SINA.com Reports Third Quarter Fiscal 2001 Results

SINA Posts $6.1 Million in Revenue and $5.6 Million in Pro Forma Net Loss



Apr 24, 2001, 01:00 ET from SINA.com

    SUNNYVALE, Calif., April 24 /PRNewswire Interactive News Release/ --
 SINA.com (Nasdaq:   SINA), a leading Internet media and services company for
 Chinese communities worldwide, today announced its results for the third
 quarter fiscal 2001 ended March 31, 2001.
     SINA reported net revenues of $6.1 million for the third fiscal quarter
 ended March 31, 2001, representing an increase of 68% compared to net revenues
 of $3.6 million for the third quarter fiscal 2000. Advertising revenues for
 the third fiscal quarter ended March 31, 2001 amounted to $5.4 million,
 representing an increase of 76% compared to advertising revenues of
 $3.1 million for the third quarter fiscal 2000.  Pro forma net loss for the
 third fiscal quarter ended March 31, 2001 was $5.6 million or $0.14 loss per
 share compared to pro forma net loss of $6.7 million or $0.20 per share for
 the same period of the previous year.  Pro forma net loss excludes non-cash
 charges for amortization of intangibles and stock-based deferred compensation.
 Including the non-cash charges, net loss for the third fiscal quarter ended
 March 31, 2001 was $9.0 million or $0.22 loss per share compared to net loss
 of $12.1 million or $1.41 loss per share for the same period of the previous
 year.
     Net revenues for the nine months ended March 31, 2001 were $20.9 million,
 representing an increase of 148% over net revenues of $8.4 million for the
 same period of the previous year.  Pro forma net loss was $17.0 million or
 $0.42 loss per share for the nine months ended March 31, 2001 compared to
 $18.2 million or $0.60 loss per share for the same period of the previous
 year. Including the non-cash charges, net loss was $28.1 million or $0.70 loss
 per share for the nine months ended March 31, 2001 compared to $38.9 million
 or $4.77 loss per share for the same period of the previous year.
     According to the audited results by ABC Interactive, an international firm
 specializing in online traffic audit and whose client base includes many
 global leading Internet companies, SINA's page views totaled 2.2 billion for
 the month of March 2001, representing an increase of 47% over the total page
 views of 1.5 billion for the month of December 2000.  In addition, SINA's
 registered users reached 22.6 million at the end of March 2001.
     As of March 31, 2001, SINA's cash and short-term investment balance was
 $116 million.
     "While China's economy maintains its strong momentum, the slow down in
 global economy has made growth challenging for industry leaders including
 SINA," said Zhidong Wang, Chief Executive Officer of SINA. "As a company
 operating in four key Chinese markets inclusive of China, Taiwan, Hong Kong
 and North America, SINA has been affected by the current global market
 condition. We believe the current slow down in our growth is short term and we
 are confident that our unique position to serve as a virtual gateway between
 China and the international business community will pay off with China's
 expected entry into the World Trade Organization."
 
     In the third fiscal quarter 2001, while SINA has continued to provide high
 quality content and services to its audiences worldwide, it underlined its
 focus on developing and delivering new online advertising solutions to its
 customers.  In February 2001, SINA has introduced innovative online
 advertising formats with well reception by our customers, inclusive of large
 screen, pop-up and picture-in-picture.  In addition, SINA has started to sell
 online advertisements based on time slots to make the online advertising
 measurement more in line with the traditional media.  SINA also entered into a
 partnership relationship with Research International, one of the world's
 leading marketing research firms to create an online marketing survey platform
 to serve large advertising clients.  SINA's leadership in China's Internet
 market has been further distinguished in January 2001 when it became the first
 commercial enterprise in China to receive the government approval to publish
 news online and to operate an Internet content business.
     "We have performed a comprehensive review of our operational plan during
 the quarter to enhance our core competence and expand near-term businesses,"
 stated Daniel Mao, Chief Operating Officer of SINA. "As online-offline media
 convergence continues, Sina is increasingly leveraging its strength as the
 leading Chinese online network to create win-win opportunities with our key
 offline media partners.  Additionally, Sina has further extended its platform
 into the business communities.  Given Sina's strong software development
 capabilities, we have been able to supply our corporate clients with "one-stop
 shopping" solution that satisfies both their technical and media needs.
 Consequently, SINA has been chosen as a trusted business partner not only by
 leading multinational companies but also by domestic leaders."
 
