On May 22, Shanda Interactive Entertainment
- 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 |
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 in Demand-a
- Shanda's Back, People
- Everyone's Playing Shanda: Fool by Numbers
- Fun: China's Endangered Species
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.
