China Finance Online Co. Limited Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2012
June 27, 2012
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China Finance Online Co. Limited reported unaudited consolidated earnings results for the first quarter ended March 31, 2012. For the quarter, the company reported net revenues of $9.109 million compared to $14.955 million a year ago. Loss from operations was $2.380 million compared to income from operations of $1.282 million a year ago. Loss before income tax expense was $1.190 million compared to income before income tax expense of $2.977 million a year ago. Net loss attributable to company was $1.253 million or $0.01 per diluted share compared to $1.393 million or $0.01 per diluted share a year ago. Adjusted loss from operations was $2.195 million compared to adjusted income from operations of $1.786 million a year ago. Adjusted net loss attributable to company was $1.068 million or $0.05 per ADS compared to adjusted net income attributable to company was $1.897 million or $0.08 per ADS a year ago. The main sources of the Company's net revenues were subscription fees from individual customers, subscription fees from institutional customers, advertising revenues and revenues from brokerage-related services, which contributed 69%, 8%, 9% and 14% to total revenues respectively, compared with 80%, 4%, 8%, and 7%, respectively, for the comparable period in 2011. Revenues from subscription fees paid by individual customers decreased 47.8% year-over-year reflecting the decreased demand for paid securities analysis software amid a sluggish stock market in China and continuing impact on sales due to regulatory requirements effective from January of 2011. Institutional subscription revenues increased 17.9% year-over-year to $0.8 million. Revenues from brokerage-related services increased 15.5% year-over-year to $1.3 million.
China Finance Online Co. Limited is a Web-based financial services company in China. The Company provides Chinese retail investors with online access to securities and commodities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers. The Company operates through three segments: commodities brokerage services, online financial information and advisory service, and other related services in the People's Republic of China (PRC), and Hong Kong brokerage services. The Company offers financial software, information services and securities investment advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius Information Technology Co., Ltd., the Company provides financial database and analytics to institutional customers, including domestic financial, research, academic and regulatory institutions.