China Digital TV Holding Co. Ltd. (STV), Tuesday said first-quarter net income attributable to the company decreased from the same quarter a year ago, hurt by a decline in revenues as well as gross margin. An increase in expenses also negatively impacted the results. Further, the company provided revenue guidance for the second quarter.
China Digital TV Holding's first-quarter net income attributable to it declined 33.6% to US$7.56 million or US$0.13 per share from US$11.39 million or US$0.19 per share in the corresponding quarter a year ago.
Non-GAAP net income for the first quarter was US$8.03 million.
On average, five analysts polled by Thomson Reuters expected the company to earn US$0.13 per share for the quarter.Analysts' estimates typically exclude special items such as one-time charges or gains.
Gross margin for the first quarter declined to 77.4% from 80.9% in the same quarter last year, primarily due to a decrease in the margin of the head-end system integration business.
Income from operations in the first quarter declined 39.2% to US$6.3 million from the same quarter a year ago.
Net revenue for the first quarter declined 17% to US$14.32 million from US$17.24 million in the same quarter a year ago, primarily hurt by seasonality and decline in revenue from head-end system integration business. Analysts anticipated revenues of US$14.24 million for the quarter.
Operating expenses for the first quarter increased 32.4% to US$4.82 million from US$5.705 million in the same quarter last year.
Looking forward, the company now expects net revenues for the second quarter in the range of US$14.5 million to US$15.5 million. Analysts currently expect revenue of US$71.25 million for the second quarter.
STV is currently trading at $10.58, up $0.31 or 3.02% on a volume of 478k shares on the NYSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.