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 China Digital Tv (NYSE:STV)

Thursday, October 9, 2014
Restructuring Activity

BEIJING, October 9, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's digital television market, today provided a further update on its asset restructuring (the "Restructuring"), as referred to in a press release dated June 13, 2014. The Company announced that following further discussions, the parties involved have agreed to amend the Restructuring originally contemplated. Specifically, its wholly-owned subsidiary, Golden Benefit Technology Limited ("Golden Benefit"), has entered into an amendment to the framework agreement (the "Framework Agreement Amendment"), a share transfer agreement (the "Share Transfer Agreement"), a share subscription agreement (the "Share Subscription Agreement") as well as a profit compensation agreement (the "Compensation Agreement"), with Shanghai Tongda Venture Capital Co., Ltd. ("Tongda Venture") (Stock Code: 600647), a company listed on the Shanghai Stock Exchange, and/or its controlling shareholder, Cinda Investment Co., Ltd. ("Cinda Investment") to implement the Restructuring as amended.

Under the Share Transfer Agreement, Tongda Venture has agreed to acquire the 100% equity interest in Beijing Super TV Co., Ltd. ("Super TV"), a wholly-owned subsidiary of Golden Benefit, for a consideration ("Consideration") that has been preliminarily determined to be RMB3.2 billion.The final and exact amount of the Consideration will be further discussed and agreed upon by the parties based on a valuation of Super TV to be conducted by an independent third-party asset valuation agency. In exchange, Tongda Venture agrees to (1) pursuant to the Share Subscription Agreement, issue to Golden Benefit such number of new shares of Tongda Venture as worth RMB800 million at a price of RMB10.35 per share (the "Consideration Shares"), and (2) pay Golden Benefit the remaining Consideration in cash. As a result, Golden Benefit is expected to hold approximately 17.24% of the share capital of Tongda Venture following the completion of the Restructuring. The Consideration Shares will be subject to a 36-month lock-up. Golden Benefit is expected to pay PRC withholding tax at a rate of 10% on the Consideration, subject to the final assessment by PRC tax authorities under applicable tax laws and regulations in China.

Under the terms of the Compensation Agreement, in the event that net profits (excluding extraordinary items) of Super TV in any of the fiscal years 2014, 2015 and 2016 (collectively, the "Covered Period") are less than the profit target for the respective fiscal year (the final and exact amount of which will be separately agreed upon by the parties) or there is any impairment loss at the end of the Covered Period, Golden Benefit will be obligated to compensate Tongda Venture for the deficiencies or the impairment loss by transferring its shares in Tongda Venture back to Tongda Venture and/or cash, based on a pre-determined formula with such compensations in aggregate being subject to a cap equal to the amount of the Consideration. The Company undertakes to Tongda Venture that during the Covered Period it may not pay cash dividends out of the Consideration in cash in aggregate over US$3.33 per share unless a surety has been placed with Tongda Venture.

The Company guarantees the performance of Golden Benefit's obligations under the Share Transfer Agreement and the Compensation Agreement during the Covered Period.

Tongda Venture agrees that Super TV's board of directors and management team will remain unchanged during the Covered Period to ensure continuity in the Super TV's business operations.

The Company will convene a special shareholders' meeting to consider and approve the Restructuring as described above.

The Company may apply the Consideration in cash to dividend payments, development of new technologies in emerging fields and investments in operations and other business opportunities.

Under the Framework Agreement Amendment, Cinda Investment has been granted by the Company a warrant, exercisable within three months after the completion of the Restructuring, to subscribe for the Company's new shares at a price of US$3.33 per share for an amount between US$25 million and US$30 million. Shares purchased under the warrant shall be subject to a lock-up during the Covered Period unless the Company agrees otherwise. In addition, Cinda Investment has the option to subscribe for no more than an 8% equity interest in each of Beijing Cyber Cloud Co., Ltd. and Beijing Joysee Technology Co., Ltd., the subsidiaries of the Company, based on a valuation of these two Companies at RMB 350 million and RMB 240 million, respectively.

There will be uncertainties in completing the Restructuring, which remains subject to applicable approvals by the shareholders of the relevant parties involved as well as regulatory clearance (including that by the China Securities Regulatory Commission, the PRC Ministry of Finance and the PRC Ministry of Commerce), and the completion of a private placement by Tongda Venture to raise funds to pay the Consideration. The Restructuring is expected to be subject to close scrutiny by the regulators amid increasingly stringent standards for similar transactions. There is no assurance that these approvals or regulatory clearance will be obtained within an expected timeframe, or at all. The Restructuring will terminate if it has not been completed by December 31, 2015.


Tuesday, September 23, 2014
Restructuring Activity

BEIJING, September 23, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, today announced that the Company's asset restructuring (the "Restructuring"), as referred to in a press release dated June 13, 2014, will be adjusted. The specific nature of said adjustment is currently under discussion among the Company, Tongda Venture Capital Co., Ltd ("Tongda Venture") and related parties and there is no assurance that an agreement on any adjustment will be reached soon or at all.

The Company will update the market with further details as appropriate.

There will be difficulties and uncertainties in completing the Restructuring, which is pending the entry of definitive transaction agreements, and is also subject to applicable approvals by the board of directors and shareholders of the relevant parties involved as well as regulatory clearance (including that by the China Securities Regulatory Commission, the PRC Ministry of Finance and the PRC Ministry of Commerce). The Restructuring is expected to be subject to close scrutiny by the regulators amid increasingly stringent standards for similar transactions. There is no assurance that these approvals or regulatory clearance will be obtained within an expected timeframe, or at all. The Restructuring will terminate if it has not been completed by December 31, 2015.


Monday, September 22, 2014
Comments & Business Outlook

Wednesday, August 20, 2014
Comments & Business Outlook

Second Quarter 2014 Financial Results

  • Net revenues in the second quarter of 2014 were US$17.2 million, representing a 5.8% decrease from the same period in 2013 and a 5.6% decrease from the first quarter of 2014.
  • Diluted earnings per American depositary share, or ADS (one ADS representing one ordinary share), in the second quarter of 2014 were US$0.07, compared to US$0.03 in the same period in 2013 and US$0.07 in the first quarter of 2014.

"We are pleased to report a solid performance in the second quarter, with smart card shipments and net revenue both meeting our guidance," said Dr. Lu Zengxiang, China Digital TV's acting chief executive officer and acting chief financial officer. "We continued to see steady demand for smart cards from Jiangsu, Zhejiang, Sichuan, Shandong and Jiangxi, and strong execution in these key regions helped us maintain a 51% share of the Chinese market, according to Zhongguang Luoda. Regulators' recent tightening of over-the-top services is expected to create further opportunities for us to expand our coverage of cable users in China from a long term point of view."

Dr. Lu continued, "Alongside the traditional CA market, we maintained our focus on value-added services this quarter, with our subsidiary Cybercloud continuing to explore market opportunities beyond partnerships with cable operators. There were exciting developments in our cloud computing business, including a new agreement with Jiangsu Mobile to develop cloud games for OTT set-top boxes and 4G cloud games on mobile, as well as the establishment of a streaming platform for Shandong Network TV covering China Telecom and Unicom broadband users in Shandong. Our overseas business also grew steadily. Alongside Southeast Asia, where we have made promising progress in recent quarters, we plan to continue exploring opportunities across other emerging markets with strong growth potential."

