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China Finance Online Reports Unaudited Third Quarter 2008 Results
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BEIJING, Nov. 24 /PRNewswire/ -- China Finance Online Co. Limited (Nasdaq: JRJC), a leading Chinese online financial information and listed company data provider, today announced its financial results for the third quarter ended September 30, 2008:


    Q3 2008 Highlights

                                           Third Quarter
                                         2008         2007     Variance in %
    1)Financial Data:              (in thousands of U.S. dollars,
                                       except per ADS data)
    Net revenues                       $15,228       $7,303          109%
    GAAP net income                      4,772        1,902          151%
    Non-GAAP net income                  6,383        2,983          114%
    GAAP net income per ADS
          Basic                          $0.24        $0.10          140%
          Diluted                        $0.21        $0.08          163%
    Non-GAAP net income per ADS
          Basic                          $0.32        $0.16          100%
          Diluted                        $0.28        $0.13          115%

    2)Operating Data:
    Registered users                10,900,000    8,100,000           35%
    Active paid individual
     subscribers                       115,000       45,500          153%

 

 

 

 

 

 

 

 

 

 

  • In the third quarter of 2008, world financial market experienced unprecedented crisis that changed investors' behaviour globally. Particularly in September, as the credit crisis broke out in epic proportion, Chinese investors' confidence significantly deteriorated and in the first time since the downturn started Chinese investors seemed making direct connections between the global crisis and domestic market. As a result, our customers became more cautious in their investment activities. While our execution remained consistent, we noticed a meaningful change in customers' order pattern since September. Our cautious guidance for Q4 2008 also reflects our belief that current unfavourable macro environment may have lasting impact to our business in the coming quarters.
  • Net revenues reached $15.23 million for Q3 2008, up 109% year-over-year and 4% quarter-over-quarter. This compares to our prior guidance of $15.5-16.5 million. The slightly weaker than expected results was primarily due to extremely difficult business environment in late Q3 2008.
  • Non-GAAP net income, which is defined as net income excluding stock- based compensation expenses, was $6.38 million for Q3 2008, reaching the Company's previous guidance of $6.30 to $7.10 million, up 114% year-over-year. Both non-GAAP basic and diluted net income per share were $0.06, and non-GAAP basic and diluted net income per ADS were $0.32 and $0.28 for Q3 2008, respectively.
  • GAAP net income was $4.77 million for Q3 2008, up 151% compared to $1.90 million for the third quarter of 2007. Basic and diluted GAAP net income per share were $0.05 and $0.04 for Q3 2008, respectively. Basic and diluted GAAP net income per ADS were $0.24 and $0.21 for Q3 2008, respectively.
  • Registered user accounts of jrj.com and stockstar.com grew to 10.90 million, an increase of 400,000 from the previous quarter. Active paid individual subscribers, which refer to individual investors who subscribe for a fee to our products through downloading, via web or by mobile phones, grew to 115,000 up 14% from the previous quarter. As of September 30, 2008, our Hong Kong brokerage operation Daily Growth, which was acquired in November, 2007, had approximately 1,200 customer accounts.

Explanation of the Company's non-GAAP financial measures and the related reconciliations to GAAP financial measures are included in the accompanying "Reconciliation of NON-GAAP measures to Unaudited Condensed Consolidated Statements of Operations", "Non-GAAP Measures" and "Reconciliations from net income to EBITDA and adjusted EBITDA".

Q3 2008 Financial Results

Net Revenues:

For the third quarter of 2008, China Finance Online reported net revenues of $15.23 million, compared to $7.30 million for the same period in 2007, and $14.68 million for the second quarter of 2008, up 109% year-over-year and 4% quarter-over-quarter. Revenues from subscription service fees paid by individual customers were $13.38 million in the third quarter of 2008, representing 88% of net revenues for the quarter. Revenues from mobile value added services were $170,000, representing 1% of net revenues for the quarter. Revenues from subscription service fees paid by institutional customers were $407,000 in the third quarter of 2008, representing 3% of net revenues for the quarter. Revenues from advertising-related business for the quarter contributed $764,000, representing 5% of net revenues for the quarter. Revenues from brokerage-related services, provided by Daily Growth, the Hong Kong securities brokerage firm which was acquired in November 2007, were $496,000 in the third quarter of 2008, representing 3% of net revenue for the quarter. Other revenues were $14,000, less than 1% of net revenues for the quarter.


