AsiaInfo (ASIA) says its gross revenues for the quarter ended March 31, 2005 were US$29.4 million, representing a decrease of 8% year-over-year and 9% sequentially. The company also placed Steve Zhang as AsiaInfo's Chief Executive Officer and President effective immediately.
Revenue from software products and solutions for the first quarter was US$16 million, representing a 66% year-over-year increase and a slight sequential decrease. Service revenue grew to US$6.8 million, a 51% increase over the corresponding period a year-ago and a 6% increase sequentially.
Total operating expenses for the quarter were US$10.8 million, an increase of 48% year-over-year and a sequential decrease of 10%. First quarter operating profit was US$0.8 million, compared with US$2.0 million during the year-ago period and US$0.17 million for the previous quarter.
Gross margins increased to 39% from 29% in the year-ago period and from 38% in the previous quarter as a result of reduced hardware passthrough and increased high-margin software revenue.
Steve Zhang, the CEO of AsiaInfo Technologies, a wholly owned subsidiary of AsiaInfo encompassing the company's telecom business, replaces Xingsheng Zhang, AsiaInfo's CEO since 2003, who resigned as Chief Executive Officer and President and as a member of the Board of AsiaInfo Holdings.
Zhang, who was also appointed to the Board of Directors as Vice Chairman, will continue serving as Chief Executive Officer and President of AsiaInfo Technologies.