     About SINA.com
     SINA.com is a leading Internet media and services company for Chinese
 communities worldwide, offering on-line news, entertainment, community and
 e-commerce.  A popular destination site for the world's largest population
 group, SINA.com offers a Chinese-language network of four localized Web sites
 that are produced and updated daily by local teams in China, Hong Kong, Taiwan
 and North America.  As of March 2001, SINA.com enjoyed 2.2 billion page views
 and 22.6 million registered users and 25 million unique users.
     To learn more about SINA.com, visit the company's corporate site at
 http://www.sina.com/corp/ , or regional sites at http://www.sina.com ,
 http://www.sina.com.cn , http://sina.com.hk and http://www.sina.com.tw .
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
      of 1995.
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements involving risks
 and uncertainties that could cause actual results to differ materially from
 those in such forward-looking statements.  Potential risks and uncertainties
 include, but are not limited to, SINA.com's historical and future losses,
 limited operating history, uncertain regulatory landscape in the People's
 Republic of China, fluctuations in quarterly operating results and our
 reliance on advertising sales for revenue.  Further information regarding
 these and other risks is included in SINA.com's prospectus dated April 12,
 2000, in its 10-K filing and in its other filings with the Securities and
 Exchange Commission.
 
 
 
                                    SINA.COM
           UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)
 
                                       Three months ended   Nine months ended
                                           March 31              March 31
                                        2000        2001      2000      2001
     Net revenues
       Advertising                    $3,076      $5,429    $6,104   $18,385
       Software products                 525         425     2,192     1,815
       E-Commerce and other               44         275       118       704
                                       3,645       6,129     8,414    20,904
 
     Cost of revenues
       Advertising                     2,463       3,377     5,733    10,704
       Software products                 250          69     1,285       624
       E-Commerce and other              116         115       199       384
                                       2,829       3,561     7,217    11,712
 
     Pro forma gross profit              816       2,568     1,197     9,192
 
     Operating expenses
       Sales and marketing             4,589       5,634    11,447    17,657
       Product development             2,029       2,364     5,004     7,372
       General and administrative      1,667       2,063     4,971     6,074
                                       8,285      10,061    21,422    31,103
 
     Pro forma loss from operations  (7,469)     (7,493)  (20,225)  (21,911)
 
     Other income, net                   757       1,850     1,977     4,956
 
     Pro forma net loss             $(6,712)    $(5,643) $(18,248)  $(16,955)
 
     Share used in computing
      pro forma basic and
      diluted net loss per share      34,043      40,300    30,207    39,996
 
     Pro forma basic and diluted
      net loss per share             $(0.20)     $(0.14)   $(0.60)   $(0.42)
 
      Note: The above unaudited pro forma condensed consolidated statements of
     operations give the effect to theconversion of all preference shares into
     ordinary shares and exclude the effects of the following:
 
     -- Stock-based compensation of $3,705 and $1,679 for the 3 months ended
     March 31, 2000 and 2001,respectively, and of $15,506 and $6,101 for the 9
     months ended March 31, 2000 and 2001, respectively;
     -- Amortization of intangible assets of $1,702 and $1,688 for the 3 months
     ended March 31,2000 and2001, respectively, and of $5,106 and $5,077 for
     the 9 months ended March 31,2000 and 2001, respectively.
 
