Sina.com's (SINA) financial results for the fourth quarter and fiscal year ended December 31, 2005 show a slight revenue increase from the previous quarter, but a decline from the past year.

For the fourth quarter of 2005, Sina.com reported net revenues of US$52.0 million, compared to US$56.9 million in the same period last year and US$49.6 million last quarter. For fiscal 2005, Sina.com reported net revenues of US$193.6 million, compared to US$200.0 million in 2004.

Advertising revenues totaled US$25.0 million for the fourth quarter of 2005, representing a 37% increase from the same period last year and a 9% increase from last quarter.

Advertising revenues in the fourth quarter of 2005 represented 48% of the Company's total revenues. For 2005, advertising revenues totaled US$85.0 million, a 30% increase from 2004.

Non-advertising revenues for the fourth quarter of 2005 totaled US$26.9 million, a 30% decrease from the same period in 2004 and a 1% increase over the previous quarter.

Revenues from mobile value-added services (MVAS) for the fourth quarter of 2005 were US$24.8 million, representing a decrease of 31% from the same period in 2004 and an increase of 3% from last quarter.

Revenues from SMS products contributed to most of the year-over-year decline in MVAS revenues, dropping 37% year- over-year to US$18.2 million in the fourth quarter of 2005.

Non-advertising revenues for 2005 amounted to US$108.6 million, a 19% decrease from 2004. MVAS revenues for 2005 totaled US$98.1 million, declining 21% year-over-year mostly from SMS and MMS.

Gross margin for the fourth quarter of 2005 was 66%, down from 68% in the same period last year and last quarter. Advertising gross margin for the fourth quarter of 2005 was 69%, compared to the same margin in the same period last year and 68% in the previous quarter.

Operating expenses for the fourth quarter of 2005 totaled US$23.3 million, an increase of 9% from the same period last year and a decrease of 4% from the previous quarter. Operating expenses for 2005 were US$88.9 million, a 29% increase from US$69.1 million in 2004.

Net income for the fourth quarter of 2005 was US$13.8 million, compared to US$17.4 million in the same period last year and US$9.1 million last quarter. Net income for the fourth quarter of 2005 included a gain of US$2.6 million from the sale of the Company's shares in 1Pai.com, an online auction joint venture with Yahoo.

Net income for 2005 totaled US$43.1 million, or US$0.75 diluted net income per share, compared to US$66.0 million, or US$1.15 diluted net income per share, in 2004.

As of December 31, 2005, Sina.com's cash, cash equivalents and investments in marketable securities totaled US$300.7 million, compared to US$275.6 million and US$288.6 million as of December 31, 2004 and September 30, 2005, respectively. Cash flow from operating activities for the fourth quarter of 2005 was US$14.4 million. For 2005, cash flow from operating activities was US$58.3 million.

The company estimates that its total revenues for the first quarter of 2006 to be between US$44.5 million and US$46.5 million, with advertising revenues to be between US$21.5 million and US$22.5 million, non-advertising revenues to be between US$23.0 million and US$24.0 million. Non-GAAP net income for the first quarter of 2006 is projected to be between US$8.5 million and US$9.5 million.

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