BEIJING, Nov. 5, 2012 /PRNewswire-FirstCall/ -- ATA
Inc. ("ATA" or the "Company", Nasdaq: ATAI), a leading provider
of computer-based testing and testing-related services in
China, today announced preliminary
unaudited financial results for its fiscal second quarter ended
September 30, 2012 ("Second Quarter
2013").
Second Quarter 2013 Financial and Operating Highlights
(percentage changes and comparisons are year over year)
- Net revenues of RMB46.8 million
(US$7.4 million), compared to
RMB70.4 million
- Gross profit of RMB21.6 million
(US$3.4 million), compared to
RMB40.1 million
- Loss from operations of RMB11.0
million (US$1.8 million),
compared to income from operations of RMB2.2
million
- Net loss of RMB9.1 million
(US$1.4 million), compared to net
income of RMB1.4 million
- Adjusted net loss excluding share-based compensation expense
and foreign currency exchange gain (non-GAAP) of RMB6.6 million (US$1.1
million), compared to adjusted net income excluding
share-based compensation expense and foreign currency exchange gain
(non-GAAP) of RMB4.6 million
- Basic and diluted losses per ADS excluding share-based
compensation expense and foreign currency exchange gain (non-GAAP)
for Second Quarter 2013 were both RMB0.30 (US$0.04)
- Delivered approximately 1.4 million billable tests, compared to
1.8 million billable tests
Fiscal Year 2013 Outlook
- For the fiscal year ending March 31,
2013 ("Fiscal Year 2013"), the Company is revising its net
revenue guidance to between RMB390.0 million
and RMB410.0 million, from between RMB420.0 million and RMB440.0 million, and its
non-GAAP net income (net income excluding share-based compensation
expense and foreign currency exchange gain/loss) guidance to
between RMB40.0 million and RMB50.0
million, from between RMB70.0 million
and RMB80.0 million. The revisions to the Company's guidance
primarily result from fewer billable exams for the Securities
Association of China ("SAC")
andimplementation costs associated with the new computer-based
National Unified Certified Public Accountants ("CPA") exam, as well
as prolonged contract negotiation and delayed delivery of services
for certain clients and investments in the TOEIC and HR Select
businesses.
- For the quarter ending December 31,
2012 ("Third Quarter 2013"), ATA expects net revenues will
be between RMB170.0 million and RMB200.0
million.
Mr. Kevin Ma, ATA's Chairman and
Chief Executive Officer, stated, "We successfully delivered 1.4
million billable exams in Second Quarter 2013, the majority of
which were for the SAC. We also administered a large-scale internal
assessment exam for the Bank of China ("BOC") in 74 cities across 31 provinces
to help the BOC determine which of its employees would be most
suitable for overseas placement. Our net revenues for the period,
however, came in below the guidance we provided due to lower exam
volumes for the SAC exam caused by a slowdown in the financial
industry, as well as delayed delivery of services for contracted
projects. Our gross margin was affected by a year-over-year
decrease in SAC exam volumes and anticipated lower contributions
from the Company's test preparation and training solutions
business.
"We were very pleased to sign the official contract with the
Chinese Institute of Certified Public Accountants in September that
names ATA the service provider for the computer-based CPA exam in
2012. We continue to work to diversify our sources of revenue from
government-sponsored exams," Mr. Ma commented. "During Second
Quarter 2013, ATA worked to ensure client satisfaction and the
smooth delivery of the CPA exam that took place in October, and we
expect to begin seeing contributions from the CPA exam to our top
line in Third Quarter 2013."
Mr. Ma continued, "During Second Quarter 2013, we also continued
moving forward with our plans to grow ATA's TOEIC and HR Select
businesses. Despite the unexpected decrease in volumes for the SAC
exam, which we anticipate will carry into the remainder of Fiscal
Year 2013, we will continue to push forward with our sales and
marketing efforts for our TOEIC and HR Select businesses in Third
Quarter 2013, which is typically our strongest quarter due to the
timing of campus recruitment projects. ATA expects to begin
realizing a return on these new business efforts in TOEIC and HR
Select in the coming quarters. The Company considers diversifying
its revenue streams from the government-sponsored exams a crucial
component of its long-term strategy. Increasing our TOEIC and HR
Select businesses will provide ATA with greater visibility and
flexibility, while helping to offset the seasonal nature of our
core testing business over time."
