China Digital TV Announces Unaudited Fourth Quarter and Full Year 2011 Results

 

BEIJING, Feb. 29, 2012 /PRNewswire-Asia/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems to China's expanding digital television market, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2011.

Highlights for the Fourth Quarter 2011

  • Net revenues in the fourth quarter of 2011 were US$29.2 million, representing an 11.2% decrease from the same period in 2010 and a 12.7% increase from the third quarter of 2011. The year-over-year decrease was primarily due to a spike in smart card demand in the fourth quarter of 2010 caused by the year-end deadline for provincial cable network consolidation.
  • China Digital TV shipped approximately 5.38 million smart cards in the fourth quarter of 2011, compared to 6.10 million in the same period in 2010 and 4.66 million in the third quarter of 2011.
  • Gross margin in the fourth quarter of 2011 was 81.1%, compared to 80.8% in the same period in 2010 and 80.5% in the third quarter of 2011.
  • Diluted earnings per American depositary share, or ADS,  (one ADS representing one ordinary share), in the fourth quarter of 2011 were US$0.19, compared to US$0.15 in the same period in 2010.

Highlights for Full Year 2011

  • Net revenues in 2011 were US$99.1 million, representing a 13.7% increase from 2010.
  • China Digital TV shipped approximately 18.31 million smart cards in 2011, compared to 16.23 million smart cards in 2010.
  • Gross margin was 80.7% in 2011, compared to 79.1% in 2010.
  • Diluted earnings per ADS in 2011 were US$0.69 compared to US$0.57 in 2010.

"I'm proud to report that we delivered solid financial results in the fourth quarter of 2011, driven by continued momentum in smart card demand. The strong demand was a result of the ongoing cable network consolidation as well as cable operators investing in digitalization projects," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "In 2011, strong execution allowed us to solidify our market share and achieve a 12.8% annual growth in smart card shipment volume and a 13.7% annual increase in net revenues, surpassing outstanding results in 2010."

Mr. Zhu continued, "Cable operators continued to invest in diversified pay-TV services in 2011, in light of the further progress in cable network consolidation and a higher degree of digital penetration. However, commercialization of those value added services were in the early stages and the pace of market adoption remains to be seen in 2012. Given the mixed market sentiment, we expect shipment of smart cards in 2012 to be in line with 2011 levels. Going forward, in addition to developing our core CA business, we plan to continue carrying out research and development of next generation products and service solutions, as well as expanding our business overseas."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "Throughout 2011, China Digital TV focused on expanding our revenue potential through investments in research and development for value-added services. Meanwhile, we are committed to creating value for our shareholders by managing operating expenses and continuously enhancing operational efficiency."

Fourth Quarter 2011 Results

(Note: Unless otherwise stated, all financial statement measures stated in this press release are based on generally accepted accounting principles in the United States ("U.S. GAAP").)

In the fourth quarter of 2011, China Digital TV generated net revenues of US$29.2 million, a decrease of 11.2% from the fourth quarter of 2010 and an increase of 12.7% from the third quarter of 2011. The year-over-year decrease in net revenues was primarily due to a spike in smart card demand in the fourth quarter of 2010 caused by the year-end deadline for provincial cable network consolidation. The quarter-over-quarter increase in net revenues was principally due to an increase in revenues from smart card sales.

In the fourth quarter of 2011, revenues from the Company's top five customers accounted for 25.8% of total revenues, compared to 29.7% in the third quarter of 2011.

