China INSOnline Corp. (NASDAQ: CHIO) reported today that in its
third quarter ended March 31, 2009, net revenues grew 24% to
$3,989,716, compared with $3,230,301 in the year earlier period,
while net income increased 36% to $2,194,194, or $0.05 per share,
compared with $1,610,186, or $0.04 per share, in the year earlier
quarter.
According to the Company -- a rapidly growing integrated
licensed insurance service provider, which operates www.soobao.cn,
one of China's leading insurance services web portals -- the main
driver of growth in the quarter was a doubling of sales achieved by
the completion of projects in its software development business
which translated to revenues of approximately $1.32 million, or
about 32% of total revenues in the period.
The Company said the revenue contribution from online insurance
advertising, while up significantly year to date, was about flat in
the fiscal 2009 third quarter compared with the third quarter last
year. Online advertising nevertheless contributed about 66% of
total sales in the quarter, while costs of the business remained
stable. The Company said these results were primarily due to the
non-renewal of some insurance agent contracts in the period,
explaining that advertising sales are generated by the number of
insurance agents that place advertisements on the Company's
website.
During the quarter the Company also saw a small decline in the
contribution from insurance agency operations, primarily due to
prevailing economic conditions.
Nine Month Net Revenues Were up 54%; Net Income Declined 4%
In the nine months ended March 31, 2009, net revenues rose 54%
to $13,047,434 from $8,469,275 in the same period in fiscal 2008.
The Company said this was mainly on the strength of online
insurance advertising sales which rose 67% from the year earlier
period to approximately $9.8 million, representing 73% of the
Company's year to date total revenues. In the first nine months of
fiscal 2009, the number of teams of insurance agents that placed
ads rose to 76 from 50 a year earlier, and 186 ad contracts were in
place in the first nine months of fiscal 2009 compared with 134 in
the same period in the prior fiscal year.
Gross profit in the first nine months of fiscal 2009 rose 56% to
approximately $11.9 million compared to approximately $7.6 million
in the prior year period. In the second quarter this year the
Company recorded a $934,987 provision for doubtful accounts which
it did not add to in the third quarter. The second quarter also
included expenses from the launch in late 2008 of an advertising
campaign, which through the end of the third quarter totaled
approximately $1.9 million. Mainly due to these expenses, as well
as an approximately $661,000 increase in income taxes, net income
in the fiscal 2009 nine month period was down about 4% to
$5,447,822 compared with $5,648,389 in the same period last year.
Reflecting an increase in average weighted shares outstanding at
the end of the 2009 third quarter to 40,000,000, from 31,096,530 in
the same period last year, nine month EPS was $0.14 in fiscal 2009,
compared with $0.18 in the prior year nine month period.
Outlook
Ms. Betty Xu, CEO of China INSOnline, commented, "We continue to
remain focused on our goal of making www.soobao.cn the premier site
for insurance advertisers and a growing source of insurance sales
commissions by developing it into the largest network portal in
China's insurance industry. This requires an ongoing effort to
popularize the site in all key first and second tier cities
throughout the country. At the same time, we are continuing to
build our technical know-how and to commit the necessary resources
to accomplish this, as reflected in part in our software system
purchases so far this year."
Mr. Zhenyu Wang, Chairman of the Company, stated, "We continue
to be aware of potential effects of the overall economic situation
and have made what we believe are appropriate adjustments to
optimize our performance. While our initial focus has been on
online auto insurance, where we continue to expand our value-added
services offerings, we will expand our property and life offerings
more gradually. Pursuing our growth strategy, we also are focused
on growing a comprehensive chain insurance supermarket entity to
supplement the function and effect of our www.soobao.cn
portal."
About China INSOnline Corp.
China INSOnline Corp., incorporated in Delaware and
headquartered in Beijing, is a rapidly growing licensed insurance
agency in The People's Republic of China. Representing major
insurance underwriting firms in China, the Company offers online
automobile, property and life insurance services through its
industry web portal, www.soobao.cn. The Company's online platform
also provides consumers, agents and insurance companies with online
transaction capabilities, advertising, online inquiry, news
circulation, statistical analysis and software development
services. For more information, please visit
www.china-insonline.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995:
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on current expectations
or beliefs, including, but not limited to, statements concerning
the Company's operations, financial performance and condition. For
this purpose, statements that are not statements of historical fact
may be deemed to be forward-looking statements. The Company
cautions that these statements by their nature involve risks and
uncertainties, and actual results may differ materially depending
on a variety of important factors, including, but not limited to,
the impact of competitive products, pricing and new technology;
changes in consumer preferences and tastes; and effectiveness of
marketing; changes in laws and regulations; fluctuations in costs
of production, and other factors as those discussed in the
Company's reports filed with the Securities and Exchange Commission
from time to time. In addition, the Company disclaims any
obligation to update any forward-looking statements to reflect
events or circumstances after the date hereof.
CHINA INSONLINE CORP.
(FORMERLY KNOWN AS DEXTERITY SURGICAL, INC.)
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ --------------------------
2009 2008 2009 2008
----------- ------------ ------------ ------------
REVENUES, NET $ 3,989,716 $ 3,230,301 $ 13,047,434 $ 8,469,275
COST OF SALES 390,206 623,033 1,182,668 845,866
----------- ------------ ------------ ------------
GROSS PROFIT 3,599,510 2,607,268 11,864,766 7,623,409
Selling expenses 62,082 43,185 228,409 99,128
Advertising expenses 90 - 1,906,559 -
General and
administrative
expenses 558,814 262,335 1,299,047 477,297
Provision for
doubtful accounts - - 934,987 -
----------- ------------ ------------ ------------
INCOME FROM
OPERATIONS 2,978,524 2,301,748 7,495,764 7,046,984
----------- ------------ ------------ ------------
Financial income, net 1,448 6,289 24,332 12,764
----------- ------------ ------------ ------------
INCOME FROM
OPERATIONS BEFORE
INCOME TAXES 2,979,972 2,308,037 7,520,096 7,059,748
Income taxes 785,778 697,851 2,072,274 1,411,359
----------- ------------ ------------ ------------
NET INCOME 2,194,194 1,610,186 5,447,822 5,648,389
OTHER COMPREHENSIVE
INCOME
Foreign currency
translation
(loss)/gain (10,681) 374,563 14,149 560,144
----------- ------------ ------------ ------------
COMPREHENSIVE INCOME $ 2,183,513 $ 1,984,749 $ 5,461,971 $ 6,208,533
=========== ============ ============ ============
NET INCOME PER SHARE
- BASIC AND DILUTED $ 0.05 $ 0.04 $ 0.14 $ 0.18
=========== ============ ============ ============
WEIGHTED AVERAGE
SHARES OUTSTANDING
- BASIC AND DILUTED 40,000,000 39,961,882 40,000,000 31,096,530
=========== ============ ============ ============
Contacts: Ken Donenfeld DGI Investor Relations Tel: 212-425-5700
Email: donfgroup@aol.com
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