BEIJING, March 10, 2015 /PRNewswire/ -- 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 fourth
quarter and full year ended December 31,
2014.
Highlights for the Fourth Quarter
2014
- Net revenues in the fourth quarter of 2014 were US$29.2 million, representing a 12.8% increase
from the same period in 2013 and a 72.3% increase from the third
quarter of 2014.
- China Digital TV shipped approximately 5.15 million smart cards
in the fourth quarter of 2014, compared to 4.95 million in the same
period in 2013 and 3.35 million in the third quarter of 2014.
- Gross margin in the fourth quarter of 2014 was 80.9%, compared
to 76.4% in the same period in 2013 and 75.5% in the third quarter
of 2014.
- Diluted earnings per American depositary share (each
representing one ordinary share), or ADS, in the fourth quarter of
2014 were US$0.18, compared to
US$0.17 in the same period in 2013
and US$0.02 in the third quarter of
2014.
Highlights for Full Year 2014
- Net revenues in 2014 were US$81.5
million, representing a 6.5% decrease from 2013.
- China Digital TV shipped approximately 15.60 million smart
cards in 2014, compared to 17.00 million smart cards in 2013.
- Gross margin was 77.6% in 2014, compared to 75.1% in 2013.
- Diluted earnings per ADS in 2014 were US$0.34 compared to US$0.41 in 2013.
"We are pleased to report a solid performance in the fourth
quarter of 2014, with smart card shipments and net revenue both
exceeding our guidance," said Dr. Lu Zengxiang, China Digital TV's
acting chief executive officer. "Our traditional smart card
business continued to see steady demand from our major customers,
including those in Sichuan,
Jiangsu, Jiangxi, Guangdong and Shandong. In the fourth quarter, China Digital
TV maintained a leading position in the Chinese smart card market
with a 53% share."
Dr. Lu continued, "In addition to the traditional CA market, we
continued to expand our value-added services business in this
quarter. We saw further developments in our strategic cloud
computing partnership with Beijing Gehua CATV Network Co., Ltd,
which grew from 10,000 streams in
testing in the third quarter of 2014 to
20,000 streams in the fourth quarter of 2014. We believe the
partnership will demonstrate the value of such collaboration to
cable operators across China. Our
overseas business also saw steady growth. Besides Southeast Asia, where we have made good
progress in recent quarters, we will continue to explore
opportunities in other emerging markets with diversified
businesses."
Ms. Yue Qian, China Digital TV's acting chief financial officer,
commented, "In the fourth quarter, strong top-line growth allowed
us to maintain a high gross margin, and effective execution helped
us maintain stable operating expenses and increase operating
margins compared with the same period in 2013. We will continue to
evaluate the best ways to manage our operating expenses and improve
overall efficiency."
Fourth 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 fourth quarter of 2014, China Digital TV generated net
revenues of US$29.2 million, an
increase of 12.8% from the fourth quarter of 2013 and an increase
of 72.3% from the third quarter of 2014. The year-over-year
increase was primarily due to increases in revenues from (i)
services such as head-end system integration, and licensing income
and (ii) sales of other products, such as the network broadcasting
platform. The quarter-over-quarter increase was principally due to
increases in revenues from (i) sales of smart cards and other
products, such as the network broadcasting platform, and (ii)
services such as head-end system integration, and licensing
income.
In the fourth quarter of 2014, revenues from the Company's top
five customers accounted for 26.5% of total revenues, compared to
20.8% in the third quarter of 2014.
Revenue Breakdown
|
|
For the three
months ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
(in U.S. dollars,
in thousands)
|
Products:
|
|
|
|
|
|
|
|
|
|
Smart
cards
|
|
$
|
22,145
|
|
$
|
14,382
|
|
$
|
23,360
|
Other
products
|
|
|
2,354
|
|
|
1,556
|
|
|
1,576
|
Subtotal
|
|
|
24,499
|
|
|
15,938
|
|
|
24,936
|
Services:
|
|
|
|
|
|
|
|
|
|
Head-end system
integration
|
|
|
3,210
|
|
|
713
|
|
|
531
|
Head-end system
development
|
|
|
737
|
|
|
208
|
|
|
484
|
Licensing
income
|
|
|
1,155
|
|
|
182
|
|
|
259
|
Royalty
income
|
|
|
152
|
|
|
126
|
|
|
46
|
Other
services
|
|
|
11
|
|
|
2
|
|
|
-
|
Subtotal
|
|
|
5,265
|
|
|
1,231
|
|
|
1,320
|
Total
revenues
|
|
$
|
29,764
|
|
$
|
17,169
|
|
$
|
26,256
|
Revenues from smart cards and other
products in the fourth quarter of 2014 were US$24.5 million, representing a decrease of 1.8%
from the same period in 2013 and an increase of 53.7% from the
third quarter of 2014. The year-over-year decrease was primarily
due to a decrease in revenues from smart card sales caused by a
decline in average selling price ("ASP"), and was partially offset
by an increase in revenues from sales of other products, such as
the network broadcasting platform. The quarter-over-quarter
increase was mainly due to an increase in smart card shipments, as
well as an increase in revenues from the network broadcasting
platform. Revenues from sales of smart cards and other products
accounted for 82.3% of total revenues in the fourth quarter of
2014, compared to 92.8% in the preceding quarter.