Revenue Breakdown

 

 

 

 For the three months ended

 

 For the twelve months ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

 

2011

 

2011

 

2010

 

2011

 

2010

 

 

(in U.S. dollars, in thousands)

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Smart cards

 

$

26,795

 

$

23,327

 

$

31,233

 

$

91,960

 

$

82,154

Set-top boxes and others

 

 

1,240

 

 

1,557

 

 

70

 

 

3,202

 

 

364

Subtotal

 

 

28,035

 

 

24,884

 

 

31,303

 

 

95,162

 

 

82,518

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Head-end system integration

 

 

843

 

 

628

 

 

859

 

 

2,562

 

 

2,398

Head-end system development

 

 

191

 

 

214

 

 

165

 

 

736

 

 

596

Licensing income

 

 

243

 

 

331

 

 

402

 

 

1,328

 

 

1,564

Royalty income

 

 

275

 

 

181

 

 

400

 

 

742

 

 

663

Other services

 

 

4

 

 

3

 

 

1

 

 

10

 

 

4

Subtotal

 

 

1,556

 

 

1,357

 

 

1,827

 

 

5,378

 

 

5,225

Total revenues

 

$

29,591

 

$

26,241

 

$

33,130

 

$

100,540

 

$

87,743

 

Revenues from smart cards and other products were US$28.0 million in the fourth quarter of 2011, a decrease of 10.4% from the same period in 2010 and an increase of 12.7% from the third quarter of 2011. Sales of smart cards and other products accounted for 94.7% of total revenues in the fourth quarter of 2011, compared to 94.8% in the third quarter of 2011. The year-over-year decrease was primarily due to a decrease in the shipment volume of smart cards. The quarter-over-quarter increase was mainly due to increases in the shipment volume of smart cards.

Revenues from services were US$1.6 million in the fourth quarter of 2011, a decrease of 14.8% from the same period in 2010 and an increase of 14.7% from the third quarter of 2011. Service revenues accounted for 5.3% of total revenues in the fourth quarter of 2011. The year-over-year decrease was primarily due to a decline in licensing and royalty income. The quarter-over-quarter increase was largely due to an increase in revenues from head-end system integration.

Gross profit in the fourth quarter of 2011 was US$23.6 million, a decrease of 10.9% from the same period in 2010 and an increase of 13.4% from the third quarter of 2011. Gross margin, which is equal to gross profit divided by net revenues, was 81.1% in the fourth quarter of 2011, compared to 80.8% in the same period in 2010 and 80.5% in the third quarter of 2011. The year-over-year and the quarter-over-quarter increases in gross margin were principally due to a decrease in the unit cost of smart cards.

In the fourth quarter of 2011, the average selling price (the "ASP") of smart cards decreased by 1.0% compared to the third quarter of 2011. In addition, the unit cost of smart cards decreased by 5.0% compared to the third quarter of 2011.

Operating expenses in the fourth quarter of 2011 were US$10.9 million, an increase of 47.9% from the same period in 2010 and an increase of 13.4% from the third quarter of 2011.

  • Research and development expenses for the fourth quarter of 2011 were US$3.6 million, an increase of 23.1% from the same period in 2010 and a decrease of 7.4% from the third quarter of 2011. The year-over-year increase was primarily due to an increase in share-based compensation relating to options granted to employees in 2011, as well as increases in the number of research and development staff and project development expenses. The quarter-over-quarter decrease was primarily due to a decrease in project development expenses.
  • Selling and marketing expenses for the fourth quarter of 2011 were US$4.2 million, an increase of 64.7% from the same period in 2010 and an increase of 42.5% from the third quarter of 2011. The year-over-year increase was mainly attributable to higher marketing expenditures and the increased headcount of sales and marketing staff. The quarter-over-quarter increase was primarily due to the increases in performance-based annual bonus compensation and marketing expenditures.
  • General and administrative expenses for the fourth quarter were US$3.0 million, an increase of 64.3% from the same period in 2010 and an increase of 11.6% from the third quarter of 2011. The year-over-year increase was mainly due to an increase in share-based compensation expenses relating to options granted to employees in 2011. The quarter-over-quarter increase was primarily due to a substantial increase in performance-based annual bonus compensation.

Income from operations in the fourth quarter of 2011 was US$12.8 million, a 33.5% decrease from the same period in 2010 and a 13.4% increase from the third quarter of 2011.

