Sina (NASDAQ:SINA)

First Quarter 2012 Highlights

• Net revenues increased 6% year over year to $106.2 million. Non-GAAP net revenues increased 6% year over year to $101.5 million, within the Company's guidance of between $101.0 million and $104.0 million.
• Advertising revenues grew 9% year over year to $78.5 million, within the Company's guidance of between$78.0 million and $80.0 million.
• Non-advertising revenues were $27.7 million, unchanged year over year. Non-GAAP non-advertising revenues decreased 1% year over year to $23.0 million, within the Company's guidance of between $23.0 million and $24.0 million.
• Net loss attributable to SINA was $13.7 million, or $0.21 diluted net loss per share attributable to SINA. Non-GAAP net loss attributable to SINA was $14.0 million, or $0.21 non-GAAP diluted net loss per share attributable to SINA.

"Our brand advertising business got off to a relatively slow start in the first quarter due to the softening of macroeconomic conditions in China," said Charles Chao, CEO of SINA. "Although we expect macroeconomic headwinds to continue into the second quarter, we have begun test trials of Weibo brand advertising, which is powered by a social interest graph recommendation engine, and expect this new product offering to have a meaningful impact on our brand advertising business in the second half of this year. The initial feedback from advertisers on our Weibo advertising is encouraging, and we believe it is critical that SINA continues its significant investments in social media and related initiatives," Mr. Chao added.

Business Outlook

SINA estimates that its non-GAAP net revenues for the second quarter of 2012 will be between$126 million and $129 million, with advertising revenues to be between $103 million and $105 million, representing a year-over-year increase between 12% to 14%, and non-GAAP non-advertising revenues to be between $23 million and $24 million, representing a year-over-year increase between 2% and 7%. Non-GAAP net revenues and non-GAAP non-advertising revenues exclude the recognition of $4.7 million in deferred license revenue related to SINA's equity investment in CRIC.

Fourth Quarter 2011 Highlights

• Net revenues grew 21% year over year to $133.4 million. Non-GAAP net revenues grew 23% year over year to$128.7 million, within the Company's guidance of between $128.0 million and $131.0 million.
• Advertising revenues grew 26% year over year to a historical high of $103.7 million, within the Company's guidance of between $103 million and $105 million.
• Non-advertising revenues grew 8% year over year to $29.7 million. Non-GAAP non-advertising revenues grew 11% year over year to $25.0 million, within the Company's guidance of between $25.0 million and $26.0 million.
• Net income attributable to SINA was $9.3 million, or $0.14 diluted net income per share attributable to SINA. Non-GAAP net income attributable to SINA was $14.0 million, or $0.21 non-GAAP diluted net income per share attributable to SINA.

Second Quarter 2011 Highlights

• Net revenues grew 20% year over year to $119.0 million. Non-GAAP net revenues grew 21% year over year to $114.3 million, within the Company's guidance of between $112 million and $115 million.
• Advertising revenues grew 26% year over year to a record $91.8 million, reaching the high end of the Company's guidance of between $90 million and $92 million.
• Non-advertising revenues grew 3% year over year to $27.2 million. Non-GAAP non-advertising revenues grew 4% year over year to $22.5 million, within the Company's guidance of between $22 million and $23 million.
• Net income attributable to SINA for the second quarter of 2011 was $10.0 million, or $0.15 diluted net income per share attributable to SINA. Non-GAAP net income attributable to SINA was $13.3 million, or $0.20 non-GAAP diluted net income per share attributable to SINA.

"SINA's brand advertising business was robust in the second quarter, despite growing on top of a large base, in part benefiting from the elevation of SINA's media brand as the popularity of Weibo.com spread in China," said Charles Chao, CEO of SINA, "Launched less than two years ago, Weibo.com has become an online phenomenon with registered accounts recently surpassing 200 million."

Business Outlook

SINA estimates that its non-GAAP net revenues for the third quarter of 2011 will be between $123 million and $126 million, with advertising revenues to be between $100million and $102 million and non-GAAP non-advertising revenues to be between $23 million and $24 million. 

Non-GAAP net revenues and non-GAAP non-advertising revenues exclude the recognition of $4.7 million in deferred license revenue related to SINA's equity investment in CRIC.

First Quarter Results:

• Net revenues grew 18% year over year to $100.2 million.  Non-GAAP net revenues grew 19% year over year to $95.5 million, reaching the high end of the Company's previous guidance of between $93 million and $96 million.
• Advertising revenues grew 33% year over year to $72.3million, within the Company's previous guidance of between $71 million and $73 million.
• Non-advertising revenues decreased 9% year over year to $27.9 million.  Non-GAAP non-advertising revenues decreased 11% year over year to $23.2 million, exceeding the previous guidance of between $22 million and $23 million.
• Net income attributable to SINA for the first quarter of 2011 was $15.0 million, or $0.23 diluted net income per share attributable to SINA.  Non-GAAP net income attributable to SINA decreased 24% year over year to $16.9 million, or $0.25 non-GAAP diluted net income per share attributable to SINA.

