Welcome!

Machine Learning Authors: Ed Featherston, Corey Roth, Peter Silva, Yeshim Deniz, Automic Blog

News Feed Item

China Distance Education Holdings Limited Reports Financial Results for the First Quarter of Fiscal 2013

1Q13 Net Revenue Up 31.3% to $13.0 Million

 

BEIJING, Feb. 26, 2013 /PRNewswire/ -- China Distance Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a leading provider of online education in China focusing on professional education, today announced financial results for the first quarter of fiscal 2013 ended December 31, 2012.

First Quarter Fiscal 2013 Financial Highlights

  • Total course enrollments reached 898,000, an increase of 8.4% from the first quarter of fiscal 2012.
  • Net Revenue increased by 31.3% to $13.0 million from $9.9 million in the prior year period, exceeding the top-end of the guidance range.
  • Gross profit from continuing operations increased by 30.6% to $6.9 million from $5.3 million in the prior year period. Gross margin was stable at 53.0%, compared to 53.3% in the prior year period.
  • Operating income from continuing operations increased 615.5% to $1.7 million from $232 thousand in the prior year period.
  • Net income was $1.5 million, compared to $367 thousand in the prior year period, an increase of 302.2%.
  • Basic and diluted net income per American Depositary Share ("ADS") was $0.044, compared to $0.011 for the first quarter of fiscal 2012. Each ADS represents four ordinary shares.

"We are very pleased to report another strong quarter highlighted by continuingly robust growth in net revenue, income and non-APQE course enrollments," stated Mr. Zhengdong Zhu, Chairman and CEO of CDEL. "Our high-quality course offerings and innovative learning systems keep attracting new and returning students and generate continuing revenue growth. Such performance reflects the enduring market response to our high quality courses and services as well as the outstanding user experience offered by our online learning platform, including our mobile learning system."

"Along with our strong revenue growth experienced in the first quarter, we also expect delayed APQE exams this year to push a disproportional amount of our revenue and income from second fiscal quarter to the third and fourth fiscal quarters of fiscal 2013. Nevertheless, we expect to see robust enrollments and revenue growth on a yearly basis as we stay focused on further penetrating the market in our core segments that encompass accounting, health care and construction engineering test-preparation, career development and continuous education courses. We also plan to simultaneously expand into the much larger general online education market through our open-platform strategy."

Ms. Ping Wei, Chief Financial Officer of CDEL, added, "Growth very much characterized the first quarter of fiscal 2013, with net revenue increasing by 31.3% to $13.0 million and net income surging three times to $1.5 million as we continued leveraging on our highly scalable online learning platform. We remain confident in the outlook for market demand and our ability to meet that demand. Coupled with prudent cost and expense controls, we are very confident that while we expect lower revenue growth for next fiscal quarter due to the delayed timing of APQE enrollments, our top and bottom line for fiscal 2013 is expected to maintain the growth momentum we have experienced since fiscal 2012."

First Quarter Fiscal 2013 Financial Results

Net Revenue. Total net revenue from continuing operations for the first quarter of fiscal 2013 was $13.0 million, representing a year-over-year increase of 31.3% from $9.9 million in the first quarter of fiscal 2012. Net revenue from online education services, books and reference materials, and other sources contributed to 82.9%, 5.9% and 11.2% of total net revenue, respectively.

Net revenue from online education services was $10.8 million, an increase of 39.2% from $7.7 million in the prior year period. The increase mainly resulted from higher revenue in the Company's accounting test preparation courses, healthcare and construction engineering courses, and the recognition of delayed APQE and CPA courses revenue relating to the delayed exams in 2012. Such increase was partially offset by a decrease in revenue of the Company's accounting continuing education courses due to the reduced pricing as the Company aggressively expands the market.

Net revenue from books and reference materials for the first quarter of fiscal 2013 was $761 thousand, a decrease of 20.5% from $957 thousand in the first quarter of fiscal 2012.

Net revenue from other sources for the first quarter of fiscal 2013 was $1.5 million, an increase of 21.4% from $1.2 million in the prior year period. The increase was mainly a result of increased revenue in offline business start-up training courses provided by Zhengbao Yucai and other offline supplementary training courses.

Cost of Sales. Cost of sales from continuing operations for the first quarter of fiscal 2013 was $6.1 million, representing an increase of 32.1% from $4.6 million for the first quarter of fiscal 2012. The increase in cost of sales was mainly due to increased salaries and related expenses, lecturer fees, and expenses incurred by the Company's offline business start-up training courses and other supplementary training courses. Such increase was partially offset by a decrease in cost of book and reference materials.

Gross Profit. Gross profit from continuing operations for the first quarter of fiscal 2013 was $6.9 million, an increase of 30.6% from $5.3 million in the prior year period. Gross margin was stable at 53.0%, compared to 53.3% in the first quarter of fiscal 2012.

Operating expenses. Total operating expenses from continuing operations for the first quarter of fiscal 2013 were $5.2 million, a 3.7% increase from $5.0 million in the prior year period.

