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 Tracking 1254 U.S. listed China Stocks and Counting...
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 Global Sources (NASDAQ:GSOL)

Thursday, August 14, 2014
Comments & Business Outlook

Second quarter 2014 Financial Results

  • Revenue was $58.3 million, as compared to $61.4 million.
  • Non-IFRS net income was $9.4 million, or $0.27 per diluted share, as compared to $11.4 million, or $0.32 per diluted share, for the second quarter of 2013.

Global Sources' CFO, Connie Lai, stated: "While our second quarter 2014 results reflect the strong performance of our electronics shows in Hong Kong, exhibition revenues were negatively impacted by the slower performance of our shows outside of Hong Kong. We also recorded a write down of approximately $1.7 million in consideration of impairment charges net of related taxes related to the China International Fashion Brand Fair -- Shenzhen (FashionSZshow). In addition, we successfully completed a cash tender offer that resulted in a cash outflow of $50.0 million. We continue to maintain a strong balance sheet with no short- or long-term debt."


Tuesday, August 12, 2014
Comments & Business Outlook

HONG KONG, August 12, 2014 /PRNewswire/ -- In September, Global Sources (NASDAQ: GSOL) plans to launch an innovative RFI (Request For Information) management system to help buyers and suppliers communicate more easily and close more orders.

Unlike other existing online messaging systems, the Global Sources system will allow users to communicate seamlessly from their own email accounts or through Global Sources' own online forms. Regardless of which communications means they choose, the system will capture and analyze incoming and outgoing communication to help users track the status of RFIs and follow up on specific sourcing projects.

"This represents a breakthrough in online sourcing communications between buyers and suppliers," said Spenser Au, Global Sources CEO. "Users will be able to access our system anywhere, anytime, on any device they choose to check on the status of RFIs. Suppliers can use the system's analytics to evaluate sales leads and focus on closing deals with the most serious buyers."

"In today's international trade marketplace, there is an overwhelming glut of often questionable information online," said Au. "The problem is how to filter and qualify the most reliable trade partner to work on a specific sourcing project. We have invested in this state-of-the-art system to improve the RFI communication process and further improve our reputation as the best platform for getting real business done."

The cloud-based messaging system was designed to meet detailed requirements of the Global Sources community of volume buyers around the world. Requirements were gathered from interviews with some of Global Sources' largest export clients.

Global Sources has also greatly increased the depth and breadth of supplier information on the GlobalSources.com website. "Our focus is not just on quantity, but on quality. We are committed to providing the most qualified selection of B2B exporters from China in the industries we serve," said Au. "We aim specifically to list all exporters who are included in Customs records, all suppliers who have undergone third-party audits, and all exhibitors from key export trade shows in Asia."


Friday, May 30, 2014
Notable Share Transactions

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Thursday, May 15, 2014
Comments & Business Outlook

First quarter 2014 Financial results

  • Revenue was $34.5 million, as compared to $31.3 million.
  • IFRS net income was $0.1 million, or $0.00 per diluted share, as compared to first quarter 2013 IFRS net income of $5.6 million, or $0.16 per diluted share.
  • Non-IFRS net income was $0.6 million, or $0.02 per diluted share, as compared to $1.8 million, or $0.05 per diluted share, for the first quarter of 2013.

Global Sources' CFO, Connie Lai, stated: "Our first quarter 2014 results reflect contributions from the SIMM machinery shows held in March, and the move of the IIC-China show from the first quarter last year to the third quarter of 2014. We continue to maintain a strong balance sheet with no short- or long-term debt."

Global Sources' executive chairman, Merle A. Hinrich, said: "For the quarter, our total revenue increased by 10% as compared to the first quarter of last year. 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. In April, we held our spring China Sourcing Fairs, which included Asia's largest consumer electronics sourcing event.

"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. In addition, we continue to drive the integration of our services with the belief that the combination of online and show services can provide unique and higher value to our customers."


Wednesday, April 30, 2014
Notable Share Transactions

NEW YORK, April 30, 2014 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL) commences today its cash tender offer for up to 5,000,000 shares of its issued and outstanding common shares at $10.00 per share, or up to $50,000,000, as previously announced on March 13, 2014.

As of Feb. 28, 2014, there were 34,722,691 shares of the company's common shares issued and outstanding. The maximum total number of shares that the company is offering to purchase represents approximately 14.4% of the company's total number of common shares issued and outstanding as at Feb. 28, 2014.

