UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of
October 2009
Commission File Number: 001-34271
CHANGYOU.COM LIMITED
(Exact name of registrant as
specified in its charter)
East Tower, Jing Yan Building
No. 29 Shijingshan Road, Shijingshan District
Beijing 100043
Peoples Republic of China
(8610) 6272-7777
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F
x
Form 40-F
¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes
¨
No
x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Yes
¨
No
x
Press Release
On October 26, 2009, the registrant announced its unaudited financial results for the quarter ended September 30, 2009. A copy of the press release issued by the registrant regarding the
foregoing is filed herewith as Exhibit 99.1 and is incorporated herein by reference.
Safe Harbor Statement
This report on 6-K contains forward-looking statements. Statements that are not historical facts, including statements about the registrants 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. The registrant cautions 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, the current global financial and credit
markets crisis and its potential impact on the Chinese economy, the slower growth the Chinese economy experienced during the latter half of 2008 and the first nine months of 2009, which could continue through the remainder of 2009, the uncertain
regulatory landscape in the Peoples Republic of China, fluctuations in the registrants quarterly operating results, the registrants historical and possible future losses and limited operating history, and the registrants
reliance on its online game Tian Long Ba Bu as a major revenue source. Further information regarding these and other risks is included in the registrants Registration Statement on Form F-1 originally filed on March 17, 2009 as amended
through March 31, 2009, and other filings with the Securities and Exchange Commission.
Exhibit.
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99.1
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Press release regarding financial results for the quarter ended September 30, 2009.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CHANGYOU.COM LIMITED
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By:
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/
S
/ A
LEX
H
O
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Alex Ho, Chief Financial Officer
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Date: October 28, 2009
EXHIBIT INDEX
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Exhibit
No.
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Description
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99.1
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Press Release regarding financial results for the quarter ended September 30, 2009.
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Exhibit 99.1
Changyou Reports Third Quarter 2009 Results
Total Revenues Reach a Record US$68.7 million, Up 3% Quarter-over-Quarter;
Non-GAAP Net Income Reaches a Record US$41.3 million, Up 3% Quarter-over-Quarter
Beijing, China, October 26, 2009 Changyou.com Limited (Changyou or the Company) (NASDAQ: CYOU), a leading online game
developer and operator in China, today announced its unaudited financial results for the third quarter ended September 30, 2009.
Third Quarter 2009 Highlights
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Total revenues reached a record US$68.7 million, an increase of 3% quarter-over-quarter and 26% year-over-year, within the Companys guidance.
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Net income reached a record US$37.8 million, or US$0.71 per fully diluted ADS
1
. Net income increased by 9% quarter-over-quarter and 18% year-over-year.
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Non-GAAP
2
net income (i.e. excluding share-based compensation expenses) reached a record US$41.3 million, or US$0.77 per fully
diluted ADS, exceeding the high end of the Companys guidance
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Non-GAAP net income increased by 3% quarter-over-quarter and 24% year-over-year.
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Aggregate registered accounts for the Companys games
3
grew 9% quarter-over-quarter and 46% year-over-year to 75.1 million.
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Aggregate active paying accounts (APA) for the Companys games grew 1% quarter-over-quarter and 20% year-over-year to 2.4 million.
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Average revenue per active paying account (ARPU) for the Companys games increased 2% quarter-over-quarter and 7% year-over-year to
RMB190.
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Our solid financial and operational results once again demonstrate the strength of our game development and
operation capabilities, said Mr. Tao Wang, Changyous chief executive officer. Our relentless focus on the in-game user experience will continue to attract new users and extend the lifecycle of our existing games. In addition,
our recent technological acquisitions and newly licensed game will better position us for the future by enabling us to begin in-house development of 3D games and further enriching our game pipeline. In the coming quarters, Changyou will launch a
number of differentiated products with various graphic styles and themes that will firmly establish Changyou in a range of sub-segments outside of 2.5D, a space that we continue to lead and dominate. I am confident that these initiatives will
further augment our brand, solidify our industry leadership position and deliver future success.
