2008-07-23 16:00:00
AsiaInfo Reports Second Quarter 2008 Results
-- Second quarter 2008 total revenue increases 42% year over year(1) to
US$42.1 million
-- Exceeding guidance, second quarter 2008 net revenue (Non-GAAP)(2)
increases 30% year over year to US$34.4 million
-- Second quarter 2008 income from operations increases 198% to US$3.6
million, operating margin of total revenue(3) is 8.5% and operating margin
of net revenue (Non-GAAP)(4) expands to 10.3%
-- Second quarter 2008 net income increases 109% year over year to US$5.2
million
BEIJING and SANTA CLARA, Calif., July 23 /Xinhua-EMWNews/
-- AsiaInfo Holdings, Inc. (Nasdaq: ASIA), (''AsiaInfo'' or the
''Company'') a leading provider of telecom software solutions and IT
security products and services in China, today announced financial results
for the second quarter ended June 30, 2008.
''I'm delighted to report robust revenue growth and improved operating
margin during the second quarter,'' said Steve Zhang, AsiaInfo's president
and chief executive officer. ''In light of the recently announced telecom
industry restructuring, we are strategically working with carriers to
prepare their IT systems for a post-restructuring environment of
intensified competition. AsiaInfo is poised to benefit as carriers expand
their IT spending in order to differentiate their service offerings, and
I'm confident that we will continue to grow alongside the rapidly evolving
telecom industry in China.''
Second Quarter 2008 Financial Results
Total revenue for the second quarter of 2008 was US$42.1 million, an
increase of 42.2% year over year and 20.1% sequentially. Exceeding
guidance, net revenue (Non-GAAP) for the second quarter of 2008 was US$34.4
million, an increase of 29.5% year over year and 12.1% sequentially. The
year-over-year and sequential increases were mainly driven by strong uptake
for the Company's software and service solutions.
In the second quarter, the Company announced several significant
contracts with China's major telecom carriers including an agreement with
Northern Telecom and Xinjiang Telecom to develop operational data store
systems and with Zhejiang Telecom to implement an online charging system.
The Company also won a tender with Guizhou Mobile to provide call center
solutions.
In the second quarter of 2008, gross margin was 45.3% compared to 49.0%
in the year-ago period and 51.0% in the previous quarter. The Company noted
that the decrease in gross margin primarily reflects an increase in the
percentage of revenue generated from third-party hardware in response to
customer requests, which has a lower gross margin than its core software
and service revenue. Gross profit as a percentage of net revenue (Non-GAAP)
was 55.4% in the second quarter of 2008 compared to 54.5% in the year-ago
period and 58.1% in the previous quarter. The Company noted that gross
margin of net revenue (Non-GAAP) has remained relatively stable for the
last several quarters.
In the second quarter of 2008, AsiaInfo's telecom business contributed
87.4% to total revenue and 87.9% to net revenue (Non-GAAP). Total revenue
for AsiaInfo's telecom business increased 45.5% year over year and 14.6%
sequentially to US$36.8 million. Net revenue (Non-GAAP) for AsiaInfo's
telecom business increased 31.2% year over year and 8.2% sequentially to
US$30.3 million. The increases reflect strong uptake for the Company's
software and service solutions, which help telecom carriers manage and
diversify their service offerings.
In the second quarter of 2008, the Lenovo-AsiaInfo business unit
contributed 12.6% to total revenue and 12.1% to net revenue (Non-GAAP).
Total revenue for the Lenovo-AsiaInfo business unit increased 23.0% year
over year and 81.3% sequentially to US$5.3 million. Net revenue (Non-GAAP)
for the Lenovo-AsiaInfo business unit increased 18.4% year over year and
51.8% sequentially to US$4.2 million. The year-over-year increases reflect
a concerted effort to improve operations in this division. Sequentially,
the notable increase is mainly due to seasonality, which is strongest
during the first quarter of the year. Please refer to the end of this press
release for condensed segmented financial results for AsiaInfo's two
business units.
Income from operations for the second quarter of 2008 was US$3.6
million, an increase of 198.0% year over year and 33.0% sequentially,
primarily as a result of improving economies of scale and the Company's
efforts to improve operational efficiency. Sales and marketing expenses
increased 23.4% year over year and 4.0% sequentially to US$8.2 million,
mainly due to increased sales headcount and higher accrued sales commission
expenses, which were a result of a higher number of new contracts. General
and administrative expenses decreased 9.0% year over year and 13.8%
sequentially to US$2.2 million, mainly due to lower bad debt provisions as
a result of improving accounts receivable collection. Research and
development expenses increased 20.9% year over year and 8.0% sequentially,
to US$5.0 million, mainly reflecting an increase in headcount in line with
the Company's strategy of continuing to invest in research and development
capabilities to position it for future market opportunities.