The tender offer is not conditioned upon any minimum number of shares being tendered or the availability of any financing. It is, however, subject to certain other conditions set forth in the Offer to Purchase.

The tender offer is expected to expire at 12:00 midnight, New York City time, on May 28, 2014, unless the tender offer is earlier terminated or extended by the company.

If more than 5,000,000 shares are properly tendered and not properly withdrawn, then the shares will be purchased:

  • First, from all holders of "odd lots" of fewer than 100 shares who properly tender all of their shares and do not properly withdraw them before the expiration date; and
  • Second, from all other shareholders who properly tender shares, on a pro-rata basis.

The company's board of directors has approved the tender offer. However, neither the company's management, its board of directors, the depositary nor the information agent make any recommendation to any shareholder as to whether to tender or refrain from tendering any shares. The company has not authorized any person to make any recommendation.


Thursday, March 13, 2014
Comments & Business Outlook

Fourth Quarter 2013 Financial Results

  • Revenue was $60.1 million, as compared to $66.9 million.
  • Non-IFRS net income was $10.9 million, or $0.30 per diluted share, as compared to $13.3 million, or $0.37 per diluted share, for the fourth quarter of 2012.

Global Sources' executive chairman, Merle A. Hinrich, said: "Our fourth quarter 2013 operating results were in line with expectations given the business challenges we continue to experience. Our China Sourcing Fairs in Hong Kong performed well. We began to see our online business improve late in the fourth quarter and we are encouraged with its performance so far in 2014.

"We have a valuable market position serving the larger professional buyers and suppliers that account for the majority of trade. With a strong balance sheet, a solid cash position and no debt, we are well-positioned and have a strong foundation on which to build our competitive position."

Financial expectations for the first half of 2014 under IFRS

"It is important to note our first half of 2014 guidance takes into consideration the purchase of our Singapore office property and the acquisition of an interest in the Shenzhen International Machinery Manufacturing Industry Exhibition and its related shows, known as SIMM," Lai stated.

  • For the first half of 2014 ending June 30, 2014:
    • Revenue is expected to be in the range of $88.0 million to $90.0 million, representing a decrease of 3% to 5%, as compared to $92.7 million for the first half of 2013.
    • IFRS EPS is expected to be in the range of $0.14 to $0.18, as compared to $0.62 per diluted share in the first half of 2013. SBC and the amortization of intangibles as it relates to certain equity compensation plans are estimated to be an expense of $0.04 per diluted share for the first half of 2014.
    • Non-IFRS EPS is expected to be in the range of $0.18 to $0.22, as compared to $0.37 per diluted share for the same period in 2013.
    • Adjusted EBITDA is expected to be between $12.6 million and $13.8 million, as compared to $16.3 million in the first half of 2013.

Going Private News

NEW YORK, March 13, 2014 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL) intends to commence an issuer tender offer before the end of April 2014, with expected completion before the end of May 2014, for approximately 5 million shares, or approximately 14.4% of its outstanding common shares as of Feb. 28, 2014, at a purchase price of $10.00 per share in cash. Global Sources expects to fund the tender offer with cash on hand. As of Dec. 31, 2013, Global Sources had total cash, cash equivalents and available-for-sale securities of approximately$143.8 million.

The offer will afford tendering shareholders liquidity for some or all of their shares and will permit them to have their shares repurchased at a 47.9% premium over the closing price per share of $6.76 on March 12, 2014, the last full trading day before the date of this announcement. Shareholders who elect not to tender their shares in the offer will increase their relative percentage ownership in Global Sources following completion of the offer.

Global Sources' executive chairman, Merle A. Hinrich, said: "I am pleased to announce that the Board of Directors has approved a tender offer. We believe this measure enables all shareholders to participate equally in a return of investment, if so chosen."

Global Sources has been informed that its Directors and Officers who own shares can be expected to tender their shares in the offer. Such Directors and Officers beneficially owned approximately 48.6% of Global Sources' outstanding common shares as of Feb. 28, 2014.


Thursday, November 14, 2013
Comments & Business Outlook

Third quarter 2013 Financial Results

  • Revenue was $44.8 million, as compared to $59.1 million.
  • IFRS net income was $5.4 million, or $0.15 per diluted share, as compared to third quarter 2012 IFRS net income of $8.2 million, or $0.23 per diluted share.

