BEIJING, May 16, 2017 /PRNewswire/ -- China Digital TV
Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the
"Company"), a leading provider of cloud platforms, with gaming and
other applications embedded, to PRC digital television and
telecommunication network operators, today announced its unaudited
financial results for the first quarter ended March 31, 2017.
"The first quarter of 2017 was a meaningful quarter in the
development of China Digital TV," commented Mr. Jianhua Zhu, China Digital TV's chief executive
officer. "We are pleased to have achieved increase in both
registered and covered users, expanded geographic footprint, and
further diversified content offerings in our cloud business. The
Company and its Board of Directors are also in the process of
reviewing potential opportunities to acquire new operating
businesses or assets to further enhance and diversify our current
operations."
Mr. Zhenwen Liang, China Digital
TV's chief financial officer, stated, "In the first quarter of
2017, the number of registered and covered users on our cloud
platform increased to 5.5 million and 150 million, respectively.
Furthermore, we expanded our geographic footprint to Anhui province through the partnership with
Anhui Telecom, a branch of China Telecom which covers more than 5.5
million provincial users as of March 31,
2017. Meanwhile, our persistent efforts to diversify content
offerings on our cloud platform continued to bear fruit in the
first quarter of 2017. In addition to a newly launched public
fitness program for square dancing, we have been seeking new
opportunities in innovative cloud VR programs and expect to launch
VR games in the near future. We will also expand our business into
VR museums, VR education, VR videos, and other VR content.
Lastly, during the first quarter we made progress in controlling
costs and reducing overall expenses. We remain committed to driving
further growth of our business and creating additional shareholders
value going forward."
Recent Developments
About Special Cash Dividend
On April 21, 2017, the Board
declared a special cash dividend of US$1.50 per ordinary share. The aggregate amount
of cash dividend to be paid approximates US$90 million. Shareholders of record as of the
close of business on May 31, 2017,
U.S. Eastern Daylight Time, will be eligible to receive the
dividend. The payment date of this special cash dividend is
expected to be on or about June 15,
2017. The funds for the dividend, all of which have been
received by the Company, will come from the proceeds previously
received from the Beijing Super TV sale, after certain foreign
currency exchange procedures are completed. So far, the Company's
offshore account has received a portion of the proceeds in US
dollars equivalent to 100 million Renminbi. The remaining proceeds
are still in the procedures of currency exchange from Renminbi to
US dollars. If the Company is unable to pay the dividend due to
the foreign currency conversion, the Company commits to
update the market with a new special dividend payment date as soon
as possible.
About NYSE Continued Listing Status
As previously disclosed, there has been a significant reduction
in the remaining continuing business operations of the Company post
the sale of Beijing Super TV asset. Additionally as
previously disclosed the payment of the special cash dividend is
expected to reduce both the Company's market capitalization and
shareholders' equity. Accordingly, there is an increased
significant risk of the Company being ineligible for continued
listing on the New York Stock Exchange. The Company is
currently reviewing its continued listing eligibility with the New
York Stock Exchange in light of these issues.
First Quarter 2017
Results[1]
China Digital TV's net revenues decreased by 56.3% to
US$0.7 million from US$1.5 million in the prior year period. The
decline in net revenues was primarily due to the decreased revenues
from system development and system integration, which was partially
offset by an increase in revenues from cloud platform operations in
the first quarter of 2017.
Cost of revenues decreased by 51.6% to US$0.2 million from US$0.4
million in the prior year period. The decline in cost of
revenues was primarily in line with the decline of net revenues in
the first quarter of 2017.
Gross profit in the first quarter of 2017 was
US$0.5 million, as compared with
US$1.1 million in the prior year
period. Gross margin, which is equal to gross profit divided
by net revenues, was 69.7% in the first quarter of 2017, as
compared with 72.7% in the prior year period.
Operating expenses in the first quarter of 2017 decreased
by 35.0% to US$2.3 million from
US$3.6 million in the prior year
period.
- Research and development expenses in the first quarter
of 2017 decreased by 48.1% to US$0.9
million from US$1.8 million in
the prior year period. The decline was mainly due to a decrease in
personnel related expenses resulting from lower headcount, as well
as decreased project expenses.
- Selling and marketing expenses in the first quarter of
2017 decreased by 26.3% to US$0.5
million from US$0.7 million in
the prior year period. The decline was mainly due to a decrease in
personnel related expenses.
- General and administrative expenses in the first quarter
of 2017 decreased by 18.6% to US$0.8
million from US$1.0 million in
the prior year period. The decline was mainly due to a decrease in
personnel related expenses resulting from lower headcount, as well
as decreased rental expenses.