Operating margin, defined as income from operations divided by net revenues, in the fourth quarter of 2011 was 43.7%, compared to 58.4% in the same period in 2010 and 43.4% in the third quarter of 2011.

Interest income in the fourth quarter of 2011 was US$2.1 million, a 66.8% increase from the same period in 2010 and a 23.0% increase from the third quarter of 2011.

Loss from forward contracts in the fourth quarter of 2011 was US$0.4 million, compared to a gain of US$0.2 million from forward contracts in the third quarter of 2011. To facilitate the cash payment of dividends that the Company declared in November 2010, the Company entered into foreign currency forward contracts in April and May 2011. Those forward contracts met the definition of derivatives and were measured at fair value. The quarter-over-quarter change in gain/loss from forward contracts was due to the change in the forward rate for RMB against the U.S. dollar from each period end to the expiration dates of the forward contracts.

Income tax expenses in the fourth quarter of 2011 were US$3.1 million, a decrease of 54.4% from the same period in 2010 and an increase of 21.3% from the third quarter of 2011. The year-over-year decrease was mainly due to withholding tax imposed by the PRC tax authority arising due to our PRC subsidiary repatriating cash offshore for the special cash dividend declared in November 2010. The quarter-over- quarter increase was largely due to an increase in taxable income.

Net loss attributable to non-controlling interest in the fourth quarter of 2011 was US$0.2 million, a decrease of 39.9% from the third quarter of 2011. The quarter-over-quarter decrease was largely due to a decrease in net loss of the Company's majority-owned subsidiaries.

Net income attributable to China Digital TV Holding Co., Ltd., in the fourth quarter of 2011 was US$11.5 million, an increase of 30.7% from the same period in 2010 and an increase of 11.8% from the third quarter of 2011.

Non-GAAP net income attributable to China Digital TV Holding Co., Ltd., defined as net income excluding certain one-time or non-cash expenses, such as cost method investment impairment, share-based compensation expenses, amortization of acquired intangible assets from business acquisitions and equity method investments and withholding tax expenses, in the fourth quarter of 2011 was US$13.6 million, a decrease of 30.5% from the same period in 2010 and an increase of 11.8% from the third quarter of 2011. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP measures" set forth at the end of this release.

Balance Sheet and Cash Flow

As of December 31, 2011, China Digital TV had cash and cash equivalents and restricted cash totaling US$257.2 million. In the fourth quarter of 2011, cash flow generated from operations was approximately US$29.5 million.

Full Year 2011 Results

Net revenues in 2011 were US$99.1 million, a 13.7% increase from US$87.1 million in 2010 primarily due to a significant increase in smart card sales.

Revenues from smart cards and related products in 2011 were US$95.2 million, an increase of 15.3% from 2010, mainly due to the significant increase in the shipment volume of smart cards and other related products, such as integrated chips and surface mounted device chipsets. In 2011, revenues from the Company's top five customers accounted for 25.9% of total revenues, compared to 23.5% in 2010.

Revenues from services were US$5.4 million in 2011, an increase of 2.9% from 2010, primarily due to increases in revenues from head-end system integration and head-end system development. Revenues from services represented 5.3% of total revenues in 2011.

Gross profit was US$80.0 million in 2011, an increase of 16.0% from US$68.9 million in 2010. Gross margin was 80.7% in 2011, compared to 79.1% in 2010. The increase in gross margin was primarily due to an increase in smart cards sales and a decrease in the unit cost of smart cards.

In 2011, the ASP of smart cards decreased by 1.0% compared to 2010. In addition, the unit cost of smart cards decreased by 10.0% compared to 2010.

Operating expenses in 2011 were US$35.2 million, an increase of 39.2% from US$25.3 million in 2010.

