Global Sources Revenue Down, Profit Up
Earlier this week, NASDAQ-listed Global Sources released first quarter results for the period ended 31st March 2012. Revenues were US$31.3million, down 20% compared with US$38.9million recorded in the same quarter last year. However, net income attributable to the company’s shareholders in the period was up 81% from US$3.1 million in the first quarter in 2012 to US$5.6 million this year. Diluted earnings per share in the quarter were US$0.16.
Global Sources’ CFO, Connie Lai, commented on the results, “In the first quarter, we took action to reduce operating expenses. Also, our bottom line benefitted from the sale of an office property in Hong Kong… We intend to continue our efforts to strike the right balance between investing for the future and prudently managing costs.”
The Hong Kong-based company generated revenues of US$25.0million from its online business – 80% of total revenues – that is a drop of 19% from US$30.9million recorded last year. Revenues from print businesses accounted for 9.5% of total revenues at US$2.98 million, down 31% year-on-year from the US$4.35 million recorded in the same quarter last year. Exhibition revenues decreased 32% to US$1.5 million from US$2.2 millionin 2012, andaccounted for 4.8% of the company’s total revenues.
Global Sources’ management has increased its revenue expectation to between US$89.0million and US$91.0million in the first half of the year – down 14% to 16% from US$105.7 millionrecorded in the first half in 2012.