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 November 2014
Commission File Number 001-33692
China
Digital TV Holding Co., Ltd.
(Translation of registrant’s name into English)
Jingmeng High-Tech Building B, 4th
Floor
No. 5 Shangdi East Road
Haidian District, Beijing 100085
People’s Republic of China
(Address of principal executive offices)
(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): ¨)
(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): ¨)
(Indicate by check mark whether by furnishing
the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ¨ No x
(If "Yes" is marked, indicate
below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- __)
EXHIBITS
| Exhibit Number |
Page |
| |
|
|
| 99.1 |
Press release, dated Nov 18, 2014 |
4 |
SIGNATURES
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,
thereunto duly authorized.
| |
CHINA DIGITAL TV HOLDING CO., LTD. |
| |
|
|
| Date: Nov 18, 2014 |
By: |
/s/ Zengxiang LU |
| |
Name: Zengxiang LU |
| |
Title:
Chief Executive Officer |
Exhibit 99.1
China Digital TV Announces Unaudited
Third Quarter 2014 Results
BEIJING, China, November 18, 2014 —
China Digital TV Holding Co., Ltd. (NYSE: STV) (“China Digital TV” or the “Company”), the leading provider
of conditional access (“CA”) systems and comprehensive services to China’s expanding digital television
market, today announced its unaudited financial results for the third quarter ended September 30, 2014.
Highlights for the Third Quarter 2014
| l | Net revenues in the third quarter of 2014 were US$17.0
million, representing a 26.6% decrease from the same period in 2013 and a 1.1% decrease from the second quarter of 2014. |
| l | China Digital TV shipped approximately 3.35 million
smart cards in the third quarter of 2014, compared to 4.76 million in the same period in 2013 and 3.55 million in the third quarter
of 2014. |
| l | Gross margin in the third quarter of 2014 was 75.5%,
compared to 74.0% in the same period in 2013 and 73.3% in the second quarter of 2014. |
| l | Diluted earnings per American depositary share, or
ADS (one ADS representing one ordinary share), in the third quarter of 2014 were US$0.02, compared to US$0.08 in the same period
in 2013 and US$0.07 in the second quarter of 2014. |
“During the third quarter of 2014,
shipments of approximately 3.35 million smart cards came in slightly below our expectations, as digital penetration increased,”
said Dr. Lu Zengxiang, China Digital TV's acting chief executive officer and acting chief financial officer. “Net revenues
were still in line with guidance due to an unexpected delivery of surface mounted chips and system integrations overseas. In the
domestic market, steady demand for smart cards was driven by our major customers, including those in Jiangxi, Shandong, Guangdong,
Sichuan and Jiangsu provinces.”
Dr. Lu continued, “In newer market
segments related to cable TV, we continue to push forward with our diversification strategy to provide value-added services. This
quarter, we reached an agreement with multimedia company Shanghai Oriental Cable Network Co., Ltd. to provide a cloud service platform
capable of covering 5 million cable TV subscribers. We also signed a contract with Jishi Media Co., Ltd. to provide new broadcast
platforms. Overseas, we won a tender to supply 900,000 smart cards to CANTV, the leading integrated telecommunication service provider
in Venezuela, for use on CANTV’s direct-to-home platform, which covers the entire territory of Venezuela. We’re pleased
with our continuing progress in developing markets.”
Dr. Lu added. “We’ll remain
focused on maximizing efficiency in the coming quarters and are confident operating margins will improve as a result.”
Third Quarter 2014 Results
(Note: Unless otherwise stated, all financial
statement measures stated in this press release are based on generally accepted accounting principles in the United States (“U.S.
GAAP”).)
In the third quarter of 2014, China
Digital TV had net revenues of US$17.0 million, a decrease of 26.6% from the third quarter of 2013 and a decrease of 1.1%
from the second quarter of 2014. The year-over-year decrease was primarily due to a decrease in revenues from smart card
sales. The quarter-over-quarter decrease was principally due to decreases in revenues from licensing income and smart card
sales, which were partially offset by increases in revenues from sales of other products, such as surface mounted chips, as
well as head-end system integration.