Mr. Alex Ho, Changyous
chief financial officer, added, Changyou has delivered solid results by continually setting new financial records and maintaining upward trends in our key operational metrics. Our focus on the in-game experience of our users and the timely
launch of expansion packs based on user feedback continues to increase the momentum of our existing games, creating a highly profitable business with rich cash flows that will enable Changyou to make investments in future technologies and
high-quality games for long-term growth and increased shareholders value.
1
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Each American depositary share (ADS) represents two Class A ordinary shares.
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2
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Explanation of the Companys non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying
Non-GAAP Disclosure and Reconciliations to Unaudited Condensed Consolidated Statements of Operations.
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3
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Comprised of Tian Long Ba Bu (TLBB), Blade Online, and Blade Hero 2
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1
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Third Quarter 2009 Operational Results
Aggregate registered accounts for the Companys games as of September 30, 2009 increased 9% quarter-over-quarter and 46% year-over-year to 75.1
million.
Aggregate APA for the Companys games increased 1% quarter-over-quarter and 20% year-over-year to 2.4 million.
ARPU for the Companys games increased 2% quarter-over-quarter and 7% year-over-year to RMB190, which the Company believes is within a range that is
affordable for the majority of Chinese game players.
Aggregate peak concurrent users (PCU) for the Companys games was
approximately 910,000, a decrease of 4% quarter-over-quarter and an increase of 18% year-over-year.
Third Quarter 2009 Unaudited Financial
Results
Revenues
Total revenues for the third quarter of 2009 increased 3% quarter-over-quarter and 26% year-over-year to US$68.7 million.
Revenues
from game operations for the third quarter of 2009 increased 3% quarter-over-quarter and 29% year-over-year to US$66.9 million. The increases were mainly due to increased popularity of the Companys flagship game, TLBB.
Overseas licensing revenues for the third quarter of 2009 increased 9% quarter-over-quarter and decreased 33% year-over-year to US$1.8 million. The
sequential increase was mainly due to increased momentum of TLBB in Vietnam and Malaysia. The year-over-year decrease was largely the result of greater competition in mature online game markets abroad.
Gross Profit
Gross profit for the
third quarter of 2009 increased 2% quarter-over-quarter and 25% year-over-year to US$64.0 million. Non-GAAP gross profit for the third quarter of 2009 increased 2% quarter-over-quarter and 26% year-over-year to US$64.1 million. Both gross margin and
non-GAAP gross margin in the third quarter of 2009 were 93%, compared to 94% for both in the second quarter of 2009 and the third quarter of 2008.
Operating Expenses
For the third quarter of 2009, total operating expenses decreased 7% quarter-over-quarter and
increased 16% year-over-year to US$21.7 million. Non-GAAP operating expenses totaled US$18.3 million, up 4% quarter-over-quarter and up 5% year-over-year.
Non-GAAP product development expenses increased 8% sequentially and decreased 5% year-over-year to US$4.9 million. The sequential increase was primarily attributable to an increase in salaries and
benefits due to hiring of more game engineers. The year-over-year decrease was primarily the result of a change in the Companys bonus program for management and key engineers, for whom the Company lessened cash bonuses after share-based awards
previously granted increased in value after the Companys IPO.
2
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Non-GAAP sales and marketing expenses decreased 10% sequentially and 15% year-over-year to US$9.2
million. The decreases were primarily a result of savings in marketing and promotional spending due to the Companys optimization of marketing campaigns.
Non-GAAP general and administrative expenses increased 46% sequentially and tripled year-over-year to US$4.1 million. The increases were primarily due to the expansion of back-office headcount and an
increase in legal expenses to enforce the Companys intellectual property rights.
Operating Profit
Operating profit for the third quarter of 2009 increased 7% quarter-over-quarter and 30% year-over-year to US$42.3 million. Operating margin in the third
quarter of 2009 was 62%, up from 59% in both the second quarter of 2009 and the third quarter of 2008. Non-GAAP operating profit for the third quarter of 2009 increased 2% quarter-over-quarter and 36% year-over-year to US$45.8 million. Non-GAAP
operating margin in the third quarter of 2009 was 67%, compared to 68% in the second quarter of 2009 and up from 62% in the third quarter of 2008.
