Global Sources Ltd. (GSOL), a business-to-business media company, Monday, reported higher fourth-quarter profit, driven by lower operating expenses. On a non-GAAP basis, earnings rose from last year and came in above analysts' forecast.
Global Sources' fourth-quarter GAAP net income attributable to the company was $8.64 million or $0.19 per share, compared with $7.53 million or $0.14 per share a year ago.
Current-year quarter's GAAP results included a non-cash stock based compensation, or SBC, credit of $1.3 million and amortization of intangibles of $1.1 million. Included in the year-ago results was a non-cash SBC credit of $0.4 million.
Non-GAAP net income amounted to $8.46 million or $0.18 per share, compared with $8.05 million or $0.15 per share for the fourth quarter of 2008.
Revenue declined to $54.89 million from $65.04 million in the comparable period last year.
On average, 3 analysts polled by Thomson Reuters expected earnings of $0.10 per share for the quarter on revenues of $55.50 million for the quarter. Analysts' estimates typically exclude one-time items.
Revenue from online and other media services were $27.95 million, lower than last year's $36.36 million. Exhibitions revenue totaled $25.78 million, down from $26.45 million in the prior-year quarter. Miscellaneous revenue dropped to $1.17 million from $2.23 million a year ago.
The company's total operating expenses for the fourth quarter declined to $46.52 million from $57.14 million a year earlier.
For fiscal 2009, Global Sources reported GAAP net income attributable to the company of $16.11 million or $0.35 per share, compared with $26.43 million or $0.51 per share last year. Non-GAAP net income was $19.1 million or $0.42 per share, compared to $26.5 million or $0.51 per share in the fiscal 2008. Full-year revenue totaled $174.51 million, lower than $206.89 million in the previous year.
Wall Street analysts projected fiscal 2009 earnings of $0.34 per share on revenues of $175.12 million.
Going ahead, Global Sources expects first-half 2010 revenues to continue to be affected by the global economic environment. However, the company anticipates lean cost structure to deliver earnings growth.
GSOL closed Friday's trading at $6.55, up $0.04, on a volume of $33,100 shares.
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