BEIJING, Oct. 25 /PRNewswire-Asia/ -- 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, 2010.
(Logo: http://photos.prnewswire.com/prnh/20090402/CNTH020)
(Logo: http://www.newscom.com/cgi-bin/prnh/20090402/CNTH020)
Third Quarter 2010 Highlights
- Total revenues reached a record US$85.6
million, an increase of 10% quarter-over-quarter and 25%
year-over-year, exceeding the high end of the Company's
guidance.
- Net income reached a record US$45.3
million, or US$0.85 per fully
diluted ADS(1). Net income increased by 8% quarter-over-quarter and
20% year-over-year.
- Non-GAAP(2) net income (i.e. excluding share-based compensation
expenses) reached a record US$47.1
million, or US$0.88 per fully
diluted ADS, exceeding the high end of the Company's guidance.
Non-GAAP net income increased 7% quarter-over-quarter and 14%
year-over-year.
- Aggregate registered accounts for the Company's games(3) grew
7% quarter-over-quarter and 40% year-over-year to 105.2
million.
- Average revenue per active paying account ("ARPU") for the
Company's games increased 16% quarter-over-quarter and 13%
year-over-year to RMB214.
(1) Each American depositary share ("ADS") represents two Class
A ordinary shares.
(2) Explanation of the Company's 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."
(3) Comprises the following games operated in China: Tian Long Bar
Bu ("TLBB"), Blade Online, Blade Hero 2, Da Hua Shui Hu,
Zhong Hua Ying Xiong and Immortal
Faith.
Mr. Tao Wang, Changyou's chief executive officer, commented,
"Our solid financial and operational results in the third quarter
once again demonstrate the merits of using feedback to direct
research and development efforts in our games. TLBB, our
flagship title, continues to be one of the most popular online
games in China primarily due to
our ongoing ability to deliver fresh content that meets the needs
of today's users. With continual investments in employee
recruitment and training and plans for a new corporate headquarter
in place, we have a positive outlook on the industry and look to
bring more proprietary games to market with an expanded team of
talented engineers to reinforce our position as one of the premier
online game brands in China."
Mr. Dewen Chen, president and
chief operating officer, continued, "To more accurately serve the
needs of different online game players, we are licensing and
launching games with differentiated content that complement our
portfolio. Immortal Faith, our first 2D mythical game,
formally graduated from our pipeline on September 9th and is attracting a new demographic
to our platform. We also plan to launch a 2D cartoon-style
turn-based game later this year that is licensed from a local game
studio to further diversify our product offering and deliver
incremental growth to our user base."
Mr. Alex Ho, Changyou's chief
financial officer, added, "Our record third quarter financial
performance demonstrates our continued ability to attract new users
to our core games. With a debt-free balance sheet and strong
cash flows, we have sufficient capital to sustain investments in
our R&D teams and physical facilities as we push the
development of our existing and pipeline games and position
ourselves for future growth."
Third Quarter 2010 Operational Results
Aggregate registered accounts for the Company's games as of
September 30, 2010 increased 7%
quarter-over-quarter and 40% year-over-year to 105.2 million.
Aggregate peak concurrent users ("PCU") for the Company's games
was approximately 980,000, a decrease of 14% quarter-over-quarter
and an increase of 14% year-over-year.
Aggregate active paying accounts ("APA") for the Company's games
was approximately 2.61 million, a decrease of 6%
quarter-over-quarter and an increase of 9% year-over-year.
ARPU for the Company's games increased 16% quarter-over-quarter
and 13% year-over-year to RMB214,
which is consistent with the Company's intention to have ARPU
within a range that keeps the Company's games affordable for the
majority of game players in China.
Third Quarter 2010 Unaudited Financial
Results
Revenues
Total revenues for the third quarter of 2010 increased 10%
quarter-over-quarter and 25% year-over-year to US$85.6 million.
Revenues from game operations for the third quarter of 2010
increased 11% quarter-over-quarter and 25% year-over-year to
US$83.6 million. The increases were
mainly due to the continued popularity of TLBB in China and higher spending from game
players.