Operating Review
In Second Quarter 2013, ATA delivered a total of 1.4 million
billable tests, compared to 1.8 million billable tests delivered in
the prior-year period. The Company had a network of 2,572
authorized test centers throughout China as of September
30, 2012, which it believes to be the largest test center
network of any commercial testing service provider in China. ATA has delivered more than 42.6
million billable tests since it began operations in 1999.
GAAP Results
For Second Quarter 2013, ATA's total net revenues were
RMB46.8 million (US$7.4 million), compared to RMB70.4 million in the prior-year period,
primarily due to lower volumes for the SAC exam and lower
contributions from the Company's test preparation and training
solutions business.
Gross profit for Second Quarter 2013 was RMB21.6 million (US$3.4
million), compared to RMB40.1
million in the same period last fiscal year. Gross
margin was 46.1% in Second Quarter 2013, compared to 56.9% in the
prior-year period, primarily due to a year-over-year decrease in
SAC exam volumes and contributions as a percentage of total
revenues and lower contributions from the Company's test
preparation and training solutions business. ATA also invested in
ways to ensure client satisfaction and smooth delivery of the
Company's new CPA exam.
As a result of weaker demand for the SAC exam and increased
expenditure in sales and marketing efforts for the Company's TOEIC
and HR Select businesses, ATA reported a loss from operations in
Second Quarter 2013 of RMB11.0
million (US$1.8 million),
compared to income from operations of RMB2.2
million in the prior-year period.
Net loss for Second Quarter 2013 was RMB9.1 million (US$1.4
million), compared to net income of RMB1.4 million in the prior-year period. For
Second Quarter 2013, basic and diluted losses per common share were
both RMB0.21 (US$0.03), compared to basic and diluted earnings
per common share of RMB0.00 in the
same period last fiscal year. Basic and diluted losses per ADS were
both RMB0.42 (US$0.06) in Second Quarter 2013, compared to
basic and diluted earnings per ADS of RMB0.00 in the prior-year period.
Non-GAAP Measures
Adjusted net loss for Second Quarter 2013, which excludes
share-based compensation expense and foreign currency exchange gain
(non-GAAP), totaled RMB6.6 million
(US$1.1 million), compared to
adjusted net income excluding share-based compensation expense and
foreign currency exchange gain (non-GAAP) of RMB4.6 million in the prior-year period. Basic
and diluted losses per common share excluding share-based
compensation expense and foreign currency exchange gain (non-GAAP)
for Second Quarter 2013 were both RMB0.15 (US$0.02).
Basic and diluted losses per ADS excluding share-based
compensation expense and foreign currency exchange gain (non-GAAP)
for Second Quarter 2013 were both RMB0.30 (US$0.04),
compared to basic and diluted earnings per ADS excluding
share-based compensation expense and foreign currency exchange gain
(non-GAAP) of RMB0.14 in the same
period last fiscal year.
Please see the note about non-GAAP measures and the
reconciliation table at the end of this press release.
Other Data
The number of weighted average ADSs used to calculate basic and
diluted earnings per ADS for Second Quarter 2013 was 22.5 million.
Each ADS represents two common shares. ATA had 45.0 million common
shares outstanding on September 30,
2012, and 44.7 million common shares outstanding on
September 30, 2011.
Share Repurchase Plan
On November 1, 2012, the Company's
Board of Directors approved a share repurchase plan effective
immediately. Under the plan, ATA is authorized to repurchase up to
US$5.0 million worth of its issued
and outstanding ADSs from time to time in open-market or privately
negotiated transactions, through block trades, pursuant to a 10b5-1
plan (which if adopted, will allow ATA to repurchase its ADSs
during periods in which it may be in possession of material
non-public information), or through other means. This share
repurchase plan will be in effect through March 31, 2013.
ATA's Board of Directors will periodically review the share
repurchase program and may authorize adjustments to the program's
terms and size. The Board may also suspend or discontinue the
repurchase program at any time.
The repurchases will be made subject to restrictions on price,
volume, and timing. The timing and extent of any purchases will
depend upon market conditions, the trading price of its ADS, and
other factors.
Guidance for Fiscal Year 2013 and for Third Quarter
2013
For Third Quarter 2013, ATA expects net revenues to be between
RMB170.0 million and RMB200.0
million.
For Fiscal Year 2013, ATA expects net revenues to be between
RMB390.0 million and RMB410.0 million
and non-GAAP net income to be between RMB40.0 million and RMB50.0 million.