"While the current global retail environment remains challenged, our focus is to enhance the value we provide to our customers by helping them buy or sell more effectively," said Global Sources' executive chairman, Merle A. Hinrich. "In our core export business, we just celebrated the 10th anniversary of our China Sourcing Fairs. We were pleased with the overall performance of our series of fall shows, which was led by our electronics show.

"China Sourcing Fair: Electronics & Components featured more than 4,100 booths and drew record attendance. Particularly strong was our Mobile and Wireless pavilion, which is scheduled to be spun off as an independent show along with a dedicated online vertical and magazine in 2014."

Global Sources' CFO, Connie Lai, said: "The China Sourcing Fairs in Miami and in Mumbai, India moved from the third quarter last year to the second quarter and the fourth quarter of 2013, respectively. This shift in timing of our trade shows, combined with the disappointing financial performance of the FashionSZshow in July, impacted third quarter revenues and does not reflect the long-term positive trend of our exhibitions business, and the success of our initiatives to combine the best of online with trade shows."

Lai added, "We continue to generate cash and our balance sheet remains strong. We closed the quarter with a cash and securities position of $145.9 million, as compared to $110.8 million at the end of September 2012, and we continue to have no debt.

"We are reaffirming our guidance. For the second half of 2013, we expect the revenue mix to range between 40% and 41% for online, 50% and 51% for exhibitions, 5% and 6% for print, and approximately 3% for miscellaneous. This compares to a second half 2012 revenue mix of approximately 46% for online, 44% for exhibitions, 7% for print and 3% for miscellaneous."

Financial expectations for the second half of 2013 under IFRS

  • For the second half of 2013 ending Dec. 31, 2013:
    • Revenue is expected to be in the range of $101.0 million to $103.0 million, as compared to $126.0 million for the second half of 2012.
    • IFRS EPS is expected to be in the range of $0.32 to $0.36, as compared to $0.54 per diluted share in the second half of 2012. SBC and the amortization of intangibles as it relates to certain equity compensation plans are estimated to be an expense of $0.04 per diluted share for the second half of 2013.
    • Non-IFRS EPS is expected to be in the range of $0.36 to $0.40, as compared to $0.63 per diluted share for the same period in 2012.
    • Adjusted EBITDA is expected to be between $19.7 million and $20.9 million, as compared to $29.7 million in the second half of 2012.

Thursday, August 15, 2013
Comments & Business Outlook

Second quarter 2013 Financial Results

  • Revenue was $61.4 million, as compared to $66.8 million.
  • IFRS net income was $16.8 million, or $0.46 per diluted share, as compared to second quarter 2012 IFRS net income of $9.7 million, or $0.27 per diluted share.
  • Non-IFRS net income was $11.4 million, or $0.32 per diluted share, as compared to $11.0 million, or $0.31 per diluted share, for the second quarter of 2012. 

Global Sources' CFO, Connie Lai, said: "Among the factors impacting second quarter results was the move of the China Sourcing Fairs in Miami from the third quarter last year to the second quarter this year. We also recorded a write down of approximately $2.5 million in consideration of goodwill impairment charges related to the China International Fashion Brand Fair - Shenzhen(FashionSZshow). In addition, we completed the sale of one of our properties in Shenzhen, which increased our cash by $15.2 million, and contributed capital gains of $8.7 million, net of transaction costs and related tax expenses. As a result, we closed the quarter with a cash and securities position of $135.1 million, as compared to $106.0 million at the end of June 2012, and we continue to have no debt."


Monday, August 12, 2013
Comments & Business Outlook

HONG KONG, August 12, 2013 /PRNewswire/ -- To meet growing demand from buyers and suppliers, Global Sources (NASDAQ: GSOL) will launch the China Sourcing Fair: Mobile & Wireless at Hong Kong's AsiaWorld-Expo in April 2014.

The new show is scheduled to be held each April and October and will showcase more than 800 booths at launch. It will be co-located with the China Sourcing Fair: Electronics & Components and the China Sourcing Fair:Security Products -- two of Asia's largest industry sourcing events. Pavilions will include smartphones and tablets, accessories, mobile apps and applications, and wireless devices.

President of Global Sources Exhibitions, Tommy Wong, said: "We have seen increasing interest in mobile and wireless products at our electronics trade shows. Accordingly, we have decided to give buyers and suppliers a separate event to highlight the category and to enable them to do business more effectively.

