Global Sources (NASDAQ:GSOL)

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.

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.

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 46^th Floor of Excellence Times Square, Shenzhen

The company has signed a letter of intent for the sale of its property on the 46^th 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 26^thfloor 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 21^st, 22^nd and 23^rd Floors of Vita Tower, Hong Kong

The company has signed a provisional sale and purchase agreement for the purchase of the 21^st, 22^nd and 23^rdfloors 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.

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."

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."

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.

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."

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."

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.

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.

"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.