Selling expenses from continuing operations amounted to $2.8 million for the first quarter of fiscal 2013, a slight decrease of 3.1% from $2.9 million in the prior year period, primarily as a result of decreases in advertising and promotional activities, and commission to the Company's distributors. Such decrease was partially offset by an increase in salaries and related expenses.

General and administrative expenses from continuing operations were $2.5 million in the first quarter of fiscal 2013, an increase of 12.7% from $2.2 million in the prior year period, primarily due to increases in salaries and related expenses, professional fees, and share-based compensation expenses.

Income Tax Expense. Income tax expenses for the first quarter of fiscal 2013 were $416 thousand, compared to $86 thousand in the prior year period. The increase in income tax expenses was primarily due to the increase of taxable income.

Net Income from continuing operations. Net income from continuing operations was $1.5 million for the first quarter of fiscal 2013, compared to $373 thousand in the prior year period.

Net Income. Net income was $1.5 million for the first quarter of fiscal 2013, compared to $367 thousand in the prior year period. Net income margin was 11.4%, compared to 3.7% in the prior year period.

Operating Cash Flow. Net operating cash inflow was $5.3 million for the first quarter of fiscal 2013, compared to $5.0 million in the prior year period. The inflow was primarily the result of net income before non-cash items generated in the quarter, increase in accrued expenses and other liabilities, and deferred revenue. Such inflow was partially offset by the increase in prepayment and other current assets, other non-current assets, and the decrease in income tax payable and refundable fees.

Cash and Cash Equivalents, Term Deposits and Restricted Cash. Cash and cash equivalents, term deposits and restricted cash as of December 31, 2012 amounted to $46.2 million as compared to $57.7 million as of September 30, 2012 primarily due to a dividend payment of $16.1 million and capital expenditures of $1.1 million, partially offset by $5.3 million of cash flow generated from operating activities in the quarter.

Outlook

For the 2013 fiscal year, the Company estimates total net revenue from continuing operations in the range of $63.5-$66.5 million, representing year-over-year growth of approximately 21.2%-27.6%.

For the second quarter of fiscal 2013, after taking into account the impact of the delayed APQE exams this year, the Company estimates total net revenue from continuing operations in the range of $12.9-$13.5 million, representing year-over-year growth of approximately 5%-10%. Excluding APQE revenue contributions of $3.4 million in 2Q12 and an estimated $1.9 million for 2Q13, estimated revenue other than APQE is expected to grow 24%-30% for 2Q13.

These forecasts reflect the Company's current and preliminary view, which are subject to change.

Conference Call

The Company will host a conference call at 8:00 a.m. Eastern Time on February 27, 2013 to discuss its first quarter fiscal 2013 financial results and recent development. The conference call may be accessed by calling 1-866-519-4004 (US), 800-819-0121 (China Landline), 400-620-8038 (China Mobile), 800-930-346 (Hong Kong), or 0-808-234-6646 (UK). The pass code is CDEL or DL.

A telephone replay will be available shortly after the call until March 7, 2013 at 1-855-452-5696 (US), 800-870-0205 (China Landline), 400-120-0932 (China Mobile), 800-963-117 (Hong Kong), or 0-808-234-0072 (UK). The Pass code is 97213474.

A live and archived webcast of the conference call will be available at http://ir.cdeledu.com.

About China Distance Education Holdings Limited

China Distance Education Holdings Limited is a leading provider of online education in China focusing on professional education. The online courses offered by the Company are designed to help professionals and other course participants obtain and maintain the skills, licenses and certifications necessary to pursue careers in China in the areas of accounting, law, healthcare, construction engineering, and other industries. The Company also offers online test preparation courses to self-taught learners pursuing higher education diplomas or degrees and to secondary school and college students preparing for various academic and entrance exams. In addition, the Company offers online foreign language courses and offline business start-up training courses. For further information please visit http://ir.cdeledu.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These 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," "may," "should," "potential," "continue," "expect," "anticipate," "future," "intend," "plan," "believe," "is/are likely to," "estimate" and similar statements. Among other things, the outlook for the fiscal year 2013, the second quarter of the fiscal year 2013 and quotations from management in this announcement, as well as the Company's strategic and operational plans (including the Company's open-platform strategy), contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the SEC, 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 the Company'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 those contained in any forward-looking statement, including but not limited to the following: our goals and growth strategies; our future prospects and market acceptance of our online and offline courses and other products and services; our future business development and results of operations; projected revenues, profits, earnings and other estimated financial information; projected enrollment numbers; our plans to expand and enhance our online and offline courses and other products and services; competition in the education and test preparation markets; and Chinese laws, regulations and policies, including those applicable to the Internet and Internet content providers, the education and telecommunications industries, mergers and acquisitions, taxation and foreign exchange.

Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the SEC. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release.

Statement Regarding Unaudited Financial Information

The unaudited financial information set forth above is preliminary and subject to adjustments. Adjustments to the financial statements may be identified when audit work is performed for the year-end audit, which could result in significant differences from this preliminary unaudited financial information.