    Revenues breakdown is summarized in the following table:

                                                 Three months ended
                                      September 30,    June 30,   September 30,
                                           2008          2008         2007
                                           (In thousands of U.S. dollars)
    1)Subscription service fees paid
      by individual customers         13,377  88%    13,133  89%  6,163   84%
    2)Revenues from mobile value
      added services                     170   1%       370   3%    335    5%
    3)Subscription service fees paid
      by institutional customers         407   3%       267   2%    216    3%
    4)Revenues from advertising-
      related business                   764   5%       758   5%    504    7%
    5)Revenues from brokerage-related
      services                           496   3%       121   1%    n/a   n/a
    6)Revenues from others                14  <1%        30  <1%     85    1%
    Total net revenues                15,228 100%    14,679 100%  7,303  100%

Gross Profit:

Gross profit for the quarter was $12.46 million, compared to $6.11 million for the same period in 2007 and $12.58 million for the second quarter of 2008. Gross margin was 82% in the third quarter, compared to 84% in the same period of 2007 and 86% in the second quarter of 2008.

A large portion of costs of revenue are website maintenance expenses, which consist of bandwidth costs, personnel-related expenses, server depreciation expenses, and content expenses for our jrj.com and stockstar.com websites. Website maintenance expenses for the third quarter of 2008 was $1.33 million in the quarter, compared to $634,000 from the third quarter of 2007 and $1.12 million for the previous quarter. As a percentage of net revenue, website maintenance expenses for the third quarter of 2008 was 9% in the quarter, compared to 9% for the third quarter of 2007 and 8% for the previous quarter.

Operating Expenses:

Operating expenses for the third quarter of 2008 totalled $8.56 million compared to $4.67 million for the same period in 2007 and $9.0 million from the previous quarter. The decrease from Q2 2008 is primarily due to the decreased stock-based compensation and the professional fees. Excluding stock-based compensation of $1.61 million, operating expenses was $6.95 million for the third quarter of 2008, compared to $3.59 million for the third quarter of 2007 and $7.03 million for the second quarter of 2008. As a percentage of net revenue for the quarter, operating expenses excluding stock- based compensation was 46%, compared to 49% for the third quarter of 2007 and 48% for the second quarter of 2008.

 

 

 

 

 

 

  • General and administrative expenses for the quarter were $3.42 million, compared to $2.17 million for the same period in 2007 and $4.12 million from the previous quarter. The decrease from the previous quarter is primarily due to the decreased stock-based compensation and the professional fees. Excluding stock-based compensation of $1.54 million, general and administrative expenses was $1.88 million for the third quarter, compared to $1.16 million in the third quarter of 2007 and $2.23 million in the previous quarter. As a percentage of net revenue in the quarter, general and administrative expenses excluding stock- based compensation for the third quarter was 12%, and decreased from 16% for the third quarter of 2007 and 15% for the second quarter of 2008.
  • Sales and marketing expenses for the third quarter were $3.64 million, compared to $1.89 million for the same period in 2007 and $3.64 million from the previous quarter. Excluding stock-based compensation of $61,000, sales and marketing expenses was $3.58 million for the third quarter, compared to $1.85 million in the third quarter of 2007 and $3.57 million in the previous quarter. As a percentage of net revenue in the quarter, sales and marketing expenses excluding stock-based compensation for the third quarter was 24%, and decreased from 25% the same quarter in 2007, and flat from the second quarter of 2008.
  • Product development expenses for the third quarter were $1.49 million, compared to $614,000 for the same period in 2007 and $1.24 million from the previous quarter. The increase is primarily due to the increases in employee compensation as a result of increased headcounts and server depreciation expenses. Excluding stock-based compensation of $11,000, product development expenses were $1.48 million, compared to $575,000 in the third quarter of 2007 and $1.23 million in the previous quarter. As a percentage of net revenue in the quarter, product development expenses excluding stock-based compensation for the third quarter was 10%, increased from 8% in the third quarter of 2007 and the previous quarter.

Income from Operations:

Income from operations for the third quarter of 2008 was $3.90 million, compared to $1.44 million for the same quarter in 2007 and $3.58 million for the second quarter of 2008. Adjusted income from operations (non-GAAP), which is defined as income from operations excluding stock-based compensation expenses of $1.61 million, was $5.51 million for the quarter, compared to $2.52 million for the same quarter in 2007 and $5.54 million for the second quarter of 2008.

