On March 29, CDC
- While profits may have dropped into the red, Fool contributor Rick Munarriz isn't panicking in his earnings take.
- Revenue rose 42.9% to $89 million because of a strong performance by the China New Media business unit -- gaming, mobile, and portal segments -- which increased 78.6% year over year.
- In order to sustain revenue growth, the company expects to invest in mobile game company BBMF (OTC: BBMF.PK) and work with distribution partners like Nokia
(NYSE:NOK) . - CDC Corporation has clicked its way to a four-star rating, alongside Chinese online gaming companies NetEase
(NASDAQ:NTES) and Shanda Interactive(NASDAQ:SNDA) in CAPS, our free interactive stock database. With its three-star rating, Chinese online media company SINA(NASDAQ:SINA) isn't far behind.
(Figures in thousands, except per-share data.)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$88,994 |
$62,286 |
42.9% |
|
Net Profit |
($4,248) |
$1,460 |
N/A |
|
EPS |
($0.04) |
$0.01 |
N/A |
|
Diluted Shares |
128,310.4 |
111,498.9 |
15.1% |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
52.3% |
56.3% |
(3.9) |
|
Operating Margin |
(2.2%) |
0.3% |
(2.5) |
|
Net Margin |
(4.8%) |
2.3% |
(7.1) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest.* |
$246,079 |
$117,468 |
209.5% |
|
Accounts Rec. |
$63,663 |
$46,753 |
36.2% |
|
Inventory |
N/A |
N/A |
N/A |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$23,771 |
$12,286 |
93.5% |
|
Total Debt |
18,991 |
26,249 |
(27.7%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
CDC must be Web-surfing, because it forgot to include a cash flow statement in the press release.
Free cash flow is a Fool's best friend.
Related Foolishness:
- More Than Just China.com
- A Chinese Internet Play with a Defensive Twist
- Cold Stocks You're Selling Now
NetEase and Shanda Interactive are Motley Fool Rule Breakers recommendations. SINA is a Motley Fool Stock Advisor pick. To find out why our Foolish advisors favor these Chinese companies, try a free 30 day test drive of either 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.