Operating margin of total revenue was 8.5% for the second quarter of
2008, compared to 4.0% in the year-ago period and 7.7% in the previous
quarter. Operating margin of net revenue (Non-GAAP) was 10.3% for the
second quarter of 2008, compared to 4.5% in the year-ago period and 8.7% in
the previous quarter. The year-over-year and sequential increases were
mainly the result of the Company's efforts to improve operational
efficiency.
Other income for the second quarter of 2008 was US$3.3 million, an
increase of 75.2% year over year and 39.4% sequentially. The year-over-year
and sequential increases were mainly due to higher returns on short-term
investments.
In the second quarter of 2008, AsiaInfo recorded net income of US$5.2
million or US$0.12 per basic share, compared to US$2.5 million or US$0.06
per basic share in the year-ago period and US$5.3 million or US$0.12 per
basic share in the previous quarter. The significant year-over-year
increase was mainly due to strong demand for the Company's telecom software
products and solutions and overall operating efficiency, which expanded
operating margins during the quarter.
Net income excluding share-based compensation expense, amortization,
after-tax dividend income and gain on discontinued operations (net income
(Non-GAAP)(5) was US$6.2 million in the second quarter of 2008 or US$0.14
per basic share. Net income (Non-GAAP) in the year-ago period was US$3.8
million or US$0.09 per basic share. Net income (Non-GAAP) in the previous
quarter was US$5.2 million or US$0.12 per basic share. Net income
(Non-GAAP) increased 63.2% year over year and 19.2% sequentially.
As of June 30, 2008, AsiaInfo had cash and cash equivalents, restricted
cash and short-term investments totaling US$217.8 million. Operating cash
flow in the second quarter of 2008 was a net inflow of approximately US$4.0
million.
(1) Compared to the same time period in the previous year.
(2) Net revenue (Non-GAAP), a non-GAAP measure, represents total revenue
net of third-party hardware costs. A reconciliation of net revenue
(Non-GAAP) to GAAP revenue is provided at the end of this press
release.
(3) Operating margin of total revenue is operating income divided by
total revenue.
(4) Operating margin of net revenue (Non-GAAP) is operating margin
divided by net revenue (Non-GAAP).
(5) Net income (Non-GAAP) and net income (Non-GAAP) per share measures
exclude certain expenses and income, including share-based
compensation expenses, amortization expenses of acquired intangible
assets, after-tax dividend income, gain on discontinued operations,
and gain on settlement of escrow. A reconciliation of these non-
GAAP measures to the most comparable GAAP measures is provided at
the end of the press release.
First Half 2008 Financial Results
Total revenue for the first half of 2008 was US$77.1 million, an
increase of 29.2% year over year. Net revenue (Non-GAAP) for the first half
of 2008 was US$65.1 million, an increase of 30.0% year over year.
In the first half of 2008, gross margin was 47.9%, compared to 45.8% in
the year-ago period. Gross profit as a percentage of net revenue (Non-GAAP)
was 56.6% in the first half of 2008, compared to 54.5% in the year-ago
period.
Income from operations for the first half of 2008 was US$6.2 million,
an increase of 33.6% year over year. Income from operations was US$4.7
million in the year-ago period, which included a one-time gain from
settlement of escrow of US$2.7 million.
In the first half of 2008, AsiaInfo recorded net income of US$10.5
million or US$0.23 per basic share, compared to US$8.9 million or US$0.21
per basic share in the year-ago period, an increase of 17.8% year over
year.
Net income (Non-GAAP) was US$11.4 million or US$0.25 per basic share in
the first half of 2008, an increase of 60.0% year over year.
Third Quarter 2008 Guidance
AsiaInfo expects third quarter 2008 net income from continuing
operations per basic share to be in the range of US$0.13 to US$0.14. Net
income from continuing operations per basic share in the third quarter of
2007 was US$0.14, which included a higher than normal dividend income of
US$3.3 million. Excluding this impact, the Company's third quarter 2008
guidance would represent an increase of 86% to 100% year over year.