"Mobile and wireless are two of the fastest-growing categories in the industry and consumer demand is coming from both developed and emerging markets. According to IDC, 1.7 billion smart connected devices are expected to ship in 2014 with more than 80 percent of this being smartphones and tablets -- representing more thanUS$500 billion in value. We aim to help our buyers and exhibitors profit from this fast growing market.

"This will be the first show of its kind in Asia. It will be built on the foundation of our strong relationships with many of Asia's most innovative suppliers as well as with many of the world's top electronics buyers. Tens of thousands of the world's top buyers attend Global Sources electronics trade shows in Hong Kong each year, including Belkin, BenQ, Best Buy, Canon, Fujitsu, Groupe Auchan, Honeywell, Intel, Intelbras, JVC KENWOOD, LG Electronics, Monster Cable, Panasonic, Samsung, Tesco PLC, Toshiba, Vodafone and Woolworths."

China Sourcing Fair: Mobile & Wireless will also host Private Sourcing Events and free conference programs to help buyers and exhibitors network and learn about the latest industry trends.

The new show, along with a complementary online marketplace and magazine, will be the latest "Find Them andMeet Them" initiative for Global Sources. With the objective of integrating the best of online with the best of trade shows, buyers will be able to find suppliers in the medium of their choice -- and then meet the suppliers at the show. Accordingly, suppliers will have a powerful, integrated, and year-round marketing platform.


Tuesday, May 14, 2013
Comments & Business Outlook

First Quarter 2013 Financial Results

  • Revenue was $31.3 million, as compared to $38.9 million.
  • IFRS net income was $5.6 million, or $0.16 per diluted share, as compared to first quarter 2012 IFRS net income of $3.1 million, or $0.09 per diluted share.
  • Non-IFRS net income was $1.8 million, or $0.05 per diluted share, as compared to $3.7 million, or $0.10 per diluted share, for the first quarter of 2012.

 Global Sources' executive chairman, Merle A. Hinrich, said: "Our first quarter results reflect the soft and uncertain overseas demand for exports. In April, we entered into an agreement to acquire an interest in the Shenzhen International Machinery Manufacturing Industry Exhibition and its related shows (SIMM). SIMM expands our portfolio of domestic trade shows in mainland China and gives us a strong presence in a large and growing market sector. We look forward to developing the show and maximizing synergies with our other businesses."

Global Sources' CFO, Connie Lai, said: "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, which we announced in March 2013 with final payment of $8 million received on April 2, 2013. We intend to continue our efforts to strike the right balance between investing for the future and prudently managing costs.

"With respect to our cash position, we completed the acquisition of the property in Hong Kong in the first quarter of 2013 that resulted in a reduction of cash by $24.7 million. We are also scheduled to complete the sales of our property in Shenzhen in the second quarter of 2013 that is expected to increase our cash by $16.3 million.

Updated financial expectations for the first half of 2013 under IFRS

The company is increasing its first half 2013 guidance due primarily to stronger than expected revenue performance and cost savings.

  • For the first half of 2013 ending June 30, 2013:
    • Revenue is expected to be in the range of $89.0 million to $91.0 million, representing a decrease of 14% to 16%, as compared to $105.7 million for the first half of 2012.
    • IFRS EPS is expected to be in the range of $0.59 to $0.63, as compared to $0.36 per diluted share in the first half of 2012. SBC and the amortization of intangibles as it relates to certain equity compensation plans and gain on sale of investment property, net of transaction costs and related tax expenses, are estimated to be a credit of $0.32 per diluted share for the first half of 2013.
    • Non-IFRS EPS is expected to be in the range of $0.27 to $0.31, as compared to $0.41 per diluted share for the same period in 2012.
    • Adjusted EBITDA is expected to be between $13.6 million and $14.8 million, as compared to $18.2 million in the first half of 2012.

"We now expect the revenue mix for the first half to range between 51% and 52% for online, 37% and 38% for exhibitions, 6% and 7% for print, and approximately 4% for miscellaneous. This compares to a first half 2012 revenue mix of approximately 58% for online, 31% for exhibitions, 8% for print and 3% for miscellaneous," Lai concluded.


Friday, April 19, 2013
Acquisitions

HONG KONG, April 19, 2013 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL) has entered into an agreement to acquire an ownership interest in the Shenzhen International Machinery Manufacturing Industry Exhibition and its related shows (SIMM). Per the terms of the agreement, Global Sources is set to acquire a 70 percent interest in the Shenzhen International Machinery Automation Exhibition and the Shenzhen International Mould Making Technology & Product Exhibition, and a 56 percent interest in the Shenzhen International Cutlery & Tools Exhibition and the Shenzhen International Metal Processing Industry Exhibition, for a consideration ranging from approximately US$11 million to approximatelyUS$16 million, depending upon certain performance-related conditions. The transaction is subject to closing conditions.

