Monday, CDC Corp. (CHINA), an enterprise software provider, said it expects higher adjusted EBITDA for the second-half of 2008 over the prior-year period, stimulated by a combination of cost controls and recurring revenue streams. The company also provided a revenue forecast for the period, which is above analysts' current consensus estimate.
The company expects second-half adjusted EBITDA in the range of US$8.0 million to US$10.0 million, above prior year's adjusted EBITDA of US$1.4 million.
CDC said it sees almost 100% improvement in its adjusted EBITDA for the six-month period from the adjusted EBITDA of US$5.1 million in the first-half of 2008.
Total revenues for the second-half is anticipated to be between US$208 million and US$210 million compared to approximately US$205 million for the same period a year ago. Wall Street has a consensus revenue estimate of approximately $206 million.
The company noted that its two major divisions, CDC Software and CDC Games are showing an good EBITDA growth in the period. Peter Yip, chief executive officer, stated, "Currently, a large portion of our revenue at these divisions is recurring and our recent management alignment has resulted in a lower corporate overhead."
Yip added, "We are cautiously optimistic about the second half of 2008, notwithstanding the difficult economic backdrop, as we believe we have adjusted our business model accordingly and we are focused on improving profitability, operating metrics and cash generation."
CHINA closed Friday's trading session at $2.50, up $0.0150 or 0.60%, on a volume of 416K shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.