 
                                      SINA.COM
                  UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)
 
                                      Three months ended   Nine months ended
                                           March 31              March 31
                                       2000        2001       2000      2001
 
 
 
     Net revenues
       Advertising                   $3,076      $5,429     $6,104   $18,385
       Software products                525         425      2,192     1,815
       E-Commerce and other              44         275        118       704
                                      3,645       6,129      8,414    20,904
 
     Cost of revenues
       Advertising                    2,463       3,377      5,733    10,704
       Software products                250          69      1,285       624
       E-Commerce and other             116         115        199       384
       Stock-based compensation         168          96        437       334
                                      2,997       3,657      7,654    12,046
 
     Gross profit                       648       2,472        760     8,858
 
     Operating expenses
       Sales and marketing            4,589       5,634     11,447    17,657
       Product development            2,029       2,364      5,004     7,372
       General and administrative     1,667       2,063      4,971     6,074
       Stock-based compensation       3,537       1,583     15,069     5,767
       Amortization of intangibles    1,702       1,688      5,106     5,077
                                     13,524      13,332     41,597    41,947
 
     Loss from operations          (12,876)    (10,860)   (40,837)  (33,089)
 
     Other income, net                  757       1,850      1,977     4,956
 
     Net loss                      (12,119)     (9,010)   (38,860)  (28,133)
 
     Preference shares accretion       (27)          --       (81)        --
 
 
     Net loss attributable to
      ordinary shareholders       $(12,146)    $(9,010)  $(38,941) $(28,133)
 
     Shares used in computing
      basic and diluted net
      loss per share                  8,586      40,300      8,162    39,996
 
     Basic and diluted net
      loss per share                $(1.41)     $(0.22)    $(4.77)   $(0.70)
 
 
                                    SINA.COM
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
                           (in thousand U.S. dollar)
 
                                                      June 30       March 31
                                                         2000           2001
     Assets
       Cash, cash equivalents and
        short-term investments                       $129,633       $115,764
       Accounts receivable, net                         3,921          4,649
       Property and equipment, net                      7,737         10,292
       Other assets                                    14,747          9,352
         Total assets                                $156,038       $140,057
 
     Liabilities and Shareholders' Equity
       Current liabilities                             $9,221        $13,392
       Shareholders' equity                           146,817        126,665
 
         Total liabilities and
          shareholders' equity                       $156,038       $140,057
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X83733347
 
 

SOURCE SINA.com
    SUNNYVALE, Calif., April 24 /PRNewswire Interactive News Release/ --
 SINA.com (Nasdaq:   SINA), a leading Internet media and services company for
 Chinese communities worldwide, today announced its results for the third
 quarter fiscal 2001 ended March 31, 2001.
     SINA reported net revenues of $6.1 million for the third fiscal quarter
 ended March 31, 2001, representing an increase of 68% compared to net revenues
 of $3.6 million for the third quarter fiscal 2000. Advertising revenues for
 the third fiscal quarter ended March 31, 2001 amounted to $5.4 million,
 representing an increase of 76% compared to advertising revenues of
 $3.1 million for the third quarter fiscal 2000.  Pro forma net loss for the
 third fiscal quarter ended March 31, 2001 was $5.6 million or $0.14 loss per
 share compared to pro forma net loss of $6.7 million or $0.20 per share for
 the same period of the previous year.  Pro forma net loss excludes non-cash
 charges for amortization of intangibles and stock-based deferred compensation.
 Including the non-cash charges, net loss for the third fiscal quarter ended
 March 31, 2001 was $9.0 million or $0.22 loss per share compared to net loss
 of $12.1 million or $1.41 loss per share for the same period of the previous
 year.
     Net revenues for the nine months ended March 31, 2001 were $20.9 million,
 representing an increase of 148% over net revenues of $8.4 million for the
 same period of the previous year.  Pro forma net loss was $17.0 million or
 $0.42 loss per share for the nine months ended March 31, 2001 compared to
 $18.2 million or $0.60 loss per share for the same period of the previous
 year. Including the non-cash charges, net loss was $28.1 million or $0.70 loss
 per share for the nine months ended March 31, 2001 compared to $38.9 million
 or $4.77 loss per share for the same period of the previous year.
     According to the audited results by ABC Interactive, an international firm
 specializing in online traffic audit and whose client base includes many
 global leading Internet companies, SINA's page views totaled 2.2 billion for
 the month of March 2001, representing an increase of 47% over the total page
 views of 1.5 billion for the month of December 2000.  In addition, SINA's
 registered users reached 22.6 million at the end of March 2001.
     As of March 31, 2001, SINA's cash and short-term investment balance was
 $116 million.
     "While China's economy maintains its strong momentum, the slow down in
 global economy has made growth challenging for industry leaders including
 SINA," said Zhidong Wang, Chief Executive Officer of SINA. "As a company
 operating in four key Chinese markets inclusive of China, Taiwan, Hong Kong
 and North America, SINA has been affected by the current global market
 condition. We believe the current slow down in our growth is short term and we
 are confident that our unique position to serve as a virtual gateway between
 China and the international business community will pay off with China's
 expected entry into the World Trade Organization."
 