Estimated Financial Results
(unaudited) (RMB in millions)
|
Estimated for the year
ending
March 31, 2013
|
Actual for the year
ended
March 31, 2012
|
Percent
Change
|
Net Revenues
|
390.0 - 410.0
|
352.1
|
10.8% - 16.4%
|
Non-GAAP Net
Income
|
40.0 - 50.0
|
64.5
|
-22.5% -
-38.0%
|
|
Estimated for the
quarter ending
December 31, 2012
|
Actual for the quarter
ended
December 31, 2011
|
Percent
Increase
|
Net Revenues
|
170.0 - 200.0
|
143.6
|
18.4% - 39.3%
|
Mr. Ma concluded, "Volumes of the SAC exam in Second Quarter
2013 continued to be lower than expected, and we anticipate we will
see reduced volumes for the SAC exam over the next few quarters. In
addition, the TOEIC and HR Select businesses and security guard
exams have taken longer than expected to ramp up. For these
reasons, we have lowered our net revenue and non-GAAP net income
guidance for Fiscal Year 2013. Despite these challenges, we remain
focused on working toward our goal of diversifying our business and
reducing ATA's reliance on the less stable government-sponsored
exams. We continue to monitor our progress closely and remain
optimistic about our long-term prospects in the computer-based
testing services industry."
These are ATA's current projections, which are subject to
change. You are cautioned that operating results in Second Quarter
2013 are not necessarily indicative of operating results for any
future periods.
Conference Call and Webcast Information (With Accompanying
Presentation)
ATA will host a conference call at 8 a.m.
Eastern Time on Tuesday, November 6,
2012, to discuss the results of Second Quarter 2013 and the
six months ended September 30, 2012.
Joining ATA Chairman and CEO, Kevin
Ma, will be Walter Wang,
Director and President, and Benson
Tsang, Chief Financial Officer and Chief Accounting
Officer. To participate in the conference call, please use the
following dial-in numbers and passcode about 10 minutes prior to
the scheduled conference call time:
1 866 549
1292
|
(U.S.)
|
+852 3005
2050
|
(International)
|
400 681 6949
|
(Mainland
China)
|
|
|
885522#
|
(Participant
Passcode)
|
A live webcast of the conference call can be accessed at the
investor relations section of ATA's website at
http://www.ata.net.cn and by clicking the following link:
http://www.mzcan.com/cancast/us/index.php?id=usATAI_42&version=e
An accompanying slide presentation in PDF format will also be
made available 30 minutes prior to the conference call on the same
investor relations section of ATA's website. To listen to the
webcast, please visit ATA's website a few minutes prior to the
start of the call to register, download, and install any necessary
audio software.
For those unable to listen during the live webcast, a replay
will be available shortly after the call on the investor relations
section of ATA's website and will remain available for 90 days.
About ATA Inc.
ATA is a leading provider of computer-based testing services in
China. The Company offers
comprehensive services for the creation and delivery of
computer-based tests based on its proprietary testing technologies
and test delivery platform. ATA's computer-based testing services
are used for professional licensure and certification tests in
various industries, including information technology services,
banking, teaching, securities, insurance, and accounting. As
of September 30, 2012, ATA's test
center network comprised 2,572 authorized test centers located
throughout China. The Company
believes that it has the largest test center network of any
commercial computer-based testing service provider in China.
ATA has delivered more than 42.6 million billable tests since
ATA started operations in 1999.
For more information, please visit ATA's website at
http://www.ata.net.cn.
Cautionary Note Regarding Forward-looking Statements
This announcement contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the Private Securities Litigation Reform Act of
1995.
These forward-looking statements can be identified by terms such
as "anticipate," "believe," "could," "estimate," "expect,"
"forecast," "future," "intend," "look forward to," "outlook,"
"plan," "should," "will," and similar terms and include, among
other things, the Company's guidance relating to anticipated
financial and operating results for the Third Quarter 2013 and
Fiscal Year 2013 and statements regarding market demand and trends,
the CPA, SAC, BOC and security guard exams, the potential growth
and success of the Company's businesses, including its TOEIC and HR
Select businesses, and the Company's future results of operations,
cost structure, cash flow and financial position.
The factors that could cause the Company's actual financial and
operating results to differ from what the Company currently
anticipates can include its ability to meet challenges associated
with its rapid expansion, its ability to meet the expectations of
current and future clients, its ability to deploy new test titles,
its ability to win new enterprise contracts, its ability to convert
its existing contracts into actual revenues, the economy of
China, uncertainties with respect
to the China's legal and
regulatory environments, and other factors stated in the Company's
filings with the U.S. Securities and Exchange Commission
("SEC").