"Improved operating efficiency helped us maintain a solid bottom line," Dr. Lu added. "We expect the reorganization of our corporate structure and management team to allow us to maintain a long-term leading position in China's expanding digital TV market and realize greater value for China Digital TV shareholders."

Business Outlook

Based on information available as of August 19, 2014, China Digital TV expects smart card shipment volumes in the third quarter of 2014 to be in the range of 3.6 million to 3.9 million. Net revenues in the third quarter of 2014 are expected to be in the range of US$15.4 million to US$16.6 million.


Tuesday, June 24, 2014
Restructuring Activity

BEIJING, June 24, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE:STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, today announced plans to conduct an internal reorganization (the "Reorganization"), as a result of which it will have legal ownership of Beijing Novel-Super Digital TV Technology Co., Ltd. ("Beijing N-S Digital TV"), the variable interest entity which it currently controls through contractual arrangements in China (the "VIE structure"), and plans to adjust the Company's senior management team.

On June 13, 2014, China Digital TV announced its plan to inject its CA, Network Broadcasting Platform and Video on Demand ("VOD") businesses into Shanghai Tongda Venture Capital Co., Ltd. ("Tongda Venture") (Stock Code: 600647) ("the Restructuring") in exchange for a controlling stake in, and RMB1.15 billion in cash from, Tongda Venture. The Restructuring is ongoing.

According to PRC securities regulations, the assets of a China-listed company generally must be held and owned by it or its subsidiaries in China, while contractual arrangements such as those referred to above are unlikely to be accepted. As a result, in order to meet China Securities Regulatory Commission ("CSRC") approval requirements with respect to the Restructuring, a series of agreements underlying the VIE structure between the nominee shareholders of Beijing N-S Digital TV (which is the variable interest entity that holds a significant portion of the operating assets to be injected under the Restructuring) and  Beijing Super TV Co., Ltd. ("Super TV", one of the Company's subsidiaries in China) shall be terminated, and the 100% equity interest of Beijing N-S Digital TV currently held by these nominee shareholders, namely, Shen Shizhou, Zhang Lei, Wang Tianxing and Wang Wenjun, shall be transferred to Super TV, as a part of the Restructuring.

At the time of the Company's initial public offering and listing on the New York Stock Exchange ("NYSE") in 2007, foreign-invested enterprises had difficulty obtaining the necessary licenses for the development, production and sale of commercial encryption in the PRC from the PRC Encryption Authority due to such authority's generally restrictive approach towards foreign participation in the PRC encryption industry. In addition, a policy ("Policy") issued by the State Administration of Radio, Film and Television ("SARFT") required any cable television network operator who uses non-PRC CA systems to install a parallel PRC CA system. This Policy did not expressly indicate whether the CA systems produced by a foreign-invested company incorporated in the PRC, such as China Digital TV's subsidiary Super TV, fall into the category of non-PRC CA systems. In light of the above, in order to avoid its CA systems being deemed non-PRC CA systems, China Digital TV established, and controlled through its VIE structure, Beijing N-S Digital TV, which is wholly owned by PRC persons as nominee shareholders, to produce and sell the Company's CA systems.

China Digital TV's PRC legal counsel has advised the Company that the implementation of the Policy remains unclear. After the Reorganization of the VIE structure, Beijing N-S Digital TV will become Super TV's subsidiary, making it the subsidiary of a foreign-invested company, instead of a foreign-invested company itself. Therefore, the potential legal risks posed by the Reorganization to Beijing N-S Digital TV's CA business, from the perspective of both the Policy and PRC encryption regulations, are minimal.

The Reorganization of the Company's VIE structure is expected to be completed within 30 working days, during which time outside auditors, as well as tax and legal consultants, will conduct an evaluation of Beijing N-S Digital TV's assets and other relevant issues. The Company's PRC legal counsel will provide their legal opinion on certain issues relating to the Reorganization of the VIE structure.

In connection with the transfer of all nominee shareholders' equity interest in Beijing N-S Digital TV to Super TV, Super TV may be subject to significant tax obligations. Registration with the relevant Industry and Commerce Bureau will also be required to implement the Reorganization of the VIE structure.

In addition, the Company will adjust its organizational structure by injecting assets currently owned by Super TV (other than the CA, NBP and VOD businesses) into N-S Investment, another subsidiary of the Company in China, to exclude them from the Restructuring. For an overview of the Company's current corporate structure, please refer to its latest annual report on Form 20-F filed with the Securities and Exchange Commission at http://ir.chinadtv.cn

In line with CSRC requirements for domestically listed companies, Tongda Venture's management shall not take senior positions at any other company other than as a member of the board of directors. Therefore, as part of the Restructuring, China Digital TV announces the following adjustments to its management team effectiveJune 30, 2014:

  • Zhu Jianhua will resign from his position as chief executive officer (CEO) and chairman of China Digital TV Holding Co., Ltd. He will continue in his role as a director of the Company.
  • Liang Zhenwen will resign from his position as chief financial officer (CFO) of China Digital TV Holding Co., Ltd.
  • Li Dong will resign from his position as president of China Digital TV Holding Co., Ltd.
  • Wang Tianxing will resign from his position as chief technology officer of China Digital TV Holding Co., Ltd.

The Company also announces the appointment of the following senior management team, effective June 30, 2014:

  • Lu Zengxiang, co-founder and director of China Digital TV, will be appointed as acting CEO and acting CFO of China Digital TV for a period of 12 months, during which time the Company will search for a permanent CEO and CFO.
  • The position of president will be abolished. The responsibilities will be taken by Lu Zengxiang.
  • Han Jian will be appointed chief technology officer of China Digital TV Holding Co., Ltd.
  • Zhu Jianhua will remain as chairman and CEO Super TV.
  • Liang Zhengwen will be appointed CFO of Super TV.
  • Li Dong will be appointed President of Super TV.
  • Wang Tianxing will be appointed technology director of Super TV.

If the Restructuring is not completed, the abovementioned management changes will not come into effect.

After the Restructuring, the original management team will continue to perform their responsibilities at Super TV. The Company's core CA business will continue to be led by Super TV's current chairman and CEO Zhu Jianhua, together with China Digital TV's experienced management team, including Super TV's President Li Dong and Super TV's CFO Liang Zhenwen. The Company will maintain the sustainable development of its primary business and continue to generate shareholder value.

In order to achieve long-term and more diversified development, the Company's new businesses, including cloud computing services and DVB+OTT, will continue to be led by Lu Zengxiang. Meanwhile, the current key management and staff will continue their efforts in developing new areas of business.


Monday, June 16, 2014
Comments & Business Outlook

BEIJING, June 13, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, announced that it has reached a framework agreement (the "Framework Agreement") with Cinda Investment Co. Ltd. ("Cinda Investment"), an integrated investment company and a wholly-owned subsidiary of China Cinda Asset Management Co., Ltd., regarding an asset restructuring (the "Restructuring"). Under the terms of the Framework Agreement, China Digital TV plans to inject its CA, Network Broadcasting Platform and Video on Demand businesses into Shanghai Tongda Venture Capital Co., Ltd. ("Tongda Venture") (Stock Code: 600647), a company listed on the Shanghai Stock Exchange and controlled by Cinda Investment. In exchange, China Digital TV will acquire a controlling stake in Tongda Venture and receive RMB1.15 billion in cash from Tongda Venture. China Digital TV expects to consolidate Tongda Venture financially upon completion of the Restructuring.