Contacts:

China Distance Education Holdings Limited

Lingling Kong, IR manager

Tel: +86-10-8231-9999 ext1805

Email: [email protected]

 

Investor Relations:

Bill Zima

ICR Inc.

Tel: +1 646-328-2550

 

China Distance Education Holdings Limited

Consolidated Balance Sheets

(in thousands of US Dollars, except number of shares and per share data)









September 30, 2012


December 31, 2012



(Audited)


(Unaudited)


Assets:





Current assets:






Cash and cash equivalents

49,723


38,160



Term deposit

7,956


8,024



Restricted cash

6


6



Accounts receivable, net of allowance for doubtful accounts of US$2,092 and
US$2,105 as of September 30, 2012 and December 31, 2012, respectively

4,081


3,925



Inventories

658


499



Prepayment and other current assets

3,573


4,708



Deferred tax assets, current portion

1,856


1,895



Deferred cost

1,795


1,615



  Total current assets

69,648


58,832








Non-current assets:






Property, plant and equipment, net

9,676


10,346



Goodwill

7,511


7,575



Other intangible assets, net

1,929


1,797



Deposit for purchase of non-current assets

131


301



Other non-current assets

1,091


1,404



  Total non-current assets

20,338


21,423









  Total assets

89,986


80,255








Liabilities and equity:





Current liabilities:






Accrued expenses and other liabilities (including accrued expenses and other
liabilities of the consolidated VIE without recourse to China Distance Education
Holdings Limited of US$8,789 and US$9,738 as of September 30, 2012 and
December 31, 2012, respectively)

9,636


10,565



Income tax payable (including income tax payable of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$2,319 and
US$2,055 as of September 30, 2012 and December 31, 2012, respectively)

2,627


2,348



Deferred revenue (including deferred revenue of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$9,408 and
US$12,925 as of September 30, 2012 and December 31, 2012, respectively)

9,450


12,993



Refundable fees (including refundable fees of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$3,524 and
US$3,270 as of September 30, 2012 and December 31, 2012, respectively)

3,524


3,270



  Total current liabilities

25,237


29,176








Non-current liabilities:






Deferred tax liabilities, non-current portion (including non-current portion of
deferred tax liabilities of the consolidated VIE without recourse to China Distance
Education Holdings Limited of nil and nil as of September 30, 2012 and December
31, 2012, respectively)

132


252



Total non-current liabilities

132


252















  Total liabilities

25,369


29,428








 

Equity:






Ordinary shares (par value of US$0.0001 per share at September 30, 2012 and
December 31 2012, respectively; Authorized – 480,000,000 shares at
September 30, 2012 and December 31, 2012; Issued and outstanding –
134,386,849 and 135,432,521 shares at September 30, 2012 and December 31
2012, respectively)

13


14



Additional paid-in capital

61,777


46,067



Accumulated other comprehensive income

4,922


5,365



Cumulative deficits

(2,095)


(619)



   Total China Distance Education Holdings Limited shareholders' equity

64,617


50,827



   Total equity

64,617


50,827



   Total liabilities and equity

89,986


80,255








 

 

China Distance Education Holdings Limited

Unaudited Consolidated Statements Of Operations

 (in thousands of US dollars, except number of shares, per share and per ADS data)



Three Months Ended December 31,


2011


2012





Sales, net of business tax, value-added tax and related surcharges:





Online education services

7,741


10,779


Books and reference materials

957


761


Others

1,205


1,463


   Total net revenues

9,903


13,003






Cost of sales





Cost of services

(4,056)


(5,604)


Cost of tangible goods sold

(571)


(509)


   Total cost of sales

(4,627)


(6,113)






Gross profit

5,276


6,890





Operating expenses





Selling expenses

(2,869)


(2,779)


General and administrative expenses

(2,177)


(2,454)


   Total operating expenses

(5,046)


(5,233)

Other operating income

2


3






Operating income

232


1,660





Interest income

244


253

Exchange loss

(17)


(21)






Income before income taxes

459


1,892

Less: Income tax expense

(86)


(416)

Net income from continuing operations attributable to China Distance
Education Holdings Limited

373


1,476





Net loss from discontinued operations attributable to China Distance Education
Holdings Limited, net of tax

(6)


-





Net income attributable to China Distance Education Holdings Limited

367


1,476

 

Net income per share:




Net income attributable to China Distance Education Holdings Limited
shareholders





Basic from continuing operations

0.003


0.011


Basic from discontinued operations

0.000


0.000


Basic

0.003


0.011







Diluted from continuing operations

0.003


0.011


Diluted from discontinued operations

0.000


0.000


Diluted

0.003


0.011

 

Net income per ADS:




Net income attributable to China Distance Education Holdings Limited
shareholders





Basic from continuing operations

0.011


0.044


Basic from discontinued operations

0.000


0.000


Basic

0.011


0.044







Diluted from continuing operations

0.011


0.044


Diluted from discontinued operations

0.000


0.000


Diluted

0.011


0.044





Weighted average shares used in calculating net income per share:





Basic

130,075,371


134,754,567


Diluted

130,089,977


135,496,638

 

 

SOURCE China Distance Education Holdings Limited

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...