CDC Corporation (NASDAQ: CHINA), a leading global enterprise software and new media company, in accordance with NASDAQ Marketplace Rule 4350(b)(4) is providing year to date consolidated balance sheet and income statement information for the period ended June 30, 2007. Previously, in the press release dated, September 6, 2007, CDC Corporation only provided selected balance sheet data due to the pending adoption of new income tax accounting rules. The financial statements presented in this press release are unaudited.
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Games focused on online games, and China.com focused on portals for the greater China markets. For more information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.
CDC Corporation | |||||
Consolidated Statement of Operations | |||||
(Amounts in thousands of U.S. dollars except share and per share data) | |||||
 |  | ||||
Six Months Ended | |||||
June 30, 2007 | |||||
 | (Unaudited) | ||||
Revenues | |||||
Software | $ | 119,423 | |||
Business services | 45,184 | ||||
Mobile services and applications | 6,909 | ||||
Internet and media | 5,006 | ||||
Online Games | Â | 18,600 | Â | ||
 | 195,122 |  | |||
 | |||||
Cost of revenues | |||||
Software | (49,562 | ) | |||
Business services | (33,438 | ) | |||
Mobile services and applications | (3,397 | ) | |||
Internet and media | (1,885 | ) | |||
Online Games | (7,552 | ) | |||
Amortization of purchased technology | Â | (3,999 | ) | ||
 | (99,833 | ) | |||
 | |||||
Gross profit | 95,289 | ||||
Gross margin % | 49 | % | |||
 | |||||
Selling, general and administrative expenses | (73,865 | ) | |||
Research and development expenses | (11,363 | ) | |||
Depreciation and amortization expenses | (8,193 | ) | |||
Restructuring expenses | Â | (1,422 | ) | ||
 | (94,843 | ) | |||
 | |||||
Operating income/(loss) | 446 | ||||
 | |||||
Interest income | 8,193 | ||||
Interest expense | (5,561 | ) | |||
Gain on disposal of available-for-sale securities | 135 | ||||
Impairment of available-for-sale securities | - | ||||
Gain/(loss) on disposal of subsidiaries and investments | 622 | ||||
Gain/Loss of FMV changes of Derivatives | (790 | ) | |||
Share of losses in equity investees | Â | - | Â | ||
Income/(loss) before income taxes | 3,045 | ||||
 | |||||
Income taxes expenses | Â | (5,412 | ) | ||
Income/(losses) before minority interests | (2,367 | ) | |||
 | |||||
Minority interests in income of consolidated subsidiaries | Â | (1,109 | ) | ||
Income/(losses) from continuing operations | (3,476 | ) | |||
 | |||||
 | |||||
Net income/(losses) | $ | (3,476 | ) | ||
 | |||||
Basic earnings/(losses) per share | $ | (0.03 | ) | ||
Diluted earnings/(losses) per share | $ | (0.03 | ) | ||
 | |||||
Weighted average number of shares - basic | 107,066,315 | ||||
Weighted average number of shares - diluted | 126,569,107 |
CDC Corporation | ||||||||
Consolidated Balance Sheet | ||||||||
(Amounts in thousands of U.S. dollars) | ||||||||
 |  | |||||||
December 31, | June 30, | |||||||
2006 | 2007 | |||||||
(unaudited) | (unaudited) | |||||||
 | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 223,548 | $ | 169,341 | ||||
Restricted cash | 1,996 | 2,172 | ||||||
Accounts receivable | 64,437 | 80,285 | ||||||
Deposits, prepayments and other receivables | 18,525 | 27,821 | ||||||
Available-for-sale securities | 14,401 | 58,148 | ||||||
Restricted debt securities | 30,504 | 2,982 | ||||||
Deferred tax assets | 5,061 | 5,908 | ||||||
Loan receivables | 25,000 | Â | Â | 25,000 | ||||
Total current assets | 383,472 | 371,657 | ||||||
 | ||||||||
Property and equipment, net | 9,540 | 12,641 | ||||||
Goodwill | 205,050 | 243,406 | ||||||
Intangible assets | 104,069 | 127,740 | ||||||
Investment in equity investees | - | - | ||||||
Investments under cost method | 217 | 9,595 | ||||||
Restricted debt securities | - | - | ||||||
Available-for-sale debt securities | 112,045 | 60,297 | ||||||
Deferred tax assets | 34,689 | 40,338 | ||||||
Other assets | 8,351 | Â | Â | 6,894 | ||||
Total assets | $ | 857,433 | Â | $ | 872,568 | |||
 |  | |||||||
 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 26,903 | $ | 23,143 | ||||
Purchase consideration payable | 5,626 | 3,046 | ||||||
Accrued liabilities | 36,787 | 50,131 | ||||||
Restructuring Accruals, current portion | 2,411 | 2,507 | ||||||
Short-term loans | 18,991 | 3,580 | ||||||
Deferred revenue | 46,033 | 58,297 | ||||||
Income tax payable | 4,202 | 1,909 | ||||||
Deferred tax liabilities | 1,641 | Â | Â | 3,512 | ||||
 |  | |||||||
Total current liabilities | 142,594 | 146,125 | ||||||
 | ||||||||
Deferred tax liabilities | 16,041 | 16,527 | ||||||
Convertible Notes | 161,859 | 162,491 | ||||||
Embedded derivatives related to convertible notes | 5,786 | 6,576 | ||||||
Restructuring Accruals, net of current portion | 3,599 | 4,252 | ||||||
Other liabilities | 419 | 8,756 | ||||||
Minority interests | 72,512 | 74,222 | ||||||
 | ||||||||
Shareholders' equity: | ||||||||
Share capital | 28 | 28 | ||||||
Additional paid-in capital | 692,143 | 703,216 | ||||||
Treasury stock | (32,102 | ) | (44,660 | ) | ||||
Accumulated deficits | (217,290 | ) | (223,847 | ) | ||||
Accumulated other comprehensive income | 11,844 | Â | Â | 18,882 | ||||
 |  | |||||||
Total shareholders' equity | 454,623 | Â | Â | 453,619 | ||||
 |  | |||||||
Total liabilities and shareholders' equity | $ | 857,433 | Â | $ | 872,568 |