Net Income
For the third quarter of 2009, net income increased 9% quarter-over-quarter and 18% year-over-year to
US$37.8 million. Non-GAAP net income increased 3% quarter-over-quarter and 24% year-over-year to US$41.3 million. Fully diluted earnings per ADS were US$0.71, up from US$0.66 in the second quarter of 2009 and US$0.68 in the third quarter of 2008.
Non-GAAP fully diluted earnings per ADS were US$0.77, up from US$0.75 in the second quarter of 2009 and US$0.70 in the third quarter of 2008. Net margin for the third quarter of 2009 was 55%, up from 52% in the second quarter of 2009 and compared to
59% in the third quarter of 2008. Non-GAAP net margin for the third quarter was 60%, unchanged from the previous quarter and compared to 61% in the third quarter of 2008.
Cash Balances
As of September 30, 2009, Changyou had a net cash balance of
US$312.9 million, up from US$275.9 million as of June 30, 2009. Operating cash flow for the quarter was a net inflow of US$46.2 million.
As described in the Companys IPO prospectus, Changyou declared on April 1, 2009, prior to the Companys IPO, a US$96.8 million cash dividend payable to Sohu.com (Game) Limited, an indirect, wholly-owned subsidiary of Sohu.
Changyou received required PRC approvals in the third quarter of 2009, and expects to pay this dividend in the fourth quarter of 2009.
Other Business Developments
3D Game Engines
The Company licensed two industry leading proprietary 3D game engines,
BigWorld Technology Suite
, from BigWorld, and
CryENGINE 3
, from Crytek. Featuring cutting edge technology, these
top-of-the-line game engines will allow the Company to begin in-house development of high-quality 3D games with good atmospheric visuals, intuitive user interfaces and innovative gameplay.
Newly Licensed Game
The Company
licensed
Zhong Hua Ying Xiong
from Chinese Gamer International Corporation, a leading game developer in Taiwan, and received the exclusive operation rights for the game in China.
Zhong Hua
Ying Xiong
is a 3D martial-arts MMORPG
that
3
of
10
currently ranks as one of the top 3 games in Taiwan. It is the best performing game in Taiwan this year to-date, reaching a PCU of over 150,000 within one month of open beta testing. The game is
based on a popular story from a widely read Hong Kong comic book about the challenges of life for a Chinese expatriate outside his home land.
Business Outlook
Changyou estimates total revenues for the fourth quarter of 2009 to be between US$69.0 million and US$71.0
million.
Changyou estimates non-GAAP net income for the fourth quarter of 2009 to be between US$41.5 million and US$42.5 million.
Changyou estimates non-GAAP fully diluted earnings per ADS for the fourth quarter of 2009 to be between US$0.78 and US$0.80.
Assuming no new grants of share-based awards, Changyou estimates share-based compensation expense for the fourth quarter of 2009 to be between US$3.0
million and US$3.5 million, reducing fully diluted earnings per ADS by US$0.06 to US$0.07.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial information prepared in accordance with United States Generally Accepted Accounting Principles
(GAAP), Changyous management uses non-GAAP measures of cost of revenues, operating expenses, net income and net income per ADS, which are adjusted from results based on GAAP to exclude the compensation cost of share-based awards
granted to employees. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
Changyous management believes that excluding the share-based compensation expense from its non-GAAP financial measure is useful for itself and
investors. Further, the amount of share-based compensation expense cannot be anticipated by management, and these expenses are not built into the Companys annual budgets and quarterly forecasts, which generally will be the basis for
information Changyou provides to analysts and investors as guidance for future operating performance. As share-based compensation expense does not involve any upfront or subsequent cash outflow, Changyou does not factor this in when evaluating and
approving expenditures or when determining the allocation of its resources to its business operations. As a result, the monthly financial results for internal reporting and any performance measure for commissions and bonuses are based on non-GAAP
financial measures that exclude share-based compensation expense.
The non-GAAP financial measures are provided to enhance investors
overall understanding of Changyous current financial performance and prospects for the future. A limitation of using non-GAAP cost of revenues, operating expenses, net income and net income per ADS, excluding share-based compensation expense,
is that the share-based compensation charge has been and will continue to be a significant recurring expense in the Companys business for the foreseeable future. In order to mitigate these limitations the Company has provided specific
information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the
Company has presented.