In the third quarter of 2014, revenues
from the Company’s top five customers accounted for 20.8% of total revenues, compared to 23.7% in the second quarter of 2014.
Revenue Breakdown
| | |
For the three months ended | |
| | |
September 30, | | |
June 30, | | |
September 30, | |
| | |
2014 | | |
2014 | | |
2013 | |
| | |
(in thousands of U.S. dollars) | |
| Products: | |
| | | |
| | | |
| | |
| Smart cards | |
$ | 14,382 | | |
$ | 14,990 | | |
$ | 21,315 | |
| Other products | |
| 1,556 | | |
| 946 | | |
| 1,001 | |
| Subtotal | |
| 15,938 | | |
| 15,936 | | |
| 22,316 | |
| Services: | |
| | | |
| | | |
| | |
| Head-end system integration | |
| 713 | | |
| 255 | | |
| 286 | |
| Head-end system development | |
| 208 | | |
| 350 | | |
| 235 | |
| Licensing income | |
| 182 | | |
| 868 | | |
| 335 | |
| Royalty income | |
| 126 | | |
| 4 | | |
| 279 | |
| Other service | |
| 2 | | |
| 25 | | |
| 1 | |
| Subtotal | |
| 1,231 | | |
| 1,502 | | |
| 1,136 | |
| Total revenues | |
$ | 17,169 | | |
$ | 17,438 | | |
$ | 23,452 | |
Revenues from smart cards and other
products were US$15.9 million in the third quarter of 2014, a decrease of 28.6% from the same period in 2013 and relatively
stable from the second quarter of 2014. The year-over-year decrease was primarily due to a decrease in revenues from smart cards
sales, which was partially offset by an increase in revenues from sales of other products, such as surface mounted chips. Revenues
from smart card and other products remained relatively stable quarter over quarter, primarily due to an increase in revenues from
sales of other products, and a decrease in revenues from smart card sales. Revenues from sales of smart cards and other products
accounted for 92.8% of total revenues in the third quarter of 2014, compared to 91.4% in the preceding quarter.
Revenues from services were US$1.2
million in the third quarter of 2014, an increase of 8.4% from the same period in 2013 and a decrease of 18.0% from the second
quarter of 2014. The year-over-year increase was primarily due to an increase in revenues from head-end system integration, which
was partially offset by decreases in licensing income and royalty income. The quarter-over-quarter decrease was mainly due to a
decrease in revenue from licensing income, which was partially offset by an increase in head-end system integration. Revenues from
services accounted for 7.2% of total revenues in the third quarter of 2014, compared to 8.6% in the preceding quarter.
Gross profit in the third quarter
of 2014 was US$12.8 million, a decrease of 25.1% from the same period in 2013 and an increase of 1.8% from the second quarter of
2014. Gross margin, which is equal to gross profit divided by net revenues, was 75.5% in the third quarter of 2014, compared
to 74.0% in the same period in 2013 and 73.3% in the second quarter of 2014. The year-over-year and quarter-over-quarter increases
were principally due to decreases in cost of revenues. In the third quarter of 2013 and second quarter of 2014, higher cost of
revenues was mainly attributable to inventory write-downs with respect to multimedia home entertainment boxes and integrated chips
respectively.
In the third quarter of 2014, the average
selling price (“ASP”) of smart cards increased by 1.7% compared to the second quarter of 2014. In addition, the unit
cost of smart cards increased by 5.5% compared to the second quarter of 2014.
Operating expenses in the third
quarter of 2014 were US$10.5 million, a decrease of 6.3% from the same period in 2013 and an increase of 12.3% from the second
quarter of 2014.
l Research
and development expenses in the third quarter of 2014 were US$4.7 million, a decrease of 11.9% from the same period in 2013
and an increase of 13.5% from the second quarter of 2014. The year-over-year decrease was primarily due to a decrease in project
development expenses. The quarter-over-quarter increase was mainly due to an increase in personnel related expenses resulting
from higher headcount.
l Selling
and marketing expenses in the third quarter of 2014 were US$3.4 million, a decrease of 4.5% from the same period in 2013 and
an increase of 3.6% from the second quarter of 2014. The year-over-year decrease was mainly due to a decrease in marketing expenses.