The financial information contained in this release should be
read in conjunction with the consolidated financial statements and
related notes included in the Company's annual report on Form 20-F
for its fiscal year ended March 31,
2012, and other filings that ATA has made with the SEC. The
filings are available on the SEC's website at www.sec.gov and
at ATA's website at www.ata.net.cn. For additional information on
the risk factors that could adversely affect the Company's
business, financial condition, results of operations, and
prospects, please see the "Risk Factors" section of the Company's
Form 20-F for the fiscal year ended March
31, 2012.
The forward-looking statements in this release involve known and
unknown risks and uncertainties and are based on current
expectations, assumptions, estimates, and projections about ATA and
the markets in which it operates. The Company undertakes no
obligation to update forward-looking statements, which speak only
of the Company's views as of the date of this release, to reflect
subsequent events or circumstances, or to changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, the Company cannot
assure you that its expectations and assumptions will turn out to
be correct, and investors are cautioned that actual results may
differ materially from the anticipated results.
Currency Convenience Translation
The Company's financial information is stated in Renminbi
("RMB"), the currency of the People's
Republic of China. The translation of RMB amounts for Second
Quarter 2013 ended September 30,
2012, into U.S. dollars are included solely for the
convenience of readers and have been made at the rate of
RMB6.2848 to US$1.00, the noon buying rate as of September 28, 2012, in New York for cable transfers in RMB per U.S.
dollar as set forth in the H.10 weekly statistical release of the
Federal Reserve Board. Such translations should not be construed as
representations that RMB amounts could be converted into U.S.
dollars at that rate or any other rate, or to be the amounts that
would have been reported under U.S. GAAP.
About Non-GAAP Financial Measures
To supplement ATA's consolidated financial information presented
in accordance with U.S. generally accepted accounting principles
("GAAP"), ATA uses the following non-GAAP financial measures: net
income (loss) excluding share-based compensation expense and
foreign currency exchange gain or loss and basic and diluted
earnings (losses) per common share and ADS excluding share-based
compensation expense and foreign currency exchange gain or
loss.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. ATA believes these non-GAAP financial measures provide
meaningful supplemental information about its performance by
excluding share-based compensation expense and foreign currency
exchange gains or losses, which may not be indicative of its
operating performance from a cash perspective.
ATA believes that both management and investors benefit from
these non-GAAP financial measures in assessing its performance and
when planning and forecasting future periods. These non-GAAP
financial measures also facilitate management's internal
comparisons to ATA's historical performance. ATA computes its
non-GAAP financial measures using a consistent method from period
to period. ATA believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision making. A limitation of
using non-GAAP net income (loss) excluding share-based compensation
expense and foreign currency exchange gains or losses and basic and
diluted earnings (losses) per common share and per ADS excluding
share-based compensation expense and foreign currency exchange gain
or loss is that share-based compensation charges and foreign
currency exchange gains or losses have been, and are expected to
continue to be for the foreseeable future, a significant recurring
expense in ATA's business.
Management compensates for these limitations by providing
specific information regarding the GAAP amounts excluded from each
non-GAAP measure. The table captioned "Unaudited Reconciliations of
Non-GAAP Measures to the Most Comparable GAAP Measures" shown at
the end this news release has more details on the reconciliations
between GAAP financial measures that are most directly comparable
to the non-GAAP financial measures used by ATA.
For more information on our company, please contact the
following individuals:
At the
Company
|
Investor
Relations
|
ATA,
Inc.
|
The Equity Group
Inc.