Net Income and Non-GAAP Net Income:

Net income was $4.77 million, compared to net income of $1.90 million for the third quarter of 2007 and $4.56 million for the second quarter of 2008. Net income margin was 31% for Q3 2008, compared to 26% for the same period in 2007 and 31% for the second quarter of 2008.

Total income tax benefit for the quarter was $248,000, compared to $176,000 for the same period in 2007 and $88,000 for the previous quarter.

Non-GAAP net income, which is defined as net income excluding stock-based compensation expenses, was $6.38 million for the third quarter of 2008, compared to $2.98 million for the third quarter of 2007, and $6.53 million for the second quarter of 2008. Excluding stock-based compensation expenses, non-GAAP net income margin for the third quarter of 2008 was 42%, compared to non-GAAP net income margin of 41% for the same period in 2007 and 44% for the second quarter of 2008.

As part of the net income for the third quarter, the Company recorded a net foreign exchange gain of $184,000, compared with $41,000 from the third quarter of 2007 and $559,000 from the previous quarter.

Deferred Revenue:

Deferred revenue at the end of the third quarter of 2008, which represents prepaid service fees made by customers for subscription services that have not been rendered as of September 30, 2008, was $35.28 million, with current deferred revenue of $26.63 million and non-current deferred revenue of $8.65 million.

Cash and Cash Equivalents:

Balance of cash and cash equivalents was approximately $82.40 million at the end of the third quarter of 2008, including cash denominated in RMB with an equivalent to $65.81 million and cash denominated in other foreign currencies with an equivalent to $16.59 million.

Cash Flow:

Cash inflow from subscription services provided to individual customers was $14.53 million, compared to $11.06 million for the third quarter of 2007 and $16.72 million for the previous quarter.

Adjusted EBITDA (Non-GAAP):

Adjusted EBITDA (non-GAAP), which is defined as earnings before interest, taxes, depreciation, amortization, other non-operating income and stock-based compensation expenses, was $6.10 million for the third quarter of 2008, compared to $2.78 million in the third quarter of 2007 and $6.0 million in previous quarter.

Other Operating Metrics

As of September 30, 2008, the Company has 10.90 million registered user accounts on its two websites jrj.com and stockstar.com, compared to 10.50 million in the previous quarter, an increase of 400,000 quarter-on-quarter.

Active paid individual subscribers grew to 115,000 at the end of the third quarter 2008, up 14% from 100,600 in the previous quarter.

As of September 30, 2008, our Hong Kong based brokerage service Daily Growth, which was acquired in November 2007, had approximately 1,200 customer accounts.

Outlook for Fourth Quarter 2008

The Company currently expects to generate net revenues in an amount ranging from $14.50 million to $15.0 million for the fourth quarter of 2008, representing a 63% to 69% increase from the corresponding period in 2007. Under the backdrop of the unprecedented market turmoil and the looming global recession, the company believes it is prudent to take a conservative view on business planning and resource deployment. The company does not forecast a meaningful turnaround of the Chinese stock market and assumes still a challenging business environment in the coming quarters. Given the uncertainty ahead, we suggest our investors and analysts take an equally conservative stand in their forecast for Q4 2008 and 2009.

The above forecast reflects the Company's current and preliminary view, which is subject to change. A number of important factors including, but not limited to, fluctuation in the Chinese stock market, could cause the actual results to differ materially from those contained in the above guidance.

Conference Call

China Finance Online's management team will host a conference call at 8:00PM Eastern Standard Time on November 24, 2008 (or 9:00AM November 25, 2008 in the Beijing/HK time zone) following the announcement to discuss detailed operating results.

The conference call will be available on webcast live and replay at: http://tinyurl.com/6qkatg . The call will be archived for 12 months at this website.

The dial-in details for the live conference call: U.S Toll Free Number +1- 877-847-0047, Hong Kong Dial In Number +852-3006-8101, and France Toll Free Number 0800-910-584, Password for all regions: 5512.

