EX-1.01 2 dex101.htm QUARTERLY CONSOLIDATED INCOME STATEMENT Quarterly Consolidated Income Statement

Exhibit 1.01

CDC Corporation

Unaudited Consolidated Statement of Operations

(Amounts in thousands of U.S. dollars except per share data)

 

     Three Months
Ended

March 31,
2007
    Three Months
Ended

June 30,
2007
    Three Months
Ended

September 30,
2007
    Three Months
Ended

December 31,
2007
    Year Ended
December 31,
2007
 
          

Revenues

          

Software

   $ 51,276     $ 59,391     $ 60,287     $ 67,306     $ 238,260  

Global Services

     24,897       29,040       29,183       27,657       110,777  

CDC Games

     9,728       9,316       6,634       7,918       33,596  

China.com

     2,056       2,950       2,357       4,046       11,409  

Mobile Services and Applications

     3,298       3,167       1,124       753       8,342  
                                        

Total revenue

     91,255       103,864       99,585       107,680       402,384  
                                        

Cost of revenue

          

Software

     (21,327 )     (24,136 )     (25,088 )     (28,275 )     (98,826 )

Global Services

     (18,365 )     (22,087 )     (21,740 )     (21,943 )     (84,135 )

CDC Games

     (3,953 )     (4,675 )     (4,887 )     (6,593 )     (20,108 )

China.com

     (763 )     (1,122 )     (890 )     (1,508 )     (4,283 )

Mobile Services and Applications

     (1,841 )     (1,555 )     (930 )     (431 )     (4,757 )
                                        

Total cost of revenue

     (46,249 )     (53,575 )     (53,535 )     (58,750 )     (212,109 )
                                        

Gross profit

     45,006       50,289       46,050       48,930       190,275  

Gross margin %

     49 %     48 %     46 %     45 %     47 %

Sales and marketing expenses

     (15,902 )     (19,159 )     (18,714 )     (22,738 )     (76,513 )

Research and development expenses

     (5,286 )     (6,412 )     (6,440 )     (5,698 )     (23,836 )

General and administrative expenses

     (19,303 )     (21,369 )     (23,316 )     (31,745 )     (95,733 )

Amortization expenses

     (3,070 )     (3,048 )     (2,919 )     (3,620 )     (12,657 )

Restructuring and other charges

     (764 )     (658 )     2,164       (9,798 )     (9,056 )

Goodwill impairment

     —         —         —         (71,096 )     (71,096 )
                                        
     (44,325 )     (50,646 )     (49,225 )     (144,695 )     (288,891 )
                                        

Operating income/(loss)

     681       (357 )     (3,175 )     (95,765 )     (98,616 )

Other income (expenses):

          

Interest income

     2,838       3,856       3,133       3,559       13,386  

Interest expense

     (1,737 )     (2,534 )     (2,555 )     (2,260 )     (9,086 )

Gain on disposal of available-for-sale securities

     —         135       46       333       514  

Gain on disposal of subsidiaries and cost investments

     —         622       6,394       (6,455 )     561  

Impairment of available-for-sale securities

     —         —         (6,595 )     (6,902 )     (13,497 )

Gain (loss) on change in fair value of derivatives

     —         (790 )     (471 )     (4,735 )     (5,996 )
                                        

Total other income (expense)

     1,101       1,289       (48 )     (16,460 )     (14,118 )

Income/(loss) before income taxes

     1,782       932       (3,223 )     (112,225 )     (112,734 )

Income tax benefit (expense)

     (1,396 )     (4,016 )     (5,257 )     (181 )     (10,850 )
                                        

Income (loss) before minority interests

     386       (3,084 )     (8,480 )     (112,406 )     (123,584 )

Minority interests in income of consolidated subsidiaries

     (490 )     (619 )     1,253       18,407       18,551  
                                        

Net income/(losses)

   $ (104 )   $ (3,703 )   $ (7,227 )   $ (93,999 )   $ (105,033 )
                                        

Basic earnings/(losses) per share

   $ (0.00 )   $ (0.03 )   $ (0.07 )   $ (0.86 )   $ (0.98 )
                                        

Diluted earnings/(losses) per share

   $ (0.00 )   $ (0.03 )   $ (0.07 )   $ (0.86 )   $ (0.98 )
                                        

Weighted average number of shares—basic

     107,461       106,925       106,860       107,179       107,160  

Weighted average number of shares—fully diluted

     127,379       128,386       126,762       125,650       125,773