|
Benson Tsang,
CFO
|
Carolyne Yu, Account
Executive
|
+86 10 6518 1122
x5107
|
212-836-9610
|
bensontsang@ata.net.cn
|
+86 10 6587
6435
|
|
cyu@equityny.com
|
|
|
|
Adam Prior, Vice
President
|
|
212-836-9606
|
|
aprior@equityny.com
|
ATA INC. AND
SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
March
31,
|
|
September
30,
|
|
September 30,
|
|
2012
|
|
2012
|
|
2012
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash
|
|
257,167,696
|
|
|
250,646,237
|
|
|
39,881,339
|
Accounts receivable,
net
|
|
81,844,571
|
|
|
65,903,832
|
|
|
10,486,226
|
Inventories
|
|
374,382
|
|
|
786,687
|
|
|
125,173
|
Prepaid expenses and
other current assets
|
|
15,682,735
|
|
|
15,966,807
|
|
|
2,540,543
|
|
|
|
|
|
|
Total current
assets
|
|
355,069,384
|
|
|
333,303,563
|
|
|
53,033,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
59,890,306
|
|
|
64,892,096
|
|
|
10,325,244
|
Goodwill
|
|
23,422,850
|
|
|
23,422,850
|
|
|
3,726,905
|
Intangible assets,
net
|
|
17,597,266
|
|
|
16,340,070
|
|
|
2,599,935
|
Other assets
|
|
4,740,321
|
|
|
4,465,051
|
|
|
710,452
|
|
|
|
|
|
|
Total
assets
|
|
460,720,127
|
|
|
442,423,630
|
|
|
70,395,817
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accrued expenses and other
payables
|
|
63,732,421
|
|
|
54,415,195
|
|
|
8,658,222
|
Deferred revenues
|
|
27,333,088
|
|
|
41,873,615
|
|
|
6,662,681
|
|
|
|
|
|
|
Total current
liabilities
|
|
91,065,509
|
|
|
96,288,810
|
|
|
15,320,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
revenues
|
|
3,100,116
|
|
|
2,618,202
|
|
|
416,592
|
Deferred tax
liabilities
|
|
139,931
|
|
|
139,931
|
|
|
22,265
|
|
|
|
|
|
|
Total
liabilities
|
|
94,305,556
|
|
|
99,046,943
|
|
|
15,759,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common shares
|
|
3,442,803
|
|
|
3,452,317
|
|
|
549,312
|
Additional paid-in
capital
|
|
440,832,695
|
|
|
421,488,674
|
|
|
67,064,771
|
Accumulated other
comprehensive loss
|
|
(26,004,399)
|
|
|
(25,884,591)
|
|
|
(4,118,602)
|
Accumulated deficit
|
|
(51,856,528)
|
|
|
(55,679,713)
|
|
|
(8,859,424)
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
366,414,571
|
|
|
343,376,687
|
|
|
54,636,057
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
460,720,127
|
|
|
442,423,630
|
|
|
70,395,817
|
ATA INC. AND
SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
Three-month Period
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September 30,
|
|
|
2011
|
|
2012
|
|
2012
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
Testing services
|
|
|
|
51,632,693
|
|
|
40,606,394
|
|
|
6,461,048
|
Test preparation and training
solutions
|
|
|
|
13,191,017
|
|
|
2,097,338
|
|
|
333,716
|
Other revenue
|
|
|
|
5,570,344
|
|
|
4,050,052
|
|
|
644,420
|
Total net
revenues
|
|
|
|
70,394,054
|
|
|
46,753,784
|
|
|
7,439,184
|
Cost of
revenues
|
|
|
|
30,341,268
|
|
|
25,182,632
|
|
|
4,006,911
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
40,052,786
|
|
|
21,571,152
|
|
|
3,432,273
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
|
5,662,745
|
|
|
4,406,188
|
|
|
701,086
|
Sales and
marketing
|
|
|
|
13,014,951
|
|
|
14,048,569
|
|
|
2,235,325
|
General and
administrative
|
|
|
|
19,208,267
|
|
|
14,137,759
|
|
|
2,249,516
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
|
37,885,963
|
|
|
32,592,516
|
|
|
5,185,927
|
|
|
|
|
|
|
|
Income (loss)
from operations
|
|
|
|
2,166,823
|
|
|
(11,021,364)
|
|
|
(1,753,654)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
442,266
|
|
|
945,814
|
|
|
150,492
|
Foreign currency
exchange gain (loss), net
|
|
|
|
967,707
|
|
|
351,354
|
|
|
55,905
|
|
|
|
|
|
|
|
Total other
income
|
|
|
|
1,409,973
|
|
|
1,297,168
|
|
|
206,397
|
Income (loss)
before income taxes
|
|
|
|
3,576,796
|
|
|
(9,724,196)
|
|
|
(1,547,257)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
|
|
(2,134,083)
|
|
|
636,736
|
|
|
101,314
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
1,442,713
