CDC Corporation's (CHINA) financial results for the second quarter ended June 30, 2006 show total revenue increased by 19% from the same period last year.
CDC's total revenues of US$77.0 million for Q2 2006 exceeded prior estimates issued on May 25, 2006, that placed total revenues in the range of US$70.6 million to US$71.6 million. Similarly, adjusted net income of US$10.5 million for Q2 2006 exceeded prior estimates issued on May 25, 2006, that placed adjusted net income in the range of US$5.8 million to US$6.3 million.
Total software revenues from its CDC Software subsidiary in were US$57.7 million, an increase of 8% from US$53.7 million in Q2 2005. Software consulting and services revenues were US$17.2 million, software license revenues were US$10.0 million, maintenance revenues were US$15.6 million and business services revenues were US$14.9 million.
Total revenues for China.com during Q2 2006 were US$19.2 million, an increase of 77% from US$10.9 million in Q2 2005. Gross profit for China.com Inc. during Q2 2006 was US$11.6 million, an increase of 107% from US$5.6
million in Q2 2005.
Company executives have been meeting with financial advisors who have been recommending options for unlocking shareholder value within CDC Corporation. The recommendations under consideration include potential carve-outs or spin- offs of CDC Games and CDC Software as a standalone companies.