BEIJING and SANTA CLARA, Calif., August 5, 2011 /PRNewswire-Asia-FirstCall/ -- AsiaInfo-Linkage, Inc. (NASDAQ: ASIA) ("AsiaInfo-Linkage," the "Company," "we," "us" or "our"), a leading provider of telecommunication software solutions and services in China, today announced financial results for the quarter ended June 30, 2011.
"After a year following the close of the merger with Linkage, we are pleased to announce that the integration has been successfully completed," said AsiaInfo-Linkage Co-Chairman James Ding. "As of today, we achieved the goals set forth by the board of directors. With the dedicated effort from the integration committee and the entire management team, the Company has fully integrated customer facing sales and service organizations, human resource policies, and product and solution platforms. Moreover, the Company now operates on an integrated IT system and has standardized project management, accounting and financial reporting. As the task that it set out to perform has now been completed, the board of directors and management team has dissolved the integration committee."
AsiaInfo-Linkage's Executive Co-Chairman Libin Sun added, "Our stable financial performance throughout the past four quarters reflects the success of our integration efforts. With the completion of the integration process the Company will continue offering a comprehensive end-to-end telecom software solution and also focus on building new growth drivers and capitalizing on business opportunities that develop in the market."
"We are confident in the long term growth of the Company as the successful completion of integration serves to unlock AsiaInfo-Linkage's potential," said AsiaInfo-Linkage President and Chief Executive Officer Steve Zhang. "We are pleased with the steady stream of sales contracts in the second quarter of 2011 as our demand pipeline continues to grow. Competition only continues to intensify between China's telecom carriers as they increase investment in Internet-related services like e-channel and WIFI network solutions. Carriers' needs and requirements are increasingly more sophisticated as they look to differentiate themselves and retain loyal long-term customers, and this plays well to our Company's strengths. In the second quarter, we continued signing contracts with our customers, such as NG BOSS 3.0 upgrades with China Mobile, BSS software development contracts with China Unicom's six Northern provinces, billing and CRM upgrades with China Telecom, as well as a business operation support systems contract with Gehua Cable in Beijing. On the international front, we have witnessed steady progress in developing and delivering our CRM and BI solutions to U-Mobile in Malaysia as we continue to look for additional opportunities to build our brand abroad."
Mr. Zhang continued, "Our focus remains on increasing share of wallet with our existing telecommunications customers. We are confident in our ability to secure additional sales contracts in the second half of 2011 as we position ourselves favorably to grow and deliver long-term shareholder return."
Second Quarter 2011 Financial Results
Total revenues for the second quarter of 2011 were US$116.2 million, an increase of 95.9% year-over-year and 1.5% sequentially. Meeting guidance, net revenue (non-GAAP) for the second quarter of 2011 was US$110.3 million, an increase of 89.8% year-over-year and 1.6% sequentially. The year-over-year increase was mainly due to the merger with Linkage and the sequential increase was the result of the steady demand for the Company's services and solutions from China's telecom carriers
On a GAAP basis, in the second quarter of 2011, the Company recorded net income attributable to AsiaInfo-Linkage, Inc. of US$32.9 million, or US$0.45 per basic share, compared to US$13.9 million, or US$0.29 per basic share, in the year-ago period and US$17.8 million, or US$0.24 per basic share, in the previous quarter. The tax rate adjustment for LKNJ increased the Company's earnings per basic share by US$0.25.
In the second quarter of 2011, net income attributable to AsiaInfo-Linkage, Inc. (non-GAAP) was US$29.3 million or US$0.40 per basic share. Net income attributable to AsiaInfo-Linkage, Inc. (non-GAAP) in the year-ago period was US$16.7 million or US$0.35 per basic share. Net income attributable to AsiaInfo-Linkage, Inc. (non-GAAP) in the previous quarter was US$32.7 million or US$0.44 per basic share. Net income attributable to AsiaInfo-Linkage, Inc. (non-GAAP) increased 75.0% year-over-year and decreased 10.4% sequentially. The year-over-year increase was primarily due to the merger with Linkage and the sequential decrease was mainly attributable to the "Key Software Enterprise" tax rate adjustment in the first quarter, which positively impacted first quarter 2011 net income attributable to AsiaInfo-Linkage, Inc. (non-GAAP).
Business Outlook
AsiaInfo-Linkage expects third quarter 2011 net revenue (non-GAAP) to be in the range of US$115 million to US$119 million. The Company expects third quarter 2011 net income attributable to AsiaInfo-Linkage, Inc. per basic share (non-GAAP) to be in the range of US$0.34 to US$0.37.