Under the terms of the Restructuring, China Digital TV will grant warrants of between US$25 million and US$30 million (the "Warrants") to Cinda Investment (or no more than two affiliates designated by Cinda Investment). Under the Warrants, Cinda Investment may purchase new shares in China Digital TV at a price per share that equals the weighted average trading price of the Company's ordinary shares (represented by American depositary shares) listed on the New York Stock Exchange for the 20 trading days prior to the date on which the Framework Agreement was approved by China Digital TV's Board. The completion of the Restructuring under the Framework Agreement is a precondition to the exercising of the Warrants by Cinda Investment.

According to the Framework Agreement, China Digital TV will place a RMB10 million performance bond with Cinda Investment. The guarantee period commences from the effective date of the Framework Agreement and ends on the earlier of the completion of the Restructuring and December 31, 2015.

There will be significant difficulties and uncertainties in completing the Restructuring, which is pending the entry of definitive transaction agreements, and is also subject to applicable approvals by the board of directors and shareholders of the relevant parties involved as well as regulatory clearance (including that by the China Securities Regulatory Commission, the PRC Ministry of Finance and the PRC Ministry of Commerce). The Restructuring is expected to be subject to close scrutiny by the regulators amid increasingly stringent standards for similar transactions. There is no assurance that these approvals or regulatory clearance will be obtained within an expected timeframe, or at all. The Restructuring will terminate if it has not been completed by December 31, 2015.

China Digital TV is expected to engage in strategic cooperation with Cinda Investment, and other businesses of China Digital TV may receive investments from Cinda Investment.


Friday, June 13, 2014
Contract Awards

BEIJING, June 13, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, announced that it has reached a framework agreement (the "Framework Agreement") with Cinda Investment Co. Ltd. ("Cinda Investment"), an integrated investment company and a wholly-owned subsidiary of China Cinda Asset Management Co., Ltd., regarding an asset restructuring (the "Restructuring"). Under the terms of the Framework Agreement, China Digital TV plans to inject its CA, Network Broadcasting Platform and Video on Demand businesses into Shanghai Tongda Venture Capital Co., Ltd. ("Tongda Venture") (Stock Code: 600647), a company listed on the Shanghai Stock Exchange and controlled by Cinda Investment. In exchange, China Digital TV will acquire a controlling stake in Tongda Venture and receive RMB1.15 billion in cash from Tongda Venture.  China Digital TV expects to consolidate Tongda Venture financially upon completion of the Restructuring.

Under the terms of the Restructuring, China Digital TV will grant warrants of between US$25 million and US$30 million (the "Warrants") to Cinda Investment (or no more than two affiliates designated by Cinda Investment). Under the Warrants, Cinda Investment may purchase new shares in China Digital TV at a price per share that equals the weighted average trading price of the Company's ordinary shares (represented by American depositary shares) listed on the New York Stock Exchange for the 20 trading days prior to the date on which the Framework Agreement was approved by China Digital TV's Board. The completion of the Restructuring under the Framework Agreement is a precondition to the exercising of the Warrants by Cinda Investment. 

According to the Framework Agreement, China Digital TV will place a RMB10 million performance bond with Cinda Investment. The guarantee period commences from the effective date of the Framework Agreement and ends on the earlier of the completionof the Restructuring and December 31, 2015.

There will be significant difficulties and uncertainties in completing the Restructuring, which is pending the entry of definitive transaction agreements, and is also subject to applicable approvals by the board of directors and shareholders of the relevant parties involved as well as regulatory clearance (including that by the China Securities Regulatory Commission, the PRC Ministry of Finance and the PRC Ministry of Commerce). The Restructuring is expected to be subject to close scrutiny by the regulators amid increasingly stringent standards for similar transactions. There is no assurance that these approvals or regulatory clearance will be obtained within an expected timeframe, or at all. The Restructuring will terminate if it has not been completed by December 31, 2015.

China Digital TV is expected to engage in strategic cooperation with Cinda Investment, and other businesses of China Digital TV may receive investments from Cinda Investment.


Wednesday, May 21, 2014
Comments & Business Outlook

First Quarter 2014 Financial Results

  • Net revenues in the first quarter of 2014 were US$18.2 million, representing an 8.7% decrease from the same period in 2013 and a 29.8% decrease from the fourth quarter of 2013.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the first quarter of 2014 were US$0.07, compared to US$0.13 in the same period in 2013 and US$0.17 in the fourth quarter of 2013.

"We are pleased to report that China Digital TV's first quarter 2014 smart card shipments and net revenues were in line with our guidance," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "Our traditional smart card business saw relatively steady shipments on an annual basis on the strength of solid domestic demand from Jiangsu, Guangdong, Jiangxi and other key regions of China. In the first quarter, China Digital TV continued to maintain a strong leading position in the Chinese smart card market with a 52% share."

Mr. Zhu continued, "As part of our diversification strategy to increase our focus on value-added services, we signed strategic cooperative cloud computing services agreements with cable operators including Beijing Gehua and Jishi Media. In an important step, we began signing contracts with IPTV operators to deploy our cloud computing platforms, including with the Guangdong and Fujian branches of China Telecom, during the first quarter. In addition, we also continued our cooperation with Xiaomi to support its smart-TV products with DVB and OTT services. China Digital TV will continue to seek cooperation with more smart-TV manufacturers and cable operators to achieve mutually beneficial results, while simultaneously growing our international smart card business, where we continue to see encouraging progress."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "Effective execution by our team reduced our overall operating expenses and increased our operating margins compared to the same period last year. We will continue to evaluate the best ways to manage our operating expenses and improve our overall efficiency. China Digital TV also recently issued our fifth special cash dividend to shareholders as part of our ongoing efforts to maximize shareholder value, and we will continue to evaluate our policy in this area in the quarters ahead."

Business Outlook

Based on information available as of May 20, 2014, China Digital TV expects smart card shipment volumes in the second quarter of 2014 to be in the range of 3.5 million to 3.8 million. Net revenues in the second quarter of 2014 are expected to be in the range of US$15.4 million to US$16.6 million.


Wednesday, April 16, 2014
Joint Venture

BEIJING, April 16, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, today announced that it has reached an agreement with Beijing Gehua CATV Network Co Ltd ("Gehua") to establish a strategic partnership on cloud computing technology and related businesses, to cooperate on overseas business expansion, and to enter into an equity investment agreement.

Pursuant to the agreement, Gehua will make an equity investment in the Company and hold a 10% stake in Cyber Cloud, a subsidiary of China Digital TV. Meanwhile, China Digital TV will help Gehua build and improve its full media cloud computing platform. As part of this effort the two sides will aim to integrate the content from various media, cross-platform applications, streaming application platforms, cloud gaming and other relevant service offerings. Leveraging this cloud-computing platform, the two companies will integrate content resources and establish a cloud-based content platform. The cooperation will help improve user experience in the areas of gaming, somatic gaming, education and travel applications. In addition, China Digital TV and Gehua will also strengthen cooperation for multi-end interaction, mobile business and other key areas that will allow them to explore further mobile Internet business opportunities.

The two sides will also jointly develop their opportunities overseas by leveraging their respective advantages in the areas of technology, operations and management.

"We are delighted to establish this strategic partnership with Gehua and leverage our mutual strengths to provide users a superior cloud computing platform," said Mr. Zhu Jianhua, China Digital TV's Chairman and CEO. "As China's leading television cable operator, we believe that Gehua's significant role in the development of interactive digital and high-definition TV make it an ideal partner for us. Cloud computing is core to China Digital TV's long-term development strategy and this agreement with Gehua marks a major step forward in this area. We believe the partnership with Gehua will help us elevate our cloud computing offer to a new level and further strengthen our TV services."