SIMM is held annually in Shenzhen, one of the major manufacturing cities in China. Established in 2000, the event has continually grown and developed each year. The 2012 event hosted approximately 4,400 booths, and 70,800 visitors. In 2013, the event took place from March 28 through 31 and included the categories of mold manufacturing technology and products, cutlery and tools, machinery automation, and metal processing, with approximately 4,600 booths and more than 75,000 visitors.

Global Sources' executive chairman, Merle A. Hinrich , said: "Our ownership interest in SIMM further assists us to establish a strong presence in a fast-growing market in China. The machinery industry is one of the strategic pillars of China's national economy. It is also the foundation of the manufacturing sector, supplying to a wide scope of industrial production such as automobiles, computers and electronics. As a result, many Chinese manufacturers are increasing their investments in research and development of automation and precision machinery in order to improve their competitive positions. With SIMM's dominant presence in the machinery industry, combined with Global Sources' globally established media platform, the partnership enables both parties to take advantage of this exciting opportunity."

Guangdong region (including Shenzhen) is in the center of one of China's key manufacturing and R&D areas. According to the Statistics Bureau of Guangdong Province, the gross industrial output value for metal products and machinery was 878 billion yuan in 2011, almost an 18 percent increase from 2010. According to the China Shenzhen Machinery Association, Shenzhen has more than 12,000 machinery industry enterprises, with 850,000 employees, in which more than 15 percent of the employees are engaged in R&D design and engineering technology.


Wednesday, March 13, 2013
Comments & Business Outlook

Fourth Quarter 2012 Results

  • Revenue was $66.9 million, as compared to $74.0 million. 
  • IFRS net income was $11.2 million, or $0.31 per diluted share, as compared to fourth quarter 2011 IFRS net income of $11.9 million, or $0.33 per diluted share.
  • Non-IFRS net income was $13.3 million, or $0.37 per diluted share, as compared to $13.6 million, or $0.38 per diluted share, for the fourth quarter of 2011.
  • Adjusted EBITDA was $14.4 million, as compared to $15.2 million for the fourth quarter of 2011.

Global Sources' executive chairman, Merle A. Hinrichs, said: "Our fourth quarter results were in line with our expectations and completed a solid year in a challenging market environment.

"Our focus remains on helping our buyer and supplier customers develop profitable and successful relationships. We help them find potential business partners through our various media and then meet them at our shows around the world. The attendees at our shows are a key business advantage, as we give all of our advertisers access to a highly qualified, influential and exclusive buyer community.

"Looking ahead, we expect market conditions to continue impacting our core business well into 2013. We are committed to maintaining profitability, and we have a very strong balance sheet with a solid cash position and no debt. With strong products and services, and a large and influential customer base, we are well-positioned to rebound as market conditions improve."

NEW YORK, March 13, 2013 /PRNewswire/ -- Global Sources Ltd. (NASDAQ: GSOL) has signed agreements to conduct three real estate transactions.

Global Sources' executive chairman, Merle A. Hinrichs, said: "Today we are announcing three strategic transactions that improve the balance of our real estate holdings. We are selling underutilized property that has appreciated substantially, providing the company with significant capital gains. We are also purchasing property that we currently lease for operational use, which reduces our exposure to potential rental increases."

Sale of 46th Floor of Excellence Times Square, Shenzhen

The company has signed a letter of intent for the sale of its property on the 46th floor of Excellence Times Square in Shenzhen, China, comprising 1,939.38 square meters of office space, for a total sale price of approximately$19.3 million. The transaction is subject to the formal sale and purchase agreement being signed on or before April 30, 2013 and the buyer's full payment of the purchase price being made on or before May 7, 2013. The transaction is expected to provide a capital gain, net of related tax expenses, of approximately $8.5 million.

Sale of Office Units and Car Parking Spaces in Southmark, Hong Kong

The company has signed a provisional sale and purchase agreement for the sale of 10 office units on the 26thfloor of Southmark in Hong Kong, China, comprising a total area of 9,431 square feet, and three car parking spaces on the first floor of the building, for a total sale price of approximately $9.0 million. The transaction is subject to the formal sale and purchase agreement being signed on or before 18 March 2013 and the buyer's full payment of the purchase price being made on or before March 28, 2013. The transaction is expected to provide a capital gain of approximately $4.4 million.