The quarter-over-quarter increase was primarily due to an increase in marketing expenses.
l General
and administrative expenses in the third quarter of 2014 were US$2.4 million, an increase of 3.6% from the same period
in 2013 and an increase of 24.3% from the second quarter of 2014. The year-over-year increase was mainly due to an increase in
consulting expenses, which was partially offset by decreases in share-based compensation expenses and allowance for doubtful accounts.
The quarter-over-quarter increase was primarily due to an increase in allowance for doubtful accounts and consulting expenses.
In the preceding quarter, a portion of bad debt provisions was written back as related accounts receivable had been received.
Income from operations in the third
quarter of 2014 was US$2.3 million, a 60.6% decrease from the same period in 2013 and a 28.4% decrease from the second quarter
of 2014.
Operating margin,
defined as income from operations divided by net revenues, in the third quarter of 2014 was 13.7%, compared to 25.6% in the same
period in 2013 and 19.0% in the second quarter of 2014.
Interest income in the third quarter
of 2014 was US$0.1 million, a 73.8% decrease from the same period in 2013 and a 58.7% decrease from the second quarter of 2014.
Income tax expenses in the third
quarter of 2014 were US$1.6 million, compared to US$2.1 million in the same period of 2013 and US$0.3 million in the second quarter
of 2014. The year-over-year decrease was mainly due to a decrease in taxable income and in income tax rate. The Company's PRC operating
subsidiary, Beijing Super TV Co., Ltd. (“Super TV”) accrued income tax expenses at a rate of 10% in the third quarter
of 2014, compared to 15% in the third quarter of 2013. In the fourth quarter of 2013, Super TV was designated as a "key software
enterprise" for the tax years of 2013 and 2014 by the relevant PRC government authorities and, as a result, was entitled to
a preferential income tax rate of 10% in each of those years. As Super TV accrued income tax expenses at a rate of 15% in the first
three quarters of 2013, the accrued income tax expenses were partially reversed in the fourth quarter of 2013. The quarter-over-quarter
increase was primarily due to the Company’s reorganization in the preceding quarter. In June 2014, the Company completed
an internal reorganization. As a result of the reorganization, income tax expenses were reduced due to deductible investment losses
arising from the equity transfers under the reorganization.
Net loss attributable to non-controlling
interest in the third quarter of 2014 was US$0.4 million, a decrease of 24.5% from the same period in 2013 and a decrease of
13.0% from the second quarter of 2014. The year-over-year and quarter-over-quarter decreases were largely due to decreases in net
losses recorded by the Company’s majority-owned subsidiaries.
Net income attributable to holders of
ordinary shares in the third quarter of 2014 was US$1.5 million, a decrease of 68.4% from the same period in 2013 and a decrease
of 65.9% from the second quarter of 2014.
Non-GAAP net income attributable to
holders of ordinary shares, defined as net income excluding certain non-cash expenses, such as share-based compensation
expenses, amortization of acquired intangible assets from business acquisitions and equity method investments, in the third quarter
of 2014 was US$1.7 million, a decrease of 67.1% from the same period in 2013 and a decrease of 62.9% from the second quarter of
2014. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP
measures” set forth at the end of this release.
Balance Sheet and Cash Flow
As of September 30, 2014, China Digital
TV had cash and cash equivalents and restricted cash totaling US$55.5 million. In the third quarter of 2014, cash flow generated
from operations was US$1.2 million.
Unaudited Additional Information
The Company
sets forth at the end of this press release unaudited additional information relating to the financial results for its CA business,
which consists of smart card products and other related products, such as surface mounted
chips as well as related services; and other business, which consists of other products, such as multimedia home entertainment
boxes and cloud computing, as well as related services. In the third quarter of 2014, revenues from the Company’s CA business
were US$16.8 million, accounting for 98.0% of total revenues, and revenues from other business were US$0.3 million, accounting
for 2.0% of total revenues. Gross profit of the CA business in the third quarter of 2014 was US$12.8 million and gross profit of
other business in the third quarter of 2014 was US$0.001 million.