     In the third fiscal quarter 2001, while SINA has continued to provide high
 quality content and services to its audiences worldwide, it underlined its
 focus on developing and delivering new online advertising solutions to its
 customers.  In February 2001, SINA has introduced innovative online
 advertising formats with well reception by our customers, inclusive of large
 screen, pop-up and picture-in-picture.  In addition, SINA has started to sell
 online advertisements based on time slots to make the online advertising
 measurement more in line with the traditional media.  SINA also entered into a
 partnership relationship with Research International, one of the world's
 leading marketing research firms to create an online marketing survey platform
 to serve large advertising clients.  SINA's leadership in China's Internet
 market has been further distinguished in January 2001 when it became the first
 commercial enterprise in China to receive the government approval to publish
 news online and to operate an Internet content business.
     "We have performed a comprehensive review of our operational plan during
 the quarter to enhance our core competence and expand near-term businesses,"
 stated Daniel Mao, Chief Operating Officer of SINA. "As online-offline media
 convergence continues, Sina is increasingly leveraging its strength as the
 leading Chinese online network to create win-win opportunities with our key
 offline media partners.  Additionally, Sina has further extended its platform
 into the business communities.  Given Sina's strong software development
 capabilities, we have been able to supply our corporate clients with "one-stop
 shopping" solution that satisfies both their technical and media needs.
 Consequently, SINA has been chosen as a trusted business partner not only by
 leading multinational companies but also by domestic leaders."
 
     About SINA.com
     SINA.com is a leading Internet media and services company for Chinese
 communities worldwide, offering on-line news, entertainment, community and
 e-commerce.  A popular destination site for the world's largest population
 group, SINA.com offers a Chinese-language network of four localized Web sites
 that are produced and updated daily by local teams in China, Hong Kong, Taiwan
 and North America.  As of March 2001, SINA.com enjoyed 2.2 billion page views
 and 22.6 million registered users and 25 million unique users.
     To learn more about SINA.com, visit the company's corporate site at
 http://www.sina.com/corp/ , or regional sites at http://www.sina.com ,
 http://www.sina.com.cn , http://sina.com.hk and http://www.sina.com.tw .
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
      of 1995.
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements involving risks
 and uncertainties that could cause actual results to differ materially from
 those in such forward-looking statements.  Potential risks and uncertainties
 include, but are not limited to, SINA.com's historical and future losses,
 limited operating history, uncertain regulatory landscape in the People's
 Republic of China, fluctuations in quarterly operating results and our
 reliance on advertising sales for revenue.  Further information regarding
 these and other risks is included in SINA.com's prospectus dated April 12,
 2000, in its 10-K filing and in its other filings with the Securities and
 Exchange Commission.
 