  • Research and development expenses in 2011 increased by 26.0% to US$13.1 million from US$10.4 million in 2010, mainly due to increases in the average salary of research and development staff and share-based compensation expenses relating to options granted to employees in 2011.
  • Sales and marketing expenses in 2011 increased by 45.5% to US$12.4 million from US$8.5 million in 2010. The increase was primarily due to increases in marketing expenditures and average compensation of sales and marketing staff.
  • General and administrative expenses in 2011 increased by 52.2% toUS$9.7 million from US$6.4 million in 2010. The increase was primarily due to an increase in share-based compensation expenses relating to options granted to employees in 2011.

Income from operations in 2011 was US$44.7 million, an increase of 2.6% from 2010.

Operating margin, defined as income from operations divided by net revenues, was 45.1% in 2011, compared to 50.1% in 2010.

Net income attributable to China Digital TV Holding Co., Ltd. in 2011 was US$41.0 million, an increase of 22.7% from US$33.4 million in 2010.

Postponement in Dividend Payment

Due to a delay in the regulatory approval process by the foreign exchange authority in China for the repatriation of U.S. dollars, the Company has not paid out the special cash dividend to its shareholders, which was initially scheduled to be made on or around December 30, 2011. The Company currently expects to be able to make this dividend at the end of March or the beginning of April.

U.S. Federal Income Taxation

Based on the Company's analysis of the value of the Company's assets as of December 31, 2011, the Company was classified as a passive foreign investment company ("PFIC") during 2011 for U.S. federal income tax purposes. Additionally, based on an analysis of the value of the Company's assets as of December 31, 2009 and December 31, 2010, the Company was a PFIC during the taxable years 2009 and 2010 for U.S. federal income tax purposes. The Company has substantial passive assets in the form of cash and cash equivalents, among others, and can provide no assurance that the Company will not continue to be classified as a PFIC for the taxable year 2012 or future taxable years, as PFIC status is tested each year and depends on the Company's assets and income in such year. U.S. holders of the Company's ADSs during any year in which the Company was treated as a PFIC will be subject to special rules. Further details about the PFIC rules are available in the Company's annual reports on Form 20-F for the fiscal years ended December 31, 2009 and 2010. U.S. holders of the Company's ADSs should generally be able to make a mark-to-market election under the PFIC rules. U.S. holders of Company's ADSs are advised to consult their own tax advisors regarding the application of the PFIC rules to their particular circumstances, including the consequences of making a mark-to-market election.

Business Outlook

Based on information available as of February 29, 2012, China Digital TV expects smart card shipments for the first quarter of 2012 to be in the range of 3.5 million and 3.7 million. Net revenues for the first quarter of 2012 are expected to be in the range of US$18.3 million and US$20.1 million.

Conference Call Information

The Company will hold an earnings conference call at 7:00 p.m. on Wednesday, February 29, 2012, U.S. Eastern Time (8:00 a.m. on Thursday, March 1, 2012, Beijing/Hong Kong Time).

Conference Call Dial-in Information

United States Toll Free:

+1-866-519-4004

International:

+1-718-354-1231

Hong Kong:

+852-2475-0994

China Toll Free:

+400-620-8038 and +800-819-0121

 

 

Passcode:

China Digital TV Earnings Call

Please dial-in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the call will be available for one week between 10:00 p.m. on February 29, 2011 and 11:59 p.m. on March 7, 2011, U.S. Eastern Time.

Replay Information

United States:

+1-718-354-1232

International:

+61-2-8235-5000

 

 

Passcode:

51393770

Additionally, a live and archived webcast of this conference call will be accessible through the Investor Relations section of China Digital TV's website at http://ir.chinadtv.cn.

Safe Harbor Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation, statements regarding the outlook for the first quarter of 2012 and comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries in the PRC and China Digital TV's strategic and operational plans and future market positions. China Digital TV may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from projections contained or implied in any forward-looking statement, including but not limited to the following: competition in the CA systems, digital television, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the progress of the television digitalization in the PRC, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries, including the extent of non-PRC companies' participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government's policies with respect to economic growth, foreign exchange and foreign investment.