Overseas licensing revenues for the third quarter of 2010
decreased 7% quarter-over-quarter and increased 11% year-over-year
to US$2.0 million. The sequential
decrease was mainly the result of greater competition in mature
online game markets abroad. The year-over-year increase was largely
due to increased momentum of TLBB in Vietnam and Malaysia.
Gross Profit
Gross profit for the third quarter of 2010 increased 9%
quarter-over-quarter and 21% year-over-year to US$77.1 million. Gross margin in the third
quarter of 2010 was 90%, compared to 91% in the second quarter of
2010 and 93% in the third quarter of 2009. Non-GAAP gross profit
for the third quarter of 2010 increased 9% quarter-over-quarter and
20% year-over-year to US$77.1
million. Non-GAAP gross margin in the third quarter of 2010
was 90%, compared to 91% in the second quarter of 2010 and 93% in
the third quarter of 2009.
Operating Expenses
For the third quarter of 2010, total operating expenses
decreased 1% quarter-over-quarter and increased 9% year-over-year
to US$23.7 million. Non-GAAP
operating expenses were essentially flat quarter-over-quarter and
increased 20% year-over-year to US$21.9
million.
GAAP product development expenses increased 32%
quarter-over-quarter and 51% year-over-year to US$10.2 million. Non-GAAP product development
expenses increased 38% quarter-over-quarter and 90% year-over-year
to US$9.3 million. The increases were
primarily attributable to an increase in salaries and benefits due
to the hiring of more game engineers and license fees for the use
of literary works for the development of new games in the third
quarter of 2010.
GAAP sales and marketing expenses decreased 17%
quarter-over-quarter and increased 5% year-over-year to
US$9.7 million. Non-GAAP sales
and marketing expenses decreased 17% quarter-over-quarter and
increased 5% year-over-year to US$9.7
million. The sequential decrease was primarily due to higher
marketing and promotional spending in the second quarter of 2010
for the launch of Zhong Hua Ying
Xiong and a major expansion pack for TLBB. The
year-over-year increase was mainly due to marketing costs for the
launch of more games and the hiring of more sales and marketing
professionals in the third quarter of 2010.
GAAP general and administrative expenses decreased 18%
quarter-over-quarter and 34% year-over-year to US$3.7 million. Non-GAAP general and
administrative expenses decreased 20% quarter-over-quarter and 30%
year-over-year to US$2.9 million. The
decreases were primarily due to savings in professional fees.
Operating Profit
Operating profit for the third quarter of 2010 increased 14%
quarter-over-quarter and 26% year-over-year to US$53.4 million. Operating margin in the third
quarter of 2010 was 62%, up from 60% in the second quarter of 2010
and unchanged from the third quarter of 2009. Non-GAAP operating
profit for the third quarter of 2010 increased 13%
quarter-over-quarter and 20% year-over-year to US$55.2 million. Non-GAAP operating margin in the
third quarter of 2010 was 64%, which compares to 63% in the second
quarter of 2010 and 67% in the third quarter of 2009.
Net Income
For the third quarter of 2010, net income increased 8%
quarter-over-quarter and 20% year-over-year to US$45.3 million. Non-GAAP net income increased 7%
quarter-over-quarter and 14% year-over-year to US$47.1 million. Fully diluted earnings per ADS
were US$0.85, up from US$0.79 in the second quarter of 2010 and
US$0.71 in the third quarter of 2009.
Non-GAAP fully diluted earnings per ADS were US$0.88, up from US$
0.82 in the second quarter of 2010 and US$0.77 in the third quarter of 2009. Net margin
for the third quarter of 2010 was 53%, compared to 54% in the
second quarter of 2010 and 55% in the third quarter of 2009.
Non-GAAP net margin for the third quarter of 2010 was 55%, compared
to 57% in the second quarter of 2010 and 60% in the third quarter
of 2009.