Notes to Financial Information
Financial information in this press release other than the information indicated as being non-GAAP is extracted from Changyous unaudited interim financial statements prepared in accordance with
GAAP.
4
of
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Safe Harbor Statement
It is currently expected that the Business Outlook will not be updated until the release of Changyous next quarterly earnings announcement; however, Changyou reserves the right to update its
Business Outlook at any time for any reason.
This announcement contains forward-looking statements. Statements that are not historical
facts, including statements about the Companys 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. The Company cautions 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, the current global financial and credit markets crisis and its potential impact on the Chinese economy, the slower growth the Chinese economy experienced during the latter half of 2008 and the first
nine months of 2009, which could continue through the remainder of 2009, the uncertain regulatory landscape in the Peoples Republic of China, fluctuations in Changyous quarterly operating results, Changyous historical and possible
future losses and limited operating history, and the Companys reliance on Tian Long Ba Bu as its major revenue source. Further information regarding these and other risks is included in Changyous Registration Statement on Form F-1
originally filed on March 17, 2009 as amended through March 31, 2009, and other filings with the Securities and Exchange Commission.
Conference Call Information
Changyous management team will host an earnings conference call today at 7 a.m. U.S. Eastern
Daylight Time, October 26, 2009 (or 7 p.m. Beijing/Hong Kong time, October 26, 2009). To listen to the conference call, please use the dial in numbers below:
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US:
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+1-866-314-5050
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Hong Kong:
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+852-3002-1672
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International:
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+1-617-213-8051
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Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the
call. The passcode is CYOU.
A replay of the conference call may be accessed by phone at the following number until
November 2, 2009:
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International:
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+1-617-801-6888
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Passcode:
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58929515
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The conference call will be available on webcast live and available for replay at:
http://www.changyou.com/ir/.
About Changyou
Changyou.com Limiteds (Changyou) (NASDAQ: CYOU) massively multi-player online role-playing games (MMORPG) business began operations as a business unit within Sohu.com Inc.
(NASDAQ: SOHU) in 2003. Changyou was carved out as a separate, stand-alone company in December 2007 and is now a leading developer and operator of online games in China and
5
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completed an initial public offering on April 7, 2009. Changyou currently operates three online games, including the in-house developed Tian Long Ba Bu, one of the most popular online games
in China, and the licensed Blade Online and Blade Hero 2. Changyou has a diversified pipeline of games with various graphic styles and themes, including the licensed Immortal Faith, Legend of the Ancient World, Zhong Hua Ying Xiong, and the in-house
developed Duke of Mount Deer, which received an award as one of Chinas most anticipated online games. Changyous leading technology platform includes an advanced 2.5D graphics engine, a uniform game development platform, effective
anti-cheating and anti-hacking technologies, proprietary cross- networking technology and advanced data protection technology. For more information about Changyou, please visit http://www.changyou.com/en/.