AsiaInfo expects net revenue (Non-GAAP) to be in the range of US$39 million
to US$40 million, an increase of 32% to 35% year over year.
ASIAINFO HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands of US$, except shares and per share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
Revenues:
Software products and
solutions $30,013 $22,406 $57,152 $42,006
Service 4,209 4,011 7,550 7,580
Third party hardware 7,836 3,153 12,362 10,039
Total revenues 42,058 29,570 77,064 59,625
Cost of revenues:
Software products and
solutions 13,660 10,116 24,816 19,089
Service 1,704 1,980 3,418 3,676
Third party hardware 7,644 2,995 11,940 9,537
Total cost of revenues 23,008 15,091 40,174 32,302
Gross profit 19,050 14,479 36,890 27,323
Operating expenses:
Sales and marketing 8,212 6,653 16,107 12,723
General and administrative 2,248 2,470 4,857 4,418
Research and development 5,029 4,161 9,687 8,247
Total operating expenses 15,489 13,284 30,651 25,388
Gain on settlement of escrow -- -- -- 2,734
Income from operations 3,561 1,195 6,239 4,669
Other income:
Interest income 1,067 1,156 2,282 2,278
Dividend income 84 93 303 528
Gain on investments 2,359 556 3,533 581
Other (expenses) income, net (256) 52 (530) (20)
Total other income, net 3,254 1,857 5,588 3,367
Income before provision for
income taxes and discontinued
operations 6,815 3,052 11,827 8,036
Provision for income taxes 1,594 554 2,327 587
Income from continuing
operations 5,221 2,498 9,500 7,449
Income from discontinued
operations -- -- 980 1,445
Net income $5,221 $2,498 $10,480 $8,894
Income from continuing
operations per share:
Basic $0.12 $0.06 $0.21 $0.17
Diluted $0.11 $0.06 $0.20 $0.17
Income from discontinued
operations per share:
Basic -- -- $0.02 $0.04
Diluted -- -- $0.02 $0.03
Net income per share
Basic $0.12 $0.06 $0.23 $0.21
Diluted $0.11 $0.06 $0.22 $0.20
Weighted average shares
used in computation:
Basic 45,094,860 43,231,164 44,944,271 43,191,216
Diluted 47,044,412 45,050,920 46,715,304 44,869,741
ASIAINFO HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands of US$, except share and per share amounts)
As at
June 30, Dec 31,
2008 2007(1)
ASSETS:
Current Assets:
Cash and cash equivalents $163,276 $148,834
Restricted cash 17,202 16,026
Short term investments 37,313 49,735
Accounts receivable, net (net of allowances of 46,219 45,233
$2,590 and $2,427 as of June 30, 2008 and
December 31, 2007, respectively)
Inventories 11,801 8,023
Other receivable 3,888 3,426
Income tax receivable 342 --
Deferred income taxes-current 2,224 1,693
Prepaid expenses and other current assets 6,717 6,526
Total current assets $288,982 $279,496
Long term investment 2,035 1,911
Property and equipment, net 2,498 2,344
Other acquired intangible assets, net 3,740 3,979
Deferred income tax assets- non-current 1,032 1,032
Goodwill 20,698 19,707
Total Assets $318,985 $308,469
LIABILITY AND STOCKHOLDERS EQUITY
Current Liabilities:
Accounts payable 24,346 23,095
Accrued expenses 12,884 12,671
Deferred revenue 35,802 29,093
Accrued employee benefits 16,284 20,724
Other payables 5,136 5,651
Income taxes payable -- 2,310
Other taxes payable 4,668 4,218
Deferred income tax liability-current -- 1,976
Total current liabilities $99,120 $99,738
Unrecognized tax benefits - non-current 1,385 943
Total liabilities $100,505 $100,681
Commitments and contingencies
Stockholders' equity:
Common stock $461 $450
Additional paid-in capital 212,599 207,865
Treasury stock, at cost (3,617) (1,953)
Statutory reserve 14,820 13,874
Accumulated deficit (21,485) (31,018)
Accumulated other comprehensive income 15,702 18,570
Total stockholders' equity $218,480 $207,788
Total Liabilities and Stockholders' Equity $318,985 $308,469
(1) December 31, 2007 balances were extracted from audited financial
statements.
ASIAINFO HOLDINGS, INC.
