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[posting]39382949[/posting]Subaye Sells Non-core Business, Revises FY10, FY11 Guidance; Stock Rises - Update 5/3/2010 2:56 PM ET RELATED NEWS Subaye Sells Non-core Business, Assets To Accelerate Expansion Of On-line Video Advertising Network; Revises FY10, FY11 View - Quick Facts Subaye Q1 Profit Up - Quick Facts Trade SBAY now with (RTTNews) - China-based on-line video advertising provider Subaye, Inc. (SBAY: News ), Monday said that it is exiting the trade services and entertainment businesses to focus on further development and growth of its proprietary on-line video advertising business. In order to reflect the changes, the company revised its guidance for both fiscal year 2010 and 2011. Following the news, the company shares gained more than 16% on the Nasdaq. To date, the company has sold its trade services business and certain assets of its entertainment business for a total of $7.0 million in cash proceeds. The company plans to sell the remaining assets of its entertainment business individually by the end of this fiscal year as terms are agreed with buyers of the assets. Cash flow from operations of the company's core business coupled with proceeds from the sale of non-core assets are expected to fund the company's organic growth objectives for the foreseeable future. The company's entertainment media business assets, which consists mainly of copyrights to Chinese motion picture productions, are being marketed to potential buyers and certain assets sold to date have yielded gross proceeds of $6.4 million. The entertainment media business segment generated approximately $10.3 million in revenues, or 21.4% of total sales, for fiscal year 2009, with net margin of less than 7.0%. Subaye's trade services business has been sold for $0.60 million. The trade services business, originally purchased in 2006 for $0.50 million, generated $11.1 million, or 23.0%, of total sales in 2009 with a net margin of less than 1.0%. Subaye's core on-line video advertising business generated $26.7 million in fiscal year 2009, while contributing $5.5 million, or 56%, of the company's 2009 net income with gross and net margins of 77.6% and 32.2%, respectively. For the fiscal year 2010, the company currently expects revenue of $38.3 million and net income of $12.5 million or $1.77 per share from continuing operations, adjusting for the sale of its trade services and entertainment media businesses as discontinued operations effective March 16, 2010. For the fiscal year 2011, the company expects revenue of $71.3 million and net income of $29.2 million or $3.69 per share from continuing operations. SBAY is currently trading at $15.10, up $2.10 or 16.15%, on the Nasdaq. To receive FREE breaking news email alerts for SUBAYE, INC. and others in your portfolio by RTT Staff Writer For comments and feedback: contact editorial@rttnews.com |
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| aus der Diskussion: | Subaye - stark unterbewertete Youtube aus China? |
| Autor (Datum des Eintrages): | tr471 (03.05.10 22:36:03) |
| Beitrag: | 106 von 168 (ID:39448605) |
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