Loss from the operation of continuing
operations in the first quarter of 2017 decreased by
24.5% to US$1.9 million from
US$2.5 million in the prior year
period.
Income tax expenses in the first quarter of 2017 was
US$0.1 million in the first quarter
of 2017, as compared with US$0.05
million in the prior year period.
Net income attributable to China Digital TV Holding
Co., Ltd in the first quarter of 2017 was US$0.2 million, as compared with US$1.2 million in the prior year period. The
decrease was primarily because the discontinued operations were
disposed of in the fourth quarter of 2016.
- Net income from continuing operations
attributable to China Digital TV Holding Co., Ltd was
US$0.5 million, as compared with a
net loss of US$2.5 million in the
prior year period.
- Net loss from discontinued operations
attributable to China Digital TV Holding Co., Ltd was
US$0.4 million, as compared with a
net income of US$3.6 million in the
prior year period.
Non-GAAP net
income[2]
attributable to China Digital TV Holding Co.,
Ltd in the first quarter of 2017 was US$0.6 million, as compared with US$1.2 million in the prior year
period[3].
Balance Sheet
As of March 31, 2017, China
Digital TV had cash and cash equivalents, and term deposits
totaling US$125.5 million.
Conference Call Information
China Digital TV's management will host an earnings conference
call at 8:00 p.m. on Tuesday, May 16, 2017, U.S. Eastern Time
(8:00 a.m. on Wednesday, May 17, 2017, Beijing/Hong Kong Time).
Conference Call Dial-in Information:
United States Toll Free: +1-888-346-8982
International: +1-412-902-4272
Hong Kong: 800-905945
China Toll Free: 4001-201203
Conference Name: China Digital TV Holding Co. Ltd. call.
A replay of the call will be available for one week between
9:00 p.m. on May 16, 2017 and May 23,
2017, U.S. Eastern Time.
Replay Dial-in Information:
United States:
+1-877-344-7529
International: +1-412-317-0088
Replay Access Code: 10106504
Additionally, a live and archived webcast of this call will be
available on the Investor Relations section of China Digital TV's
corporate website at http://ir.chinadtv.cn.
About China Digital TV
Founded in 2004, China Digital TV is a leading provider of cloud
platforms, with gaming and other applications embedded, to PRC
digital television and telecommunication network operators,
enabling them to bring these applications to household television
sets and other mobile devices.
For more information please visit the Investor Relations section
of China Digital TV's website at http://ir.chinadtv.cn.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Such forward-looking
statements are made under the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "may," "should" and
similar expressions. Such forward-looking statements include,
without limitation, statements regarding the outlook and comments
by management in this announcement about trends in the cloud
computing, cable television and related industries in the PRC and
China Digital TV's strategic and operational plans and future
market positions. China Digital TV may also make forward-looking
statements in its periodic reports filed with the Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about China
Digital TV's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from projections contained or implied in any
forward-looking statement, including but not limited to the
following: competition in the cloud computing, cable television and
related industries in the PRC and the impact of such competition on
prices, our ability to implement our business strategies, changes
in technology, the progress of the television digitalization in the
PRC, the structure of the cable television industry or television
viewer preferences, changes in PRC laws, regulations or policies
with respect to the cloud computing, cable television and related
industries, including the extent of non-PRC companies'
participation in such industries, and changes in political,
economic, legal and social conditions in the PRC, including the
government's policies with respect to economic growth, foreign
exchange and foreign investment.
Further information regarding these and other risks and
uncertainties is included in our annual report on Form 20-F and
other documents filed with the Securities and Exchange Commission.
China Digital TV does not assume any obligation to update any
forward-looking statements, which apply only as of the date of this
press release.
For investor and media inquiries, please contact:
China Digital TV Holding Co., Ltd.
Investor Relations
Tel: +86-10-6297-1199 x 9780
Email: ir@chinadtv.cn
ICR, Inc.
Xueli Song
Tel: +1 (646) 328-1950
Email: stv@icrinc.com
[1] Unless otherwise
stated, all financial statement measures stated in this press
release are based on "U.S. GAAP".
[2] Non-GAAP net
income is defined as net income excluding share-based compensation
expenses, and amortization of acquired intangible assets from
business acquisitions.
[3] For more
information on these non-GAAP financial measures, please see the
tables captioned "Reconciliations of non-GAAP measures" set forth
at the end of this release.