Revenues from services in the fourth quarter of 2014 were
US$5.3 million, an increase of 298.9%
from the same period in 2013 and an increase of 327.7% from the
third quarter of 2014. The year-over-year and quarter-over-quarter
increases were primarily due to increases in revenues from head-end
system integration and licensing income. Revenues from services
accounted for 17.7% of total revenues in the fourth quarter of
2014, compared to 7.2% in the preceding quarter.
Gross profit in the fourth quarter of 2014 was
US$23.6 million, an increase of 19.3%
from the same period in 2013 and an increase of 84.6% from the
third quarter of 2014. Gross margin, which is equal to gross
profit divided by net revenues, in the fourth quarter of 2014 was
80.9%, compared to 76.4% in the same period in 2013 and 75.5% in
the third quarter of 2014. The year-over-year increase was
primarily due to a decrease in cost of revenues in the fourth
quarter of 2014, reflecting the higher inventory write-down the
Company took in the fourth quarter in 2013. The
quarter-over-quarter increase was mainly due to an increase in
revenues from services, the gross margin on which also
increased.
In the fourth quarter of 2014, the ASP of smart cards was
relatively stable compared to the third quarter of 2014. In
addition, the unit cost of smart cards decreased by 13.4% compared
to the third quarter of 2014.
Operating expenses in the fourth quarter of 2014 were
US$11.8 million, an increase of 16.1%
from the same period in 2013 and an increase of 12.5% from the
third quarter of 2014.
- Research and development expenses in the fourth quarter
of 2014 were US$4.4 million, an
increase of 7.3% from the same period in 2013 and a decrease of
5.3% from the third quarter of 2014. The year-over-year increase
was primarily due to an increase in average compensation. The
quarter-over-quarter decrease was mainly due to annual
bonus adjustment, which was partially offset by an increase in
project development expenses.
- Selling and marketing expenses in the fourth quarter of
2014 were US$3.2 million, a decrease
of 18.7% from the same period in 2013 and a decrease of 5.3% from
the third quarter of 2014. The year-over-year decrease was mainly
due to a decrease in marketing expenses. The quarter-over-quarter
decrease was mainly due to annual bonus
adjustment.
- General and administrative expenses in the fourth
quarter of 2014 were US$4.2 million,
an increase of 98.1% from the same period in 2013 and an increase
of 71.7% from the third quarter of 2014. The year-over-year and
quarter-over-quarter increases were mainly due to increases in
consulting expenses, as well as allowance for doubtful
accounts.
Income from operations in the fourth quarter of 2014 was
US$11.9 million, a 22.7% increase
from the same period in 2013 and a 408.8% increase from the third
quarter of 2014.
Operating margin, defined as income from operations
divided by net revenues, in the fourth quarter of 2014 was 40.5%,
compared to 37.3% in the same period in 2013 and 13.7% in the third
quarter of 2014.
Interest income in the fourth quarter of 2014
was US$0.2 million, a 75.0% decrease
from the same period in 2013 and a 13.5% increase from the third
quarter of 2014.
Income tax expenses in the fourth quarter of 2014
were US$3.6 million, compared to
US$1.1 million in the same period of
2013 and US$1.6 million in the third
quarter of 2014. In the fourth quarter of 2013, the Company's PRC
operating subsidiary, Beijing Super TV Co., Ltd., 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 the Company 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
year-over-year increase was mainly due to the above mentioned
preferential income tax adjustment in the fourth quarter of 2013,
as well as an increase in taxable income in the quarter of 2014.
The quarter-over-quarter increase was primarily due to an increase
in taxable income.
