Monday, software and online services company CDC Corp. (CHINA) reported a swing to profit in the second quarter from a loss in the year-ago period, despite a decline in revenue.
The Hong Kong, China-based company reported net income to controlling interest for the second quarter of $3.25 million or $0.03 per share, compared to a loss of $9.59 million or $0.09 per share in the year-ago quarter.
On average, three analysts polled by Thomson Reuters expected the company to earn $0.02 per share, for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter decreased to $81.65 million from $111.04 million in the prior-year quarter. Three analysts had a revenue consensus of $84.16 million for the second quarter.
Segment wise, software revenue declined to $50.61 million from $66.75 million in the same quarter last year. Global Services revenue for the quarter totaled $18.53 million, down from $29.54 million in the second quarter of 2008. CDC Games revenue decreased to $9.46 million from $10.66 million in the prior-year quarter. China.com's second quarter revenue was $3.06 million, down from $4.09 million in the comparable quarter last year.
Adjusted EBITDA in the second quarter of 2009 was $12.5 million, up 25% from $10.0 million in the second quarter of 2008.
Gross profit for the quarter fell to $35.33 million or 43% of the total revenue from $52.31 million or 47% of the total revenue in the second quarter of 2008.
Total operating expenses eased to $32.07 million from $57.64 million in the year-ago quarter.
For the six-month period, net income attributable to controlling interest was $10.96 million or $0.09 per share, compared to a loss of $23.12 million or $0.22 per share last year.
The company's revenues for the first half of fiscal 2009 decreased to $160.50 million from $207.96 million a year ago.
CHINA closed Monday's regular trading at $2.54, down $0.07 or 2.68%, on a volume of 1.99 million shares. However, the stock gained $0.26 or 10.24%, and traded at $2.80 in the after hours.
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