Chinese online media and mobile services company Sina Corporation announced its unaudited financial results for the quarter ended September 30, 2009.
Net revenues for the company, which runs the Sina.com Web portal, increased 7% quarter over quarter to USD96.4 million. Advertising revenues increased 10% quarter over quarter to USD63.8 million, and non-advertising revenues increased slightly quarter over quarter to USD32.6 million. Net income attributable to Sina was USD16.7 million, or USD0.29 diluted net income per share attributable to Sina, representing an increase of 25% quarter over quarter.
"In October 2009, we carved out our online real estate advertising business and merged it with China Real Estate Information Corporation to form the largest online and offline real estate information and consulting platform in China, which successfully listed on the Nasdaq on October 16th. This transaction marks a significant step in our strategy to explore multiple business opportunities in our dominant vertical areas by teaming up with other industry leaders. It is also a strong testament to the value of Sina brand and Sina platform." stated Charles Chao, CEO of Sina.
On July 23, 2009, the Company announced that it entered into a definitive agreement to merge its online real estate business with E-House (China) Holdings Limited's wholly-owned subsidiary CRIC. Pursuant to the agreement, Sina injected its online real estate business into its majority-owned subsidiary China Online Housing Technology Corporation. CRIC issued its ordinary shares to Sina in exchange for Sina's equity interest in China Online Housing, giving Sina a 39% equity interest in CRIC without giving effect to any initial public offering shares. The closing of the transaction was conditional upon, among other things, the closing of the public offering of CRIC and the listing of CRIC's American depositary shares representing its ordinary shares on a major stock exchange in the United States, which was consummated on October 16, 2009, with the successful listing of CRIC on the Nasdaq Global Select Market.
Gross margin for the third quarter of 2009 was 59%, compared to 57% for the same period last year and 56% last quarter. Advertising gross margin for the third quarter of 2009 was 61%, compared to 58% for the same period last year and the previous quarter.
Operating expenses for the third quarter of 2009 totaled USD38.3 million, representing a decrease of 4% from the same period last year and an increase of 5% from last quarter. Non-GAAP operating expenses for the third quarter of 2009, which exclude stock-based compensation and amortization of intangible assets, were USD35.6 million, a decrease of 3% from the same period last year and an increase of 6% from last quarter.
Income from operations for the third quarter of 2009 was USD18.3 million, compared to USD20.1 million for the same period last year and USD13.6 million from last quarter. Non-GAAP income from operations for the third quarter of 2009 was USD21.7 million, compared to USD24.2 million for the same period last year and USD17.4 million from last quarter.
As of September 30, 2009, Sina's cash, cash equivalents and short-term investments totaled USD599.7 million, compared to USD562.5 million and USD582.0 million as of September 30, 2008 and June 30, 2009, respectively. Cash flow from operating activities for the third quarter of 2009 was USD29.1 million, compared to USD24.0 million for the same period last year and USD18.8 million last quarter.
On September 28, 2009, Sina announced that it entered into a definitive agreement for a private equity placement of its ordinary shares with New Wave Investment Holding Company Limited, a British Virgin Islands company established and controlled by Charles Chao and other members of Sina's management. At the closing, Sina will receive gross proceeds of USD180 million, and New Wave will receive approximately 5.6 million ordinary shares in Sina. The shares issued to New Wave will be subject to a six month lock-up and will have customary registration rights pursuant to a Registration Rights Agreement entered into between Sina and New Wave. Sina expects to use the proceeds of the financing for future acquisitions and general corporate purposes.