A replay of the conference call will be available from approximately 11:00PM Eastern Standard Time on November 24, 2008 (or 12:00PM November 25, 2008 in the Beijing/HK time zone) to 11:00PM Eastern Standard Time on December 01, 2008 (or 12:00PM December 02, 2008 in the Beijing/HK time zone). The dial-in details for the replay: U.S. Toll Free Number +1-877-847-0047, Hong Kong Dial In Number +852- 3006-8101, and France Toll Free Number 0800-910-584, Access code for all regions: 028967.

About China Finance Online Co. Limited

China Finance Online Co. Limited is the market leader in providing online financial and listed company data, information and analytics in China. Through its websites, http://www.jrj.com and http://www.stockstar.com , the company provides individual users with subscription-based service packages that integrate financial and listed company data, information and analytics from multiple sources with features and functions such as data and information search, retrieval, delivery, storage and analysis. These features and functions are delivered through proprietary software available by download, through internet or through mobile handsets. Through its subsidiary, Shenzhen Genius Information Technology Co. Ltd, the company provides financial information database and analytics to institutional customers including domestic securities and investment firms. Through its subsidiary, Daily Growth Investment Company Limited, the company provides securities brokerage services for stocks listed on Hong Kong Stock Exchange.

Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

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 not limited to, our historical and possible future losses, limited operating history, uncertain regulatory landscape in the People's Republic of China, fluctuations in quarterly operating results, our ability to successfully compete against new and existing competitors, our reliance on relationships with Chinese stock exchanges and raw data providers, changes in accounting policies, our ability to successful acquire and integrate businesses and the impact of our investments on our financial results. Further information regarding these and other risks is included in China Finance Online's annual report on Form 20-F for the year ended December 31, 2007, and other filings with the Securities and Exchange Commission. China Finance Online does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Non-GAAP Measures

To supplement the unaudited condensed consolidated financial information presented in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP"), the Company uses non-GAAP measures of income from operations, net income, net income per share and net income per ADS, which are adjusted from results based on GAAP to exclude the stock-based compensation expenses primarily due to the adoption of SFAS 123R, which became effective on January 1, 2006. Adjusted EBITDA (non-GAAP) is defined as earnings before interest, taxes, depreciation, amortization, other non- operating income and stock-based compensation expenses. The non-GAAP financial measures are provided to enhance the investors' overall understanding of the Company's current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared and presented in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and therefore deems it important to provide all of this information to investors.

Reconciliations of the Company's non-GAAP financial measures to unaudited Condensed Consolidated Statements of Operations are set forth after the "Condensed Consolidated Statements of Operations" included in this release.


                         China Finance Online Co. Limited
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                          (In thousands of U.S. dollars)
                                                         Sep. 30    Dec. 31
                                                            2008       2007
    Assets
    Current assets:
          RMB account                                      65,810     51,129
          Foreign currency account                         16,585     23,600
       Cash and cash equivalents                           82,395     74,729
       Short term investments-trading securities              137         --
       Trust bank balances held on behalf of customers      2,220      2,850
       Advance to employees                                 2,657      1,673
       Accounts receivable, net                             4,413      1,491
       Prepaid expenses and other current assets           15,659      2,947
       Deferred tax assets, current                           389      1,130
    Total current assets                                  107,870     84,820
       Cost method investment                               1,480      1,480
       Property and equipment, net                          8,852      5,455
       Acquired intangible assets, net                      1,842      1,938
       Rental deposits                                        594        500
       Goodwill                                            10,770      9,652
       Deferred tax assets, non-current                     1,279         14
       Other deposits                                          25         25
    Total assets                                          132,712    103,884

    Liabilities and shareholders' equity
    Current liabilities:
       Deferred revenue, current                           26,636     20,457
       Accrued expenses and other current liabilities       5,543      6,951
       Amount due to customers for trust bank balances
        held on behalf of customers                         2,220      2,850
       Accounts payable                                       529        764
       Deferred tax liability, current                        132         --
       Income taxes payable                                    --         12
    Total current liabilities                              35,060     31,034
       Deferred tax liability, non-current                    257        352
       Deferred revenue, non-current                        8,646      4,665
    Total liabilities                                      43,963     36,051
    Minority interests                                         --        471
    Total shareholders' equity                             88,749     67,362
    Total liabilities and shareholders' equity            132,712    103,884



                         China Finance Online Co. Limited
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands of U.S. dollars, except per share data)