For investor and media inquiries, please contact:
In China:
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Ms. Angie Chang
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Investors Relations Manager
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Changyou.com Limited
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Tel:
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+86 (10) 5956-3358
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E-mail:
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ir@cyou-inc.com
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Ms. Cathy Li
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Ogilvy Financial, Beijing
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Tel:
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+86 (10) 8520-6104
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E-mail:
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cathy.li@ogilvy.com
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In the United States:
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Ms. Jessica Barist Cohen
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Ogilvy Financial, New York
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Tel:
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+1 (646) 460-9989
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E-mail:
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jessica.cohen@ogilvypr.com
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6
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CHANGYOU.COM LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT PER ADS AMOUNTS)
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Three Months Ended
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Nine Months Ended
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Sep. 30, 2009
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Jun. 30, 2009
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Sep. 30, 2008
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Sep. 30, 2009
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Sep. 30, 2008
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Revenues:
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Game operation revenues
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$
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66,880
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$
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64,936
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$
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51,893
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$
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191,162
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$
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138,197
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Overseas licensing revenues
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1,804
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1,660
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2,711
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5,725
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5,258
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Total revenues
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68,684
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66,596
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54,604
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196,887
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143,455
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Cost of revenues
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(includes share-based compensation expense of $169, $90, $nil, $267 and $10, respectively)
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4,714
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3,943
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3,505
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12,098
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10,253
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Gross profit
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63,970
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62,653
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51,099
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184,789
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133,202
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Operating expenses:
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Product development (includes share-based compensation expense of $1,885, $2,989, $1,175, $5,641 and $3,764,
respectively)
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6,788
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7,510
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6,344
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20,465
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16,897
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Sales and marketing (includes share-based compensation expense of $68, $112, $nil, $184 and $8, respectively)
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9,280
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10,381
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10,857
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30,497
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28,968
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General and administrative (includes share-based compensation expense of $1,432, $2,481, $76, $3,980 and $347,
respectively)
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5,614
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5,309
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1, 424
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14,203
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5,800
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Total operating expenses
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21,682
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23,200
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18,625
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65,165
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51,665
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Operating profit
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42,288
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39,453
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32,474
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119,624
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81,537
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Interest expense
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(60
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)
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(104
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)
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(178
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)
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Interest income and foreign currency exchange gain/loss
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966
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871
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377
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2,617