China Digital TV
Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive
Income(Loss)
(in thousands of U.S. dollars, except share and per share
data)
|
|
|
|
For the three months ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2017
|
|
2016
|
|
2016
|
Total
revenues
|
|
$
|
675
|
|
$
|
782
|
|
$
|
1,540
|
Taxes and
surcharges
|
|
|
(8)
|
|
|
(4)
|
|
|
(13)
|
Net
revenues
|
|
|
667
|
|
|
778
|
|
|
1,527
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(202)
|
|
|
(588)
|
|
|
(417)
|
|
|
|
465
|
|
|
190
|
|
|
1,110
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
(927)
|
|
|
(1,553)
|
|
|
(1,786)
|
Selling and
marketing expenses
|
|
|
(546)
|
|
|
(898)
|
|
|
(741)
|
General and
administrative expenses
|
|
|
(843)
|
|
|
(488)
|
|
|
(1,036)
|
Total operating
expenses
|
|
|
(2,316)
|
|
|
(2,939)
|
|
|
(3,563)
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations
|
|
|
(1,851)
|
|
|
(2,749)
|
|
|
(2,453)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
641
|
|
|
79
|
|
|
6
|
Other income/(loss),
net
|
|
|
1,509
|
|
|
877
|
|
|
(36)
|
Income/(loss)
before income tax expenses
|
|
|
299
|
|
|
(1,793)
|
|
|
(2,483)
|
|
|
|
(143)
|
|
|
(51)
|
|
|
(47)
|
Income tax
expenses
|
Net income/(loss)
from continuing operations
|
|
|
156
|
|
|
(1,844)
|
|
|
(2,530)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
(Loss)/income from
the operations of discontinued
|
|
|
(389)
|
|
|
5,165
|
|
|
3,640
|
operations, net
of income taxes
|
Gain from disposal of
discontinued operations,
|
|
|
-
|
|
|
43,190
|
|
|
-
|
net of income
taxes
|
(Loss)/income from
discontinued operations, net
of income taxes
|
|
|
(389)
|
|
|
48,355
|
|
|
3,640
|
|
|
|
(233)
|
|
|
46,511
|
|
|
1,110
|
Net
(loss)/income
|
Less: Net
(loss)/income attributable to noncontrolling
interest
|
|
(383)
|
|
|
175
|
|
|
(49)
|
Net income
attributable to China Digital TV Holding
Co., Ltd.
|
$
|
150
|
|
$
|
46,336
|
|
$
|
1,159
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to ordinary shareholders of
China Digital TV Holding Co., Ltd:
|
|
|
|
|
|
|
|
|
Net income/(loss)
from continuing operations
|
|
539
|
|
|
(1,333)
|
|
|
(2,481)
|
Net (loss)/income
from discontinued operations
|
|
(389)
|
|
|
47,669
|
|
|
3,640
|
Net income
attributable to China Digital TV
Holding Co., Ltd.
|
|
$
|
150
|
|
$
|
46,336
|
|
$
|
1,159
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
$
|
(233)
|
|
$
|
46,511
|
|
$
|
1,110
|
Foreign currency
translation adjustment
|
|
|
125
|
|
|
(2,680)
|
|
|
566
|
Reclassification of
foreign currency translation
adjustment
|
|
|
-
|
|
|
(16,685)
|
|
|
-
|
|
|
|
(108)
|
|
|
27,146
|
|
|
1,676
|
Comprehensive
(loss)/income
|
Less: Comprehensive
loss attributable to
noncontrolling interest
|
|
|
(398)
|
|
|
(120)
|
|
|
(37)
|
|
|
$
|
290
|
|
$
|
27,266
|
|
$
|
1,713
|
Comprehensive
income attributable to
|
China
Digital TV Holding Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share:
|
|
|
|
|
|
|
|
|
|
Basic earnings/
(loss) per share attributable to
ordinary shareholders of China Digital TV
Holding Co., Ltd.:
|
Net income/(loss)
from continuing operations
|
|
|
0.01
|
|
|
(0.02)
|
|
|
(0.04)
|
Net (loss)/income
from discontinued operations
|
|
|
(0.01)
|
|
|
0.79
|
|
|
0.06
|
Net income
|
|
$
|
0.00
|
|
$
|
0.77
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings/
(loss) per share attributable to
ordinary shareholders of China Digital TV
Holding Co., Ltd.:
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
from continuing operations
|
|
|
0.01
|
|
|
(0.02)
|
|
|
(0.04)
|
Net (loss)/income
from discontinued operations
|
|
|
(0.01)
|
|
|
0.79
|
|
|
0.06
|
Net income
|
|
$
|
0.00
|
|
$
|
0.77
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in calculating
earnings/(loss) per ordinary share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
60,288,300
|
|
|
60,233,803
|
|
|
60,177,208
|
Diluted
|
|
