| At | At | |||||||
| September 30 | December 31 | |||||||
| 2005 | 2004 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
| Cash and cash equivalents | $ | 54,971 | $ | 41,195 | ||||
| Available-for-sale securities | 53,210 | 10,172 | ||||||
| Accounts receivable, net | 5,024 | 5,147 | ||||||
| Receivables from sales representatives | 6,696 | 3,407 | ||||||
| Inventory of paper | 1,036 | 750 | ||||||
| Prepaid expenses and other current assets | 7,108 | 2,926 | ||||||
Total Current Assets | 128,045 | 63,597 | ||||||
| Property and equipment, net | 27,063 | 24,902 | ||||||
| Long term investments | 100 | 100 | ||||||
| Bonds held to maturity, at amortized cost | 695 | 666 | ||||||
| Other assets | 3,564 | 3,260 | ||||||
Total Assets | $ | 159,467 | $ | 92,525 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
| Accounts payable | $ | 4,694 | $ | 4,798 | ||||
| Deferred income and customer prepayments | 43,352 | 28,775 | ||||||
| Accrued liabilities | 6,274 | 5,921 | ||||||
| Income taxes payable | 442 | 384 | ||||||
Total Current Liabilities | 54,762 | 39,878 | ||||||
| Liabilities for incentive and bonus plans | 467 | 467 | ||||||
| Deferred income and customer prepayments – long term | 3,571 | 1,420 | ||||||
| Minority interest | 5,896 | 4,910 | ||||||
| Deferred tax liability | 386 | 327 | ||||||
Total Liabilities | 65,082 | 47,002 | ||||||
Shareholders’ equity: | ||||||||
| Common shares, US$0.01 par value; 50,000,000 shares authorized; 34,853,435 (2004: 31,847,935) shares issued and outstanding | 349 | 319 | ||||||
| Additional paid in capital | 127,285 | 86,373 | ||||||
| Retained deficit | (25,733 | ) | (34,577 | ) | ||||
| Less: Unearned compensation | (8,029 | ) | (6,831 | ) | ||||
| Accumulated other comprehensive income | 513 | 239 | ||||||
Total Shareholders’ Equity | 94,385 | 45,523 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 159,467 | $ | 92,525 | ||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenue: | ||||||||||||||||
| Online and other media services (Note 1) | $ | 24,835 | $ | 23,278 | $ | 71,504 | $ | 68,306 | ||||||||
| Exhibitions | 403 | 281 | 7,961 | 7,636 | ||||||||||||
| Miscellaneous | 123 | 124 | 398 | 379 | ||||||||||||
| 25,361 | 23,683 | 79,863 | 76,321 | |||||||||||||
Operating Expenses: | ||||||||||||||||
| Sales | 8,627 | 7,682 | 24,932 | 22,717 | ||||||||||||
| Event production | 141 | 37 | 1,933 | 1,938 | ||||||||||||
| Community | 4,253 | 3,720 | 13,894 | 12,012 | ||||||||||||
| General and administrative | 8,260 | 7,154 | 24,730 | 22,652 | ||||||||||||
| Online services development | 1,040 | 998 | 3,012 | 3,106 | ||||||||||||
| Non-cash compensation expense (Note 2) | 512 | 271 | 1,323 | 1,241 | ||||||||||||
| Amortization of software cost | 296 | 369 | 1,006 | 1,107 | ||||||||||||
Total Operating Expenses | 23,129 | 20,231 | 70,830 | 64,773 | ||||||||||||
Income from Operations | 2,232 | 3,452 | 9,033 | 11,548 | ||||||||||||
| Interest income | 405 | 81 | 794 | 136 | ||||||||||||
| Gain (loss) on sale of available-for-sale securities | 249 | (43 | ) | 557 | 590 | |||||||||||
| Foreign exchange gains (losses), net | (257 | ) | (59 | ) | (78 | ) | (62 | ) | ||||||||
Income before Income Taxes | 2,629 | 3,431 | 10,306 | 12,212 | ||||||||||||
Income Tax Provision | (158 | ) | (154 | ) | (475 | ) | (606 | ) | ||||||||
Net Income before Minority Interest | $ | 2,471 | $ | 3,277 | $ | 9,831 | $ | 11,606 | ||||||||
| Minority interest | $ | (150 | ) | $ | (234 | ) | $ | (987 | ) | $ | (838 | ) | ||||
Net Income | $ | 2,321 | $ | 3,043 | $ | 8,844 | $ | 10,768 | ||||||||
Retained deficit brought forward | $ | (34,577 | ) | $ | (50,346 | ) | ||||||||||
Retained deficit carried forward | $ | (25,733 | ) | $ | (39,578 | ) | ||||||||||
