(RTTNews) - Monday, ChinaEdu Corp. (CEDU: News ) reported a profit for the third quarter attributable to a significant increase in revenue which in turn was positively impacted by strong enrollment growth for the 2009 spring semester as well as a decline in operating expenses.

Net income attributable to the company was US$1.1 million or US$0.061 per ADS, compared with a loss of $2.2 million or US$0.114 per ADS during the comparable period in the year earlier.

Adjusted net income attributable to CEDU increased to US$1.45 million or US$0.082 per ADS from US$1.12 million or US$0.056 per ADS in the year-ago period.

On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share. Analysts' estimates typically exclude special items.

Total net revenue for the third quarter increased by 9.4% to US$13.1 million from US$12.0 million in last year quarter. Three Wall Street analysts expected revenues of $12.79 million.

According to ChinaEdu, net revenue from online degree programs, the company's major business segment, increased by 9.4% to US$10.5 million for the third quarter from US$9.6 million for the corresponding period in 2008.

The number of revenue students in online degree programs during the third quarter of 2009 increased by approximately 17.6% to over 147,000 from approximately 125,000 for the corresponding period in 2008.
Net revenue from the company's non-online degree programs, which include online tutoring programs, international curriculum programs and private primary and secondary schools for the third quarter increased by 9.5% to US$2.7 million from US$2.4 million for the corresponding period year-ago.

Total cost of revenue for the quarter increased by 12.1% to US$5.12 million from US$4.6 million in the year-ago period. Total operating expenses declined by 33.4% to US$5.1 million from US$7.7 million in the year-ago period. The decrease was primarily due to the absence of goodwill and intangible assets impairment, despite an increase in research and development expenses.

The company's deferred revenue at the end of the third quarter of 2009 was US$6.1 million, with current deferred revenue of US$4.8 million and non-current deferred revenue of US$1.3 million.

For the nine months, net income attributable to the company was US$3.78 million or US$0.216 per ADS, compared with a loss of US$0.591 million or US$0.031 per ADS year-ago. Adjusted net income for the nine month period attributable to ChinaEdu increased to US$5.17 million or US$0.296 per ADS from US$3.70 million or US$0.18 per ADS year-ago. Year-to-date net revenue increased by 12.1% to US$37.97 million from US$33.86 million in the year-ago period.

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