Purchase of 21st, 22nd and 23rd Floors of Vita Tower, Hong Kong

The company has signed a provisional sale and purchase agreement for the purchase of the 21st, 22nd and 23rdfloors of the Vita Tower in Hong Kong, China, which the company currently lease for operational use, comprising a total of 36,822 square feet of office space, for a total purchase price of approximately $23.6 million. The transaction is subject to the formal sale and purchase agreement being signed on or before March 18, 2013 and the company's full payment of the purchase price being made on or before March 28, 2013.


Thursday, November 15, 2012
Comments & Business Outlook

Financial highlights -- Third quarter: 2012 compared to 2011

  • Revenue was $59.1 million, as compared to $47.0 million.
  • IFRS net income was $8.2 million, or $0.23 per diluted share, as compared to third quarter 2011 IFRS net income of $4.0 million, or $0.11 per diluted share.
  • Non-IFRS net income was $9.1 million, or $0.25 per diluted share, as compared to $4.9 million, or $0.14 per diluted share, for the third quarter of 2011.
  • Adjusted EBITDA was $15.3 million, as compared to $8.4 million for the third quarter of 2011.
  • Total deferred income and customer prepayments were $115.4 million as at September 30, 2012, as compared to $126.7 million as at September 30, 2011.

"Our third quarter results reflect the increasing contribution of our exhibitions business and especially several of our shows for the mainland China domestic market," said Global Sources' executive chairman, Merle A. Hinrichs. "SZICwas held in July and is one of the largest fashion shows in Asia. The China International Optoelectronic Expo was held in September and is one of the world's largest optoelectronics shows. Both shows performed very well and represent a substantial broadening of our footprint in the mainland China domestic market.

"With regards to our core international trade-related business, we expect the soft overseas consumer demand to continue impacting our results. However, at our just completed fall series of China Sourcing Fairs in Hong Kong, we were quite satisfied with the overall attendance and level of buying activity."

Global Sources' CFO, Connie Lai, said: "Third quarter results were substantially enhanced by two new shows -- SZICand the China Sourcing Fairs in Sao Paulo, Brazil. In addition, the Mumbai show moved from the fourth quarter last year to the third quarter this year. Our balance sheet remains strong. We closed the quarter with a cash and securities position of $110.8 million, as compared to $106.0 million at the end of June 2012, and we continue to have no debt."

"We are increasing our second half 2012 revenue and earnings guidance. For the second half of 2012, we expect the revenue mix to range between 46% and 47% for online, 44% and 45% for exhibitions, 6% and 7% for print, and approximately 3% for miscellaneous. In comparison, the revenue mix for the second half of 2011 was approximately 50% for online, 37% for exhibitions, 11% for print, and 2% for miscellaneous."


Thursday, August 23, 2012
Comments & Business Outlook

Financial highlights -- Second quarter: 2012 compared to 2011

  • Revenue was $66.8 million, as compared to $66.5 million.
  • IFRS net income was $9.7 million, or $0.27 per diluted share, as compared to second quarter 2011 IFRS net income of $10.1 million, or $0.28 per diluted share.
  • Non-IFRS net income was $11.0 million, or $0.31 per diluted share, as compared to $11.1 million, or $0.31 per diluted share, for the second quarter of 2011.
  • Adjusted EBITDA was $12.8 million, as compared to $12.9 million for the second quarter of 2011.
  • Total deferred income and customer prepayments were $121.3 million as at June 30, 2012, as compared to$116.6 million as at June 30, 2011.

Global Sources' executive chairman, Merle A. Hinrichs, said: "As we anticipated, our second quarter revenue was impacted by the slowdown in mainland China's exports. Consumer demand from the large markets of Western Europe and the United States is likely to remain soft in the near term and this is expected to continue impacting our core business. However, we are also continuing to develop our business in the mainland China domestic market, where for example, our recently completed SZIC fashion show in Shenzhen had strong attendance and booth sales.

"Although the business outlook is very uncertain, we have a highly experienced management team that remains focused on steadily enhancing our competitive position, while maintaining our strong balance sheet."


Tuesday, April 17, 2012
Comments & Business Outlook

HONG KONG, April 17, 2012 /PRNewswire-Asia/ -- Global Sources Ltd. (NASDAQ: GSOL) provided an update on its financial expectations for the first half of 2012.


