| At | At | |||||||
| September 30, | December 31, | |||||||
| 2008 | 2007 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
| Cash and cash equivalents | $ | 177,263 | $ | 197,825 | ||||
| Available-for-sale securities | 5,912 | – | ||||||
| Accounts receivable, net | 6,682 | 6,665 | ||||||
| Receivables from sales representatives | 8,235 | 12,303 | ||||||
| Inventory | 1,192 | 1,108 | ||||||
| Prepaid expenses and other current assets | 22,045 | 15,333 | ||||||
| Deferred tax assets | 46 | 46 | ||||||
Total Current Assets | 221,375 | 233,280 | ||||||
| Property and equipment, net | 82,215 | 35,352 | ||||||
| Long term investments | 100 | 100 | ||||||
| Bonds held to maturity, at amortized cost | – | 99 | ||||||
| Deferred tax assets — long term | 202 | 196 | ||||||
| Other assets | 2,476 | 2,781 | ||||||
Total Assets | $ | 306,368 | $ | 271,808 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
| Accounts payable | $ | 7,141 | $ | 5,577 | ||||
| Deferred income and customers’ prepayments | 92,003 | 78,141 | ||||||
| Accrued liabilities | 10,887 | 12,546 | ||||||
| Income taxes payable | 871 | 694 | ||||||
Total Current Liabilities | 110,902 | 96,958 | ||||||
| Deferred income and customers’ prepayments — long term | 7,170 | 4,934 | ||||||
| Deferred tax liability | 239 | 283 | ||||||
Total Liabilities | 118,311 | 102,175 | ||||||
| Non-controlling interest | 3,974 | 4,940 | ||||||
Shareholders’ equity: | ||||||||
| Common shares, US$0.01 par value; 75,000,000 shares authorized; 46,703,058 (2007: 46,572,092) shares issued and outstanding | 467 | 466 | ||||||
| Additional paid in capital | 134,390 | 133,987 | ||||||
| Retained earnings | 47,729 | 28,829 | ||||||
| Accumulated other comprehensive income | 1,497 | 1,411 | ||||||
Total Shareholders’ Equity | 184,083 | 164,693 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 306,368 | $ | 271,808 | ||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenue: | ||||||||||||||||
| Online and other media services (Note 1) | $ | 35,350 | $ | 32,270 | $ | 105,766 | $ | 91,849 | ||||||||
| Exhibitions | 511 | 454 | 31,731 | 26,153 | ||||||||||||
| Miscellaneous | 1,716 | 1,059 | 4,354 | 3,273 | ||||||||||||
| $ | 37,577 | $ | 33,783 | $ | 141,851 | $ | 121,275 | |||||||||
Operating Expenses: | ||||||||||||||||
| Sales (Note 2) | 16,036 | 12,330 | 48,909 | 41,132 | ||||||||||||
| Event production | 280 | 163 | 11,359 | 10,240 | ||||||||||||
| Community (Note 2) | 5,976 | 5,051 | 21,425 | 17,759 | ||||||||||||
| General and administrative (Note 2) | 11,742 | 10,484 | 35,809 | 31,929 | ||||||||||||
| Online services development (Note 2) | 1,549 | 1,614 | 4,530 | 4,200 | ||||||||||||
| Amortization of software costs | 50 | 38 | 147 | 118 | ||||||||||||
Total Operating Expenses | 35,633 | 29,680 | 122,179 | 105,378 | ||||||||||||
Income from Operations | 1,944 | 4,103 | 19,672 | 15,897 | ||||||||||||
| Interest and dividend income | 670 | 1,758 | 2,616 | 4,874 | ||||||||||||
| Loss on investment, net | – | – | – | (1,846 | ) | |||||||||||
| Foreign exchange gains (losses), net | (24 | ) | (294 | ) | (1,319 | ) | (758 | ) | ||||||||
Income before Income Taxes | 2,590 | 5,567 | 20,969 | 18,167 | ||||||||||||
Income Tax Expense | (140 | ) | (89 | ) | (561 | ) | (646 | ) | ||||||||
Net Income before Non-controlling Interest | 2,450 | 5,478 | 20,408 | 17,521 | ||||||||||||
| Non-controlling interest | (175 | ) | (345 | ) | (1,508 | ) | (1,670 | ) | ||||||||
Net Income | $ | 2,275 | $ | 5,133 | $ | 18,900 | $ | 15,851 | ||||||||
Basic net income per common share | $ | 0.05 | $ | 0.11 | $ | 0.40 | $ | 0.34 | ||||||||
Diluted net income per common share | $ | 0.05 | $ | 0.11 | $ | 0.40 | $ | 0.34 | ||||||||
Common shares used in basic net income per common share calculations | 45,519,622 | 45,003,417 | 45,473,023 | 44,995,281 | ||||||||||||
Common shares used in diluted net income per common share calculations | 45,541,869 | 45,161,883 | 45,518,566 | 45,118,442 | ||||||||||||
Basic net income per non-vested restricted share | $ | 0.05 | $ | 0.11 | $ | 0.40 | $ | 0.34 | ||||||||
Diluted net income per non-vested restricted share | $ | 0.05 | $ | 0.11 | $ | 0.40 | $ | 0.34 | ||||||||
Non-vested restricted shares used in basic net income per non-vested restricted share calculations | 1,183,450 | 1,568,675 | 1,201,784 | 1,561,387 | ||||||||||||
Non-vested restricted shares used in diluted net income per non-vested restricted share calculations | 1,964,913 | 1,928,573 | 1,929,720 | 1,792,537 | ||||||||||||
| Note : 1. Online and other media services consists of: | ||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Online services | $ | 23,480 | $ | 19,656 | $ | 69,514 | $ | 55,418 | ||||||||
| Print services | 11,870 | 12,614 | 36,252 | 36,431 | ||||||||||||
| $ | 35,350 | $ | 32,270 | $ | 105,766 | $ | 91,849 | |||||||||
| Note : 2. | Non-cash compensation expenses associated with the several employee equity compensation plans and Directors Purchase Plan included under various categories of expenses are as follows: |
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Sales | $ | (582 | ) | $ | 483 | $ | (1,390 | ) | $ | 1,869 | ||||||
| Community | 14 | 55 | 194 | 157 | ||||||||||||
| General administrative | 136 | 311 | 536 | 1,956 | ||||||||||||
| Online services development | 53 | 65 | 178 | 225 | ||||||||||||
| $ | (379 | ) | $ | 914 | $ | (482 | ) | $ | 4,207 | |||||||