Net loss attributable to
noncontrolling interest in the fourth
quarter of 2014 was US$0.7 million,
an increase of 145.5% from the same period in 2013 and an increase
of 79.5% from the third quarter of 2014. The year-over-year and
quarter-over-quarter increases were largely due to increases in net
losses recorded by the Company's majority-owned subsidiaries.
Net income attributable to holders of ordinary
shares in the fourth quarter of 2014 was US$10.9 million, an increase of 8.9% from the
same period in 2013 and an increase of 629.6% from the third
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 fourth quarter
of 2014 was US$11.1 million, an
increase of 6.1% from the same period in 2013 and an increase of
541.9% from the third quarter of 2014. For more information on
these non-GAAP financial measures, please see the tables captioned
"Reconciliation of non-GAAP measures" set forth at the end of this
release.
Balance Sheet and Cash Flow
As of December 31, 2014, China
Digital TV had cash and cash equivalents and restricted cash
totaling US$62.1 million. In the
fourth quarter of 2014, cash flow generated from operations was
approximately US$4.8 million.
Full Year 2014 Results
|
|
For the twelve months
ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
|
(in U.S. dollars, in
thousands)
|
Products:
|
|
|
|
|
|
|
Smart cards
|
|
$
|
67,108
|
|
$
|
78,256
|
Other
products
|
|
|
6,412
|
|
|
4,670
|
Subtotal
|
|
|
73,520
|
|
|
82,926
|
Services:
|
|
|
|
|
|
|
Head-end system
integration
|
|
|
4,591
|
|
|
2,731
|
Head-end system
development
|
|
|
1,566
|
|
|
1,103
|
Licensing
income
|
|
|
2,516
|
|
|
1,098
|
Royalty
income
|
|
|
585
|
|
|
512
|
Other
services
|
|
|
165
|
|
|
77
|
Subtotal
|
|
|
9,423
|
|
|
5,521
|
Total
revenues
|
|
$
|
82,943
|
|
$
|
88,447
|
Net revenues in 2014 were US$81.5 million, a 6.5% decrease from
US$87.2 million in 2013 primarily due
to a decrease in revenues from sales of smart cards, which were
partially offset by increases in revenues from head-end system
integration, licensing income and other products, such as surface
mounted chips and the network broadcasting platform.
Revenues from smart cards and other
products in 2014 were US$73.5
million, a decrease of 11.3% from 2013, mainly due to a
decline in revenues from sales of smart cards, which, in turn, was
primarily attributable to decreases in both sales volume and ASP in
2014 compared to 2013. Revenues from smart cards and other products
represented 88.6% of total revenues in 2014.
In 2014, revenues from the Company's top five customers
accounted for 26.9% of total revenues, compared to 20.6% in
2013.
Revenues from services in 2014 were US$9.4 million, an increase of 70.7% from 2013,
primarily due to an increase in head-end system integration and
licensing income. Revenues from services represented 11.4% of total
revenues in 2014.
Gross profit in 2014 was US$63.3
million, a decrease of 3.4% from US$65.5 million in 2013. Gross margin was 77.6%
in 2014, compared to 75.1% in 2013. The increase in gross margin
was primarily due to a decrease in cost of revenues, reflecting
higher inventory write-downs with respect to surface mounted chips,
video-on-demand and multimedia home entertainment boxes in
2013.
In 2014, the ASP of smart cards decreased by 6.5% compared to
2013. In addition, the unit cost of smart cards increased by 1.3%
compared to 2013.
Operating expenses in 2014 were US$42.1 million, a decrease of 4.7% from
US$44.2 million in 2013.
- Research and development expenses in 2014
decreased by 10.3% to US$17.3 million
from US$19.3 million in 2013, mainly
due to a decrease in project development expenses, office rent
expenses, and personnel related expenses resulting from lower
research and development headcount, as well as a decrease in
share-based compensation.
- Sales and marketing expenses in 2014 decreased by
7.2% to US$13.9 million from
US$15.0 million in 2013. The decrease
was primarily due to a decrease in share-based compensation and
marketing expenditures.
- General and administrative expenses in 2014
increased by 9.8% to US$10.9 million from US$10.0 million in 2013. The increase was mainly
due to an increase in consulting expenses.
Income from operations in 2014 was US$21.2 million, a decrease of 0.6% from
2013.
Operating margin, defined as income from
operations divided by net revenues, was 26.0% in 2014, compared to
24.5% in 2013.