Wednesday, April 2, 2014
Special Dividend

BEIJING, April 2, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, today declared a special cash dividend of US$0.50 per share on the Company's ordinary shares, par value US$0.0005 per share. Each of the Company's American depositary shares represents one ordinary share.

Shareholders of record as of the close of business on April 9, U.S. Eastern Standard Time, will be eligible to receive the dividend. The dividend is expected to be paid on or around May 9, 2014.

"China Digital TV is always looking to provide excellent value to our shareholders and we believe that a special dividend is a prudent use of cash at this time. Our balance sheet and revenue remain strong enough to support our continued focus on R&D and other long-term objectives," commented Mr. Jianhua Zhu, China Digital TV's Chairman and Chief Executive Officer.

This is the fifth time that the Company has declared dividends to its shareholders since its initial public offering and listing on the NYSE in 2007. Going forward, China Digital TV's board of directors will continue to evaluate the Company's dividend policy based on various factors, including those relating to shareholder value.

As of December 31, 2013, China Digital TV had cash and cash equivalents and restricted cash totaling US$80 million, or US$1.35 per share on a diluted basis.


Thursday, February 27, 2014
Joint Venture

BEIJING, February 27, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, today announced that it has reached a strategic agreement with Jishi Media Co., Ltd. ("Jishi Media") to cooperatively develop value added services ("VAS") in Jilin Province.

According to the agreement, China Digital TV and Jishi Media will establish a long-term strategic relationship and leverage their respective strengths to jointly develop VAS services, including cloud games, cloud motion-sensing games and OTT multi-screen interactive offerings. Jishi Media will provide technical support in the areas of cable network resources, and its large customer base in the province. Meanwhile, China Digital TV will leverage its industry-leading technological capabilities and project operations experience to offer solutions for cloud platform technologies.

Mr. Jianhua Zhu, chairman and chief executive officer of China Digital TV, commented, "We are very excited to announce this cooperative agreement with Jishi Media, one of China's best integrated provincial cable operators. Following network consolidation and two-way digital conversion, Jishi Media can now provide a solid foundation of a large customer base as we jointly develop our cloud services. We look forward to providing more high-quality value added services to high-definition interactive TV users in Jilin province."


Wednesday, February 26, 2014
Comments & Business Outlook

Fourth Quarter 2013 Financial Results

  • Net revenues in the fourth quarter of 2013 were US$25.9 million, representing an 11.9% increase from the same period in 2012 and a 12.1% increase from the third quarter of 2013.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the fourth quarter of 2013 were US$0.17, compared to US$0.07 in the same period in 2012 and US$0.08 in the third quarter of 2013.

"I am pleased to report that during the fourth quarter of 2013, increased demand resulted in China Digital TV shipping its highest volume of smart cards for the year, significantly exceeding our expectations," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "In addition to usual seasonal factors ahead of theChinese New Year, the better-than-expected shipment volume for this quarter was largely due to increased smart card demand from key Chinese cable TV operators, including in Jiangsu, Guangdong, Sichuan, Shandong, andJiangxi provinces. Smart card shipments in 2013 increased 11% from 2012, which was partially driven by the pent up demand after the completion of network consolidation in most provinces in 2012 led to delays in smart card purchases by certain cable operators."

Mr. Zhu continued, "The development and optimization of our value-added services and products, and the leveraging of our core technologies for new growth, remain key areas of focus for China Digital TV. As part of our ongoing efforts, in the fourth quarter of 2013, we launched the interactive video on demand transmission channel IP Quadrature Amplitude Modulation in Fujian Province and expanded the deployment of our cloud computing platforms to Kunshan and Changshu. In addition to value-added services, solid growth in the overseas market continues to be an important driver of our market diversification strategy, and in the fourth quarter and full year 2013 we made excellent progress in key markets such as Venezuela, Taiwan and India."

"In 2014, we will continue building on the achievements we made during 2013 solidifying our competitiveness in the mainland China smart card market, strengthening our smart card position overseas, and developing our diversification strategy internationally with a focus on new value-added service areas like video on demand systems and cloud services. In addition, we will also focus on building out our offering in the Internet TV and mobile TV sectors, where we believe our core technology should provide China Digital TV a strategic opportunity to expand into different business sectors," said Mr. Zhu.

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "China Digital TV was very pleased with the strong financial performance we saw in the fourth quarter of 2013. Our strength in the market enabled us to capitalize on the overall uptick in demand for smart cards, resulting in improved top and bottom line performance year-on-year and sequentially. In addition, we have continued to promote our strategy of investing in research and development to further improve our value-added services."

Business Outlook

Based on information available as of February 25, 2014, China Digital TV expects smart card shipments for the first quarter of 2014 to be in the range of 3.5 million and 3.8 million. Net revenues for the first quarter of 2014 are expected to be in the range of US$ 16.4 million and US$ 17.7 million.


Friday, January 10, 2014
Comments & Business Outlook

BEIJING, January 10, 2014 /PRNewswire/ -- China Digital TV Holding Co. Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems to China's expanding digital television market, announced today that it has raised its guidance for smart card shipments and revenue for the fourth quarter ended December 31, 2013.

China Digital TV now expects fourth quarter 2013 smart card shipments to be in the range of 4.8 million and 5 million exceeding the previously announced guidance range of 3.9 million to 4.2 million given on November 19, 2013. For the fourth quarter of 2013, China Digital TV now estimates net revenues to be in the range of US$25 million and US$26 million, compared to previous guidance in the range of US$17.6 million and US$18.9 million.

"Taking into account usual seasonal factors ahead of the Chinese New Year, our fourth quarter shipment volumes were better than we expected due to stronger smart card demand largely driven by operators in China's cable TV market," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer.

The outlook for the fourth quarter of 2013 is an estimate. Actual results are subject to the finalized financial reports of the fourth quarter of 2013.


Wednesday, November 20, 2013
Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Net revenues in the third quarter of 2013 were US$23.1 million, representing a 13.5% increase from the same period in 2012 and a 26.9% increase from the second quarter of 2013.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the third quarter of 2013 were US$0.08, compared to net loss US$0.19 in the same period in 2012.

"China Digital TV is pleased to announce that our smart card shipments and revenue for the third quarter of 2013 exceeded our guidance, as we saw solid demand in several key cable TV markets during the ongoing digitalization conversion period," said Mr.Jianhua Zhu, China Digital TV's chairman and chief executive officer. "Demand was largely driven by our major customers, including those in Jiangsu, Zhejiang and Guangdong provinces."

Mr. Zhu continued, "As critical priorities of our ongoing diversification strategy, we are steadily building up the strength of our value added services offering in mainland China and smart card business in overseas markets. In the third quarter, in addition to our solid performance in mainland China, we made good progress in developing our smart card business in Taiwan, Thailand and other overseas markets, where we saw both sequential and year-over-year growth in revenues as a portion of China Digital TV's overall revenue. We also saw promising development in our cloud computing and video-on-demand offerings and we expect to see steady progress in these services in the coming quarters. We believe these value added services will contribute to the company's long-term growth."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "China Digital TV is pleased that our continued focus on key provincial operators, overseas markets with strong potential and diversification of our CA business helped us deliver strong top-line results, despite the industry trend toward lower average selling price ("ASP") of smart cards. We will continue to focus on strong execution to minimize the impact of the lower ASP on our financial performance."

