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SINA Reports Fourth Quarter and Fiscal Year 2001 Financial Results
Annual Revenue Growth by 88.3% and Quarterly Pro Forma Net Loss Narrowed by 27.2 %
BEIJING/ SUNNYVALE, Calif., August 14, 2001 - SINA.com (Nasdaq: SINA), a leading Chinese media and Internet services company today announced its financial results for the 4th quarter and fiscal year 2001 ended June 30, 2001.
Financial Highlights
Quarterly pro forma net loss narrowed by 27.2% sequentially Ended fiscal year 2001 with revenues of $26.7 million, an 88.3% improvement over fiscal year 2000's $14.2 million Pro forma gross margin improved from 23.0% for fiscal year 2000 to 44.3% for fiscal year 2001 For the year, SINA reported net revenues of $26.7 million, an increase of 88.3% over net revenues of $14.2 million for fiscal year 2000. Net loss for the year totaled $36.4 million, or $0.91 loss per share, compared to a net loss of $51.0 million or $3.44 loss per share for fiscal year 2000. Pro forma net loss was $20.9 million or $0.52 loss per share for the year, compared to $25.1 million or $0.78 loss per share for fiscal year 2000. Pro forma net loss excludes non-cash charges for amortization of intangibles and stock-based compensation and one-time restructuring charges related to the severance payments.
For the quarter ended June 30, 2001, net revenues were $5.8 million, representing a 5.7% drop from the previous quarter and were flat from the same period for fiscal year 2000. Net loss for the quarter totaled $8.2 million or $0.20 loss per share, compared to a net loss of $9.0 million or $0.22 loss per share for the previous quarter and a net loss of $12.1 million or $0.35 loss per share for the same period of fiscal year 2000. Pro forma net loss for the quarter was $4.1 million or $0.10 loss per share, compared to pro forma net loss of $5.6 million or $0.14 per share for the previous quarter and $6.9 million or $0.18 per share for the same period of fiscal year 2000. Pro forma net loss excludes non-cash charges for amortization of intangibles and stock-based compensation and one-time restructuring charges related to the severance payments.
As of June 30, 2001, SINA's cash and short-term investment balance was $110 million.
According to the audited results by ABC Interactive, an international firm specializing in online traffic audit and whose client base includes many global leading Internet companies, SINA's page views totaled 2.6 billion for the month of June 2001. In addition, SINA's registered users reached 29 million at the end of June 2001.
"With an aim to build SINA to be a more sustainable company with higher quality of services, we have undertaken a comprehensive review of our operations and taken dramatic steps to improve our overall efficiency," said Daniel Mao, Chief Executive Officer of SINA. "In so doing, we have achieved excellent financial results as well as positioned our company for a shortened path to profitability."
Over the quarter, SINA has launched a series of fee or subscription based services including paid e-mail, wireless short messaging services and classified ads. Separately, according to a leading China Internet market research firm WiseCast, in the first half of 2001, SINA was the media of choice for 54 percent of the total online advertiser base in China, far surpassing all its peers.
"While we continue to maintain our lead in advertising revenue over our competitors, we have undertaken a program of initiatives to create multiple revenue streams," said Wang Yan, President of SINA. "With the diversification of our revenue base and emphasis on key vertical channels, we aim to increase the quantity and quality of our revenues."
Fourth Quarter and Fiscal Year 2001 Conference Call Live web cast is scheduled for August 15, 2001 at 8:30 AM Hong Kong time (or 5:30 PM Pacific Time on August 14, 2001) and will be broadcast at www.sina.com/corp/invest
About SINA.com
SINA.com is a leading Chinese media and Internet services company for Chinese communities worldwide, offering on-line news, entertainment, community and e-commerce. A popular destination site for the world's largest population group, 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. As of June 2001, SINA.com enjoyed 2.6 billion page views and 29 million registered users.
To learn more about SINA.com, visit the company's corporate site at http://www.sina.com/corp/, or regional sites at http://www.sina.com, http://www.sina.com.cn, http://sina.com.hk and http://www.sina.com.tw.
Safe Harbor Statement
This company's announcement contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the Securities and Exchange commission on forms 10-K, 10-Q, 8-K, etc., in our annual report to shareholders, in our proxy statements, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, SINA historical and future losses, limited operating history, uncertain regulatory landscape in the People's Republic of China, fluctuations in quarterly operating results, the company's reliance on online advertising sales for a significant portion of its revenues. Further information regarding these and other risks is included in SINA's prospectus, 10K, 10Q and in its other filings with the Securities and Exchange Commission.
Investor Contact:
Grace Lee, Investor Relations Manager
SINA.com
(408) 548-0000
investor-relations@staff.sina.comMedia Contact:
Denise Chen, Marketing Manager
SINA.com
(408) 548-0000
denise@staff.sina.com