|
60,689,982
|
|
|
60,233,803
|
|
|
60,177,208
|
China Digital TV
Holding Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars)
|
|
|
ASSETS
|
March
31,
|
|
December
31,
|
2017
|
2016
|
Current
assets:
|
|
Cash and cash
equivalents
|
$
|
123,138
|
|
|
$
117,292
|
Restricted
cash
|
|
-
|
|
|
4,753
|
Term
deposits
|
|
2,357
|
|
|
2,344
|
Notes
receivable
|
|
81
|
|
|
81
|
Accounts receivable,
net
|
|
401
|
|
|
500
|
Inventories
|
|
47
|
|
|
4
|
Prepaid expenses and
other current assets
|
|
1,205
|
|
|
1,611
|
Total current
assets
|
127,229
|
|
|
126,585
|
Property and
equipment, net
|
|
391
|
|
|
421
|
Intangible assets,
net
|
|
242
|
|
|
258
|
Goodwill
|
|
661
|
|
|
655
|
Deferred income tax
assets
|
|
-
|
|
|
52
|
TOTAL
ASSETS
|
128,523
|
|
127,971
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
200
|
|
|
445
|
Accrued expenses and
other current liabilities
|
|
2,029
|
|
|
2,557
|
Deferred revenue and
deferred income - current
|
|
2,266
|
|
|
1,382
|
Income tax
payable
|
|
54
|
|
|
-
|
Government subsidies
- current
|
|
57
|
|
|
81
|
Total current
liabilities
|
|
|
4,606
|
|
4,465
|
Deferred revenue -
non-current
|
|
120
|
|
|
125
|
Government subsidies
- non-current
|
|
313
|
|
|
310
|
Total
liabilities
|
|
|
5,039
|
|
|
4,900
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
30
|
|
|
30
|
Additional paid-in
capital
|
|
|
45,744
|
|
|
45,273
|
Statutory
reserve
|
|
|
88
|
|
|
88
|
Retained
earnings
|
|
|
75,254
|
|
|
75,104
|
Subscription
receivable
|
|
|
(602)
|
|
|
(596)
|
Accumulated other
comprehensive loss
|
|
|
(149)
|
|
|
(289)
|
Total China
Digital TV Holding Co., Ltd. shareholders' equity
|
|
|
120,365
|
|
|
119,610
|
Noncontrolling
interest
|
|
|
3,119
|
|
|
3,461
|
Total
equity
|
|
|
123,484
|
|
|
123,071
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
|
128,523
|
|
|
$
127,971
|
Reconciliation of Non-GAAP Measures
Non-GAAP net income attributable to China Digital TV Holding
Co., Ltd. shareholders excludes share-based compensation expenses,
and amortization of intangible assets acquired from business
acquisitions. The Company believes that the Non-GAAP net income
provides meaningful supplemental information regarding the
Company's performance by excluding certain non-cash expenses that
may not be indicative of its operating performance from a cash flow
perspective. The Company believes that both management and
investors benefit from referring to this additional information in
assessing the Company's performance and when planning and
forecasting future periods.
However, the use of non-GAAP financial measures has material
limitations as an analytical tool. One of the limitations of using
non-GAAP financial measures is that they do not include all items
that impact the Company's net income for the period. In addition,
because non-GAAP financial measures are not measured in the same
manner by all companies, they may not be comparable to other
similar titled measures used by other companies. In light of the
foregoing limitations, you should not consider non-GAAP financial
measure in isolation from or as an alternative to the financial
measure prepared in accordance with U.S. GAAP.
|
|
For the three
months ended
|
|
|
March31,
|
|
December
31,
|
|
March 31,
|
2017
|
2016
|
2016
|
|
|
(in thousands of
U.S. dollars)
|
Net income
attributable to China Digital TV
Holding Co., Ltd. shareholders - GAAP
|
|
$
|
150
|
|
$
|
46,336
|
|
$
|
1,159
|
Share-based
compensation expenses
|
|
|
465
|
|
|
590
|
|
|
10
|
Amortization of
intangible assets from business
acquisitions
|
|
|
10
|
|
|
11
|
|
|
12
|
Net income
attributable to China Digital TV
Holding Co., Ltd. shareholders -
Non-GAAP
|
|
$
|
625
|
|
$
|
46,937
|
|
$
|
1,181
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-digital-tv-announces-unaudited-first-quarter-2017-results-300458881.html
SOURCE China Digital TV Holding Co., Ltd.