Cash Balances
As of September 30, 2010, Changyou
had a net cash balance of US$292.0
million, compared to US$294.5
million as of June 30, 2010.
Operating cash flow for the quarter was a net inflow of
US$55.5 million.
Other Business Developments
Open Beta Testing of Immortal
Faith
On September 9, 2010, Changyou
began open beta testing of Immortal Faith, the Company's first 2D
mythical massively multi-player online role-playing game
("MMORPG"). Set against a backdrop of a number of ancient Chinese
myths and folk tales, the game allows players to battle demons and
assist deities in the conquest of various fairy kingdoms found in
Chinese mythology. The game allows users to experience the life
journey of becoming immortal by participating in the specially
designed fighting modes and utilizing the game's featured dynamic
fighting moves.
Purchase of New Office Premises in Beijing
In August of 2010, the Company signed an agreement with a
property developer to construct a building in Beijing with total office and ancillary areas
of approximately 56,200 square meters. The total cash consideration
for the purchase is approximately US$146
million and is to be paid based on the progress of the
project. The building is expected to serve as Changyou's
headquarters and accommodate the growth of the Company's team of
game engineers and operational staff for the next few years. Under
the agreement, the developer is to start construction in the first
half of 2011, subject to the attainment of necessary permits, and
is expected to complete construction and deliver the building to
Changyou by the end of 2012.
Business Outlook
For the fourth quarter of 2010, Changyou expects:
- Total revenues to be between US$86.0
million and US$89.0 million.
- Non-GAAP net income to be between US$46.5 million and US$48.0 million.
- Non-GAAP fully diluted earnings per ADS to be between
US$0.87 and US$0.90.
- Assuming no new grants of share-based awards, share-based
compensation expense to be between US$1.5
million and US$2.0 million, reducing fully diluted earnings
per ADS by US$0.03 to US$0.04.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial information
prepared in accordance with United States Generally Accepted
Accounting Principles ("GAAP"), Changyou's 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.
Changyou's management believes that excluding the share-based
compensation expense from its non-GAAP financial measures 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 Company's 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, in general, 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 Changyou's 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 Company's 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 derived from Changyou's
unaudited financial statements prepared in accordance with
GAAP.
Safe Harbor Statement
It is currently expected that the Business Outlook will not be
updated until the release of Changyou's 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 Company's 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 in 2009, which could return at
some point in the future, the uncertain regulatory landscape in
the People's Republic of China,
fluctuations in Changyou's quarterly operating results, Changyou's
historical and possible future losses and limited operating
history, and the Company's reliance on Tian
Long Ba Bu as its major revenue source. Further information
regarding these and other risks is included in Changyou's Annual
Report on Form 20-F filed on February 26,
2010, and other filings with the Securities and Exchange
Commission.
Conference Call Information
Changyou's management team will host an earnings conference call
today at 7 a.m. U.S. Eastern Time,
October 25, 2010 (7 p.m. Beijing/Hong
Kong time, October 25,
2010).
The dial-in details for the live conference call are:
US:
|
+1-800-573-4842
|
|
Hong Kong:
|
+852-3002-1672
|
|
International:
|
+1-617-224-4327
|
|
Passcode:
|
CYOU
|
|
|
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call at 10:00
a.m. Eastern Time on October 25
through November 1, 2010. The dial-in details for the
telephone replay are:
International:
|
+1-617-801-6888
|
|
Passcode:
|
56639589
|
|
|
|
The live webcast and archive of the conference call will be
available on the Investor Relations section of Changyou's website
at: http://www.changyou.com/ir/.
About Changyou
Changyou.com Limited's massively multi-player online
role-playing games business began operations as a business unit
within Sohu.com Inc. (NASDAQ: SOHU) in 2003. Changyou, a leading
developer and operator of online games in China, was carved out as a separate,
stand-alone company in December 2007,
and completed an initial public offering on April 7, 2009. Changyou currently operates six
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, Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong and Immortal Faith.