CONDENSED INFORMATION FOR REPORTABLE SEGMENTS (UNAUDITED)
(Amounts in thousands of US$)
Three Months Ended
June 30, 2008
AsiaInfo Lenovo-
Technologies AsiaInfo Total
Revenues:
Software products and solutions $25,875 $4,138 $30,013
Service 4,042 167 4,209
Third party hardware 6,834 1,002 7,836
Total revenues 36,751 5,307 42,058
Cost of revenues:
Software products and solutions 12,230 1,430 13,660
Service 1,636 68 1,704
Third party hardware 6,492 1,152 7,644
Total cost of revenues 20,358 2,650 23,008
Gross profit 16,393 2,657 19,050
Business unit expenses:
Sales and marketing 5,956 2,256 8,212
General and administrative (1) 101 34 135
Research and development 4,465 564 5,029
Total business unit expenses 10,522 2,854 13,376
Gain on settlement of escrow -- -- --
Contribution profit (loss) $5,871 ($197) $5,674
Corporate general and administration 2,113
Operating profit $3,561
ASIAINFO HOLDINGS, INC.
CONDENSED INFORMATION FOR REPORTABLE SEGMENTS (UNAUDITED)
(Amounts in thousands of US$)
Three Months Ended
June 30, 2007
AsiaInfo Lenovo-
Technologies AsiaInfo Total
Revenues:
Software products and solutions $19,000 $3,406 $22,406
Service 3,950 61 4,011
Third party hardware 2,306 847 3,153
Total revenues 25,256 4,314 29,570
Cost of revenues:
Software products and solutions 8,861 1,255 10,116
Service 1,842 138 1,980
Third party hardware 2,190 805 2,995
Total cost of revenues 12,893 2,198 15,091
Gross profit 12,363 2,116 14,479
Business unit expenses:
Sales and marketing 4,857 1,796 6,653
General and administrative (1) 343 4 347
Research and development 3,809 352 4,161
Total business unit expenses 9,009 2,152 11,161
Gain on settlement of escrow -- -- --
Contribution profit (loss) $3,354 ($36) $3,318
Corporate general and administration 2,123
Operating profit $1,195
ASIAINFO HOLDINGS, INC.
CONDENSED INFORMATION FOR REPORTABLE SEGMENTS (UNAUDITED)
(Amounts in thousands of US$)
Three Months Ended
March 31, 2008
AsiaInfo Lenovo-
Technologies AsiaInfo Total
Revenues:
Software products and solutions $24,452 $2,687 $27,139
Service 3,304 37 3,341
Third party hardware 4,323 203 4,526
Total revenues 32,079 2,927 35,006
Cost of revenues:
Software products and solutions 10,281 875 11,156
Service 1,674 40 1,714
Third party hardware 4,107 189 4,296
Total cost of revenues 16,062 1,104 17,166
Gross profit 16,017 1,823 17,840
Business unit expenses:
Sales and marketing 5,885 2,010 7,895
General and administrative (1) 577 13 590
Research and development 4,110 548 4,658
Total business unit expenses 10,572 2,571 13,143
Gain on settlement of escrow -- -- --
Contribution profit (loss) $5,445 ($748) $4,697
Corporate general and administration 2,019
Operating profit $2,678
(1) General and administrative expenses reported reflect only the direct
controllable expenses of each business unit and do not include
allocation of corporate general and administrative expenses.
The following is a reconciliation of operating segment contribution
profit to income before provision for income taxes and discontinued
operations:
Three months ended (UNAUDITED)
June 30, June 30, March 31,
2008 2007 2008
(Amounts in thousands of US$)
Total contribution profit for
reportable segments 5,674 3,318 4,697 Corporate general and
administrative expenses (2,113) (2,123) (2,019)
Interest income 1,067 1,156 1,215 Gain from sales of short term
investments 2,359 556 1,174
Dividend income 84 93 219
Other expense, net (256) 52 (274) Income before provision for income
taxes and discontinued operations 6,815 3,052 5,012
Second Quarter 2008 Conference Call Details
AsiaInfo management will hold a conference call at 5:00 p.m. Pacific
Time / 8:00 p.m. Eastern Time on July 23, 2008 (8:00 a.m. Beijing/Hong Kong
Time on July 24, 2008). On the call, management will discuss results and
highlights from the quarter and answer questions.
The dial-in numbers for the conference call are as follows:
US Toll Free: +1-866-549-1292
China Toll Free: 8007-011-223
Hong Kong and International: +852-3005-2050
The passcode for the call is 408313.
