BEIJING, April 25, 2011 /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 first quarter ended March
31, 2011.
(Logo: http://photos.prnewswire.com/prnh/20090402/CNTH020)
First Quarter 2011 Highlights
- Total revenues reached a record US$97.1
million, an increase of 6% quarter-over-quarter and 35%
year-over-year, and exceeded the high end of the Company's guidance
by US$2.1 million.
- Net income reached a record US$52.8
million, or US$0.99 per fully
diluted ADS(1). Net income increased by 11% quarter-over-quarter
and 33% year-over-year.
- Non-GAAP(2) net income (i.e., excluding share-based
compensation expenses) reached a record US$54.6 million, or US$1.02 per fully diluted ADS, exceeding the high
end of the Company's guidance by US$3.6
million. Non-GAAP net income increased by 10%
quarter-over-quarter and 28% year-over-year.
- Aggregate registered accounts for the Company's games(3) grew
5% quarter-over-quarter and 33% year-over-year to 116.5
million.
- Aggregate active paying accounts ("APA") for the Company's
games grew 7% quarter-over-quarter and 21% year-over-year to
approximately 2.88 million.
(1) Each American depositary
share ("ADS") represents two Class A ordinary shares.
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(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."
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(3) Comprises the following
games operated in China: Tian Long Ba Bu ("TLBB"), Blade Online,
Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong, Immortal Faith
and San Jie Qi Yuan.
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Mr. Tao Wang, Changyou's Chief Executive Officer, commented,
"2011 is an exciting year for Changyou as we prepare for the launch
of new games, such as Duke of Mount Deer, or DMD, while our current
games continue to generate solid returns. Our leading game
franchise, Tian Long Ba Bu, or TLBB,
has continued to attract new, existing and returning players to its
thriving community as we constantly update the game with new
content. Similarly, we are seeing growing interest from players for
our upcoming game. DMD, which entered a new round of closed beta
testing today, is slated for a launch this summer. In this round of
testing, game testers will also be able to carry over user accounts
through the full launch period. With the updated version, we have
unveiled a new, self-developed server technology and a host of
unique gameplay not found in any other existing massively
multiplayer online games. With the continued strength of the online
games industry in China, the
imminent launch of DMD, and the ongoing success of our TLBB
franchise, we look to accelerate our position as a leading online
game company in China."
Mr. Dewen Chen, president and
chief operating officer, continued, "To expand on our existing
business, we have recently signed a definitive agreement to acquire
a majority stake in Shenzhen 7Road
Technology Co., Ltd. and its affiliates, a reputable Web-based game
developer that developed DDTank, one of the most popular Web-based
games in China. We expect that our
new venture into this fast-growing segment will not only bring many
opportunities, but will also supplement growth in our core MMORPG
business."
Mr. Alex Ho, Changyou's chief
financial officer, added, "The first quarter of 2011 marks a strong start to the year as we once
again delivered record total revenues and record non-GAAP net
income. Management's confidence in Changyou's business prospects,
our strong cash position, and debt-free balance sheet give us the
flexibility to invest in growth initiatives as they arise and put
the necessary disciplines in place to continue to create value for
our shareholders."
First Quarter 2011 Operational Results
Aggregate registered accounts for the Company's games as of
March 31, 2011 increased 5%
quarter-over-quarter and 33% year-over-year to 116.5 million.
Aggregate peak concurrent users ("PCU") for the Company's games
was 1 million, a decrease of 3% quarter-over-quarter and an
increase of 10% year-over-year.
Aggregate APA for the Company's games increased 7%
quarter-over-quarter and 21% year-over-year to 2.88 million.
Average revenue per active paying account ("ARPU") for the
Company's games decreased 4% quarter-over-quarter and increased 4%
year-over-year to RMB210, 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
Chinese game players.
First Quarter 2011 Unaudited Financial Results
Revenues
Total revenues for the first quarter of 2011 increased 6%
quarter-over-quarter and 35% year-over-year to US$97.1 million.
Online game revenues for the first quarter of 2011, which
includes revenues from game operations and overseas licensing
revenues, increased 3% quarter-over-quarter and 32% year-over-year
to US$94.9 million.
