ASIA PULSE: GLOBAL SOURCES POSTS 150% GROWTH IN REVENUES FROM ONLINE SERVICES
Asia Pulse, Aug 14, 2000, 804 words
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NEW YORK, NY, Aug. 11 /HK PRNewswire-AsiaNet/ -- Global Sources Ltd. (Nasdaq: GSOL), one of the world's largest business-to-business trade facilitators, today announced financial results for the second quarter ended June 30, 2000. Revenues for the quarter were $25.8 million compared with $22.3 million for the second quarter of 1999. The primary driver of revenue growth was online marketplace services. Revenues from this category increased to $14.0 million from $5.6 million in the corresponding period last year, an increase of 150%. Online marketplace services now account for 54% of total revenues versus 25% of total revenues during the second quarter of 1999. Revenues for the six months ended June 30, 2000 were $51.1 million versus $44.4 million in the first six months of 1999. This included a 128% increase in revenues from online marketplace services, which grew to $25.1 million from $11.0 million in the corresponding period last year.
Net income for the second quarter was $1.3 million, or $0.05 per diluted share, versus $3.1 million, or $0.13 per diluted share, in the second quarter of 1999. However, during the three months ended June 30, 2000, the company recorded $2.8 million of non-cash compensation and listing expenses related to becoming a NASDAQ-listed public company in April. Excluding these non-cash expenses, net income in the second quarter was $4.0 million, or $0.15 per share. During the six months ended June 30, 2000, Global Sources reported a loss of $3.4 million, or ($0.13) per diluted share, versus net income of $6.3 million, or $0.25 per diluted share, in the corresponding period last year. Excluding non-cash compensation and listing expenses, net income in the six months ended June 30, 2000 was $8.3 million, or $0.33 per share, an increase of 31% over the prior year.
Chairman and CEO Merle Hinrichs commented, "This quarter's results show our continued growth as the world's largest and most trusted neutral enabler of global merchandise trade. Global Sources is number one in online revenues from this market, attracting more than 95,000 online buyers in more than 100 countries, including companies such as Kmart (NYSE: KM), Home Depot (NYSE: HD), Dell Computer (NASDAQ: DELL), and Sony (NYSE: SNE). These buyers generate more than two million sales leads per year for the 89,000 suppliers listed in our marketplace. Ours is the only neutral marketplace that enables our buyer community to interface electronically with suppliers in all phases of the trade process, from sourcing to negotiation and transaction, in all corners of the world."
Founded in Hong Kong in 1971 as Asian Sources, a publisher of industrial trade magazines, the company began to establish private networks in 1989 to help its customers buy and sell from each other in a more targeted and confidential manner. In 1991, e-commerce software was developed to help customers more efficiently automate the order process. In 1995, the company launched its Internet-based business marketplace, Asian Sources Online. The company changed its name to Global Sources in 1999, to reflect its expansion into new geographic markets.
In recent months, the company's worldwide expansion has encompassed Australia, South Africa, and Indonesia. These new locations have been incorporated into the existing network of geographical portals in Hong Kong, Taiwan, China, Korea, and Thailand. The Australian market was added through a joint venture with Telstra (NYSE: TLS), Australia's largest telecom company. In Indonesia, Global Sources signed a licensing agreement this quarter with PT Global Jaringan Nusantara (PT Global) to establish a new local portal, Indonesian Sources Online. With these portals, Global Sources opens new competitive markets for its buyers, while giving exporters access to its proven Internet marketing channel for trade.
The company's e-commerce services are tailored for industry-specific vertical markets. An important driver of revenue growth is the addition of new vertical markets. During the second quarter, the company launched four new vertical online marketplaces: Ceramics & Porcelain, Security & Safety, Food & Beverage, and Trimmings & Fabrics. As of June 30, Global Sources was operating a total of twelve vertical markets. In addition to the four listed above, current vertical markets consist of Computer Products, Electronic Components, Electronics, Timepieces, Fashion Accessories, Gifts & Home Products, Telecom Products, and Hardwares. The company expects to launch as many as eight additional vertical markets this year.
( To view the full Consolidated Balance Sheet and Statements of Income, please go to prnewswire-asia.com
About Global Sourc s Global Sources is a leading infomediary and neutral B2B market maker for volume buyers and suppliers engaged in international trade. Global Sources' e-commerce solutions enable its buyer community to interface electronically with suppliers in all phases of the supply chain management process in all corners of the world. Global Sources has been operating in Asia and worldwide for nearly 30 years and has developed a total community consisting of more than 213,000 active buyers who are able to locate over 89,500 supplier contacts from more than 100 countries. Online services provided by Global Sources are used in sourcing over 82,500 products per day, with detailed specifications and color images.
Global Sources will conduct a conference call at 9:00 a.m. EDT on August 11, for the purpose of reviewing the second quarter's financial results. Investors may participate in the call by dialing 212-346-6501. The call will also be simulcast on the company's website, www.globalsources.com.
This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The Company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the Company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.
Investor contact: William A. Walkowiak, CFA Izabela Buniek Lippert/Heilshorn & Associates, Inc. Tel: 212-838-3777 e-mail: izabelalhai.com
For US, contact: James Strachan Tel: 602-978-7501 Fax: 602-978-7512 e-mail: strachanglobalsources.com
For Asia, contact: Camellia So Tel: 852-2555-5042 Fax: 852-2518-8764 e-mail: csoglobalsources.com
SOURCE Global Sources
ASIA PULSE
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