Further information regarding these and other risks and uncertainties is included in our annual report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.  

About China Digital TV

Founded in 2004, China Digital TV is the leading provider of CA systems to China's expanding digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its PRC subsidiary, Beijing Super TV Co., Ltd., and its affiliate, Beijing Novel-Super Digital TV Technology Co., Ltd., as well as subsidiaries of its affiliate.

For more information please visit the Investor Relations section of China Digital TV's website at http://ir.chinadtv.cn. The information contained in that website is not a part of this announcement.

For investor and media inquiries, please contact:

In China:

Nan Hao
China Digital TV
Tel:   +86.10.6297.1199 x9780
Email: ir@chinadtv.cn

Josh Gartner
Brunswick Group LLC
Tel:   +86.10.5960.8600
Email: chinadigital@brunswickgroup.com

In the US:

Cindy Zheng
Brunswick Group LLP
Tel:   +1.212.333.3810
Email: chinadigital@brunswickgroup.com

China Digital TV Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations

 ( in U.S. dollars in thousands, except share data )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 For the three months ended

 

 

December 31,

 

September 30,

 

December 31,

 

2011

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

  Products

 

$

28,035

 

$

24,884

 

$

31,303

  Services

 

 

1,556

 

 

1,357

 

 

1,827

Total revenues

 

 

29,591

 

 

26,241

 

 

33,130

  Business taxes

 

 

(417)

 

 

(354)

 

 

(287)

Net revenues

 

 

29,174

 

 

25,887

 

 

32,843

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

  Products

 

 

(4,557)

 

 

(4,227)

 

 

(5,214)

  Services

 

 

(970)

 

 

(811)

 

 

(1,094)

Total cost of revenues

 

 

(5,527)

 

 

(5,038)

 

 

(6,308)

Gross Profit

 

 

23,647

 

 

20,849

 

 

26,535

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

  Research and development expenses

 

 

(3,630)

 

 

(3,919)

 

 

(2,949)

  Selling and marketing expenses

 

 

(4,230)

 

 

(2,968)

 

 

(2,568)

  General and administrative expenses

 

 

(3,031)

 

 

(2,717)

 

 

(1,845)

Total operating expenses

 

 

(10,891)

 

 

(9,604)

 

 

(7,362)

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

12,756

 

 

11,245

 

 

19,173

 

 

 

 

 

 

 

 

 

 

  Interest income

 

 

2,120

 

 

1,723

 

 

1,271

  Interest expense

 

 

(545)

 

 

(544)

 

 

-

  Gain/(loss) from forward contract

 

 

(413)

 

 

242

 

 

-

  Cost method investment impairment

 

 

-

 

 

-

 

 

(5,000)

  Other income/(expense)

 

 

660

 

 

(28)

 

 

64

Income before income tax

 

 

14,578

 

 

12,638

 

 

15,508

Income tax benefits / (expenses)

 

 

 

 

 

 

 

 

 

  Income tax-current

 

 

(3,393)

 

 

(2,778)

 

 

(6,929)

  Income tax-deferred

 

 

335

 

 

258

 

 

227

Net income before net loss from equity method investments

 

 

 

11,520

 

 

 

10,118

 

 

8,806

Net loss from equity method investments

 

 

(285)

 

 

(250)

 

 

(44)

Net income

 

 

11,235

 

 

9,868

 

 

8,762

Net loss attributable to noncontrolling interest

 

230

 

 

383

 

 

10

Net income attributable to China Digital TV Holding Co., Ltd shareholders

 

$

 

11,465

 

$

 

10,251

 

$

8,772

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.19

 

$

0.17

 

$

0.15

Diluted

 

$

0.19

 

$

0.17

 

$

0.15

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

 

58,977,669

 

 

58,966,799

 

 

58,523,664

Diluted

 

 

59,087,442

 

 

59,088,020

 