Revenues from game operations for the first quarter of 2011
increased 4% quarter-over-quarter and 32% year-over-year to
US$92.9 million. The increases were
mainly due to the continued popularity of TLBB in China.
Overseas licensing revenues for the first quarter of 2011
decreased 10% quarter-over-quarter and increased 7% year-over-year
to US$2.0 million. The sequential
decrease was largely the result of greater competition in mature
online game markets abroad. The year-over-year increase was
mainly due to increased momentum of TLBB in Vietnam and Thailand in the first quarter of 2011.
Other revenues for the first quarter of 2011 were $2.2 million, and reflect cinema advertising
revenues from our wholly-owned subsidiary, Shanghai Jing Mao
Cultural Communications Ltd. and its affiliate ("Jing Mao"), which were consolidated into the
Company's financial statements commencing February 1, 2011.
Gross Profit
Gross profit for the first quarter of 2011 increased 3%
quarter-over-quarter and 28% year-over-year to US$85.5 million. Non-GAAP gross profit for the
first quarter of 2011 increased 3% quarter-over-quarter and 28%
year-over-year to US$85.6 million.
Both gross margin and non-GAAP gross margin in the first quarter of
2011 were 88%, which compares with 90% in the fourth quarter of
2010 and 93% in the first quarter of 2010. The decline in gross
margin was mainly due to the consolidation of Jing Mao, which operates a lower-margin cinema
advertising business, into the Company's financial statements
commencing February 1, 2011.
Gross profit and non-GAAP gross profit of the online games
business for the first quarter of 2011 increased 4%
quarter-over-quarter and 29% year-over-year to US$86.0 million. Both gross margin and non-GAAP
gross margin of the online games business for the first quarter of
2011 was 91%, which compares with 90% in the fourth quarter of 2010
and 93% in the first quarter of 2010. Gross loss and non-GAAP gross
loss of other business for the first quarter of 2011 were
US$0.4 million.
Operating Expenses
For the first quarter of 2011, total operating expenses were
US$25.0 million, down 9%
quarter-over-quarter and up 17% year-over-year. Non-GAAP operating
expenses were US$23.2 million, down
9% quarter-over-quarter and up 26% year-over-year.
GAAP product development expenses decreased 18%
quarter-over-quarter and increased 55% year-over-year to
US$10.7 million. Non-GAAP product
development expenses decreased 17% quarter-over-quarter and
increased 83% year-over-year to US$10.0
million. The quarter-over-quarter decreases in both GAAP and
non-GAAP product development expenses were mainly because the
Company incurred expenses related to royalties for licensed games
in the fourth quarter of 2010. The year-over-year increases
in both GAAP and non-GAAP product development expenses were mainly
due to higher salaries and benefits in the first quarter of
2011.
GAAP sales and marketing expenses decreased 12%
quarter-over-quarter and 10% year-over-year to US$8.7 million. Non-GAAP sales and marketing
expenses decreased 13% quarter-over-quarter and 11% year-over-year
to US$8.5 million. The sequential and
year-over-year decreases in GAAP and non-GAAP sales and marketing
expenses were primarily due to a reduction in advertising spending
in the first quarter of 2011 in order to focus on the preparation
for the promotion of the Company's new game, Duke of Mount
Deer.
GAAP general and administrative expenses were US$5.5 million, an increase of 23%
quarter-over-quarter and 16% year-over-year. Non-GAAP general and
administrative expenses were US$4.8
million, an increase of 28% quarter-over-quarter and 37%
year-over-year. The sequential increases in GAAP and non-GAAP
general and administrative expenses were primarily due to an
increase in professional fees in the first quarter of 2011. The
year-over-year increases in GAAP and non-GAAP general and
administrative expenses were primarily due to higher salaries and
benefits in the first quarter of 2011.
Operating Profit
Operating profit for the first quarter of 2011 increased 9%
quarter-over-quarter and 34% year-over-year to US$60.5 million. Operating margin in the first
quarter of 2011 was 62%, up from 60% in the fourth quarter of 2010
and down from 63% in the first quarter of 2010. Non-GAAP operating
profit for the first quarter of 2011 increased 9%
quarter-over-quarter and 29% year-over-year to US$62.3 million. Non-GAAP operating margin in the
first quarter of 2011 was 64%, up from 62% in the fourth quarter of
2010 and down from 67% in the first quarter of 2010.