Business Outlook
Based on information available as of November
18, 2014, China Digital TV expects smart card shipment volumes in the fourth quarter of 2014 to be in the range of 4.5 million
to 5.0 million. Net revenues in the fourth quarter of 2014 are expected to be in the range of US$22.3 million to US$24.4 million.
Conference Call Information
The Company will hold an earnings conference
call at 7:00 p.m. on Tuesday, November 18, 2014, U.S. Eastern Time (8:00 a.m. on Wednesday, November 19, 2014, Beijing/Hong Kong
Time).
Conference Call Dial-in Information
| United States Toll Free: | |
+1-877-870-4263 |
| International: | |
+1-412-317-0790 |
| Hong Kong Toll Free: | |
800-905-945 |
| China Toll Free: | |
400-120-1203 |
Passcode: China Digital TV Conference Call
Please dial-in 10 minutes before the call
is scheduled to begin and provide the passcode to join the call.
A replay of the call will be available
for one week between 9:00 p.m. on November 18, 2014 and 9:00a.m. on November 25, 2014 U.S. Eastern Time.
Replay Dial-in Information
| United States: | |
+1-877-344-7529 |
| International: | |
+1-412-317-0088 |
| Conference ID: | |
10055855 |
In addition, a live and archived webcast
of this conference call will be accessible through the Investor Relations section of China Digital TV’s website at http://ir.chinadtv.cn.
Safe Harbor Statements
This announcement contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Such forward-looking statements are made under the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995.
These forward-looking statements can be
identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,”
“plans,” “believes,” “estimates,” “may,” “should” and similar expressions.
Such forward-looking statements include, without limitation, statements regarding the outlook for the fourth quarter of 2014 and
comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries
in the PRC and China Digital TV’s strategic and operational plans and future market positions. China Digital TV may also
make forward-looking statements in its periodic reports filed with the Securities and Exchange Commission, in its annual report
to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees
to third parties. Statements that are not historical facts, including statements about China Digital TV’s beliefs and expectations,
are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from projections contained or implied in any forward-looking statement, including but
not limited to the following: competition in the CA systems, digital television, cable television and related industries in the
PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the
progress of the television digitalization in the PRC, the structure of the cable television industry or television viewer preferences,
changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries,
including the extent of non-PRC companies’ participation in such industries, and changes in political, economic, legal and
social conditions in the PRC, including the government’s policies with respect to economic growth, foreign exchange and foreign
investment.
Further information regarding these and
other risks and uncertainties is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange
Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the
date of this press release.
About China Digital TV
Founded in 2004, China Digital TV is the
leading provider of CA systems to China’s expanding digital television market. CA systems enable television network operators
to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of
its business through its PRC subsidiary, Beijing Super TV Co., Ltd., and its affiliate, Beijing Novel-Super Digital TV Technology
Co., Ltd., as well as subsidiaries of such affiliate.
For more information please visit the
Investor Relations section of China Digital TV’s website at http://ir.chinadtv.cn. The information contained in that
website is not a part of this announcement.