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|
|
637
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Other income (expense)
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34
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|
|
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|
33
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|
|
(291
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)
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Income before income tax expense
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43,288
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40,324
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32,791
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122,170
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|
|
|
81,705
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Income tax (expense) benefit
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|
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(5,494
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)
|
|
|
(5,796
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)
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|
|
707
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|
|
|
(16,344
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)
|
|
|
(2,791
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)
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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Net income
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$
|
37,794
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|
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$
|
34,528
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|
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$
|
32,084
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|
|
$
|
105,826
|
|
|
$
|
78,914
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|
|
|
|
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|
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Basic net income per ADS
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|
$
|
0.74
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|
|
$
|
0.67
|
|
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$
|
0.68
|
|
|
$
|
2.12
|
|
|
$
|
1.66
|
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|
|
|
|
|
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ADSs used in computing basic net income per ADS
|
|
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51,251
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|
|
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51,209
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|
|
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47,500
|
|
|
|
49,987
|
|
|
|
47,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per ADS
|
|
$
|
0.71
|
|
|
$
|
0.66
|
|
|
$
|
0.68
|
|
|
$
|
2.07
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADSs used in computing diluted net income per ADS
|
|
|
53,001
|
|
|
|
52,590
|
|
|
|
47,500
|
|
|
|
51,034
|
|
|
|
47,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
of
10
CHANGYOU.COM LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED,
IN THOUSANDS)
|
|
|
|
|
|
|
|
|
As of Sep. 30, 2009
|
|
As of Dec. 31, 2008
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and bank deposits
|
|
$
|
312,933
|
|
$
|
134,439
|
Accounts receivable, net
|
|
|
3,860
|
|
|
1,019
|
Prepaid and other current assets
|
|
|
12,324
|
|
|
22,187
|
Due from Sohu
|
|
|
378
|
|
|
8,535
|
|
|
|
|
|
|
|
Total current assets
|
|
|
329,495
|
|
|
166,180
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
10,731
|
|
|
9,260
|
Intangible assets, net
|
|
|
92
|
|
|
57
|
Other assets, net
|
|
|
1,996
|
|
|
1,159
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
342,314
|
|
$
|
176,656
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
Receipts in advance and deferred revenue
|
|
$
|
29,181
|
|
$
|
20,703
|
Accrued liabilities
|
|
|
25,189
|
|
|
22,834
|
Tax payables
|
|
|
7,636
|
|
|
9,163
|
Short-term loan from Sohu
|
|
|
|
|
|
8,450
|
Dividend payable
|
|
|
96,800
|
|
|
|
Due to Sohu
|
|
|
4,861
|
|
|
10,812
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
163,667
|
|
|
71,962
|
Total shareholders equity
|
|
|
178,647
|
|
|
104,694
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
|
|
$
|
342,314
|
|
$
|
176,656
|
|
|
|
|
|
|
|
8
of
10
CHANGYOU.COM LIMITED
RECONCILIATIONS TO UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER ADS AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Sep. 30,
2009
|
|
|
Three Months Ended Jun. 30,
2009
|
|
|
Three Months Ended Sep. 30,
2008
|
|
|
|
GAAP
|
|
|
Non-GAAP
Adjustments
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
Non-GAAP
Adjustments
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
Non-GAAP
Adjustments
|
|
|
Non-GAAP
|
|
Total revenues
|
|
$
|
68,684
|
|
|
$
|
|
|
|
$
|
68,684
|
|
|
$
|
66,596
|
|
|
$
|
|
|
|
$
|
66,596
|
|
|
$
|
54,604
|
|
|
$
|
|
|
|
$
|
54,604
|
|
Less: Cost of revenues
|
|
|
4,714
|
|
|
|
(169
|
) (a)
|
|
|
4,545
|
|
|
|
3,943
|
|
|
|
(90
|
) (a)
|
|
|
3,853
|
|
|
|
3,505
|
|
|
|
|
(a)
|
|
|
3,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
|
63,970
|
|
|
$
|
169
|
|
|
$
|
64,139
|
|
|
$
|
62,653
|
|
|
$
|
90
|
|
|
$
|
62,743
|
|
|
$
|
51,099
|
|
|
$
|
|
|
|
$
|
51,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
93
|
%
|
|
|
|
|
|
|
93
|
%
|
|
|
94
|
%
|
|
|
|
|
|
|
94
|
%
|
|
|
94
|
%
|
|
|
|
|
|
|
94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
$
|
21,682
|
|
|
$
|
(3,385
|
) (a)
|
|
$
|
18,297
|
|
|
$
|
23,200
|
|
|
$
|
(5,582
|
) (a)
|
|
$
|
17,618
|
|
|
$
|
18,625
|
|
|
$
|
(1,251
|
) (a)
|
|
$
|
17,374
|
|
Product development expenses
|
|
$
|
6,788
|
|
|
$
|
(1,885
|
) (a)
|
|
$
|
4,903
|
|
|
$
|
7,510
|
|
|
$
|
(2,989
|
) (a)
|
|
$
|
4,521
|
|
|
$
|
6,344
|
|
|
$
|
(1,175
|
) (a)
|
|
$
|
5,169
|
|
Sales and marketing expenses
|
|
$
|
9,280
|
|
|
$
|
(68
|
) (a)
|
|
$
|
9,212
|
|
|
$
|
10,381
|
|
|
$
|
(112
|
) (a)
|
|
$
|
10,269
|
|
|
$
|
10,857
|
|
|
$
|
|
(a)
|
|
$
|
10,857
|
|
General and administrative expenses
|
|
$
|
5,614
|
|
|
$
|
(1,432
|
) (a)
|
|
$
|
4,182
|
|
|
$
|
5,309
|
|
|
$
|
(2,481
|
) (a)
|
|
$
|
2,828
|
|
|
$
|
1,424
|
|
|
$
|
(76
|
) (a)
|
|
$
|
1,348
|
|
Operating profit
|
|
$
|
42,288
|
|
|
$
|
3,554
|
|
|
$
|
45,842
|
|
|
$
|
39,453
|
|
|
$
|
5,672
|
|
|
$
|
45,125
|
|
|
$
|
32,474
|
|
|
$
|
1,251
|
|
|
$
|
33,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
62
|
%
|
|
|
|
|
|
|
67
|
%
|
|
|
59
|
%
|
|
|
|
|
|
|
68
|
%
|
|
|
59
|
%
|
|
|
|
|
|
|
62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
37,794
|
|
|
$
|
3,554
|
|
|
$
|
41,348
|
|
|
$
|
34,528
|
|
|
$
|
5,672
|
|
|
$
|
40,200
|
|
|
$
|
32,084
|
|
|
$
|
1,251
|
|
|
$
|
33,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net margin
|
|
|
55
|
%
|
|
|
|
|
|
|
60
|
%
|
|
|
52
|
%
|
|
|
|
|
|
|
60
|
%
|
|
|
59
|
%
|
|
|
|
|
|
|
61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per ADS
|
|
$
|
0.71
|
|
|
|
|
|
|
$
|
0.77
|
|
|
$
|
0.66
|
|
|
|
|
|
|
$
|
0.75
|
|
|
$
|
0.68
|
|
|
|
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADSs used in computing diluted net income per ADS
|
|
|
53,001
|
|
|
|
|
|
|
|
53,436
|
|
|
|
52,590
|
|
|
|
|
|
|
|
53,251
|
|
|
|
47,500
|
|
|
|
|
|
|
|
47,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
(a)
|
To eliminate share-based compensation expense as measured using the fair value method.
