Hong Kong, 12th March: On Thursday this week, NASDAQ-listed Global Sources reported that despite the difficult global economic environment, fourth quarter revenues increased by 7% to US$65 million. Online revenues increased 22% to US$25 million. Revenues from the exhibitions business rose 4% to US$26.4 million. Print revenues continued to slide dropping 15% to US$11.4 million. GAAP net income was US$7.5 million or US$0.14 per diluted share.
Full-year results came in within management’s guidance. Revenues were US$206.9 million – an increase of 14% from the US$182.1 million recorded in 2007. Online revenues and exhibition-related revenues jumped by 24% and 13% respectively. Print revenues fell 5% in 2008. GAAP net income was US$26.5 million or US$0.51 per share. That is an increase of just over 10% compared with US$24 million in net income in 2007. The company remains in a strong cash position with no short-term or long-term debt and US$131 million in cash, cash equivalents and securities.
David Gillan, deputy CFO, commented, “The dramatic slowdown in global consumer demand has led to declining revenue and profitability. The business climate remains uncertain; as such, we have suspended guidance. Nonetheless, we continue to be committed to profitability. We have a solid operating model, which is supported by a very strong balance sheet, comprised of a liquid and unencumbered cash position, and no debt. Furthermore, our collections remain very healthy, with only 12 days sales outstanding.”
Global Sources’ share price rose 23% yesterday to close at US$4.40; while the NASDAQ Composite increased by 3.97% and the Dow was up 3.46%. Source: Global Sources press release