Click here to close now.



Welcome!

IoT User Interface Authors: Pat Romanski, Elizabeth White, Liz McMillan, AppDynamics Blog, Yakov Fain

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

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
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The U.S. Army Intelligence and Security Command (INSCOM) has awarded BAE Systems a five-year contract worth as much as $75 million to provide enhanced geospatial intelligence technical and analytical support. The award was issued under the INSCOM Global Intelligence indefinite delivery, indefinite quantity contract.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Dialogic has announced that ZVRS chose Dialogic® PowerMedia™ XMS software media server as part of its latest video relay and translation service offering. ZVRS uses Dialogic’s PowerMedia XMS technology to provide a robust solution that supports a broad range of legacy devices and any-to-any video capabilities with its flagship Z70 videophone. ZVRS selected Dialogic’s solution to facilitate a release of Z70 that met its stringent requirements for legacy device support (H.263 and H.264) with high...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
"SpeedyCloud's specialty lies in providing cloud services - we provide IaaS for Internet and enterprises companies," explained Hao Yu, CEO and co-founder of SpeedyCloud, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
University of Colorado Athletics has selected FORTRUST, Colorado’s only Tier III Gold certified data center, as their official data center and colocation services provider, FORTRUST announced today. A nationally recognized and prominent collegiate athletics program, CU provides a high quality and comprehensive student-athlete experience. The program sponsors 17 varsity teams and in their history, the Colorado Buffaloes have collected an impressive 28 national championships. Maintaining uptime...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection. In his session at 18th Cloud Expo, Bradley Holt, a Developer Advocate with IBM Cloud Data Services, discussed...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, discussed how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He also discussed how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors ...
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Commvault; Dave Landa, Chief Operating Officer at kintone; William Morrish, General Manager Product Sales at Interou...