                                               Three months ended
                                  Sep. 30, 2008   Sep. 30, 2007  Jun. 30, 2008
    Net revenues                       15,228          7,303          14,679
    Cost of revenues                   (2,768)        (1,192)         (2,101)

    Gross profit                       12,460          6,111          12,578
    Operating expenses
    General and administrative
     (includes share-based
     compensation expenses of
     $1,539, $1,005 and $1,888,
     respectively)                     (3,422)        (2,169)         (4,121)
    Sales and marketing
     (includes share-based
     compensation expenses of
     $61, $37 and $66, respectively)   (3,641)        (1,887)         (3,639)
    Product development
     (includes share-based
     compensation expenses of
     $11, $39 and $13, respectively)   (1,493)          (614)         (1,241)

    Total operating expenses           (8,556)        (4,670)         (9,001)
    Income from operations              3,904          1,441           3,577
    Interest income                       515            243             345
    Investment loss                       (76)            --              --
    Other income (loss), net               (3)             1             (11)
    Exchange gain, net                    184             41             559

    Income before income tax
     benefit                            4,524          1,726           4,470
    Income tax benefit                    248            176              88
    Minority interests in net
     income of consolidated
     subsidiary                                                            3


    Net income                          4,772          1,902           4,561
    Income attributable to
     ordinary shareholders              4,772          1,902           4,561
    Income per share
      Basic                             $0.05          $0.02           $0.05
      Diluted                           $0.04          $0.02           $0.04
    Income per ADS
      Basic                             $0.24          $0.10           $0.23
      Diluted                           $0.21          $0.08           $0.20
    Weighted average ordinary
     shares
      Basic                        99,059,916     94,746,984      98,829,766
      Diluted                     113,911,176    112,667,599     114,810,694
    Weighted average ADSs
      Basic                        19,811,983     18,949,397      19,765,953
      Diluted                      22,782,235     22,533,520      22,962,139



                         China Finance Online Co. Limited
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                          (in thousands of U.S. dollars)

                                            Three months ended
                                  Sep. 30, 2008   Sep. 30, 2007  Jun. 30, 2008
    Cash flows from operating
     activities:
    Net income                          4,772          1,902           4,561
    Adjustments to reconcile
     net income to net cash
     provided by operating
     activities:
    Stock-based compensation            1,611          1,081           1,967
    Depreciation and amortization         580            254             455
    Deferred taxes                       (249)          (146)            (94)
    Loss on disposal of property
     and equipment                         16             --              11
    Loss from short term investments       76             --              --
    Minority interests                     --             --              (3)
    Changes in assets and liabilities:
    Accounts receivable                    56             92          (2,643)
    Prepaid expenses and other
     current assets                    (4,446)          (896)         (3,777)
    Advance to employees                 (500)        (1,650)         (1,013)
    Trust bank balances held
     on behalf of customers             2,567             --          (1,585)
    Rental deposits                        (2)           (29)            (34)
    Deferred revenue                       54          4,195           4,214
    Accounts payable                       38             11              29
    Amount due to customers for
     trust bank balances held on
     behalf of customers               (2,567)            --           1,585
    Accrued expenses and other
     current liabilities               (1,312)         1,548             669
    Income taxes payable                   (6)           (33)            (76)
    Net cash provided by operating
     activities                           688          6,329           4,266

    Cash flows from investing
     activities:
    Prepayment of businesses
     acquisition                       (3,583)            --            (628)
    Purchase of property and
     equipment                         (1,325)          (648)         (2,269)
    Net cash used in investing
     activities                        (4,908)          (648)         (2,897)


    Cash flows from financing
     activities:
    Proceeds from stock options
     exercised by employees               194          1,199             312
    Proceeds from exercise of
     options granted to non-employees      42            214              --

    Proceeds from capital Injection        --             --           1,006
    Net cash provided by financing
     activities                           236          1,413           1,318

    Effect of exchange rate changes       451            836             843

    Net increase in cash and
     cash equivalents                  (3,533)         7,930           3,530
    Cash and cash equivalents,
     beginning of quarter              85,928         56,152          82,398
    Cash and cash equivalents,
     end of quarter                    82,395         64,082          85,928



                         China Finance Online Co. Limited
     RECONCILIATIONS OF NON-GAAP MEASURES TO UNAUDITED CONDENSED CONSOLIDATED
                             STATEMENT OF OPERATIONS
                (U.S. Dollar in thousands, except per share data)

