China Digital Tv Holdings (NYSE:STV)

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.

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.

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.

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.

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.

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.

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.

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.

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

Third Quarter 2011 Results

Second Quarter 2011 Results

"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."

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%.

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%.

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%.