|
CHANGYOU.COM LIMITED
RECONCILIATIONS TO UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER ADS AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended Sep. 30, 2009
|
|
|
Nine Months Ended Sep. 30, 2008
|
|
|
|
GAAP
|
|
|
Non-GAAP
Adjustments
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
Non-GAAP
Adjustments
|
|
|
Non-GAAP
|
|
Total revenues
|
|
$
|
196,887
|
|
|
$
|
|
|
|
$
|
196,887
|
|
|
$
|
143,455
|
|
|
$
|
|
|
|
$
|
143,455
|
|
Less: Cost of revenues
|
|
|
12,098
|
|
|
|
(267
|
) (a)
|
|
|
11,831
|
|
|
|
10,253
|
|
|
|
(10
|
) (a)
|
|
|
10,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
|
184,789
|
|
|
$
|
267
|
|
|
$
|
185,056
|
|
|
$
|
133,202
|
|
|
$
|
10
|
|
|
$
|
133,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
94
|
%
|
|
|
|
|
|
|
94
|
%
|
|
|
93
|
%
|
|
|
|
|
|
|
93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
$
|
65,165
|
|
|
$
|
(9,805
|
) (a)
|
|
$
|
55,360
|
|
|
$
|
51,665
|
|
|
$
|
(4,119
|
) (a)
|
|
$
|
47,546
|
|
Product development expenses
|
|
$
|
20,465
|
|
|
$
|
(5,641
|
) (a)
|
|
$
|
14,824
|
|
|
$
|
16,897
|
|
|
$
|
(3,764
|
) (a)
|
|
$
|
13,133
|
|
Sales and marketing expenses
|
|
$
|
30,497
|
|
|
$
|
(184
|
) (a)
|
|
$
|
30,313
|
|
|
$
|
28,968
|
|
|
$
|
(8
|
) (a)
|
|
$
|
28,960
|
|
General and administrative expenses
|
|
$
|
14,203
|
|
|
$
|
(3,980
|
) (a)
|
|
$
|
10,223
|
|
|
$
|
5,800
|
|
|
$
|
(347
|
) (a)
|
|
$
|
5,453
|
|
Operating profit
|
|
$
|
119,624
|
|
|
$
|
10,072
|
|
|
$
|
129,696
|
|
|
$
|
81,537
|
|
|
$
|
4,129
|
|
|
$
|
85,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
61
|
%
|
|
|
|
|
|
|
66
|
%
|
|
|
57
|
%
|
|
|
|
|
|
|
60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
105,826
|
|
|
$
|
10,072
|
|
|
$
|
115,898
|
|
|
$
|
78,914
|
|
|
$
|
4,129
|
|
|
$
|
83,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net margin
|
|
|
54
|
%
|
|
|
|
|
|
|
59
|
%
|
|
|
55
|
%
|
|
|
|
|
|
|
58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per ADS
|
|
$
|
2.07
|
|
|
|
|
|
|
$
|
2.25
|
|
|
$
|
1.66
|
|
|
|
|
|
|
$
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADSs used in computing diluted net income per ADS
|
|
|
51,034
|
|
|
|
|
|
|
|
51,400
|
|
|
|
47,500
|
|
|
|
|
|
|
|
47,500
|
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Note:
(a)
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To eliminate share-based compensation expense as measured using the fair value method.
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Changyou com (NASDAQ:CYOU)
Historical Stock Chart
From May 2024 to Jun 2024
Changyou com (NASDAQ:CYOU)
Historical Stock Chart
From Jun 2023 to Jun 2024