CDC Software Announces Revised Operating Income
INDUSTRY NEWS posted on 18 JAN 2009 by Jim Zabek
Chinese Gaming company, CDC Software, has released revised preliminary EBITDA numbers.
CDC Corporation (NASDAQ: CHINA), a leading global enterprise software and new media company, today announced that, based upon preliminary financial results and estimates, it expects: (i) Adjusted EBITDA from continuing operations (Adjusted EBITDA) to be in the range of approximately (U.S.)$17.0 million to (U.S.)$19.0 million for the second half of 2008; and (ii) total revenue to be in the range of approximately (U.S.)$95.0 to (U.S.)$97.0 million, for the fourth quarter of 2008.
This revised estimated Adjusted EBITDA range represents an increase of between 207 percent and 243 percent from Adjusted EBITDA in the prior year period, and represents an increase of (U.S.)$1.0 million from the Adjusted EBITDA guidance of $(U.S.)$16.0 million to (U.S.)$18.0 million, that was reaffirmed by the Company on January 8, 2009.
"Despite the serious economic issues facing the global markets, we are pleased with what we expect to be a substantial increase in our Adjusted EBITDA from the prior year period,” said Peter Yip, CEO of CDC Corporation. “We believe these achievements are reflective of the expeditious adjustments we made to our business model to help adapt to today’s global economic malaise, and that our fourth quarter revenue estimates reflect continued revenue growth from CDC Games in the fourth quarter 2008 and the continuation of recurring revenues from CDC Software’s installed maintenance customer base and other repeat business from existing customers. Our maintenance renewal rate is one of the highest in our industry, which we believe results in part from our new product development and releases and our high quality global support service. Generally, recurring revenue streams can be dependable and profitable. We believe these recurring revenues can be especially beneficial to us in today’s difficult market environment.
“As previously announced, we are continuing our efforts to leverage our significant cash on hand and have already purchased convertible notes at less than par value from multiple holders. We intend to continue to negotiate with other note holders for possible early purchases or redemptions of the outstanding notes below par value. In addition, we are continuing our prudent path with regard to expense management from an operational perspective.”
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Games focused on online games, and China.com focused on portals for the greater China markets. For more information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.
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