 (a)
1,176 (b)
Income from operations $51,014 $9,888 $60,902
8,712 (a)
1,176 (b)
342 (c)
(830)(d)
Net income $57,729 $9,400 $67,129
Diluted net income per share $0.97 $1.12
Shares used in computing diluted
net income per share 60,020 60,020
Net income used in computing diluted
net income per share:
Net income $57,729 $67,129
Amortization of convertible debt
issuance costs 342 --
$58,071 $67,129
Gross margin - advertising 62% 1% 63%
Below are reconciliations of non-GAAP net income to GAAP net income, Excluding foreign exchange gains as described in the "Preliminary Results May Be Subject to Material Adjustments section of the press release:
Three months ended
December 31, 2008
Non-GAAP
Actual Adjustments Results
3,569 (a)
470 (b)
Net income $24,496 $4,039 $28,535
Diluted net income per
share $0.41 $0.47
Shares used in computing diluted
net income per share 60,277 60,277
Twelve months ended
December 31, 2008
Non-GAAP
Actual Adjustments Results
14,295 (a)
1,513 (b)
779 (d)
(3,137)(e)
Net income $76,212 $13,450 $89,662
Diluted net income per
share $1.26 $1.48
Shares used in computing diluted
net income per share 60,474 60,474
(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/purchase of business and investments
(e) To adjust gain on the sale of minority interest in subsidiary
* Rounding
SINA CORPORATION
UNAUDITED SEGMENT INFORMATION
(U.S. Dollar in thousands)
Three months ended Twelve months ended
September
December 31, 30, December 31,
2008 2007 2008 2008 2007
Net revenues
Advertising $69,518 $50,130 $76,205 $258,499 $168,926
Mobile related 29,993 18,635 27,117 103,318 70,489
Others 2,027 1,924 2,092 7,770 6,712
$101,538 $70,689 $105,414 $369,587 $246,127
Cost of revenues
Advertising $25,152 $18,017 $32,138 $100,008 $63,466
Mobile related 14,930 8,111 12,622 48,005 29,339
Others 636 624 495 2,322 1,897
$40,718 $26,752 $45,255 $150,335 $94,702
SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollar in thousands)
December 31, December 31,
2008 2007
Assets
Current assets:
Cash and cash equivalents $383,320 $271,666
Short -term investments 220,504 206,333
Accounts receivable, net 79,183 56,719
Other current assets 9,424 8,840
Total current assets 692,431 543,558
Property and equipment, net 34,111 26,846
Goodwill and intangible assets, net 94,527 89,358
Other assets 1,425 2,501
Total assets $822,494 $662,263
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,397 $940
Accrued liabilities 80,162 56,931
Income taxes payable 17,391 9,079
Convertible debt 99,000 99,000
Total current liabilities 197,950 165,950
Other long-term liabilities 4,039 1,337
Total liabilities 201,989 167,287
Shareholders' equity 620,505 494,976
Total liabilities and shareholders' equity $822,494 $662,263
