It's Shanda's Game: Fool by Numbers
On May 22, Shanda Interactive Entertainment (Nasdaq: SNDA) released first-quarter earnings for the period ended March 31.
- To find out what's in store for Shanda, read our earnings walkthrough.
- Total revenues increased by 61.6% to $68.8 million, thanks to a record $65.3 million contribution in revenue from the online game segment.
- The company secured an exclusive agreement to operate Changchun Online in China, a 3-D MMORPG (Massively Multiplayer Online Role-Playing Game) by Korean developer Wemade Entertainment.
- Shanda shines with a four-star rating (as of this writing) in Motley Fool CAPS, our free interactive stock database. The other main Chinese gamers -- NetEase (Nasdaq: NTES) and The9 (Nasdaq: NCTY) -- hold four and five stars, respectively.
(Figures in thousands, except per-share data.)
Income Statement Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Sales
|
$68,828
|
$42,588
|
61.6%
|
|
Net Profit
|
$58,031
|
$1,471
|
3,845%
|
|
Earnings per ADS
|
$0.80
|
$0.02
|
3,900%
|
|
Diluted ADS
|
73,013.7
|
72,125.4
|
1.2%
|
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007
|
Q1 2006
|
Change*
|
|
Gross Margin
|
65.2%
|
56.8%
|
8.4
|
|
Operating Margin
|
42.2%
|
5.4%
|
36.8
|
|
Net Margin
|
84.3%
|
3.5%
|
80.9
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash + ST Invest.
|
$462,513
|
$386,325
|
19.7%
|
|
Accounts Rec.
|
$4,517
|
$7,703
|
(41.4%)
|
|
Inventory
|
$600
|
$4,915
|
(87.8%)
|
|
Liabilities
|
Q1 2007
|
Q1 2006
|
Change
|
|
Accounts Payable
|
$5,668
|
$6,952
|
(18.5%)
|
|
Total Debt
|
$275,000
|
$275,000
|
0%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
Since Shanda Interactive is playing its latest MMORPG, it forgot to include a cash flow statement in the press release.
Free cash flow is a Fool's best friend.
Related Foolishness:
Shanda Interactive and NetEase are Rule Breakers recommendations. For more innovative investments in high-growth sectors, try a free 30-day trial of the newsletter.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
Terms & Conditions
RSS Headlines
Fool UK