Changyou has a diversified pipeline of games with various graphic
styles and themes, including the in-house developed Duke of Mount
Deer, which received an award as one of China's most anticipated online games.
Changyou's advanced technology platform includes advanced 2.5D and
3D graphics engines, 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:
|
|
|
|
Ms. Angie Chang
|
|
Investors Relations
Manager
|
|
Changyou.com Limited
|
|
Tel: +86-10-6861-3688
|
|
Email:
ir@cyou-inc.com
|
|
|
|
In the United
States:
|
|
|
|
Mr. Jeff Bloker
|
|
Christensen
|
|
Tel: +1-480-614-3003
|
|
Email:
jbloker@ChristensenIR.com
|
|
|
CHANGYOU.COM
LIMITED
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED,
IN THOUSANDS EXCEPT PER ADS
AMOUNTS)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
Sep. 30,
2010
|
|
Jun. 30,
2010
|
|
Sep. 30,
2009
|
|
Sep. 30,
2010
|
|
Sep. 30,
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Game operation
revenues
|
$
|
83,628
|
$
|
75,572
|
$
|
66,880
|
$
|
229,402
|
$
|
191,162
|
|
Overseas licensing
revenues
|
|
1,996
|
|
2,149
|
|
1,804
|
|
6,015
|
|
5,725
|
|
Total revenues
|
|
85,624
|
|
77,721
|
|
68,684
|
|
235,417
|
|
196,887
|
|
Cost of revenues
(includes share-based
compensation expense of $40, $43,
$169, $150 and
$267, respectively)
|
|
8,537
|
|
7,008
|
|
4,714
|
|
20,929
|
|
12,098
|
|
Gross profit
|
|
77,087
|
|
70,713
|
|
63,970
|
|
214,488
|
|
184,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Product
development (includes share-based compensation expense
of $922, $1,022, $1,885,
$3,450 and $5,641, respectively)
|
|
10,222
|
|
7,755
|
|
6,788
|
|
24,912
|
|
20,465
|
|
Sales and
marketing (includes share-based compensation expense of
$8, $41, $68,
$124 and
$184,
respectively)
|
|
9,711
|
|
11,720
|
|
9,280
|
|
31,130
|
|
30,497
|
|
General and
administrative (includes share-based compensation
expense of $819, $874,
$1,432, $3,015
and $3,980,
respectively)
|
|
3,728
|
|
4,527
|
|
5,614
|
|
13,040
|
|
14,203
|
|
Total operating
expenses
|
|
23,661
|
|
24,002
|
|
21,682
|
|
69,082
|
|
65,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
53,426
|
|
46,711
|
|
42,288
|
|
145,406
|
|
119,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
and exchange
difference
|
|
1,043
|
|
803
|
|
966
|
|
2,661
|
|
2,513
|
|
Other
(expense)/income
|
|
(713)
|
|
381
|
|
34
|
|
(431)
|
|
33
|
|
Income before income tax
expense
|
|
53,756
|
|
47,895
|
|
43,288
|
|
147,636
|
|
122,170
|
|
Income tax expense
|
|
(8,464)
|
|
(5,804)
|
|
(5,494)
|
|
(20,547)
|
|
(16,344)
|
|
Net income
|
$
|
45,292
|
$
|
42,091
|
$
|
37,794
|
$
|
127,089
|
$
|
105,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
ADS
|
$
|
0.87
|
$
|
0.81
|
$
|
0.74
|
$
|
2.45
|
$
|
2.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADSs used in
computing basic net income per ADS
|
|
52,034
|
|
51,917
|
|
51,251
|
|
51,848
|
|
49,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
ADS
|
$
|
0.85
|
$
|
0.79
|
$
|
0.71
|
$
|
2.39
|
$
|
2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADSs used in
computing diluted net income per ADS
|
|
53,135
|
|
53,075
|
|
53,001
|
|
53,099
|
|
51,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANGYOU.COM
LIMITED
CONDENSED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED,
IN THOUSANDS)
|
|
|
|
As
of Sep. 30, 2010
|
|
As of Dec.
