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ASIA - (recommended
to subscribers
on 10/12/05)
BOUGHT
at $4.22 SOLD
at $7.83
On July 26th AsiaInfo Holdings Inc., a
provider of software solutions to the telecom industry in China as well
as IT services to China's enterprise market, reported fiscal 2nd
quarter 2005 revenue of $27 million, up from $22.5 million in the 2nd
quarter of 2004. Net revenue (non -Gaap) was $23 million which was up
49% from a year earlier. Net income was $829,000 or 2 cents per share.
Gross margins were 41% which compares to gross margins of 39% in the
2nd quarter of 2004.
In 2004 3 customers accounted for 84% of revenue. In the 4th quarter of
2004 AsiaInfo completed an acquisition which expanded the company's
customer base. In the 2nd quarter of 2005 the acquired company
accounted for approximately 28% of net revenue.
For the 3rd quarter AsiaInfo expects net revenue of $21 million - $23
million with earnings per share of 1-2 cents. In the earnings
conference call the company said that China's telecom software and
enterprise IT service markets will continue to see strong growth. The
company also sees in the 2nd half of 2005 the potential for significant
cross marketing opportunities between ASIA's telecom software business
and the IT services business.
ASIA has cash and short-term investments worth $142.4 million or $3.05
per share. The company has debt of $5 million. The net cash and
investments position ($142.4 million - $5 million) is $137.4 million or
$2.94 per share. Book value is $2.89 per share. At the current level
the stock has a price-to-sales ratio of 1.8 and a price-to-book ratio
of 1.4.
1/05/07-
SOLD AT$7.83 FOR A GAIN OF 86%. DURING THE SAME TIME PERIOD THE NASDAQ
WAS UP 20%.
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