Business Outlook

Based on information available as of November 19, 2013, China Digital TV expects smart card shipment volumes for the fourth quarter of 2013 to be in the range of 3.9 million to 4.2 million. Net revenues for the fourth quarter of 2013 are expected to be in the range of US$17.6 million to US$18.9 million.


Monday, September 30, 2013
Comments & Business Outlook

BEIJING, September 30, 2013 /PRNewswire/ -- China Digital TV Holding Co., Ltd (NYSE: STV) ("China Digital TV" or the "Company"), a leading provider of CA systems to China's expanding digital television market, today announced that it has reached an agreement with Heilongjiang Broadcast Television Network Co. Ltd. to deploy its Super VOD (video-on-demand) system in China's Heilongjiang Province.

The system will be operated in the city of Harbin before being extended to the whole of Heilongjiang Province. To date, there were a total of 5 million cable users in Heilongjiang Province, of which 1 million were in Harbin.

China Digital TV's Super VOD platform enables cable operators to offer interactive TV coverage without the need for heavy investment in two-way network reconstruction or replacement of set-top boxes, significantly increasing their competitive edge. Up to the present, China Digital TV's Super VOD system has also been deployed in Zhangzhou, Fujian Province, Guizhou province etc.

"As a leader in China's broadcasting and television industry, China Digital TV is focused on innovating around our value-added services to address the challenge of China's three-network convergence," said Dong Li, President of China Digital TV. "By building out intelligent, multi-functional and multimedia features, this cooperation will make an important contribution to the transition of cable TV to interactive TV for users in Heilongjiang, and will significantly improve the quality of our services in the province."


Wednesday, August 21, 2013
Comments & Business Outlook

Second Quarter 2013 Financial Results

  • Net revenues in the second quarter of 2013 were US$18.2 million, representing a 22.5% decrease from the same period in 2012 and an 8.6% decrease from the first quarter of 2013.
  • China Digital TV shipped approximately 3.58 million smart cards in the second quarter of 2013, compared to 3.74 million in the same period in 2012 and 3.71 million in the first quarter of 2013.
  • Gross margin in the second quarter of 2013 was 76.7%, compared to 76.4% in the same period in 2012 and 73.4% in the first quarter of 2013.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the second quarter of 2013 were US$0.03, compared to US$0.12 in the same period in 2012.

"Despite a range of challenges, including those posed by competition from IPTV and over-the-top ("OTT") services, and the stronger negotiating position cable operators have for pricing following provincial network consolidation completion, China Digital TV was able to meet our revenue guidance for the second quarter of 2013," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "We saw steady demand and performance during the second quarter in several key provinces, including Zhejiang, Jiangsu,Guangdong and Shandong. We are beginning to see conversion to high definition drive demand for our smart cards and we expect this trend to continue during the second half of the year."

Mr. Zhu continued, "The overseas market remains a key focus for driving China Digital TV's growth over the long-term, and we made good progress in Taiwan and other localities during the past quarter. As part of our diversification strategy, we continue to develop our cloud computing and video on demand offerings and network broadcast platform, and are in active discussions with potential partners to make these offerings even stronger. Intelligentization in areas like Internet TV, OTT set-top boxes and allowing users to view content across multiple platforms is beginning to drive operators' demand for our value-added service platforms, which is a trend we expect to gain strength going forward."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "China Digital TV is working to continue improving execution in response to the impact that industry challenges following provincial network consolidation had on our accounts receivables and the average selling price ("ASP") of smart cards during the second quarter of 2013. Looking forward, we will continue to prioritize investment in value-added services with high growth potential."

Business Outlook

Based on information available as of Aug 20, 2013, China Digital TV expects smart card shipment volumes for the third quarter of 2013 to be in the range of 3.6 million to 3.9 million. Net revenues for the third quarter of 2013 are expected to be in the range of US$ 16.7 million to US$18.1 million.


Wednesday, May 22, 2013
Comments & Business Outlook

First Quarter 2013 Financial Results

  • Net revenues in the first quarter of 2013 were US$19.9 million, representing an 8.4% decrease from the same period in 2012 and a 13.9% decrease from the fourth quarter of 2012.
  • Gross margin in the first quarter of 2013 was 73.4%, compared to 77.7% in the same period in 2012 and 76.2% in the fourth quarter of 2012.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the first quarter of 2013 were US$0.13, compared to US$0.12 in the same period in 2012.

"During the first quarter of 2013, despite normal seasonal slowness, China Digital TV saw higher than expected revenues and smart card shipment volumes due to the completion of cable network consolidation last year," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "Our leading position in China, where we had a 57% market share in the CA system market in the first quarter of 2013, enabled us to benefit from strong demand from provincial operators in Jiangsu, Shandong, and other regions. Looking forward, China Digital TV expects to see excellent market opportunities over the long term as digitalization leads to what we call 'intelligentization,' which includes the transition to HD and the industry development around the integration of Internet features into televisions."

Mr. Zhu continued, "China Digital TV is making steady progress in our overseas smart card business, particularly in India. We now have a local sales team in India, where we are seeing encouraging growth from a small base, and we believe that market has good long-term potential. We will continue to explore opportunities in overseas markets."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "I am pleased to report that strong demand for our smart cards has resulted in revenues exceeding our expectations. In addition, during the first quarter of 2013, China Digital TV renewed agreements with several provincial cable operators, including those in Fujian and Jiangsu, which reflects a trend that will help us consolidate our position as the market leader during the next several quarters."

Business Outlook

Based on information available as of May 21, 2013, China Digital TV expects smart card shipments for the second quarter of 2013 to be in the range of 3.6 million to 3.9 million. Net revenues for the second quarter of 2013 are expected to be in the range ofUS$16.7 million to US$18.1 million.


Wednesday, February 27, 2013
Comments & Business Outlook

Highlights for the Fourth Quarter 2012

  • Net revenues in the fourth quarter of 2012 were US$23.2 million, representing a 20.6% decrease from the same period in 2011 and a 13.7% increase from the third quarter of 2012.
  • China Digital TV shipped approximately 4.07 million smart cards in the fourth quarter of 2012, compared to 5.38 million in the same period in 2011 and 3.84 million in the third quarter of 2012.
  • Gross margin in the fourth quarter of 2012 was 76.2%, compared to 81.1% in the same period in 2011 and 75.8% in the third quarter of 2012.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the fourth quarter of 2012 were US$0.07, compared to US$0.19 in the same period in 2011.

"The fourth quarter was the strongest of 2012 for China Digital TV's smart card shipments, driven by demand in second and third-tier cities as cable operators sped up the pace of digitalization projects ahead of the year end," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "We maintained our strong leadership position in the fourth quarter, winning a 59% share of the CA market in China. While the completion of network consolidation in most provinces in 2012 led to smart card purchase delays by some cable operators during the second and third quarters, we saw promising growth in demand for our digital TV value added services and we are optimistic about the potential of this market."

Mr. Zhu continued, "In the fourth quarter of 2012, China Digital TV continued to make progress executing our strategy for next generation value added services and product, including the deployment of VOD services to cable operators, and the successful launch of our Network Broadcast Platform, a new product that allows users to watch TV live from their iOS devices. We believe that the development of our next generation products and service solutions will be key to our ongoing diversification strategy."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "In the fourth quarter, our continued leading position in China's CA market enabled us to benefit from the sequential increase in provincial cable operator demand. China Digital TV is committed to building on the steady progress we made in our value added services business during the fourth quarter through continued R&D investment."