31, 2009
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and bank
deposits
|
$
|
292,026
|
$
|
226,901
|
|
Accounts
receivable, net
|
|
2,495
|
|
3,395
|
|
Prepaid and other current
assets
|
|
12,320
|
|
4,720
|
|
Due from Sohu
|
|
413
|
|
340
|
|
Total current
assets
|
|
307,254
|
|
235,356
|
|
Non-current
assets:
|
|
|
|
|
|
Fixed assets, net
|
|
53,841
|
|
49,178
|
|
Goodwill
|
|
10,258
|
|
-
|
|
Intangible assets,
net
|
|
8,632
|
|
3,221
|
|
Interests in associated
companies
|
|
4,618
|
|
-
|
|
Deferred tax asset
|
|
1,750
|
|
1,383
|
|
Other assets, net
|
|
59,533
|
|
253
|
|
TOTAL ASSETS
|
$
|
445,886
|
$
|
289,391
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Receipts in advance and deferred
revenue
|
$
|
38,039
|
$
|
30,244
|
|
Accrued liabilities
|
|
34,125
|
|
26,618
|
|
Tax payables
|
|
7,790
|
|
6,628
|
|
Deferred tax
liabilities
|
|
245
|
|
-
|
|
Due to Sohu
|
|
5,120
|
|
5,046
|
|
Total liabilities
|
|
85,319
|
|
68,536
|
|
Total
shareholders'
equity
|
|
360,567
|
|
220,855
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$
|
445,886
|
$
|
289,391
|
|
|
|
|
|
|
|
|
CHANGYOU.COM
LIMITED
RECONCILIATIONS TO
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(IN
THOUSANDS EXCEPT PER ADS AMOUNTS)
|
|
|
|
Three Months
Ended Sep. 30, 2010
|
|
|
Three Months
Ended Jun. 30, 2010
|
|
|
Three Months
Ended Sep. 30, 2009
|
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
Total revenues
|
$
|
85,624
|
$
|
-
|
$
|
85,624
|
|
$
|
77,721
|
$
|
-
|
$
|
77,721
|
|
$
|
68,684
|
$
|
-
|
$
|
68,684
|
|
Less: Cost of
revenues
|
|
8,537
|
|
(40)
|
(a)
|
8,497
|
|
|
7,008
|
|
(43)
|
(a)
|
6,965
|
|
|
4,714
|
|
(169)
|
(a)
|
4,545
|
|
Gross profit
|
$
|
77,087
|
$
|
40
|
$
|
77,127
|
|
$
|
70,713
|
$
|
43
|
$
|
70,756
|
|
$
|
63,970
|
$
|
169
|
$
|
64,139
|
|
Gross margin
|
|
90%
|
|
|
|
90%
|
|
|
91%
|
|
|
|
91%
|
|
|
93%
|
|
|
|
93%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
$
|
23,661
|
$
|
(1,749)
|
(a) $
|
21,912
|
|
$
|
24,002
|
$
|
(1,937)
|
(a) $
|
22,065
|
|
$
|
21,682
|
$
|
(3,385)
|
(a) $
|
18,297
|
|
Product development
expenses
|
$
|
10,222
|
$
|
(922)
|
(a) $
|
9,300
|
|
$
|
7,755
|
$
|
(1,022)
|
(a) $
|
6,733
|
|
$
|
6,788
|
$
|
(1,885)
|
(a) $
|
4,903
|
|
Sales and marketing
expenses
|
$
|
9,711
|
$
|
(8)
|
(a) $
|
9,703
|
|
$
|
11,720
|
$
|
(41)
|
(a) $
|
11,679
|
|
$
|
9,280
|
$
|
(68)
|
(a) $
|
9,212
|
|
General and
administrative expenses
|
$
|
3,728
|
$
|
(819)
|
(a) $
|
2,909
|
|
$
|
4,527
|
$
|
(874)
|
(a) $
|
3,653
|
|
$
