Global Sources LTD /bermuda 6-K Global Sources LTD. - Form 6-K

EXHIBIT 2

GLOBAL SOURCES LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)

	At			At
	March 31			December 31
	2010			2009
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	129,460		$	91,553
Term deposits with banks		31,406			60,357
Available-for-sale securities		6,549			6,423
Accounts receivable, net		3,789			3,438
Receivables from sales representatives		8,436			5,607
Inventory		665			600
Prepaid expenses and other current assets		20,930			13,603
Deferred tax assets		26			13
Total Current Assets		201,261			181,594
Property and equipment, net		76,507			77,815
Intangible assets, net		8,507			8,770
Long term investments		100			100
Deferred tax assets		456			446
Other noncurrent assets		1,989			1,667
Total Assets	$	288,820		$	270,392
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	9,568		$	10,901
Deferred income and customer prepayments		89,103			73,841
Accrued liabilities		12,043			11,585
Income taxes payable		490			435
Total Current Liabilities		111,204			96,762
Deferred income and customer prepayments		3,156			2,516
Deferred tax liability		119			141
Total Liabilities		114,479			99,419
Shareholders’ equity:
Common shares, US$0.01 par value; 75,000,000 shares authorized; 51,524,759 (2009: 51,427,642) shares issued and 44,649,759 (2009: 44,552,642) outstanding		515			514
Additional paid in capital		139,077			138,468
Treasury shares, at cost — 6,875,000 (2009: 6,875,000) shares		(50,000	)		(50,000	)
Retained earnings		73,958			71,369
Accumulated other comprehensive income		3,017			2,859
Total Company Shareholders’ Equity		166,567			163,210
Non-controlling interests		7,774			7,763
Total Equity	$	174,341		$	170,973
Total Liabilities and Equity	$	288,820		$	270,392

GLOBAL SOURCES LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In U.S. Dollars Thousands, Except Number of Shares and Per Share Data)

	Three months ended March 31,
	2010			2009
	(Unaudited)			(Unaudited)
Revenue:
Online and other media services (Note 1)	$	28,314		$	29,495
Exhibitions		4,505			4,488
Miscellaneous		1,111			805
		33,930			34,788
Operating Expenses:
Sales (Note 2)		13,131			13,738
Event production		1,184			821
Community (Note 2)		4,337			5,197
General and administrative (Note 2)		10,962			11,595
Online services development (Note 2)		1,319			1,411
Amortization of intangibles and software costs		273			42
Total Operating Expenses		31,206			32,804
Income from Operations		2,724			1,984
Interest and dividend income		259			65
Foreign exchange gains (losses), net		61			(93	)
Income before Income Taxes		3,044			1,956
Income Tax Expense		(104	)		(138	)
Net Income	$	2,940		$	1,818
Net income attributable to non-controlling interests		(351	)		(621	)
Net Income Attributable to the Company	$	2,589		$	1,197
Basic net income per share attributable to the Company’s shareholders	$	0.06		$	0.03
Diluted net income per share attributable to the Company’s shareholders	$	0.06		$	0.03
Shares used in basic net income per share calculations		44,647,907			44,541,722
Shares used in diluted net income per share calculations		46,135,941			45,671,181

     Note : 1. Online and other media services consists of:

	Three months ended March 31,
	2010		2009
	(Unaudited)		(Unaudited)
Online services	$	21,781	$	21,970
Print services		6,533		7,525
	$	28,314	$	29,495

     Note : 2. Non-cash compensation expenses associated with the employee and team member equity compensation plans and Global Sources Directors Share Grant Award Plan included under various categories of expenses are as follows:

	Three months ended March 31,
	2010		2009
	(Unaudited)		(Unaudited)
Sales	$	131	$	9
Community		60		7
General and administrative		355		436
Online services development		80		74
	$	626	$	526