Global Sources Revenue up, Profit Down in Q1
NASDAQ-listed Global Sources released its first quarter results for the period ended March 31. Revenues were $34 million, up 10 percent, compared with $31 million recorded in the same quarter last year. However, IFRS net income in the period dropped from $5.6 million last year to $145,000 in the quarter.
The Hong Kong-based company generated revenues of $21.3 million from its online business – 62 percent of total revenues. That is a drop of 15 percent from the $25.0 million recorded last year.
Revenues from print business accounted for 7.5 percent of total revenues at $2.6 million, down 13 percent year-on-year from $3.0 million recorded in the same quarter in 2013.
While exhibitions revenues increased from $1.5 million in the first quarter of last year, to $8.9 million this year, and accounted for 26 percent of the company’s total revenues.
Global Sources’ management reiterates its revenue expectation in the first half of 2014 to be between $88.0 million and $90.0 million, which is down 3 percent to 5 percent from $92.7 million recorded in the first half in 2013.
Global Sources’ executive chairman, Merle A. Hinrich, said, “In the first quarter of 2014, our new SIMM machinery shows were a strong success in every respect and contributed substantially to our first quarter revenue."
He added, " ... As we continue to manage through a sluggish global retail market, we are working to improve our overall revenue performance. We have made changes within our online business that have improved its financial performance, and we are planning several new trade shows.”