|
|
|
(9,087,460)
|
|
|
(1,445,943)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income
taxes
|
|
|
|
(1,325,371)
|
|
|
(216,972)
|
|
|
(34,523)
|
Comprehensive
income (loss)
|
|
|
|
117,342
|
|
|
(9,304,432)
|
|
|
(1,480,466)
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
|
|
|
0.00
|
|
|
(0.21)
|
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per common share
share
|
|
|
|
0.00
|
|
|
(0.21)
|
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per ADS
|
|
|
|
0.00
|
|
|
(0.42)
|
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per ADS
|
|
|
|
0.00
|
|
|
(0.42)
|
|
|
(0.06)
|
|
|
|
|
ATA INC. AND
SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
Six-month
Period Ended
|
|
|
September
30,
|
|
September
30,
|
|
September 30,
|
|
|
2011
|
|
2012
|
|
2012
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Testing services
|
|
|
118,453,836
|
|
|
121,775,057
|
|
|
19,376,123
|
Test preparation and training
solutions
|
|
|
15,670,977
|
|
|
4,314,695
|
|
|
686,529
|
Other revenue
|
|
|
13,884,936
|
|
|
8,925,460
|
|
|
1,420,166
|
Total net
revenues
|
|
|
148,009,749
|
|
|
135,015,212
|
|
|
21,482,818
|
Cost of
revenues
|
|
|
62,968,486
|
|
|
66,700,656
|
|
|
10,613,012
|
|
|
|
|
|
|
|
Gross profit
|
|
|
85,041,263
|
|
|
68,314,556
|
|
|
10,869,806
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
10,546,580
|
|
|
10,491,793
|
|
|
1,669,392
|
Sales and
marketing
|
|
|
22,597,339
|
|
|
27,856,119
|
|
|
4,432,300
|
General and
administrative
|
|
|
35,573,485
|
|
|
35,169,328
|
|
|
5,595,934
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
68,717,404
|
|
|
73,517,240
|
|
|
11,697,626
|
|
|
|
|
|
|
|
Income (loss)
from operations
|
|
|
16,323,859
|
|
|
(5,202,684)
|
|
|
(827,820)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,101,823
|
|
|
1,643,833
|
|
|
261,557
|
Foreign currency
exchange gain (loss), net
|
|
|
2,804,548
|
|
|
(117,414)
|
|
|
(18,682)
|
|
|
|
|
|
|
|
Total other
income
|
|
|
3,906,371
|
|
|
1,526,419
|
|
|
242,875
|
Income (loss)
before income taxes
|
|
|
20,230,230
|
|
|
(3,676,265)
|
|
|
(584,945)
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
|
(5,742,787)
|
|
|
(146,920)
|
|
|
(23,377)
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
14,487,443
|
|
|
(3,823,185)
|
|
|
(608,322)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income
taxes
|
|
|
(3,128,093)
|
|
|
119,808
|
|
|
19,063
|
Comprehensive
income (loss)
|
|
|
11,359,350
|
|
|
(3,703,377)
|
|
|
(589,259)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
|
|
0.29
|
|
|
(0.10)
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per common share
share
|
|
|
0.28
|
|
|
(0.10)
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per ADS
|
|
|
0.58
|
|
|
(0.20)
|
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per ADS
|
|
|
0.56
|
|
|
(0.20)
|
|
|
(0.04)
|
UNAUDITED
RECONCILIATIONS OF NON-GAAP MEASURES
|
TO THE MOST
COMPARABLE GAAP MEASURES
|
|
|
Three-month Period
Ended
|
|
Six-month
Period Ended
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
1,442,713
|
|
|
(9,087,460)
|
|
|
14,487,443
|
|
|
(3,823,185)
|
Share-based compensation
expenses
|
|
4,076,292
|
|
|
2,818,383
|
|
|
6,033,304
|
|
|
6,754,395
|
Foreign currency
exchange (gain) loss, net
|
|
(967,707)
|
|
|
(351,354)
|
|
|
(2,804,548)
|
|
|
117,414
|
Non-GAAP net
income (loss)
|
|
4,551,298
|
|
|
(6,620,431)
|
|
|
17,716,199
|
|
|
3,048,624
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings (loss) per
common share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.00
|
|
|
(0.21)
|
|
|
0.29
|
|
|
(0.10)
|
Basic
|
|
|
|
|
|
|
|
Diluted
|
|
0.00
|
|
|
(0.21)
|
|
|
0.28
|
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings (loss)
per common share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.07
|
|
|
(0.15)
|
|
|
0.36
|
|
|
0.07
|
Diluted
|
|
0.07
|
|
|
(0.15)
|
|
|
0.35
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE ATA Inc.