"SINA's online advertising growth was strong in the first quarter, despite a high comparison basis from last year" said Charles Chao, CEO of SINA, "The momentum for Weibo adoption is building across China.  With the launch of the official Weibo.com, registered users for Weibo recently surpassed 140 million.  We hope to ride this momentum and further expand Weibo's user base and user stickiness by significantly increasing our investment in the coming quarters."  

SINA estimates that its non-GAAP net revenues for the second quarter of 2011 will be between $112 million and $115 million, with advertising revenues to be between $90 million and $92 million and non-GAAP non-advertising revenues to be between $22 million and $23 million.  Non-GAAP net revenues and non-GAAP non-advertising revenues exclude the recognition of $4.7 million in deferred license revenue related to SINA's equity investment in CRIC.

Fourth Quarter Highlights:

• Non-GAAP net revenues for the fourth quarter of 2010 totaled $105.0 million, compared to $93.5 million for the same period last year.
• Non-GAAP operating income for the fourth quarter of 2010 was $25.5 million, compared to $18.6 million for the same period last year.
• Non-GAAP net income attributable to SINA for the fourth quarter of 2010 was $30.6 million, compared to $19.1 million for the same period of last year. Non-GAAP diluted net income per share attributable to SINA for the fourth quarter of 2010 was $0.46, compared to $0.31 for the same period last year.
• SINA estimates that its non-GAAP net revenues for the first quarter of 2011 to be between $93 million and $96 million, with non-GAAP advertising revenues to be between $71 million and $73 million and non-GAAP non-advertising revenues to be between$22 million and $23 million. Non-GAAP net revenues and non-GAAP non-advertising revenues exclude the recognition of $4.7 million in deferred license revenue related the CRIC Transaction.

"2010 has been a year of transformation for SINA. In addition to achieving significant growth in online advertising business and profitability, we have successfully built SINA microblog Weibo into largest and most influential social media platform in Chinawith user base increasing by more than 25 times in 2010. Total registered users for Weibo have now surpassed 100 million, doubling from four months ago," said Charles Chao, CEO of SINA. "As we move into 2011, we plan to leverage Weibo as the centerpiece of SINA's new media growth strategy and make significant investments to further enhance our leadership position in social media space and to best position SINA for an Internet world moving deeper into social networking and mobile Internetthe ."

SHANGHAI, March 2, 2011 /PRNewswire-Asia/ -- Mecox Lane Limited today announced that SINA Corporation and a subsidiary of China Dongxiang (Group) Co., Ltd. ("DongXiang") (HKG 3818) entered into separate agreements to acquire an aggregate of 117,505,755 ordinary shares (equivalent to 16,786,535 ADSs) of Mecox Lane from two major shareholders of Mecox Lane, Maxpro Holdings Limited and Ever Keen Holdings Limited, both wholly owned by Sequoia Capital (collectively "Sequoia"). Each of Mecox Lane's ADSs trading on the Nasdaq Global Market represents seven ordinary shares.

Under the share purchase agreements, SINA will purchase 76,986,529 ordinary shares (equivalent to 10,998,075 ADSs), or approximately 19% of the issued and outstanding shares of Mecox Lane, and DongXiang will purchase 40,519,225 ordinary shares (equivalent to 5,788,460 ADSs), or approximately 10% of the issued and outstanding shares of Mecox Lane (collectively, the "Sale Shares"). The purchase price is US$0.8571 per share, equivalent to US$6.00 per ADS. The selling shareholders also agreed to grant SINA and DongXiang options to purchase 48,254,173 ordinary shares (equivalent to 6,893,453 ADSs) and 18,306,117 ordinary shares (equivalent to 2,615,159 ADSs) of Mecox Lane, respectively.  The options are exercisable during a two-year period starting from the closing date of the above share purchases and the exercise price is US$1.1429 per ordinary share, equivalent to US$8.00 per ADS.

Sina's outstanding share count is likely to increase due to recent developments:

On December 22, 2008, the Company announced that it entered into a definitive agreement with Focus Media Holding Limited to acquire substantially all of the assets of FMCN's digital out-of-home advertising networks.

 Currently, the transaction is being reviewed by the Department of Commerce of China for anti-trust. If such review is completed and the approval is obtained in the third quarter of 2009, the transaction is expected to be completed by the end of the third quarter. Based on the December 22, 2008 announcement, SINA will issue 47 million newly issued ordinary shares to FMCN as consideration for the acquired assets. FMCN will then distribute SINA shares to its shareholders shortly after the closing.

Source:  PR Newswire (June 9, 2009)

'The uncertainty in the Chinese economy at the beginning of the year had a severe impact on our online advertising business in the first quarter of 2009. Although market visibility is still relatively low, we have seen improved confidence and sentiment among our advertisers.' said Charles Chao, CEO of SINA. 'While fighting the tough economic cycle, we remain focused on our long-term strategy in building the leading online media platform in China by investing in products, content and brand. We believe our investments in the downturn will make SINA a more competitive company in the long run when the Chinese economy further recovers.'

Guidance Report:

The foregoing estimates take into account, among other considerations, the recent slow down of the Chinese economy, the current global financial and credit market crisis and its current and anticipated impact on the Chinese economy and the low visibility that the Company currently has on its advertising business.

First Quarter Fiscal 2009 Guidance Ending March