 

58,792,695

 

 

 

 

China Digital TV Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations

( in U.S. dollars in thousands, except share data )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the twelve months ended

 

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

  Products

 

 

 

 

$

95,162

 

$

82,518

  Services

 

 

 

 

 

5,378

 

 

5,225

Total revenues

 

 

 

 

 

100,540

 

 

87,743

  Business taxes

 

 

 

 

 

(1,445)

 

 

(620)

Net reveues

 

 

 

 

 

99,095

 

 

87,123

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

  Products

 

 

 

 

 

(16,100)

 

 

(15,148)

  Services

 

 

 

 

 

(3,027)

 

 

(3,040)

Total Cost of Revenues

 

 

 

 

 

(19,127)

 

 

(18,188)

Gross Profit

 

 

 

 

 

79,968

 

 

68,935

 

 

 

 

 

 

 

 

 

 

Operating expenes:

 

 

 

 

 

 

 

 

 

  Research and development expense

 

 

 

 

 

(13,140)

 

 

(10,432)

  Selling and marketing expenses

 

 

 

 

 

(12,377)

 

 

(8,504)

  General and administrative expenses

 

 

 

 

 

(9,723)

 

 

(6,389)

Total operating expenses

 

 

 

 

 

(35,240)

 

 

(25,325)

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

44,728

 

 

43,610

 

 

 

 

 

 

 

 

 

 

  Interest income

 

 

 

 

 

6,810

 

 

5,294

  Interest expense

 

 

 

 

 

(1,452)

 

 

-

  Gain from forward contract

 

 

 

 

 

404

 

 

-

  Cost method investment impairment

 

 

 

 

 

-

 

 

(5,000)

  Other income/(expenses)

 

 

 

 

 

594

 

 

(92)

Income before income tax

 

 

 

 

 

51,084

 

 

43,812

Income tax benefits / (expenses)

 

 

 

 

 

 

 

 

 

  Income tax-current

 

 

 

 

 

(10,344)

 

 

(10,714)

  Income tax-deferred

 

 

 

 

 

582

 

 

464

Net income before net loss from equity method

investments

 

 

 

 

 

41,322

 

 

33,562

Net loss from equity method investments

 

 

 

 

 

(1,052)

 

 

(151)

Net income

 

 

 

 

 

40,270

 

 

33,411

Net loss attributable to noncontrolling interest

 

 

 

 

 

730

 

 

10

Net income attributable to China Digital TV
Holding Co., Ltd shareholders

 

 

 

 

$

41,000

 

 

33,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

$

0.70

 

$

0.57

Diluted

 

 

 

 

$

0.69

 

$

0.57

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

58,934,912

 

 

58,313,467

Diluted

 

 

 

 

 

59,075,466

 

 

58,779,027

 

China Digital TV Holding Co., Ltd.

Unaudited Condensed Consolidated Balance Sheets

 ( in U.S. dollars in thousands )

 

 

 

 

 

 

 

 

ASSETS

December 31,

 

December 31,

2011

2010

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

$

201,557

 

$

148,944

 

Restricted cash

 

55,679

 

 

16

 

Bank deposits maturing over three months

 

-

 

 

41,667

 

Short-term investment

 

-

 

 

26,984

 

Notes receivable

 

9,168

 

 

2,387

 

Accounts receivable, net

 

31,030

 

 

24,214

 

Inventories

 

3,918

 

 

3,001

 

Prepaid expenses and other current assets

 

6,768

 

 

12,063

 

Deferred costs-current

 

524

 

 

323

 

Deferred income taxes - current

 

1,352

 

 

941

Total current assets 

 

309,996

 

 

260,540

 

Property and equipment, net 

 

1,751

 

 

2,329

 

Intangible assets, net

 

450

 

 

675

 

Goodwill

 

541

 

 

516

 

Long-term investments - equity method investments

 

7,766

 

 

8,824

 

