Changyou.com Limited reported unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, the company reported total revenue of USD 120 million, representing a decrease of 8% both year-over-year and quarter-over-quarter, meeting the top end of the company's guidance. GAAP net income attributable to the company was USD 30 million, in line with the company's guidance. This compares with USD 32 million in the first quarter of 2016 and USD 41 million in the fourth quarter of 2016. Non-GAAP net income attributable to the company was USD 35 million, meeting the top end of the company's guidance. This compares with USD 31 million in the first quarter of 2016 and USD 40 million in the fourth quarter of 2016. Operating profit was USD 32 million, compared with USD 34 million in the first quarter of 2016 and USD 38 million in the fourth quarter of 2016. Non-GAAP operating profit was USD 37 million, compared with USD 33 million in the first quarter of 2016 and USD 37 million in the fourth quarter of 2016. Fully-diluted net income attributable to the company per ADS was USD 0.56, compared with USD 0.61 in the first quarter of 2016 and USD 0.77 in the fourth quarter of 2016. Non-GAAP fully-diluted net income attributable to the company per ADS was USD 0.66, compared with USD 0.58 in the first quarter of 2016 and USD 0.75 in the fourth quarter of 2016. Income before income tax expense was USD 38,386,000 compared to USD 40,537,000 a year ago. Operating cash flow for the first quarter of 2017 was a net inflow of USD 14 million.

For the second quarter of 2017, the company expected total revenue to be between USD 110 million and USD 120 million, including online game revenue of USD 75 million to USD 85 million; Non-GAAP net income attributable to the company to be between USD 25 million and USD 30 million, and non-GAAP income per fully-diluted share to be between USD 0.46 and USD 0.56. Assuming no new grants of share-based awards and that the market price of shares is unchanged; The company estimate that compensation expense relating to share-based awards will be around USD 2 million. Taking into account the elimination of the impact of these share-based awards, GAAP net income attributable to the company to be between USD 23 million and USD 28 million, and GAAP income per fully-diluted share to be between USD 0.43 and USD 0.52.