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SINA.com Reports Third Quarter 2000 Financial Results
Advertising revenues soared 784%; April registered users reached 5 million
SUNNYVALE, Calif. - May 16, 2000 - SINA.com (Nasdaq NM: SINA), a leading Internet media company for Chinese communities worldwide, today announced results for the third fiscal quarter ended March 31, 2000.SINA.com reported consolidated net revenues of $3.6 million for the third fiscal quarter ended March 31, 2000, an increase of 247% compared to pro forma net revenues of $1.1 million for the third quarter of fiscal 1999, and a sequential increase of 23% over net revenues of $3.0 million for the second quarter ended December 31, 1999. Pro forma results combined the historical results of SINA.com and Sinanet.com, a California based Internet company acquired in March 1999.
Advertising revenues for the third quarter ended March 31, 2000 amounted to $3.1 million, an increase of 784% compared to the pro forma advertising revenues of $0.3 million for the third quarter of fiscal 1999, and a sequential increase of 46% over advertising revenues of $2.1 million for the second quarter ended December 31, 1999.
Pro forma net loss for the quarter was $6.7 million or $0.20 per share, excluding non-cash charges for amortization of intangibles and stock-based deferred compensation and stock accretion. This compared to a pro forma net loss of $2.1 million or $0.13 per share for the third quarter of fiscal 1999 and $6.2 million or $0.20 per share last year. Pro forma per share results additionally reflected the mandatory IPO-related preference share conversions.
Actual net loss for the third quarter of fiscal 2000 was $12.1 million or $1.41 per share. This compares to the actual net loss of $1.3 million or $0.26 per share for the third quarter of fiscal 1999.
"We are excited with our first earnings announcement as a public company and we are pleased with the company's financial results," said Zhidong Wang, President and Chief Executive Officer of SINA.com. "SINA.com has been widely recognized as a leader in the global Chinese Internet market. Our strong financial performance, highlighted by the dramatic increase in advertising revenue, is a resounding endorsement of our business model and serves to solidify our leadership in this fast growth market."
By offering a full range of superior Internet services to enhance user loyalty and stickiness, SINA.com's operating traffic continued to experience exponential growth. At the end of April, SINA.com global registered users exceeded 5 million and its monthly average daily page views on its portal network increased to 24 million.
"We have been able to successfully leverage our software platform to enhance user experience for our global portal network as well as e-commerce offerings on our sites," said Daniel Mao, Chief Operating Officer of SINA.com. "We have been focusing our execution on global branding, localized products and services, and sustainable business model. SINA.com's debut on the Nasdaq stock exchange reflects our success in our capabilities in user recruitment, retention and revenue generation."
"With our SINA everywhere strategy, we are now extending our reach into emerging platforms of wireless and broadband, which we believe will contribute significantly to the growth of Internet usage in Greater China," Mao continued. "By our alliances with leading technology and service providers such as Motorola, Ericsson, Siemens and Microsoft, we are spearheading the adoption of these technologies in our targeted markets."
Net revenues for the nine months ended March 31, 2000 were $8.4 million, an increase of 217% over the pro forma net revenues for the nine months ended March 31, 1999. Pro forma net loss for the nine months ended March 31, 2000 was $ 18.2 million or $0.60 per share, excluding non-cash charges for amortization of intangibles and stock-based deferred compensation and stock accretion. This compared to a pro forma net loss of $4.7 million or $0.29 per share for the nine months ended March 31, 1999. Actual net loss for the nine months ended March 31, 2000 was $38.9 million or $4.77 per share comparing to an actual net loss of $2.3 million or $0.47 per share for the same period of fiscal 1999.
About SINA.com
SINA.com is a leading Internet media company for Chinese communities worldwide, offering online news, entertainment, community and commerce services. SINA.com offers a Chinese-language network of four localized Web sites that are produced and updated daily by local teams in China, Hong Kong, Taiwan and North America. To learn more about SINA.com, visit the company's corporate website at
http://www.sina.com/corp/about/index.html and other regional sites at www.sina.com , www.sina.com.cn , www.sina.com.hk , www.sina.com.tw.Cautionary Note Regarding Forward-looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, SINA.com's historical and future losses, limited operating history, uncertain regulatory landscape in the People's Republic of China, fluctuations in quarterly operating results and our reliance on advertising sales for revenue. Further information regarding these and other risks is included in SINA.com's prospectus dated April 12, 2000 and in its other filings with the Securities and Exchange Commission.
Contacts:
Victor Lee
Chief Financial Officer
SINA.com
(408) 548-0000
investor-relations@staff.sina.com
Daniel Mao
Chief Operating Officer
SINA.com
(408) 548-0000