A replay will be available from 8:00 p.m. Pacific Time on July 23, 2008
until 8:00 p.m. Pacific Time on August 24, 2008 by dialing one of the
following numbers:
U.S Toll Free: +1-866-753-0743
China Toll Free: 8008-697-680
Hong Kong and International: +852-3005-2020
The passcode for the replay is 134936.
Additionally, a live and archived web cast of this call will be
available on the Investor Relations section of the AsiaInfo web site at
http://www.asiainfo.com .
About AsiaInfo Holdings, Inc.
AsiaInfo Holdings, Inc. (Nasdaq: ASIA) is a leading provider of high-
quality software and customer solutions to many of China's largest
enterprises. In addition to providing software and customer solutions to
China's telecom carriers, the Company also offers a wide range of security
products and services to small, medium and large sized Chinese enterprises
across multiple vertical industries.
Organized as a Delaware corporation, AsiaInfo began operations in the
United States in 1993. The Company moved its major operations to China in
1995 and played a significant role in the construction of the national
Internet backbones and provincial access networks for all of China's major
national telecom carriers, including China Telecom, China Mobile, China
Unicom and China Netcom. Since 1998, AsiaInfo has continued to diversify
its product offerings and is now a major provider of enterprise software
solutions in China.
For more information about AsiaInfo, please visit
http://www.asiainfo.com .
Reconciliation of Non-GAAP Measures
This earnings release contains presentations of the following
''Non-GAAP financial measures'' as defined by applicable U.S. securities
regulations. The presentation of these non-GAAP financial measures is not
meant to be considered in isolation or as a substitute for our financial
results prepared in accordance with GAAP. The Non-GAAP financial measures
are provided as additional information to help both management and
investors compare business trends among different reporting periods on a
consistent and more meaningful basis and enhance investors' overall
understanding of the Company's current financial performance and prospects
for the future. These non-GAAP measures have limitations, however, because
they do not include all items of income and expenses that impact the
Company's operations. Management compensates for these limitations by also
considering the Company's GAAP results. The non- GAAP financial measures
the Company uses are not prepared in accordance with, and should not be
considered an alternative to, measurement required by GAAP and should not
be considered measures of the Company's liquidity. Pursuant to relevant
regulatory requirements, we are providing the following reconciliations of
the Non-GAAP financial measures to the nearest comparable GAAP measures.
(1) Net revenue (Non-GAAP)
AsiaInfo's net revenue (Non-GAAP) represents total revenue net of
hardware costs that are passed through to our customers. We believe total
revenues net of hardware costs more accurately reflects our core business,
which is the provision of software solutions and services, and provides
transparency to our investors. It is also the same measure used by our
management to evaluate the competitiveness and development of our business.
Reconciliation of net revenues (Non-GAAP) to GAAP total revenues
2008 Q2
AsiaInfo Lenovo-
Technologies AsiaInfo Total
(in thousands of US dollars)
Net Revenue (Non-GAAP) 30,259 4,155 34,414
Third Party Hardware Costs 6,492 1,152 7,644
Total Revenues 36,751 5,307 42,058
2007 Q2
AsiaInfo Lenovo-
Technologies AsiaInfo Total
(in thousands of US dollars)
Net Revenue (Non-GAAP) 23,066 3,509 26,575
Third Party Hardware Costs 2,190 805 2,995
Total Revenues 25,256 4,314 29,570
2008 Q1
AsiaInfo Lenovo-
Technologies AsiaInfo Total
(in thousands of US dollars)
Net Revenue (Non-GAAP) 27,972 2,738 30,710
Third Party Hardware Costs 4,107 189 4,296
Total Revenues 32,079 2,927 35,006
(2) Net income (Non-GAAP) Net income (Non-GAAP) excludes certain expenses and income, including
share-based compensation expenses, amortization of acquired intangible
assets, after-tax dividend income, gain on discontinued operations, and
gain on settlement of escrow. We believe that this non-GAAP financial
measure provides meaningful supplemental information regarding our
performance by excluding certain expenses and income that may not be
indicative of our operating performance. Management uses the net income
(Non-GAAP) measure to gain a better understanding of the Company's
comparative operating performance from period-to-period and as a basis of
planning and forecasting future periods. Management believes net income
(Non-GAAP) measure, when read in conjunction with the Company's GAAP net
income measure and other GAAP financials, provides useful information to
investors by offering: a) the ability to make more meaningful
period-to-period comparisons of the Company's on-going operating results;
b) the ability to better identify trends in the Company's underlying
business and perform related trend analysis; c) a better understanding of
how management plans and measures the Company's underlying business; and d)
an easier way to compare the Company's most recent results of operations
against investor and analyst financial models.