Deferred costs-non-current

 

379

 

 

515

 

Deferred income taxes - non-current

 

455

 

 

243

Total assets

 

321,338

 

 

273,642

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term loan (including short-term loan of consolidated VIE and VIE's subsidiaries without recourse to
    the Company of nil and nil as of December 31, 2011 and December 31, 2010, respectively)

 

55,193

 

 

-

 

Accounts payable (including accounts payable of consolidated VIE and VIE's subsidiaries without recourse
    to the Company of $1,222 and $1,074 as of December 31, 2011 and December 31, 2010, respectively)

 

1,487

 

 

1,540

 

Accrued expenses and other current liabilities  (including accrued expenses and other current liabilities of
    consolidated VIE and VIE's subsidiaries without recourse to the Company of $3,754 and $3,503 as of
    December 31, 2011 and December 31, 2010 , respectively)

 

9,313

 

 

8,848

 

Dividend payable (including dividend payable of consolidated VIE and VIE's subsidiaries without recourse to
    the Company of nil and nil as of December 31, 2011 and December 31, 2010 , respectively)

 

33,172

 

 

77,333

 

Deferred revenue – current (including deferred revenue of consolidated VIE and VIE's subsidiaries without
    recourse to the Company of $6,005 and $5,240 as of December 31, 2011 and December 31, 2010, respectively)

 

7,745

 

 

5,904

 

Income tax payable (including income tax payable of consolidated VIE and VIE's subsidiaries without recourse
     to the Company of $353 and $189 as of December 31, 2011 and December 31, 2010, respectively)

 

1,902

 

 

220

Total current liabilities

 

108,812

 

 

93,845

 

Deferred revenue-non-current (including deferred revenue-non-current of consolidated VIE without recourse
    to the Company of $401 and $777 as of December 31, 2011 and December 31, 2010, respectively)

 

2,204

 

 

777

Total Liabilities  

 

111,016

 

 

94,622

 

 

 

 

 

 

Noncontrolling interest

$

3,880

 

$

520

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Ordinary shares

 

29

 

 

29

 

Additional paid-in capital

 

126,583

 

 

118,799

 

Statutory reserve

 

17,694

 

 

17,324

 

Accumulated profit

 

36,401

 

 

28,788

 

Accumulated other comprehensive income

 

25,735

 

 

13,560

Total equity

 

206,442

 

 

178,500

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

$

321,338

 

$

273,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Measures

Non-GAAP net income attributable to China Digital TV Holding Co., Ltd. Shareholders excludes certain one-time non-cash expenses, such as cost method investment impairment, share-based compensation expenses, amortization of intangible assets acquired from business acquisitions and equity method investments, and withholding tax expense. The Company believes that the non-GAAP net income provides meaningful supplemental information regarding the Company's performance and liquidity by excluding certain non-cash expenses that may not be indicative of its operating performance from a cash flow perspective. The Company believes that both management and investors benefit from referring to this additional information in assessing the Company's performance and when planning and forecasting future periods.

 

 

For the three months ended  

 

 

December 31,

 

September 30,

 

December 31,

2011

2011

2010

 

 

(in U.S. dollars, in thousands)

Net income attributable to China Digital TV Holding Co., Ltd shareholders – GAAP

 

$

11,465

 

$

10,251

 

$

8,772

Share-based compensation expenses

 

 

2,083

 

 

1,861

 

 

376

Amortization of intangible assets from business acquisitions and equity method investments

 

 

88

 

 

87

 

 

103

Cost method investment impairment

 

 

-

 

 

-

 

 

5,000

Withholding tax expense

 

 

 

-

 

 

-

 

 

5,380

Net income attributable to China Digital TV Holding Co., Ltd shareholders - Non-GAAP

 

$

13,636

 

$

12,199

 

$

19,631

 

SOURCE China Digital TV Holding Co., Ltd.



RELATED LINKS
http://ir.chinadtv.cn

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.