Net Income
For the first quarter of 2011, net income increased 11%
quarter-over-quarter and 33% year-over-year to US$52.8 million. Non-GAAP net income increased
10% quarter-over-quarter and 28% year-over-year to US$54.6 million. Fully diluted earnings per ADS
were US$0.99, up from US$0.90 in the fourth quarter of 2010 and
US$0.75 in the first quarter of 2010.
Non-GAAP fully diluted earnings per ADS were US$1.02, up from US$0.93 in the fourth quarter of 2010 and
US$0.80 in the first quarter of 2010.
Net margin for the first quarter of 2011 was 54%, up from 52% in
the fourth quarter of 2010 and down from 55% in the first quarter
of 2010. Non-GAAP net margin for the first quarter of 2011 was 56%,
up from 54% in the fourth quarter of 2010 and down from 59% in the
first quarter of 2010.
Cash Balances
As of March 31, 2011, Changyou had
a net cash balance of US$406.5
million, up from US$351.0
million as of December 31,
2010. Operating cash flow for the first quarter of 2011 was
a net inflow of US$58.9 million.
Other Business Developments
Changyou to Acquire Majority Stake in 7Road
On April 22, 2011, Changyou
entered into a definitive agreement under which Changyou will
acquire 68.258% of the equity in Shenzhen 7Road Technology Co., Ltd. and its
affiliates ("7Road") for fixed cash consideration of approximately
US$68.26 million, plus additional
variable cash consideration of up to a maximum of US$32.76 million that is contingent upon the
achievement of specified performance milestones through
December 31, 2012. 7Road is a
developer of Web-based games and the creator of DDTank, one of the
most popular multiplayer Web-based shooting games in China. The acquisition will broaden Changyou's
product offerings to include Web-based games and bring in a team of
experienced developers. The acquisition is expected to be completed
by June 30, 2011, subject to
regulatory approvals and other customary conditions specified in
the agreement.
Business Outlook
The following guidance excludes the acquisition of 7Road.
For the second quarter of 2011, Changyou estimates:
- Total revenues to be between US$97.0
million and US$100.0 million, including online games
revenues of US$95.0 million to US$97.0
million.
- Non-GAAP net income to be between US$49.0 million and US$50.5 million.
- Non-GAAP fully diluted earnings per ADS to be between
US$0.92 and US$0.95.
- Assuming no new grants of share-based awards, share-based
compensation expense to be between US$1.0
million and US$1.5 million, reducing fully diluted earnings
per ADS by US$0.02 to US$0.03.
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.
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 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 28,
2011, 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 Daylight
Time, April 25, 2011 (7 p.m. Beijing/Hong
Kong, April 25, 2011).
The dial-in details for the live conference call are:
US:
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+1-866-271-6130
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Hong Kong:
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+852-3002-1672
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International:
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+1-617-213-8894
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Passcode:
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CYOU
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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 April 25 through
May 2, 2011. The dial-in details for the telephone replay
are:
International:
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+1-617-801-6888
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Passcode:
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73551028
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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 ("MMORPG") 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, completed an initial public offering on April 7, 2009. Changyou currently operates seven
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, Immortal Faith and San Jie
Qi Yuan. 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:
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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: +86 (10)
6861-3688
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E-mail:
ir@cyou-inc.com
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In the United
States:
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Mr. Jeff Bloker
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Christensen
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Tel: +1 (480)
614-3003
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E-mail:
jbloker@ChristensenIR.com
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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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Mar. 31, 2011
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Dec. 31, 2010
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Mar. 31, 2010
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Revenues:
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Online game:
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Game operation
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$
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92,936
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$
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89,521
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$
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70,202
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Overseas licensing
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1,994
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2,215
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1,870
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Subtotal of online game revenues
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94,930
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91,736
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72,072
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Others
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2,159
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-
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-
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Total revenues
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97,089
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91,736
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72,072
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Cost of revenues:
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Online game (includes share-based compensation
expense of $33, $44 and $67, respectively)
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8,968
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8,923
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5,384
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Others