Reconciliation of net income (Non-GAAP) to GAAP net income
Three Months Ended Six Months Ended 2008 Q1
Jun. 30 Jun.30
2008 2007 2008 2007
(in US dollar thousands)
GAAP net income 5,221 2,498 10,480 8,894 5,259
Adjustments:
-- Share based
compensation 650 912 1,340 1,851 690
-- Amortization of
acquired
intangible
assets 399 523 845 1,075 446
-- Gain on
discontinued
operations -- -- (980) (1,445) (980)
-- Gain on
settlement of
escrow -- -- -- (2,734) --
-- Dividend income,
net of tax (84) (93) (303) (528) (219)
Net income (Non-GAAP) 6,186 3,840 11,382 7,113 5,196
(3) Net Income (Non-GAAP) Per Basic Share. Net income (Non-GAAP) per share is calculated based on net income
(Non-GAAP). Like net income (Non-GAAP), net income (Non-GAAP) per share
excludes certain expenses and income, including share-based compensation
expenses, amortization of acquired intangible assets, after-tax dividend
income, gain on discontinued operations, and gain on settlement of escrow.
Management believes that net income (Non-GAAP) per share, when used in
conjunction with the Company's GAAP net income per share, provides useful
information to investors for the same reasons discussed above regarding net
income (Non-GAAP). In addition, net income (Non-GAAP) per share allows
investors to evaluate the Company's operating performance from period to
period on a per share basis, thus providing a useful basis for assessing
the Company's value on a per share basis.
Reconciliation of net income (Non-GAAP) per share
to GAAP net income per share
Three Months Ended Six Months Ended 2008 Q1
Jun. 30 Jun.30
2008 2007 2008 2007
(in US dollar thousands)
GAAP net income Per
Basic Share 0.12 0.06 0.23 0.21 0.12
Adjustments:
-- Share based
compensation 0.01 0.02 0.03 0.04 0.02
-- Amortization of
acquired
intangible
assets 0.01 0.01 0.02 0.02 0.01
-- Gain on
discontinued -- -- (0.02) (0.03) (0.02)
operations
-- Gain on
settlement
of escrow -- -- -- (0.06) --
-- Dividend income,
net of tax -- -- (0.01) (0.01) (0.01)
Net income
(Non-GAAP) Per 0.14 0.09 0.25 0.17 0.12
Basic Share
Cautionary Note Regarding Forward-Looking Statements
The information contained in this document is as of July 23, 2008.
AsiaInfo assumes no obligation to update any forward-looking statements
contained in this document as a result of new information or future events
or developments.
This document contains forward-looking information about AsiaInfo's
operating results and business prospects that involve substantial risks and
uncertainties. You can identify these statements by the fact that they use
words such as ''anticipate,'' ''estimate,'' ''expect,'' ''project,''
''intend,'' ''plan,'' ''believe,'' and other words and terms of similar
meaning in connection with any discussion of future operating or financial
performance. Among the factors that could cause actual results to differ
materially are the following: government telecommunications infrastructure
and budgetary policy in China; our ability to maintain our concentrated
customer base; the long and variable billing cycles for our products and
services that can cause our revenues and operating results to vary
significantly from period to period; our ability to meet our working
capital requirements; our ability to retain our executive officers; our
ability to attract and retain skilled personnel; potential liabilities we
are exposed to because we extend warranties to our customers; risks
associated with cost overruns and delays; our ability to develop or acquire
new products or enhancements to our software products that are marketable
on a timely and cost-effective basis; our ability to adequately protect our
proprietary rights; the competitive nature of the markets we operate in;
and political and economic policies of the Chinese government. A further
list and description of these risks, uncertainties, and other matters can
be found in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2007, and in our periodic reports on Forms 10-Q and 8-K filed
with the United States Securities and Exchange Commission and available at
http://www.sec.gov .
For investor and media inquiries please contact:
For Investors:
Sheryl Zhang
AsiaInfo Holdings, Inc.
Tel: +86-10-8216-6039
Email: [email protected]
For Media:
Andrew Keller
Ogilvy Financial, Beijing
Tel: +86-10-8520-3112
Email: [email protected]
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