Business Outlook

Based on information available as of February 26, 2013, China Digital TV expects smart card shipments for the first quarter of 2013 to be in the range of 3.2 million and 3.5 million. Net revenues for the first quarter of 2013 are expected to be in the range of US$ 14.7 million and US$16.0 million.


Tuesday, November 20, 2012
Comments & Business Outlook

Highlights for the Third Quarter 2012

  • Net revenues in the third quarter of 2012 were US$20.4 million, representing a 21.4% decrease from the same period in 2011 and a 13.3% decrease from the second quarter of 2012.
  • Gross margin in the third quarter of 2012 was 75.8%, compared to 80.5% in the same period in 2011 and 76.4% in the second quarter of 2012.
  • Net loss per American depositary share (one ADS representing one ordinary share), or ADS, in the third quarter of 2012 was US$ 0.19, compared to diluted earnings per ADS of US$0.17 in the same period in 2011 and US$0.12 in the second quarter of 2012.

"China Digital TV saw a modest increase in sequential card shipments during the third quarter 2012 as China's CA market continued to be impacted by delays from some provincial-level cable operators," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "Our leading position in China's CA market should enable China Digital TV to continue to benefit from China's ongoing cable penetration and digitalization as well as the conversion to high-definition set-top boxes over the next few years. In addition, China Digital TV continues to make good progress diversifying our product offerings and developing value-added services and partnership opportunities."

"With provincial network consolidation continuing to move toward completion, cable operators have initiated a new round of bidding for smart cards," added Mr. Dong Li, China Digital TV's president. "Following our success winning bids in Sichuanand Henan during the second quarter 2012, we won bids in Shanxi and Zhejiang in the third quarter, as well as in locations where we have not previously been active like Ningxia. As the market leader, we believe that China Digital TV is well positioned to secure additional contracts during this new round of bidding."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "While our bottom line was impacted by an impairment charge and a withholding tax related to our recently announced special dividend, these items are non-recurring and we have confidence in the strength of China Digital TV's underlying business and operations. We remain optimistic about the long-term demand in China's CA market."

Business Outlook

Based on information available as of November 20, 2012, China Digital TV expects smart card shipment volume for the fourth quarter of 2012 to be in the range of 3.6 million to 3.9 million. Net revenues for the fourth quarter of 2012 are expected to be in the range of US$ 19.3 million to US$ 20.9 million.


Monday, November 12, 2012
Special Dividend

BEIJING, Nov. 12, 2012 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems toChina's expanding digital television market, today declared a special cash dividend of US$2.30 per share on the Company's ordinary shares, par value US$0.0005 per share. Each of the Company's American depositary shares represents one ordinary share.

Shareholders of record as of the close of business on November 26, 2012, U.S. Eastern Standard Time, will be eligible to receive the dividend. This cash dividend is currently expected to be paid in two installments of US$1.00 and US$1.30 on or around December 3, 2012 and February 4, 2013, respectively.

Mr. Jianhua Zhu, China Digital TV's Chairman and Chief Executive Officer commented, "Our Board of Directors believes that a special cash dividend is an efficient use of cash to maximize shareholder value. Our balance sheet and cash flow will continue to allow us to invest in the development of industry-leading technologies."

In light of the foregoing dividend declaration, the Company has accrued a deferred tax liability related to the undistributed retained earnings of its subsidiaries located in the PRC that will impact the net income attributable to China Digital TV in its unaudited financial results in the three months ended September 30, 2012, which are expected to be announced on November 20, 2012.

This is the fourth time that the Company has declared dividends to its shareholders since its initial public offering and listing on the NYSE in 2007. Going forward, China Digital TV's board of directors will continue to evaluate the Company's dividend policy based on various factors, including those relating to shareholder value.

As of June 30, 2012, China Digital TV had cash and cash equivalents and restricted cash totaling US$180.4 million, or US$3.05 per share on a diluted basis.


Wednesday, August 22, 2012
Comments & Business Outlook

Highlights for the Second Quarter 2012

  • Net revenues in the second quarter of 2012 were US$23.5 million, representing a 5.0% decrease from the same period in 2011 and an 8.0% increase from the first quarter of 2012.
  • China Digital TV shipped approximately 3.74 million smart cards in the second quarter of 2012, compared to 4.64 million in the same period in 2011 and 3.70 million in the first quarter of 2012.
  • Gross margin in the second quarter of 2012 was 76.4%, compared to 81.4% in the same period in 2011 and 77.7% in the first quarter of 2012.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the second quarter of 2012 were US$0.12, compared to US$0.19 in the same period in 2011.

"While some provincial-level cable operators delayed card shipments during the quarter, the impact was lessened by revenue growth from sales of other products, such as multimedia home entertainment boxes and surface mounted device chipsets," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "During a challenging quarter, we were able to maintain China Digital TV's leading position in China's CA market, which we believe will help us benefit from a future uptick in demand as provinces gradually complete network consolidation."

"While we expect revenue and smart card shipment volumes to continue to be affected by industry headwinds during the coming quarters, we remain confident that there will be substantial increases in cable and digital penetration over the long term, especially in lower-tier cities and rural areas of China," Mr. Zhu continued. "I am also pleased to report that we are now seeing emerging opportunities for our more advanced, highly secured CA products driven by the upgrading of set-top boxes to high-definition. In addition, our research and development team continues to make encouraging progress as we focus on expanding our offering of products and services. To ensure long-term diversified growth, China Digital TV remains focused on building out our value-added services and partnerships."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "Although we expect revenue and smart card shipment volumes for the full year 2012 to be lower than they were in 2011, we remain confident in demand for digitalization over the longer term. Our team is committed to research and development on next generation products and value-added services to further expand our revenue sources, solidify our industry leading position and continue to strengthen operational efficiency."

Business Outlook

Based on information available as of August 21, 2012, China Digital TV expects smart card shipments for the third quarter of 2012 to be in the range of 3.5 million to 3.8 million. Net revenues for the third quarter of 2012 are expected to be in the range of US$ 20.6 million to US$ 22.1 million.


Tuesday, June 26, 2012
Comments & Business Outlook

BEIJING, June 26, 2012 /PRNewswire-Asia/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems to China's expanding digital television market, today announced updated guidance for the Company's smart card shipment volume and net revenues for the second quarter ended June 30, 2012.

China Digital TV currently expects smart card shipment volume to be in the range of 3.7 million to 3.8 million and net revenues to be in the range of US$ 22.4 million to US$ 23.8 million for the second quarter of 2012. The Company had previously announced that it expected smart card shipment volume for the second quarter of 2012 to be in the range of 4.4 million to 4.6 million and net revenues to be in the range of US$ 25.44 million to US$ 26.41 million.

The primary reason for the updated guidance is the lower-than-planned smart card sales in several provinces in China in the second quarter of 2012.

Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer commented, "As cable network consolidation has been largely completed, we observed that smart card purchasing decisions in recent months have become more centralized at the provincial level. Particularly in the second quarter, a number of municipalities in several provinces, for example Henan and Zhejiang, delayed purchasing activities while awaiting alignment from the provincial-level operator. While these factors affected our shipment in the second quarter, we believe that the unmet demand for smart cards in these provinces would be fulfilled at a later stage. However, at present, it is hard for us to predict a timeline."

Mr. Zhu continued, "Our leadership position in China's digital television industry remains strong. Going forward, we will continue to focus on providing the best products and services in conditional access, while improving operational efficiency and financial management to support long-term growth."