                                      Three months ended Sep. 30, 2008
                                Reported                          Adjusted
                                 US GAAP    Adjustment            Non-GAAP

    Net revenues                  15,228                            15,228
    Cost of revenues              (2,768)                           (2,768)

    Gross profit                  12,460                            12,460
    Operating expenses
    General and administrative    (3,422)      1,539    (a)         (1,883)
    Sales and marketing           (3,641)         61    (a)         (3,580)
    Product development           (1,493)         11    (a)         (1,482)

    Total operating expenses      (8,556)      1,611                (6,945)
    Income from operations         3,904       1,611                 5,515
    Interest income                  515                               515
    Investment loss                  (76)                              (76)
    Other loss, net                   (3)                               (3)
    Exchange gain, net               184                               184

    Income (loss) before
     income tax benefit            4,524       1,611                 6,135

    Income tax benefit               248                               248

    Net income                     4,772       1,611                 6,383

    Net income per share
      Basic                        $0.05       $0.01                 $0.06
      Diluted                      $0.04       $0.02                 $0.06

    Net income per ADS
      Basic                        $0.24       $0.08                 $0.32
      Diluted                      $0.21       $0.07                 $0.28

    Weighted average ordinary
     shares
      Basic                   99,059,916                        99,059,916
      Diluted                113,911,176                       113,911,176
    Weighted average ADSs
      Basic                   19,811,983                        19,811,983
      Diluted                 22,782,235                        22,782,235

     (a) Exclude total share-based compensation expense of $1,611.




    Non-GAAP Measures

                 Three months ended Three months ended   Three months ended
                    Sep. 30, 2008     Sep. 30, 2007        Jun. 30, 2008
                  (U.S. Dollar in    (U.S. Dollar in      (U.S. Dollar in
                     thousands)          thousands)          thousands)
                              Non-                 Non-                 Non-
                GAAP  Adjust- GAAP   GAAP  Adjust- GAAP   GAAP  Adjust- GAAP
               Result  ment  Results Result ment  Results Result ment  Results
                        (a)                  (a)                 (a)
    Income
     from
     operations 3,904 1,611  5,515   1,441  1,081  2,522  3,577  1,967  5,544

                 Three months ended  Three months ended  Three months ended
                    Sep. 30, 2008      Sep. 30, 2007       Jun. 30, 2008
                  (U.S. Dollar in     (U.S. Dollar in     (U.S. Dollar in
                     thousands)          thousands)          thousands)
                              Non-                 Non-                 Non-
                GAAP  Adjust- GAAP   GAAP  Adjust- GAAP   GAAP  Adjust- GAAP
               Result  ment  Results Result ment  Results Result ment  Results
                        (a)                  (a)                 (a)
    Net income  4,772  1,611  6,383  1,902  1,081  2,983  4,561  1,967  6,528

    (a) The adjustment is for share-based compensation expenses.



    Reconciliations from net income to EBITDA and adjusted EBITDA

                                                 Three      Three      Three
                                                months     months     months
                                                 ended      ended      ended
                                               Sep. 30,   Sep. 30,   Jun. 30,
                                                  2008      2007       2008
                                                  (U.S. Dollar in thousands)
    Net income                                   4,772      1,902      4,561
    Adjustment
       Interest income                            (515)      (243)      (345)
       Income tax benefit                         (248)      (176)       (88)
       Other income and expenses                  (105)       (42)      (551)
       Depreciation                                498        180        375
       Amortization of intangibles and others       82         74         80
    EBITDA                                       4,484      1,695      4,032
      Share-based compensation                   1,611      1,081      1,967
    Adjusted EBITDA                              6,095      2,776      5,999

SOURCE  China Finance Online Co. Limited
    -0-                             11/24/2008
    /CONTACT:  Investor Relations of China Finance Online Co. Limited, +86-10-
5832-5288, or ir@jrj.com /
    /Web site:  http://www.jrj.com
                http://www.stockstar.com
                http://tinyurl.com/6qkatg /
    (JRJC)

CO:  China Finance Online Co. Limited
ST:  China
IN:  CPR FIN MLM PUB
SU:  CCA ERN






KY
-- CNM023 --
2349 11/24/2008 17:00 EST http://www.prnewswire.com

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