For investor and media inquiries, please
contact:
In China:
Nan Hao
Investor Relations Manager
Tel: +86-10-6297-1199 x 9780
Email: ir@chinadtv.cn
Brunswick Group
Tel: +86-10-5960-8600
Email: chinadigital@brunswickgroup.com
In the United States:
Brunswick Group
Tel: +1-212-333 3810
E-mail: chinadigital@brunswickgroup.com
China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income
(in
thousands of U.S. dollars, except share and per share data )
| | |
For the three months ended | |
| | |
September 30, | | |
June 30, | | |
September 30, | |
| | |
2014 | | |
2014 | | |
2013 | |
| | |
| | |
| | |
| |
| Revenues: | |
| | | |
| | | |
| | |
| Products | |
$ | 15,938 | | |
$ | 15,936 | | |
$ | 22,316 | |
| Services | |
| 1,231 | | |
| 1,502 | | |
| 1,136 | |
| Total revenues | |
| 17,169 | | |
| 17,438 | | |
| 23,452 | |
| Business and sales related taxes | |
| (205 | ) | |
| (279 | ) | |
| (339 | ) |
| Net revenues | |
| 16,964 | | |
| 17,159 | | |
| 23,113 | |
| | |
| | | |
| | | |
| | |
| Cost of revenues: | |
| | | |
| | | |
| | |
| Products | |
| (3,276 | ) | |
| (3,656 | ) | |
| (4,927 | ) |
| Services | |
| (886 | ) | |
| (924 | ) | |
| (1,089 | ) |
| Total cost of revenues | |
| (4,162 | ) | |
| (4,580 | ) | |
| (6,016 | ) |
| Gross profit | |
| 12,802 | | |
| 12,579 | | |
| 17,097 | |
| | |
| | | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | | |
| | |
| Research and development expenses | |
| (4,677 | ) | |
| (4,121 | ) | |
| (5,309 | ) |
| Selling and marketing expenses | |
| (3,368 | ) | |
| (3,250 | ) | |
| (3,528 | ) |
| General and administrative expenses | |
| (2,428 | ) | |
| (1,953 | ) | |
| (2,343 | ) |
| Total operating expenses | |
| (10,473 | ) | |
| (9,324 | ) | |
| (11,180 | ) |
| | |
| | | |
| | | |
| | |
| Income from operations | |
| 2,329 | | |
| 3,255 | | |
| 5,917 | |
| | |
| | | |
| | | |
| | |
| Interest income | |
| 133 | | |
| 322 | | |
| 508 | |
| Other income | |
| 158 | | |
| 713 | | |
| 4 | |
| Income before income taxes | |
| 2,620 | | |
| 4,290 | | |
| 6,429 | |
| Income tax (expenses)/benefits | |
| | | |
| | | |
| | |
| Income tax-current | |
| (539 | ) | |
| (7,964 | ) | |
| (1,641 | ) |
| Income tax-deferred | |
| (1,051 | ) | |
| 7,700 | | |
| (508 | ) |
| Net income before net income from equity method investments | |
| 1,030 | | |
| 4,026 | | |
| 4,280 | |
| Net income/(loss) from equity method investments, net of income taxes | |
| 93 | | |
| (60 | ) | |
| (29 | ) |
| Net income | |
| 1,123 | | |
| 3,966 | | |
| 4,251 | |
| | |
| | | |
| | | |
| | |
| Net loss attributable to noncontrolling interest | |
| 376 | | |
| 432 | | |
| 498 | |
| Net income attributable to holders of ordinary shares | |
$ | 1,499 | | |
$ | 4,398 | | |
$ | 4,749 | |
| | |
| | | |
| | | |
| | |
| Net income per share attributable to holders of ordinary shares | |
| | | |
| | | |
| | |
| Basic | |
$ | 0.03 | | |
$ | 0.07 | | |
$ | 0.08 | |
| Diluted | |
$ | 0.02 | | |
$ | 0.07 | | |
$ | 0.08 | |
| | |
| | | |
| | | |
| | |
| Net income | |
$ | 1,123 | | |
$ | 3,966 | | |
$ | 4,251 | |
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustment | |
| 778 | | |
| (116 | ) | |
| 189 | |
| Comprehensive income | |
| 1,901 | | |
| 3,850 | | |
| 4,440 | |
Comprehensive loss attributable to
noncontrolling interest | |
| 361 | | |
| 427 | | |
| 494 | |
| | |
| | | |
| | | |
| | |
Comprehensive income attributable to holders of
ordinary shares | |
$ | 2,262 | | |
$ | 4,277 | | |
$ | 4,934 | |
| | |
| | | |
| | | |
| | |
Weighted average shares used in calculating
net income per ordinary share | |
| | | |
| | | |
| | |
| Basic | |
| 59,410,254 | | |
| 59,291,789 | | |
| 59,110,789 | |
| Diluted | |
| 62,376,044 | | |
| 61,873,871 | | |
| 59,131,310 | |
China Digital TV Holding
Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(in
thousands of U.S. dollars)
| |
September 30, | |