China Digital TV expects to release its actual second quarter 2012 financial results in mid-to-late August 2012.


Wednesday, May 23, 2012
Comments & Business Outlook

Highlights for the First Quarter 2012

  • Net revenues in the first quarter of 2012 were US$21.8 million, representing a 12.6% increase from the same period in 2011 and a 25.4% decrease from the fourth quarter of 2011.
  • China Digital TV shipped approximately 3.70 million smart cards in the first quarter of 2012, compared to 3.63 million in the same period in 2011 and 5.38 million in the fourth quarter of 2011.
  • Gross margin in the first quarter of 2012 was 77.7%, compared to 79.5% in the same period in 2011 and 81.1% in the fourth quarter of 2011.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the first quarter of 2012 were US$0.12, compared to US$0.13 in the same period in 2011.

"I am pleased to report that China Digital TV has delivered another solid quarter with a net revenue increase of 12.6% from the same period in 2011, spurred by steady growth in smart card shipments and increased sales of other products. Demand for our products was largely driven by the continued investment from cable operators in digitalization projects," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "In the first quarter of 2012, our strong execution capabilities enabled us to maintain our leading market share of 58% in China's CA market. Meanwhile, we also saw progress in the development of our next generation products and services, as well as sales in international markets."

Mr. Zhu continued, "Looking ahead, we expect to witness steady market demand for our standard CA products this year, supported by continuous cable penetration and digitalization throughoutChina, including in regional markets. We also anticipate emerging opportunities for our more advanced CA products driven by the conversion to high-definition set-up boxes. In addition, as an industry leader in China's digital television industry, we remain focused on expanding our international business and exploring value-added services and partnership opportunities to meet the evolving industry needs and stay ahead of market trends."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "Sustainable growth has always been a key focus of China Digital TV's development strategy. In addition to our longstanding efforts to improve operational efficiency, we are also committed to expanding our revenue potential through investment in research and development to capture opportunities in the evolving digital industry."

Business Outlook

Based on information available as of May 22, 2012, China Digital TV expects smart card shipments for the second quarter of 2012 to be in the range of 4.4 million to 4.6 million. Net revenues for the second quarter of 2012 are expected to be in the range of US$25.44 million to US$26.41 million.


Thursday, March 1, 2012
Comments & Business Outlook

Fourth Quarter 2011 Results

  • Net revenues in the fourth quarter of 2011 were US$29.2 million, representing an 11.2% decrease from the same period in 2010 and a 12.7% increase from the third quarter of 2011. The year-over-year decrease was primarily due to a spike in smart card demand in the fourth quarter of 2010 caused by the year-end deadline for provincial cable network consolidation.
  • China Digital TV shipped approximately 5.38 million smart cards in the fourth quarter of 2011, compared to 6.10 million in the same period in 2010 and 4.66 million in the third quarter of 2011.
  • Gross margin in the fourth quarter of 2011 was 81.1%, compared to 80.8% in the same period in 2010 and 80.5% in the third quarter of 2011.
  • Diluted earnings per American depositary share, or ADS, (one ADS representing one ordinary share), in the fourth quarter of 2011 were US$0.19, compared to US$0.15 in the same period in 2010.

"I'm proud to report that we delivered solid financial results in the fourth quarter of 2011, driven by continued momentum in smart card demand. The strong demand was a result of the ongoing cable network consolidation as well as cable operators investing in digitalization projects," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "In 2011, strong execution allowed us to solidify our market share and achieve a 12.8% annual growth in smart card shipment volume and a 13.7% annual increase in net revenues, surpassing outstanding results in 2010."

Mr. Zhu continued, "Cable operators continued to invest in diversified pay-TV services in 2011, in light of the further progress in cable network consolidation and a higher degree of digital penetration. However, commercialization of those value added services were in the early stages and the pace of market adoption remains to be seen in 2012. Given the mixed market sentiment, we expect shipment of smart cards in 2012 to be in line with 2011 levels. Going forward, in addition to developing our core CA business, we plan to continue carrying out research and development of next generation products and service solutions, as well as expanding our business overseas."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "Throughout 2011, China Digital TV focused on expanding our revenue potential through investments in research and development for value-added services. Meanwhile, we are committed to creating value for our shareholders by managing operating expenses and continuously enhancing operational efficiency."

Business Outlook

Based on information available as of February 29, 2012, China Digital TV expects smart card shipments for the first quarter of 2012 to be in the range of 3.5 million and 3.7 million. Net revenues for the first quarter of 2012 are expected to be in the range of US$18.3 million and US$20.1 million.


Thursday, December 29, 2011
Special Dividend

BEIJING, December 29, 2011 /PRNewswire-Asia/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems to China's expanding digital television market, today announced that the payment of a special cash dividend (the "Dividend") to its shareholders, initially scheduled to be made on or around December 30, 2011, will be postponed as regulatory approval by the foreign exchange authority in China for the repatriation of U.S. dollars relating to the Dividend is still pending.

On May 20, 2011, the Company announced a special cash dividend of US$0.56 per share on the Company's ordinary shares, par value US$0.0005 per share. Shareholders of record, including holders of the Company's American Depository Shares ("ADSs"), as of the close of business on June 20, 2011, U.S. Eastern Daylight Time, are eligible to receive the Dividend. The record date for the Dividend is not affected by the postponement. The total amount of the Dividend is US$33.421 million. As of September 30, 2011, China Digital TV had cash and cash equivalents, restricted cash and bank deposits maturing over three months totaling US$231.0 million.

"This is a routine approval process, which, however, has been slower than we had anticipated," said Mr.Zhenwen Liang, China Digital TV's Chief Financial Officer. "We apologize for the inconvenience to our shareholders and will announce a new payment date as soon as practicable


Wednesday, November 23, 2011
Comments & Business Outlook

Third Quarter 2011 Results

  • Net revenues in the third quarter of 2011 were US$25.9 million, representing a 22.5% increase from the same period in 2010 and a 4.7% increase from the second quarter of 2011.
  • China Digital TV shipped approximately 4.66 million smart cards in the third quarter of 2011, compared to 3.95 million in the same period in 2010 and 4.64 million in the second quarter of 2011.
  • Gross margin in the third quarter of 2011 was 80.5%, compared to 78.0% in the same period in 2010 and 81.4% in the second quarter of 2011.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the third quarter of 2011 were US$0.17, the same as that in the same period in 2010.

"I'm very pleased to report that China Digital TV achieved another solid quarter, with excellent year-on-year revenue and shipment growth," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "In the third quarter, robust demand for our advanced CA products, driven by the continuation of provincial-level cable network consolidation and investment in digitalization projects, was the main driver of our steady growth."

Mr. Zhu continued, "Looking ahead, we remain highly confident in the long-term development of China's cable TV industry and China Digital TV's ability to draw upon our knowledge and experience to stay ahead of sector advancements. With ongoing rapid cable network consolidation and the expansion in rural area digitalization, we expect to see healthy performance in China Digital TV's smart card business and development in the value added services piece of our business."

"Our excellent top-line growth during the third quarter is a reflection of strong market demand and China Digital TV's clear industry leading position," Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented. "China Digital TV's R&D investment increased during the third quarter as we continued to develop our next generation products. Seeking investment opportunities and expanding cooperation with our business partners and cable operators remain our high priorities. Meanwhile, we remain committed to managing operational expenses and continually enhancing efficiency."