Net income attributable to China Digital TV Holding
Co., Ltd. in 2014 was US$20.9
million, a decrease of 14.4% from US$24.4 million in 2013.
U.S. Federal Income Taxation
Based on the Company's analysis of the value of the Company's
assets and income for the taxable year ended December 31, 2014, the Company believes it was
not a passive foreign investment company ("PFIC") for the taxable
year ended December 31, 2014. There
can be no assurance that the Company will not be a PFIC for the
taxable year ending December 31, 2015
or future taxable years, as PFIC status is tested each year and
depends on the Company's assets and income in such year. In
addition, based on an analysis of the value of the Company's assets
as of the end of prior years, the Company was a PFIC during the
taxable years ended December 31, 2009
through 2013 for U.S. federal income tax purposes. Certain holders
of the Company's ADSs or ordinary shares that are subject to U.S.
federal income tax and that held ADSs or ordinary shares during any
year in which the Company was treated as a PFIC will be subject to
special rules that may have materially adverse consequences.
Further details about the PFIC rules are available in the Company's
annual reports on Form 20-F for the fiscal year ended December 31, 2013. U.S. holders (as defined in
the Form 20-F) of the Company's ADSs should generally be able to
make a mark-to-market election under the PFIC rules. U.S. holders
of the Company's ADSs are advised to consult their own tax advisors
regarding the application of the PFIC rules to their particular
circumstances, including the consequences of making a
mark-to-market election.
Business Outlook
Based on information available as of March 10, 2015, China Digital TV expects smart
card shipments for the first quarter of 2015 to be in the range of
2.9 million to 3.2 million. Net revenues for the first quarter of
2015 are expected to be in the range of US$13.4 million to US$14.6
million.
Conference Call Information
The Company will hold an earnings conference call at
8:00 p.m. on Tuesday, March 10, 2015, U.S. Eastern Time
(8:00 a.m. on Wednesday, March 11, 2015, Beijing/Hong Kong Time).
Conference Call Dial-in Information
United States Toll
Free:
|
+1-888-346-8982
|
International:
|
+1-412-902-4272
|
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 March 10, 2015 and 9:00
p.m. on March 17, 2015 U.S.
Eastern Time.
Replay Dial-in Information
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Conference
ID:
|
10061048
|
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 first
quarter of 2015 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
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
24,499
|
|
$
|
15,938
|
|
$
|
24,936
|
|
Services
|
|
|
5,265
|
|
|
1,231
|
|
|
1,320
|
|
Total
revenues
|
|
|
29,764
|
|
|
17,169
|
|
|
26,256
|
|
Business and
sales related taxes
|
|
|
(537)
|
|
|
(205)
|
|
|
(339)
|
|
Net
revenues
|
|
|
29,227
|
|
|
16,964
|
|
|
25,917
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
(4,083)
|
|
|
(3,276)
|
|
|
(5,065)
|
|
Services
|
|
|
(1,507)
|
|
|
(886)
|
|
|
(1,040)
|
|
Total cost of
revenues
|
|
|
(5,590)
|
|
|
(4,162)
|
|
|
(6,105)
|
|
Gross
Profit
|
|
|
23,637
|
|
|
12,802
|
|
|
19,812
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
(4,430)
|
|
|
(4,677)
|
|
|
(4,127)
|
|
Selling and
marketing expenses
|
|
|
(3,188)
|
|
|
(3,368)
|
|
|
(3,921)
|
|
General and
administrative expenses
|
|
|
(4,169)
|
|
|
(2,428)
|
|
|
(2,105)
|
|
Total operating
expenses
|
|
|
(11,787)
|
|
|
(10,473)
|
|
|
(10,153)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
11,850
|
|
|
2,329
|
|
|
9,659
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
151
|
|
|
133
|
|
|
603
|
|