 
 
                                    SINA.COM
           UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)
 
                                       Three months ended   Nine months ended
                                           March 31              March 31
                                        2000        2001      2000      2001
     Net revenues
       Advertising                    $3,076      $5,429    $6,104   $18,385
       Software products                 525         425     2,192     1,815
       E-Commerce and other               44         275       118       704
                                       3,645       6,129     8,414    20,904
 
     Cost of revenues
       Advertising                     2,463       3,377     5,733    10,704
       Software products                 250          69     1,285       624
       E-Commerce and other              116         115       199       384
                                       2,829       3,561     7,217    11,712
 
     Pro forma gross profit              816       2,568     1,197     9,192
 
     Operating expenses
       Sales and marketing             4,589       5,634    11,447    17,657
       Product development             2,029       2,364     5,004     7,372
       General and administrative      1,667       2,063     4,971     6,074
                                       8,285      10,061    21,422    31,103
 
     Pro forma loss from operations  (7,469)     (7,493)  (20,225)  (21,911)
 
     Other income, net                   757       1,850     1,977     4,956
 
     Pro forma net loss             $(6,712)    $(5,643) $(18,248)  $(16,955)
 
     Share used in computing
      pro forma basic and
      diluted net loss per share      34,043      40,300    30,207    39,996
 
     Pro forma basic and diluted
      net loss per share             $(0.20)     $(0.14)   $(0.60)   $(0.42)
 
      Note: The above unaudited pro forma condensed consolidated statements of
     operations give the effect to theconversion of all preference shares into
     ordinary shares and exclude the effects of the following:
 
     -- Stock-based compensation of $3,705 and $1,679 for the 3 months ended
     March 31, 2000 and 2001,respectively, and of $15,506 and $6,101 for the 9
     months ended March 31, 2000 and 2001, respectively;
     -- Amortization of intangible assets of $1,702 and $1,688 for the 3 months
     ended March 31,2000 and2001, respectively, and of $5,106 and $5,077 for
     the 9 months ended March 31,2000 and 2001, respectively.
 
 
                                      SINA.COM
                  UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)
 
                                      Three months ended   Nine months ended
                                           March 31              March 31
                                       2000        2001       2000      2001
 
 
 
     Net revenues
       Advertising                   $3,076      $5,429     $6,104   $18,385
       Software products                525         425      2,192     1,815
       E-Commerce and other              44         275        118       704
                                      3,645       6,129      8,414    20,904
 
     Cost of revenues
       Advertising                    2,463       3,377      5,733    10,704
       Software products                250          69      1,285       624
       E-Commerce and other             116         115        199       384
       Stock-based compensation         168          96        437       334
                                      2,997       3,657      7,654    12,046
 
     Gross profit                       648       2,472        760     8,858
 
     Operating expenses
       Sales and marketing            4,589       5,634     11,447    17,657
       Product development            2,029       2,364      5,004     7,372
       General and administrative     1,667       2,063      4,971     6,074
       Stock-based compensation       3,537       1,583     15,069     5,767
       Amortization of intangibles    1,702       1,688      5,106     5,077
                                     13,524      13,332     41,597    41,947
 
     Loss from operations          (12,876)    (10,860)   (40,837)  (33,089)
 
     Other income, net                  757       1,850      1,977     4,956
 
     Net loss                      (12,119)     (9,010)   (38,860)  (28,133)
 
     Preference shares accretion       (27)          --       (81)        --
 
 
     Net loss attributable to
      ordinary shareholders       $(12,146)    $(9,010)  $(38,941) $(28,133)
 
     Shares used in computing
      basic and diluted net
      loss per share                  8,586      40,300      8,162    39,996
 
     Basic and diluted net
      loss per share                $(1.41)     $(0.22)    $(4.77)   $(0.70)
 
 
                                    SINA.COM
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
                           (in thousand U.S. dollar)
 
                                                      June 30       March 31
                                                         2000           2001
     Assets
       Cash, cash equivalents and
        short-term investments                       $129,633       $115,764
       Accounts receivable, net                         3,921          4,649
       Property and equipment, net                      7,737         10,292
       Other assets                                    14,747          9,352
         Total assets                                $156,038       $140,057
 
     Liabilities and Shareholders' Equity
       Current liabilities                             $9,221        $13,392
       Shareholders' equity                           146,817        126,665
 
         Total liabilities and
          shareholders' equity                       $156,038       $140,057
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X83733347
 
 SOURCE  SINA.com