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2,590
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-
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-
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Total cost of revenues
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11,558
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8,923
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5,384
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Gross profit
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85,531
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82,813
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66,688
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Operating expenses:
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Product development (includes share-based compensation
expense of $771, $949 and $1,506, respectively)
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10,721
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13,006
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6,935
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Sales and marketing (includes share-based compensation
expense of $199, $96 and $75, respectively)
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8,734
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9,872
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9,699
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General and administrative (includes share-based
compensation expense of $767, $766 and $1,322,
respectively)
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5,528
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4,493
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4,785
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Total operating expenses
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24,983
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27,371
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21,419
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Operating profit
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60,548
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55,442
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45,269
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Interest income and foreign currency exchange gain
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1,683
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967
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815
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Other expense
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(329)
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(963)
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(99)
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Income before income tax expense
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61,902
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55,446
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45,985
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Income tax expense
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(9,053)
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(7,631)
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(6,279)
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Net income
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$
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52,849
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$
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47,815
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$
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39,706
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Basic net income per ADS
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$
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1.01
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$
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0.92
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$
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0.77
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ADSs used in computing basic net income per ADS
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52,226
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52,039
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51,594
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|
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Diluted net income per ADS
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$
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0.99
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$
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0.90
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$
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0.75
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ADSs used in computing diluted net income per ADS
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53,247
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53,186
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53,088
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CHANGYOU.COM
LIMITED
CONDENSED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED,
IN THOUSANDS)
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As of Mar. 31, 2011
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As of Dec. 31, 2010
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ASSETS
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Current assets:
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Cash and bank deposits
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$
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406,458
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$
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350,957
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Accounts receivable, net
|
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8,275
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1,464
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Prepaid and other current assets
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4,464
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12,383
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Due from Sohu
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-
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312
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Total current assets
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419,197
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365,116
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Non-current assets:
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Fixed assets, net
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54,759
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53,659
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Goodwill
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15,430