Global Sources' executive chairman, Merle A. Hinrichs, commented: "Our customers have become increasingly conservative with their marketing budgets and as such we are now revising our revenue and net income expectations for the first half of 2012. It has become clear that exporters are reacting to the slowdown in exports and the uncertainty in the global economy. In addition to the soft demand from the United States and the European Union, we have also been affected by the political situation in the Middle East, where we now expect significantly less exhibitors for our May shows in Dubai. As such, we anticipate less than expected revenue for the first half of 2012."

Revised financial expectations for the first half of 2012 under IFRS

- For the first half of 2012 ending June 30, 2012:

* Revenue is expected to be in the range of $104.0 million to $106.0 million, down from the previous estimate of $108.0 million to $110.0 million.

* IFRS EPS is expected to be in the range of $0.31 to $0.34, revised from $0.36 to $0.38.

* Non-IFRS EPS is expected to be in the range of $0.36 to $0.39, revised from $0.41 to $0.43.


Monday, April 9, 2012
Investor Alert

HONG KONG, April 9, 2012 /PRNewswire-Asia/ -- Global Sources Ltd.'s (NASDAQ: GSOL) Executive Chairman Merle A. Hinrichs issued a statement regarding the halting of the company's stock trading on NASDAQ.

Hinrichs said: "NASDAQ's decision to halt trading of GSOL shares on April 3 came without warning and in management's view was totally unjustified. NASDAQ's request for additional information above and beyond normal financial accounting requirements has been fully and satisfactorily provided to NASDAQ. Trading in GSOL shares resumed on April 4.

"As we understand it, recently NASDAQ has begun the practice of requiring companies with Chinese operations to provide physical evidence of cash balances at banks via third party accountants. While GSOL has been listed on NASDAQ since 2000 without reproach, we too received NASDAQ's request in November 2011 to engage an independent CPA firm to conduct a physical visit to our financial institutions in Hong Kong and mainland China. We complied and delivered the reports on a timely basis. However, as one report was dated December 31, 2011 and another dated March 31, 2012, without notice NASDAQ determined it required additional information and halted our share trading on April 3. We immediately clarified the matter with NASDAQ and trading was resumed on April 4, reflecting the time zone difference. We will continue to maintain open communications with NASDAQ and any additional requests will be met promptly.

"Global Sources management takes great pride in its corporate governance, financial reporting and transparency for which it has received numerous awards.

"Management is totally committed to our shareholders as evidenced by 41 years of profitability during which we have maintained the highest of corporate standards."


Wednesday, March 14, 2012
Comments & Business Outlook

Financial highlights - Fourth quarter: 2011 compared to 2010

  • Revenue was $74.0 million, as compared to $63.0 million.
    • Online revenue was $30.5 million, as compared to $25.5 million.
    • Exhibitions revenue was $35.5 million, as compared to $29.9 million.
    • Print revenue was $6.4 million, as compared to $6.3 million.
    • Revenue from mainland China was $59.6 million, as compared to $48.9 million.
  • IFRS net income, including a non-cash stock based compensation (SBC) expense of $814,000, and amortization of intangibles as it relates to certain equity compensation plans of $191,000 and impairment of goodwill and intangibles of $670,000, was $11.9 million, or $0.33 per diluted share, as compared to fourth quarter 2010 IFRS net income of $11.3 million, or $0.32 per diluted share, which included a non-cash SBC expenses of $333,000, and amortization of intangibles as it relates to certain equity compensation plans of$189,000.
  • Non-IFRS net income was $13.6 million, or $0.38 per diluted share, as compared to $11.8 million, or $0.34per diluted share, for the fourth quarter of 2010.
  • Adjusted EBITDA was $15.2 million, as compared to $12.1 million for the fourth quarter of 2010.
  • Total deferred income and customer prepayments were $110.1 million as at December 31, 2011, as compared to $97.3 million as at December 31, 2010.

"We expect the revenue mix for the first half to range between 59% and 60% for online, 31% and 32% for exhibitions, 5% and 6% for print, and approximately 3% for miscellaneous. This compares to the first half of 2011, when the revenue mix was approximately 55% for online, 32% for exhibitions, 10% for print, and 3% for miscellaneous.

"Looking ahead, we plan to continue practicing strong fiscal discipline and are managing the business with the objective of maintaining continued profitability. Our balance sheet remains strong with $97.9 million in cash and cash equivalents and no debt."