|
5,614
|
$
|
(1,432)
|
(a) $
|
4,182
|
|
Operating profit
|
$
|
53,426
|
$
|
1,789
|
$
|
55,215
|
|
$
|
46,711
|
$
|
1,980
|
$
|
48,691
|
|
$
|
42,288
|
$
|
3,554
|
$
|
45,842
|
|
Operating margin
|
|
62%
|
|
|
|
64%
|
|
|
60%
|
|
|
|
63%
|
|
|
62%
|
|
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
45,292
|
$
|
1,789
|
$
|
47,081
|
|
$
|
42,091
|
$
|
1,980
|
$
|
44,071
|
|
$
|
37,794
|
$
|
3,554
|
$
|
41,348
|
|
Net
margin
|
|
53%
|
|
|
|
55%
|
|
|
54%
|
|
|
|
57%
|
|
|
55%
|
|
|
|
60%
|
|
Diluted net income per
ADS
|
$
|
0.85
|
|
|
$
|
0.88
|
|
$
|
0.79
|
|
|
$
|
0.82
|
|
$
|
0.71
|
|
|
$
|
0.77
|
|
ADSs used in
computing diluted net income per ADS
|
|
53,135
|
|
|
|
53,427
|
|
|
53,075
|
|
|
|
53,437
|
|
|
53,001
|
|
|
|
53,436
|
|
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,
2010
|
|
|
Nine
Months Ended Sep. 30,
2009
|
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
Total revenues
|
$
|
235,417
|
$
|
-
|
$
|
235,417
|
|
$
|
196,887
|
$
|
-
|
$
|
196,887
|
|
Less: Cost of
revenues
|
|
20,929
|
|
(150)
|
(a)
|
20,779
|
|
|
12,098
|
|
(267)
|
(a)
|
11,831
|
|
Gross profit
|
$
|
214,488
|
$
|
150
|
$
|
214,638
|
|
$
|
184,789
|
$
|
267
|
$
|
185,056
|
|
Gross margin
|
|
91%
|
|
|
|
91%
|
|
|
94%
|
|
|
|
94%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
$
|
69,082
|
$
|
(6,589)
|
(a) $
|
62,493
|
|
$
|
65,165
|
$
|
(9,805)
|
(a) $
|
55,360
|
|
Product development
expenses
|
$
|
24,912
|
$
|
(3,450)
|
(a) $
|
21,462
|
|
$
|
20,465
|
$
|
(5,641)
|
(a) $
|
14,824
|
|
Sales and marketing
expenses
|
$
|
31,130
|
$
|
(124)
|
(a) $
|
31,006
|
|
$
|
30,497
|
$
|
(184)
|
(a) $
|
30,313
|
|
General and
administrative expenses
|
$
|
13,040
|
$
|
(3,015)
|
(a) $
|
10,025
|
|
$
|
14,203
|
$
|
(3,980)
|
(a) $
|
10,223
|
|
Operating profit
|
$
|
145,406
|
$
|
6,739
|
$
|
152,145
|
|
$
|
119,624
|
$
|
10,072
|
$
|
129,696
|
|
Operating
margin
|
|
62%
|
|
|
|
65%
|
|
|
61%
|
|
|
|
66%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
127,089
|
$
|
6,739
|
$
|
133,828
|
|
$
|
105,826
|
$
|
10,072
|
$
|
115,898
|
|
Net
margin
|
|
54%
|
|
|
|
57%
|
|
|
54%
|
|
|
|
59%
|
|
Diluted net income per
ADS
|
$
|
2.39
|
|
|
$
|
2.50
|
|
$
|
2.07
|
|
|
$
|
2.25
|
|
ADSs used in
computing diluted net income per ADS
|
|
53,099
|
|
|
|
53,434
|
|
|
51,034
|
|
|
|
51,400
|
|
Note:
(a) To eliminate
share-based compensation expense as measured using the fair value
method.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Changyou.com Limited
Copyright . 25 PR Newswire