Ninetowns Digital World Trade Holdings Limited (NINE) reported its financial results for the third quarter of 2005.

Total net revenue for the third quarter of 2005 was US$7.3 million, representing a 12.4% increase, compared to US$6.3 million for the third quarter of 2004.

Net revenue from sales of enterprise software for the third quarter of 2005 was US$6.4 million, representing 87.8% of total net revenue, as compared to 96.4% for the third quarter of 2004. Net revenue from software development services for the third quarter of 2005 was US$0.8 million, representing 11.5% of total net revenue, as compared to 3.6% for the third quarter of 2004.

Gross profit for the third quarter of 2005 was US$6.8 million, or 93.0% of total net revenue, representing an increase of 6.6% compared to US$6.2 million, or 98.1% of total net revenue for the third quarter of 2004.

Operating income for the third quarter of 2005 was US$3.6 million, representing a 21.5% decrease compared to US$4.5 million for the third quarter of 2004.

Operating margin for the third quarter of 2005 was 50.0%, compared to 71.7% for the third quarter of 2004.

Net income for the third quarter of 2005 was US$4.1 million, representing a 5.9% decrease compared to net income of US$4.3 million for the third quarter of 2004. Diluted earnings per ADS / share for the third quarter of 2005 were US$0.11, compared to the diluted earnings per ADS / share of US$0.15 for the third quarter of 2004.