Other
income
|
|
|
1,930
|
|
|
158
|
|
|
609
|
|
Income before
income tax
|
|
|
13,931
|
|
|
2,620
|
|
|
10,871
|
|
Income tax
expenses
|
|
|
|
|
|
|
|
|
|
|
Income
tax-current
|
|
|
(1,545)
|
|
|
(539)
|
|
|
(468)
|
|
Income
tax-deferred
|
|
|
(2,054)
|
|
|
(1,051)
|
|
|
(598)
|
|
Net income before
net income from equity method investments
|
|
|
10,332
|
|
|
1,030
|
|
|
9,805
|
|
Net (loss)/income from
equity method investments
|
|
|
(70)
|
|
|
93
|
|
|
(39)
|
|
Net
income
|
|
|
10,262
|
|
|
1,123
|
|
|
9,766
|
|
Net loss attributable
to noncontrolling interest
|
|
675
|
|
|
376
|
|
|
275
|
|
Net income
attributable to China Digital TV Holding Co., Ltd
shareholders
|
|
$
|
10,937
|
|
$
|
1,499
|
|
$
|
10,041
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share attributable to ordinary shareholders of China Digital TV
Holding Co., Ltd
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.18
|
|
$
|
0.03
|
|
$
|
0.17
|
|
Diluted
|
|
$
|
0.18
|
|
$
|
0.02
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
10,262
|
|
$
|
1,123
|
|
$
|
9,766
|
|
Other comprehensive
(loss) / income, net of tax
Foreign currency translation adjustment
|
|
|
(1,050)
|
|
|
778
|
|
|
1,164
|
|
Comprehensive
income
|
|
|
9,212
|
|
|
1,901
|
|
|
10,930
|
|
Comprehensive loss
attributable to noncontrolling interest
|
|
|
684
|
|
|
361
|
|
|
263
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income attributable to ordinary shareholders of China
Digital
TV Holding Co.,
Ltd
|
|
$
|
9,896
|
|
$
|
2,262
|
|
$
|
11,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in calculating net income per ordinary
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
59,592,861
|
|
|
59,410,254
|
|
|
59,131,103
|
|
Diluted
|
|
|
62,221,519
|
|
|
62,376,044
|
|
|
59,328,650
|
|
|
China Digital TV
Holding Co., Ltd.
|
Unaudited
Condensed Consolidated Balance Sheets
|
(in thousands of
U.S. dollars)
|
|
ASSETS
|
December
31,
|
|
December
31,
|
2014
|
2013
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
62,042
|
|
$
|
79,085
|
|
Restricted
cash
|
|
78
|
|
|
919
|
|
Notes
receivable
|
|
5,417
|
|
|
4,484
|
|
Accounts receivable,
net
|
|
47,977
|
|
|
45,905
|
|
Inventories
|
|
4,966
|
|
|
5,027
|
|
Prepaid expenses and
other current assets
|
|
8,964
|
|
|
4,032
|
|
Deferred
costs-current
|
|
710
|
|
|
141
|
|
Deferred income
taxes-current
|
|
2,387
|
|
|
2,546
|
Total current
assets
|
|
132,541
|
|
|
142,139
|
|
Long-term
receivable
|
|
45
|
|
|
224
|
|
Property and
equipment, net
|
|
880
|
|
|
1,170
|
|
Intangible assets,
net
|
|
440
|
|
|
6
|
|
Goodwill
|
|
1,402
|
|
|
563
|
|
Equity method
investments
|
|
2,502
|
|
|
3,551
|
|
Deferred
costs-non-current
|
|
516
|
|
|
214
|
|
Deferred income
taxes-non-current
|
|
785
|
|
|
939
|
Total
assets
|
|
139,111
|
|
|
148,806
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
2,298
|
|
|
2,207
|
|
Notes
payable
|
|
86
|
|
|
884
|
|
Accrued expenses and
other current liabilities
|
|
17,652
|
|
|
13,134
|
|
Dividend
payable
|
|
-
|
|
|
57
|
|
Deferred
revenue-current
|
|
4,572
|
|
|
6,542
|
|
Income tax
payable
|
|
3,465
|
|
|
997
|
|
Deferred tax
liabilities-current
|
|
3,727
|
|
|
8,222
|
|
Government
subsidies-current
|
|
167
|
|
|
710
|
Total current
liabilities
|
|
31,967
|
|
|
32,753
|
|
Deferred
revenue-non-current
|
|
617
|
|
|
135
|
|
Government
subsidies-non-current
|
|
4,390
|
|
|
4,946
|
|
Deferred income
taxes-non-current
|
|
110
|
|
|
-
|
Total
liabilities
|
|
37,084
|
|
|
37,834
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
China Digital TV
Holding Co., Ltd. shareholders'
equity:
|
|
Ordinary
shares
|
|
30
|
|
|
30
|
|
Additional paid-in
capital
|
|
35,639
|
|
|
32,037
|
|
Statutory
reserve
|
|
17,977
|
|
|
17,907
|
|
Retained
