Revenue Rises In China for CDC Corporation

Hong Kong-based enterprise software and new media firm CDC Corporation announced financial results for the fourth quarter and year ended December 31, 2009, and stated total revenue in the quarter was USD83.0 million, compared to USD76.6 million in the third quarter of 2009.

Adjusted EBITDA in the fourth quarter of 2009 was USD14.0 million, an increase of 56% from Adjusted EBITDA of USD9.0 million in the third quarter of 2009.

For the year ended December 31, 2009, net income attributable to controlling interest was USD16.8 million, or USD0.14 net income per share, compared to net loss attributable to controlling interest of USD114.2 million, or USD1.07 net loss per share for 2008, which was primarily due to goodwill impairment. For the full year 2009, CDC Corporation reported revenue of USD320.1 million and Adjusted EBITDA of USD42.7 million, compared to revenue of USD409.1 million and Adjusted EBITDA of USD35.9 million for the full year 2008.

Total revenue for CDC Software, which is now trading as a separately listed public company on the Nasdaq Global Market, for the fourth quarter of 2009 was USD54.3 million compared to USD48.6 million in the third quarter 2009.

Total revenue for CDC Global Services for the fourth quarter of 2009 was USD17.6 million compared to USD19.2 million for the third quarter of 2009. And total revenue from continuing operations for CDC Games during the fourth quarter of 2009 was USD7.0 million compared to USD6.2 million in the third quarter of 2009.

However, during 2009, China.com saw a negative impact to its portal’s advertising revenue as a result of the China government’s tightened regulation of online healthcare and medicine ads. China.com is addressing the impact of that regulation through the expansion of content for its vertical channels, including its popular automobile channel. Revenue at China.com in the fourth quarter was USD4.1 million.