Thursday, August 18, 2011
Comments & Business Outlook

Second Quarter 2011 Results

  • Revenue was $66.5 million, as compared to $58.6 million.
  • FRS net income, including a non-cash stock based compensation (SBC) expense of $853,000, and amortization of intangibles as it relates to certain equity compensation plans of $191,000, was $10.1 million, or $0.28 per diluted share, as compared to second quarter 2010 IFRS net income of $8.2 million, or $0.18 per diluted share, which included a non-cash SBC expense of $793,000, and amortization of intangibles as it relates to certain equity compensation plans of $102,000 
  • Non-IFRS net income was $11.1 million, or $0.31 per diluted share, as compared to $9.1 million, or $0.20 per diluted share, for the second quarter of 2010.

"Our revenue for the second quarter grew by 13% from a year ago, driven by strong growth in our online business," said Global Sources' executive chairman, Merle A. Hinrichs. "In July, we executed on our strategy to help customers increase their penetration into developing markets with the launch our first trade show in Miami. In addition to attracting U.S. buyers, a primary objective was to draw buyers from or selling to Latin America. We were very pleased with the results and anticipate a bigger show in 2012.

"Our focus is to be the leading and most trusted provider of services to professional buyers. We do this in part by offering the broadest range of services in the industry, which enables buyers to access our content and engage with suppliers - when, where and how they choose. Looking forward, we expect to have a solid second half of 2011, despite growing uncertainty around consumer demand on a global level, as well as cost and borrowing pressures on suppliers in mainland China. We have a healthy pipeline of contracts in place, including expectations to have more than 7,000 booths at our October shows in Hong Kong."

Financial expectations for the second half of 2011 under IFRS

  • For the second half of 2011 ending December 31, 2011:
    • Revenue is expected to be in the range of $115 million to $117 million, representing an increase of 12% to 14%, as compared to $102.5 million for the second half of 2010.
    • IFRS EPS is expected to be in the range of $0.36 to $0.39, as compared to $0.36 per diluted share in the second half of 2010. SBC and the amortization of intangibles as it relates to certain equity compensation plans are estimated to be an expense of $0.05 per diluted share for the second half of 2011.
    • Non-IFRS EPS is expected to be in the range of $0.41 to $0.44, as compared to $0.39 per diluted share for the same period in 2010.  
    • Adjusted EBITDA is expected to be $20.8 million, as compared to $17.9 million in the second half of 2010.

 


Wednesday, July 6, 2011
Liquidity Requirements

We financed our activities for the year ended December 31, 2010 using cash generated from our operations and we had no bank debt as at December 31, 2010.

We anticipate that our cash and securities on hand and expected positive cash-flows from our operations will be adequate to satisfy our working capital needs, capital expenditure requirements and cash commitments for the next 12 months. However, looking to the long term, we may raise additional share capital, or sell debt securities, or obtain credit facilities as and when required to further enhance our liquidity position, and an issue of additional shares could result in dilution to our shareholders.


Wednesday, May 19, 2010
Comments & Business Outlook

"Due to the healthier global economic environment and our own improved visibility, we are reinstating guidance and are optimistic about the second half of 2010. We expect 5% to 6% of revenue growth over the second quarter of 2009. However, the second quarter EPS projections are essentially flat for several reasons.

  • First, the comparison is to the second quarter of 2009, which is when most of our cost reduction initiatives took effect.
  • Second quarter of 2010, we project lower interest income on our treasury investments as well as project additional costs associated with M&A evaluation and with running a trade show in which we acquired an interest last fall."

Guidance:

  • Revenue is expected to be between $57.0 million and $57.5 million, representing growth of 5% to 6% over the second quarter of 2009.
  • GAAP EPS is expected to be between $0.11 and $0.12, as compared to $0.11 per diluted share in the second quarter of 2009.
  • Non-GAAP EPS is expected to be between $0.14 and $0.15, as compared to $0.15 per diluted share in the second quarter of 2009.

Wednesday, July 15, 2009
Comments & Business Outlook
Even though our business and financial condition is stronger than most, the demand for marketing and advertising services is greatly affected by the economic situation. We have limited visibility as to when trade will improve and, accordingly, we expect a significant decline in revenue and profits in 2009 as compared to 2008.

Monday, May 25, 2009
GeoBriefs
"While we expect continued pressure on revenue and profitability, we are carefully managing costs and believe business conditions may improve later this year."

Source: PR Newswire (May 21, 2009)