earnings
|
|
22,307
|
|
|
31,122
|
|
Accumulated other
comprehensive income
|
|
25,509
|
|
|
28,940
|
Total China
Digital TV Holding Co., Ltd
shareholders'
equity
|
|
101,462
|
|
|
110,036
|
noncontrolling
interest
|
|
565
|
|
|
936
|
Total
equity
|
|
102,027
|
|
|
110,972
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
139,111
|
|
$
|
148,806
|
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 twelve
months ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
$
|
73,520
|
|
$
|
82,926
|
Services
|
|
|
|
|
|
9,423
|
|
|
5,521
|
Total
revenues
|
|
|
|
|
|
82,943
|
|
|
88,447
|
Business and
sales related taxes
|
|
|
|
|
|
(1,410)
|
|
|
(1,283)
|
Net
revenues
|
|
|
|
|
|
81,533
|
|
|
87,164
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
|
(13,845)
|
|
|
(17,009)
|
Services
|
|
|
|
|
|
(4,384)
|
|
|
(4,652)
|
Total Cost of
Revenues
|
|
|
|
|
|
(18,229)
|
|
|
(21,661)
|
Gross
Profit
|
|
|
|
|
|
63,304
|
|
|
65,503
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
|
|
|
(17,276)
|
|
|
(19,251)
|
Selling and
marketing expenses
|
|
|
|
|
|
(13,877)
|
|
|
(14,957)
|
General and
administrative expenses
|
|
|
|
|
|
(10,935)
|
|
|
(9,959)
|
Total operating
expenses
|
|
|
|
|
|
(42,088)
|
|
|
(44,167)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
|
|
|
21,216
|
|
|
21,336
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
1,312
|
|
|
1,901
|
Other
income
|
|
|
|
|
|
3,069
|
|
|
534
|
Income before
income taxes
|
|
|
|
|
|
25,597
|
|
|
23,771
|
Income tax
(expenses)/benefits
|
|
|
|
|
|
|
|
|
|
Income
tax-current
|
|
|
|
|
|
(10,638)
|
|
|
1,587
|
Income
tax-deferred
|
|
|
|
|
|
4,265
|
|
|
(2,314)
|
Net income before
net income from equity method investments
|
|
|
|
|
|
19,224
|
|
|
23,044
|
Net loss from equity
method investments, net of income taxes
|
|
|
|
|
|
(59)
|
|
|
(468)
|
Net
income
|
|
|
|
|
|
19,165
|
|
|
22,576
|
Net loss attributable
to noncontrolling interest
|
|
|
|
|
|
1,725
|
|
|
1,832
|
Net income
attributable to holders of ordinary shares
|
|
|
|
|
$
|
20,890
|
|
$
|
24,408
|
|
|
|
|
|
|
|
|
|
|
Net income per
share attributable to holders of ordinary shares
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.35
|
|
$
|
0.41
|
Diluted
|
|
|
|
|
$
|
0.34
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
$
|
19,165
|
|
$
|
22,576
|
Other comprehensive
(loss) / income, net of tax
Foreign currency translation adjustment
|
|
|
|
|
|
(3,441)
|
|
|
2,904
|
Comprehensive
income
|
|
|
|
|
|
15,724
|
|
|
25,480
|
Comprehensive loss
attributable to
noncontrolling interest
|
|
|
|
|
|
1,735
|
|
|
1,785
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income attributable to holders of ordinary shares
|
|
|
|
|
$
|
17,459
|
|
$
|
27,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in calculating net income per ordinary
share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
59,369,708
|
|
|
59,111,594
|
Diluted
|
|
|
|
|
|
61,716,779
|
|
|
59,176,457
|
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
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
2014
|
2014
|
2013
|
|
|
(in U.S. dollars,
in thousands)
|
Net income
attributable to China Digital TV Holding Co., Ltd shareholders -
GAAP
|
|
$
|
10,937
|
|
$
|
1,499
|
|
$
|
10,041
|
Share-based
compensation expenses
|
|
|
78
|
|
|
173
|
|
|
338
|
Amortization of
intangible assets from business acquisitions and equity method
investments
|
|
|
52
|
|
|
52
|
|
|
55
|
Net income
attributable to China Digital TV Holding Co., Ltd shareholders -
Non-GAAP
|
|
$
|
11,067
|
|
$
|
1,724
|
|
$
|
10,434
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-digital-tv-announces-unaudited-fourth-quarter-and-full-year-2014-results-300048191.html
SOURCE China Digital TV Holding Co., Ltd.