December 31, |
|
| ASSETS | |
2014 | | |
2013 | |
| Current assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 55,375 | | |
$ | 79,085 | |
| Restricted cash | |
| 154 | | |
| 919 | |
| Notes receivable | |
| 3,549 | | |
| 4,484 | |
| Accounts receivable, net | |
| 41,716 | | |
| 45,905 | |
| Inventories, net | |
| 6,243 | | |
| 5,027 | |
| Prepaid expenses and other current assets | |
| 6,999 | | |
| 4,032 | |
| Deferred costs-current | |
| 606 | | |
| 141 | |
| Deferred tax assets-current | |
| 3,284 | | |
| 2,546 | |
| Total current assets | |
| 117,926 | | |
| 142,139 | |
| Long-term receivable | |
| 90 | | |
| 224 | |
| Property and equipment, net | |
| 3,347 | | |
| 1,170 | |
| Intangible assets, net | |
| 464 | | |
| 6 | |
| Goodwill | |
| 1,417 | | |
| 563 | |
| Equity method investments | |
| 2,600 | | |
| 3,551 | |
| Deferred costs-non-current | |
| 438 | | |
| 214 | |
| Deferred tax assets-non-current | |
| 829 | | |
| 939 | |
| Total assets | |
| 127,111 | | |
| 148,806 | |
| | |
| | | |
| | |
| LIABILITIES AND EQUITY | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
| 3,339 | | |
| 2,207 | |
| Notes payable | |
| 406 | | |
| 884 | |
| Accrued expenses and other current liabilities | |
| 12,614 | | |
| 13,134 | |
| Dividend payable | |
| - | | |
| 57 | |
| Deferred revenue-current | |
| 5,990 | | |
| 6,542 | |
| Income tax payable | |
| 2,758 | | |
| 997 | |
| Deferred tax liabilities-current | |
| 2,469 | | |
| 8,222 | |
| Government subsidies-current | |
| 1,792 | | |
| 710 | |
| Total current liabilities | |
| 29,368 | | |
| 32,753 | |
| Deferred revenue-non-current | |
| 612 | | |
| 135 | |
| Government subsidies-non-current | |
| 4,436 | | |
| 4,946 | |
| Deferred tax liabilities-non-current | |
| 116 | | |
| - | |
| Total liabilities | |
| 34,532 | | |
| 37,834 | |
| | |
| | | |
| | |
| EQUITY | |
| | | |
| | |
China Digital TV Holding Co., Ltd. shareholders’
equity: | |
| | | |
| | |
| Ordinary shares | |
| 30 | | |
| 30 | |
| Additional paid-in capital | |
| 35,383 | | |
| 32,037 | |
| Statutory reserve | |
| 17,907 | | |
| 17,907 | |
| Retained earnings | |
| 11,440 | | |
| 31,122 | |
| Accumulated other comprehensive income | |
| 26,550 | | |
| 28,940 | |
Total China Digital TV Holding Co., Ltd.
shareholders’ equity | |
| 91,310 | | |
| 110,036 | |
| Noncontrolling interest | |
| 1,269 | | |
| 936 | |
| Total equity | |
| 92,579 | | |
| 110,972 | |
| TOTAL LIABILITIES AND EQUITY | |
$ | 127,111 | | |
$ | 148,806 | |
Reconciliation of Non-GAAP Measures
Non-GAAP net income attributable to holders
of ordinary shares excludes certain non-cash expenses, such as share-based compensation expenses, amortization of intangible assets
acquired from business acquisitions and equity method investments. The Company believes that the non-GAAP net income provides meaningful
supplemental information regarding the Company’s performance and liquidity by excluding certain non-cash expenses that may
not be indicative of its operating performance from a cash flow perspective. The Company believes that both management and investors
benefit from referring to this additional information in assessing the Company’s performance and when planning and forecasting
future periods.
| | |
For the three months ended | |
| | |
September 30, | | |
June 30, | | |
September 30, | |
| | |
2014 | | |
2014 | | |
2013 | |
| | |
(in U.S. dollars, in thousands) | |
Net income attributable to holders of ordinary
shares - GAAP | |
$ | 1,499 | | |
$ | 4,398 | | |
$ | 4,749 | |
| Share-based compensation expenses | |
| 173 | | |
| 218 | | |
| 433 | |
Amortization of intangible assets from business
acquisitions and equity method investments | |
| 52 | | |
| 37 | | |
| 54 | |
Net income attributable to holders of ordinary
shares-Non-GAAP | |
$ | 1,724 | | |
$ | 4,653 | | |
$ | 5,236 | |
China Digital TV Holding Co., Ltd.
