Chinese portal Sina.com (SINA) has announced the departure of its CEO and its unaudited financial results for the first quarter ended March 31, 2006.
Effective this week, Yan Wang resigned as the Chief Executive Officer of Sina.com. Wang will continue to serve on the Board of Directors in a new capacity as Vice Chairman. Charles Chao, formerly President and Chief Financial Officer, has been named the new Chief Executive Officer and appointed to the board of directors. Chao will remain as the President of the company.
Herman Yu, the company's Vice President and Corporate Controller, has assumed the position of Acting Chief Financial Officer effective as of May 8, 2006. The Board of Directors has formed a committee to search for a new Chief Financial Officer.
For the first quarter of 2006, Sina.com reported net revenues of US$46.7 million, compared to US$45.8 million in the same period last year and US$52.0 million last quarter.
Advertising revenues for the first quarter of 2006 totaled US$22.2 million, representing a 33% increase from the same period last year and an 11% decrease from last quarter. Advertising revenues in the first quarter of 2006 represented 47% of the company's total revenues, compared to 36% for the same period last year.
Non-advertising revenues for the first quarter of 2006 totaled US$24.5 million, a 16% decrease from the same period last year and a 9% decrease from last quarter. Revenues from MVAS for the first quarter of 2006 were US$22.7 million, representing a decrease of 14% from the same period last year and a decrease of 9% from last quarter.
Revenues from SMS decreased 20% year-over-year to US$16.2 million in the first quarter of 2006 and contributed to the majority of the year-over-year decline in MVAS revenues.
Operating expenses for the first quarter of 2006 totaled US$22.0 million, an increase of 5% from the same period last year and a decrease of 5% from the previous quarter.
As of March 31, 2006, Sina.com's cash, cash equivalents and investments in marketable securities totaled US$304.4 million, compared to US$300.7 million as of December 31, 2005. Cash flow from operating activities for the first quarter of 2006 was US$12.5 million, compared to US$14.4 million last quarter and US$22.7 million same period last year.
The Company estimates its total revenues for the second quarter of 2006 to be between US$47.5 million and US$49.5 million, with advertising revenues to be between US$26.0 million and US$27.0 million and non-advertising revenues to be between US$21.5 million and US$22.5 million.