Business Outlook

Based on information available as of November 22, 2011, China Digital TV expects smart card shipments for the fourth quarter of 2011 to be between 4.6 million and 4.8 million. Net revenues for the fourth quarter of 2011 are expected to be between US$25.7 million and US$26.6 million. Projected results for the fourth quarter of 2011 are at the same level as the third quarter of 2011 and represent a decline of between 19% and 22% compared with the fourth quarter last year. The projected year-over-year decrease is due to a surge in smart card demand in the fourth quarter of 2010 caused by the year-end deadline of cable network consolidation.


Tuesday, August 16, 2011
Comments & Business Outlook

Second Quarter 2011 Results

  • Net revenues in the second quarter of 2011 were US$24.7 million, representing a 29.2% increase from the same period in 2010 and a 28.0% increase from the first quarter of 2011.

  • China Digital TV shipped approximately 4.64 million smart cards in the second quarter of 2011, compared to 3.61 million shipped in the same period in 2010 and 3.63 million smart cards shipped in the first quarter of 2011.

  • Gross margin in the second quarter of 2011 was 81.4%, compared to 78.7% in the same period in 2010 and 79.5% in the first quarter of 2011.

  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the second quarter of 2011 were US$0.19, compared to US$0.15 in the same period in 2010.


"We are pleased to report that China Digital TV has delivered another solid quarter, with strong market demand for our advanced CA products driving revenue growth," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "Cable operators in China remain focused on accelerating the ongoing process of consolidation and investing in digitalization projects. In particular, the most significant demand increases came from several provinces, including Jiangxi, Guizhou and Sichuan. We believe China Digital TV's industry leadership and superior execution have enabled us to deliver faster than market growth."

Mr. Zhu continued, "For the second half of the year, we expect steady momentum in smart card demand. As always, we are confident we will maintain our position as the leading provider in our market. In parallel, we remain committed to the research and development of our next generation products and services, and are making significant headway in preparing for the next wave of growth in China's TV industry."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "In addition to enhancing the execution and profitability of our core CA business, China Digital TV is focused on investing in long-term sustainable growth, and we have a number of exciting new initiatives under development."

Business Outlook

Based on information available as of August 15, 2011, China Digital TV expects smart card shipments for the third quarter of 2011 to be between 4.5 million and 4.7 million. Net revenues for the third quarter of 2011 are expected to be between US$24.01 million and US$25.01 million, which would represent a year-over-year increase between 14% and 18%.


Saturday, August 6, 2011
Liquidity Requirements
We believe that our current levels of cash and cash equivalents, bank deposits maturing over three months, held-to-maturity investments, and cash flows from operations in the near future, will be sufficient to meet our anticipated capital expenditure and other cash needs for at least the next 12 months. However, we may need additional cash resources in the future if we experience changed business conditions or other developments. We also may need additional cash resources in the future if we find and wish to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions.

Tuesday, May 17, 2011
Comments & Business Outlook

First Quarter Results:

  • Net revenues in the first quarter of 2011 were US$19.3 million, representing a 37.7% increase from the first quarter in 2010 and a 41.2% decrease from the fourth quarter of 2010.
  • China Digital TV shipped approximately 3.63 million smart cards during the first quarter of 2011, compared to 2.57 million and 6.10 million smart cards in the first quarter of 2010 and the fourth quarter of 2010, respectively.
  • Gross margin in the first quarter was 79.5%, compared to 77.5% in the same period in 2010 and 80.8% in the fourth quarter of 2010.
  • Diluted earnings per American depositary share ("ADS") (one ADS representing one ordinary share) in the first quarter of 2011 were US$0.13, compared to US$0.10 in the same period in 2010.

"In line with our projections, cable television operators remained keen on investing in digitalization projects during the first quarter of 2011. Continued demand and stable prices for smart cards spurred another strong quarter, with an approximately 40% increase in both shipments and revenues compared to the first quarter of 2010," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer.

Based on information available on May 16, 2011, China Digital TV expects smart card shipments for the second quarter of 2011 to be in the range of 3.7 million to 4.0 million. Net revenues for the second quarter of 2011 are expected to be in the range of 20.08 million to 21.6 million US Dollars, representing a year-over-year increase in the range of 4% to 11.9%.


Wednesday, March 2, 2011
Comments & Business Outlook

Fourth Quarter Highlights:

  • Gross profit in the fourth quarter of 2010 was US$26.5 million, an increase of 153.3% from the same period in 2009 and an increase of 61.1% from the third quarter of 2010.
  • Income from operations in the fourth quarter was US$19.2 million, a 317.6% increase from the same period in 2009 and an 86.1% increase from the third quarter of 2010.
  • Non-GAAP net income attributable to China Digital TV Holding Co., Ltd., in the fourth quarter of 2010 was US$19.6 million, an increase of 203.5% compared with the same period in 2009 and a increase of 90.1% compared with the third quarter of 2010.
  • Diluted earnings per American depositary share ("ADS") (one ADS representing one ordinary share) in the fourth quarter of 2010 were US$0.15, compared to US$0.10 in the same period in 2009.

Based on information available on March 1, 2011, China Digital TV expects smart card shipments for the first quarter of 2011 to be in the range of 3.50 million to 3.70 million.

  • Net revenues for the first quarter of 2011 are expected to be in the range of US$19.22 million to US$20.24 million, representing a year-over-year increase in the range of 37% to 44%.

Wednesday, November 17, 2010
Comments & Business Outlook

Highlights for the third quarter 2010

  • Net revenues in the third quarter of 2010 were US$21.1 million, a quarterly record in the Company's operating history, and represented a 10.4% increase from the second quarter of 2010 and a 74.5% increase from the same period in 2009.
  • China Digital TV shipped approximately 3.95 million smart cards in the third quarter of 2010, compared to 3.61 million smart cards shipped in the second quarter of 2010 and 1.96 million shipped in the same period in 2009.
  • According to market data collected by the Company, China Digital TV entered into 14 out of a total of 20 new contracts to install CA systems in China in the third quarter of 2010.
  • Gross margin in the third quarter was 78.0%, compared to 73.8% in the same period in 2009 and 78.7% in the second quarter of 2010.
  • Diluted earnings per American depositary share (one ADS representing one ordinary share), or ADS, in the third quarter of 2010 were US$0.17, compared to US$0.08 in the same period in 2009.

"We are delighted to report record revenues for the third quarter of 2010, which were driven by continued increases in CA card shipments, relatively stable pricing, and a rebound in our service business," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "Demand for our core CA products has been accelerating as Chinese cable operators increased investment in digitalization projects in response to the government's policy to encourage the convergence of TV, telecom and Internet services, as well as ongoing consolidation of the domestic cable industry. In addition, as the industry environment improved, we were also able to gain market share by taking advantage of our superior customer base in China."

Business Outlook

Based on information available as of November 16, 2010, China Digital TV expects smart card shipments for the fourth quarter of 2010 to be in the range of 3.7 million to 3.9 million. Net revenues for the fourth quarter of 2010 are expected to be in the range of US$20.80 million to US$21.79 million, representing a year-over-year increase in the range of 52% to 59%.


Wednesday, August 18, 2010
Comments & Business Outlook
Business Outlook Based on information available as of August 17, 2010, China Digital TV expects smart card shipments for the third quarter of 2010 to be in the range of 3.0 million to 3.2 million. Net revenues for the third quarter of 2010 are expected to be in the range of US$15.90 million to US$16.87 million, representing a year-over-year increase in the range of 31% to 39%.