Unaudited Additional Information
(in thousands of U.S. dollars )
| | |
For the three months ended | |
| | |
September 30, | | |
June 30, | | |
September 30, | |
| | |
2014 | | |
2014 | | |
2013 | |
| Revenues: | |
| | | |
| | | |
| | |
| CA | |
$ | 16,826 | | |
$ | 16,923 | | |
$ | 22,830 | |
| Others | |
| 343 | | |
| 515 | | |
| 622 | |
| Total revenues | |
| 17,169 | | |
| 17,438 | | |
| 23,452 | |
| | |
| | | |
| | | |
| | |
| Business and sales related taxes: | |
| | | |
| | | |
| | |
| CA | |
| (202 | ) | |
| (283 | ) | |
| (325 | ) |
| Others | |
| (3 | ) | |
| 4 | | |
| (14 | ) |
| Total business and sales related taxes | |
| (205 | ) | |
| (279 | ) | |
| (339 | ) |
| | |
| | | |
| | | |
| | |
| Net revenues: | |
| | | |
| | | |
| | |
| CA | |
| 16,624 | | |
| 16,640 | | |
| 22,505 | |
| Others | |
| 340 | | |
| 519 | | |
| 608 | |
| Total net revenues | |
| 16,964 | | |
| 17,159 | | |
| 23,113 | |
| | |
| | | |
| | | |
| | |
| Cost of revenues: | |
| | | |
| | | |
| | |
| CA | |
| (3,823 | ) | |
| (3,593 | ) | |
| (5,071 | ) |
| Others | |
| (339 | ) | |
| (987 | ) | |
| (945 | ) |
| Total cost of revenues | |
| (4,162 | ) | |
| (4,580 | ) | |
| (6,016 | ) |
| | |
| | | |
| | | |
| | |
| Gross profit (loss): | |
| | | |
| | | |
| | |
| CA | |
| 12,801 | | |
| 13,047 | | |
| 17,434 | |
| Others | |
| 1 | | |
| (468 | ) | |
| (337 | ) |
| Total gross profit | |
| 12,802 | | |
| 12,579 | | |
| 17,097 | |
| | |
| | | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | | |
| | |
| Research and development expenses | |
| | | |
| | | |
| | |
| CA | |
| (1,829 | ) | |
| (1,987 | ) | |
| (2,628 | ) |
| Others | |
| (2,848 | ) | |
| (2,134 | ) | |
| (2,681 | ) |
| Total research and development expenses | |
| (4,677 | ) | |
| (4,121 | ) | |
| (5,309 | ) |
| | |
| | | |
| | | |
| | |
| Selling and marketing expenses | |
| | | |
| | | |
| | |
| CA | |
| (1,203 | ) | |
| (1,230 | ) | |
| (1,673 | ) |
| Others | |
| (2,165 | ) | |
| (2,020 | ) | |
| (1,855 | ) |
| Total selling and marketing expenses | |
| (3,368 | ) | |
| (3,250 | ) | |
| (3,528 | ) |
| | |
| | | |
| | | |
| | |
| General and administrative expenses | |
| | | |
| | | |
| | |
| CA | |
| (1,301 | ) | |
| (1,349 | ) | |
| (1,222 | ) |
| Others | |
| (1,127 | ) | |
| (604 | ) | |
| (1,121 | ) |
| Total general and administrative expenses | |
| (2,428 | ) | |
| (1,953 | ) | |
| (2,343 | ) |
| | |
| | | |
| | | |
| | |
| Total operating expenses | |
| (10,473 | ) | |
| (9,324 | ) | |
| (11,180 | ) |
| | |
| | | |
| | | |
| | |
| Income (loss) from operations: | |
| | | |
| | | |
| | |
| CA | |
| 8,468 | | |
| 8,481 | | |
| 11,911 | |
| Others | |
| (6,139 | ) | |
| (5,226 | ) | |
| (5,994 | ) |
| Income from operations | |
$ | 2,329 | | |
$ | 3,255 | | |
$ | 5,917 | |