Basic net income per share | $ | 0.07 | $ | 0.10 | $ | 0.26 | $ | 0.34 | ||||||||
Shares used in basic net income per share calculations | 34,853,435 | 31,847,935 | 33,951,168 | 31,846,632 | ||||||||||||
Diluted net income per share | $ | 0.07 | $ | 0.10 | $ | 0.26 | $ | 0.34 | ||||||||
Shares used in diluted net income per share calculations | 34,933,311 | 31,898,180 | 34,055,923 | 31,937,696 | ||||||||||||
| Note : 1. | Online and other media services consists of: |
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Online services | $ | 13,954 | $ | 13,100 | $ | 40,383 | $ | 39,022 | ||||||||
| Print services | 10,881 | 10,178 | 31,121 | 29,284 | ||||||||||||
| $ | 24,835 | $ | 23,278 | $ | 71,504 | $ | 68,306 | |||||||||
| Note : 2. | Reflects the non-cash compensation expenses associated with the employee equity compensation plans and Directors Purchase Plan. Non-cash compensation represents the following categories of expenses: |
| Three months ended | Nine months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Sales | $ | 128 | $ | 59 | $ | 310 | $ | 308 | ||||||||
| Community | 22 | 11 | 76 | 58 | ||||||||||||
| General and administrative | 305 | 112 | 674 | 645 | ||||||||||||
| Online services development | 57 | 89 | 263 | 230 | ||||||||||||
| $ | 512 | $ | 271 | $ | 1,323 | $ | 1,241 | |||||||||
| Nine months ended September 30 | ||||||||
| 2005 | 2004 | |||||||
| (Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities: | ||||||||
| Net income | $ | 8,844 | $ | 10,768 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 2,887 | 2,997 | ||||||
| Accretion of U.S. Treasury strips zero % coupons | (29 | ) | (44 | ) | ||||
| Profit on sale of equipment | (10 | ) | (1 | ) | ||||
| Property and Equipment written off | 31 | 18 | ||||||
| Gain on sale of available-for-sale securities | (557 | ) | (590 | ) | ||||
| Interest income on available-for-sale securities | (601 | ) | (56 | ) | ||||
| Bad debt expense | 32 | 37 | ||||||
| Non-cash compensation expense | 1,323 | 1,241 | ||||||
| Income attributable to minority shareholder | 987 | 838 | ||||||
| 12,907 | 15,208 | |||||||
Changes in assets and liabilities: | ||||||||
| Accounts receivables | 91 | 43 | ||||||
| Receivables from sales representatives | (3,289 | ) | 1,014 | |||||
| Inventory of paper | (286 | ) | 21 | |||||
| Prepaid expenses and other current assets | (4,182 | ) | (2,317 | ) | ||||
| Long term assets | (304 | ) | (2,069 | ) | ||||
| Accounts payable | (104 | ) | 577 | |||||
| Accrued liabilities and liabilities for incentive and bonus plans | 353 | (251 | ) | |||||
| Deferred income and customer prepayments | 16,728 | 2,124 | ||||||
| Tax liability | 116 | (258 | ) | |||||
Net cash provided by operating activities | 22,030 | 14,092 | ||||||
Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (5,080 | ) | (9,038 | ) | ||||
| Proceeds from sales of equipment | 11 | 2 | ||||||
| Proceeds from matured bonds | - | 123 | ||||||
| Net (purchase) sale of available-for-sale securities | (41,606 | ) | 22,737 | |||||
Net cash generated from (used for) investing activities | (46,675 | ) | 13,824 | |||||
Cash flows from financing activities: | ||||||||
| Proceeds from the issue of common shares, net of share issue expenses | 38,303 | - | ||||||
| Amount received towards directors purchase plan | 118 | 92 | ||||||
Net cash generated from financing activities | 38,421 | 92 | ||||||
| Net increase in cash and cash equivalents | 13,776 | 28,008 | ||||||
| Cash and cash equivalents, beginning of the period | 41,195 | 26,227 | ||||||
Cash and cash equivalents, end of the period | 54,971 | 54,235 | ||||||
Supplemental cash flow disclosures: | ||||||||
| Income tax paid | $ | 358 | $ | 864 | ||||
