Tom Online's (TOMO) results for the first quarter ended March 31, 2007 show total revenues decreased by 26.0% from the same period last year.
The company's unaudited consolidated revenues for the three months ended March 31, 2007 were US$35.14 million, a decrease of 26.0% compared to the same period year on year but an increase of 4.5% quarter-on-quarter.
Now might be a good time to take the company private. On March 9, 2007, the company announced that it was considering making a proposal to take the company private and then on April 25, the company said that a proposal to do so was approved at its extraordinary general meeting held on April 25, 2007.
Wireless Internet service revenues for the embattled company were US$31.82 million, representing a 28.4% decrease from the same period last year but a 7.5% increase from the previous quarter. Wireless Internet service revenues made up 90.6% of total quarterly revenues compared to 88.0% in the fourth quarter of last year. Online advertising revenues were US$2.66 million, representing a 15.8% quarterly decrease and 1.7% decrease year-on-year. Online advertising revenues made up 7.6% of our total quarterly revenues compared to 9.4% in 4Q06.
Gross profit was US$8.58 million representing a decrease of 56.4% compared to the same period last year and a 24.6% decline quarter-on-quarter.
Total operating expenses were US$5.84 million in the first quarter compared to US$8.30 million in the fourth quarter of 2006. The company says the sequential decline in operating expenses was mainly due to reduced sales and marketing activities in the quarter.
Operating profit was US$2.74 million, down 74.8% from the same period last year and a decrease of 10.9% from the previous quarter.
The firm's cash balance and short-term bank deposits was about US$144.1 million at the end of the quarter.