(RTTNews) - Thursday, China Finance Online Co. Ltd. (JRJC: News ), which provides online financial and listed company data and information, reported a loss in its second quarter, compared to profit in the prior year, hurt by a 16% drop in the quarterly revenues. Further, the company issued revenue guidance for its third quarter.

The Beijing, China-based company reported a net loss attributable to the company for the second quarter of US$2.40 million or US$0.11 per ADS, compared to net income of US$4.56 million or US$0.20 per ADS in the year-ago quarter.

Non-GAAP net loss attributable to China Finance Online was US$761 thousand or US$0.04 per ADS, compared to non-GAAP net income of US$6.53 million or US$0.28 per ADS in the same quarter last year.

Two analysts polled by Thomson Reuters expected the company to report a loss of US$0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter decreased 16% to US$12.28 million from US$14.68 million in the prior-year quarter. Two analysts had a revenue consensus of US$11.12 million for the second quarter.

Revenues from subscription service fees paid by individual customers were US$10.71 million in the second quarter of 2009, representing 88% of net revenues for the quarter.

Deferred revenue at the end of the second quarter of 2009, which represents prepaid service fees made by customers for subscription services that have not been rendered as of June 30, 2009, was US$41.79 million, with current deferred revenue of US$28.27 million and non-current deferred revenue of US$13.52 million.

Gross profit for the quarter was US$10.25 million, compared to US$12.58 million for the same period in 2008.
Operating expenses for the quarter totaled US$13.62 million, up from US$9.0 million for the same period in 2008. Excluding stock-based compensation of US$1.63 million, operating expenses was US$11.99 million for the second quarter of 2009.

For the six-month period, net loss was US$2.52 million or US$0.02 per share, compared to net income of US$8.07 million or US$0.07 per share last year. Non-GAAP net loss

The company's net revenues for the first half of fiscal 2009 decreased to US$24.04 million from US$25.73 million a year ago.

Looking ahead, the company currently expects to generate net revenues in the range of US$12.0 million to US$13.0 million for the third quarter of 2009.

Analysts currently expect revenues of US$11.26 million for the third quarter.

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