After struggling through some accounting irregularities, PacificNet (PACT.PK) now says its unaudited results for the first quarter ended March 31, 2007 shows quarterly revenue of US$9,267,000, an increase of 38.9% from the same time last year.

The company posted quarterly net profit of US$308,000, or EPS of US$0.03 per basic share.

"We are delighted to report our turnaround and first profitable quarter since our venture into the gaming technology business," said Tony Tong, chairman and CEO of PacificNet. "As we announced during the last two earnings conference calls, we have initiated a rapid business transformation away from our low-margin telecom business and into the new high-margin gaming business."

PacificNet also reported that the company received a letter on May 18, 2007, from the Nasdaq Stock Market indicating that as a result of the company's failure to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 with the Securities and Exchange Commission by May 15, 2007 the company is not in compliance with the Nasdaq requirements for continued listing set forth in Nasdaq Marketplace Rule 4310(c)(14), and therefore this matter serves as an additional basis for the delisting of its securities from The Nasdaq Global Market. The company has until May 25, 2007 to present its views with respect to the deficiency in writing to the NASDAQ Listing Qualifications Panel.