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10,258
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Intangible assets, net
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21,622
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|
7,251
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Interests in associated companies
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647
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3,645
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Deferred tax assets
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2,248
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2,369
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Other assets, net
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60,821
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60,214
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TOTAL ASSETS
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$
|
574,724
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$
|
502,512
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LIABILITIES AND SHAREHOLDERS' EQUITY
|
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Current liabilities:
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Receipts in advance and deferred revenue
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$
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37,427
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$
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34,509
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Accounts payable and accrued liabilities
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49,677
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34,783
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Tax payables
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7,111
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13,471
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Deferred tax liabilities
|
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675
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243
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Due to Sohu
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4,261
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|
5,155
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Total current liabilities
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99,151
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88,161
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Long-term liabilities:
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Long-term accounts payable
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2,454
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-
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Total liabilities
|
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101,605
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88,161
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Total shareholders' equity
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473,119
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414,351
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
574,724
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$
|
502,512
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|
|
|
|
|
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|
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CHANGYOU.COM
LIMITED
RECONCILIATIONS TO UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN
THOUSANDS EXCEPT PER ADS AMOUNTS)
|
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|
|
Three Months Ended Mar. 31, 2011
|
|
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Three Months Ended Dec. 31, 2010
|
|
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Three Months Ended Mar. 31, 2010
|
|
|
|
GAAP
|
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Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
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GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
Total revenues
|
$
|
97,089
|
$
|
-
|
$
|
97,089
|
|
$
|
91,736
|
$
|
-
|
$
|
91,736
|
|
$
|
72,072
|
$
|
-
|
$
|
72,072
|
|
Less: Total cost of revenues
|
|
11,558
|
|
(33)
|
(a)
|
11,525
|
|
|
8,923
|
|
(44)
|
(a)
|
8,879
|
|
|
5,384
|
|
(67)
|
(a)
|
5,317
|
|
Gross profit
|
$
|
85,531
|
$
|
33
|
$
|
85,564
|
|
$
|
82,813
|
$
|
44
|
$
|
82,857
|
|
$
|
66,688
|
$
|
67
|
$
|
66,755
|
|
Gross margin
|
|
88%
|
|
|
|
88%
|
|
|
90%
|
|
|
|
90%
|
|
|
93%
|
|
|
|
93%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game revenues
|
$
|
94,930
|
$
|
-
|
$
|
94,930
|
|
$
|
91,736
|
$
|
-
|
$
|
91,736
|
|
$
|
72,072
|
$
|
-
|
$
|
72,072
|
|
Less: Online game cost of revenues
|
|
8,968
|
|
(33)
|
(a)
|
8,935
|
|
|
8,923
|
|
(44)
|
(a)
|
8,879
|
|
|
5,384
|
|
(67)
|
(a)
|
5,317
|
|
Online game gross profit
|
$
|
85,962
|
$
|
33
|
$
|
85,995
|
|
$
|
82,813
|
$
|
44
|
$
|
82,857
|
|
$
|
66,688
|
$
|
67
|
$
|
66,755
|
|
Online game gross margin
|
|
91%
|
|
|
|
91%
|
|
|
90%
|
|
|
|
90%
|
|
|
93%
|
|
|
|
93%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenues
|
$
|
2,159
|
$
|
-
|
$
|
2,159
|
|
$
|
-
|
$
|
-
|
$
|
-
|
|
$
|
-
|
$
|
-
|
$
|
-
|
|
Less: Other cost of revenues
|
|
2,590
|
|
-
|
(a)
|
2,590
|
|
|
-
|
|
-
|
(a)
|
-
|
|
|
-
|
|
-
|
(a)
|
-
|
|
Other gross loss
|
$
|
(431)
|
$
|
-
|
$
|
(431)
|
|
$
|
-
|
$
|
-
|
$
|
-
|
|
$
|
-
|
$
|
-
|
$
|
-
|
|
Other gross margin
|
|
n/a
|
|
|
|
n/a
|
|
|
n/a
|
|
|
|
n/a
|
|
|
n/a
|
|
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
$
|
24,983
|
$
|
(1,737)
|
(a) $
|
23,246
|
|
$
|
27,371
|
$
|
(1,811)
|
(a) $
|
25,560
|
|
$
|
21,419
|
$
|
(2,903)
|
(a)$
|
18,516
|
|
Product development expenses
|
$
|
10,721
|
$
|
(771)
|
(a) $
|
9,950
|
|
$
|
13,006
|
$
|
(949)
|
(a) $
|
12,057
|
|
$
|
6,935
|
$
|
(1,506)
|
(a)$
|
5,429
|
|
Sales and marketing expenses
|
$
|
8,734
|
$
|
(199)
|
(a) $
|
8,535
|
|
$
|
9,872
|
$
|
(96)
|
(a) $
|
9,776
|
|
$
|
9,699
|
$
|
(75)
|
(a)$
|
9,624
|
|
General and administrative expenses
|
$
|
5,528
|
$
|
(767)
|
(a) $
|
4,761
|
|
$
|
4,493
|
$
|
(766)
|
(a) $
|
3,727
|
|
$
|
4,785
|
$
|
(1,322)
|
(a)$
|
3,463
|
|
Operating profit
|
$
|
60,548
|
$
|
1,770
|
$
|
62,318
|
|
$
|
55,442
|
$
|
1,855
|
$
|
57,297
|
|
$
|
45,269
|
$
|
2,970
|
$
|
48,239
|
|
Operating margin
|
|
62%
|
|
|
|
64%
|
|
|
60%
|
|
|
|
62%
|
|
|
63%
|
|
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
52,849
|
$
|
1,770
|
$
|
54,619
|
|
$
|
47,815
|
$
|
1,855
|
$
|
49,670
|
|
$
|
39,706
|
$
|
2,970
|
$
|
42,676
|
|
Net margin
|
|
54%
|
|
|
|
56%
|
|
|
52%
|
|
|
|
54%
|
|
|
55%
|
|
|
|
59%
|
|
Diluted net income per ADS
|
$
|
0.99
|
|
|
$
|
1.02
|
|
$
|
0.90
|
|
|
$
|
0.93
|
|
$
|
0.75
|
|
|
$
|
0.80
|
|
ADSs used in computing diluted net income per ADS
|
|
53,247
|
|
|
|
53,450
|
|
|
53,186
|
|
|
|
53,423
|
|
|
53,088
|
|
|
|
53,438
|
|
Note:
(a) To eliminate
share-based compensation expense as measured using the fair value
method.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Changyou.com Limited