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Global Sources Reports Better Than Expected Earnings (GSOL)

Global Sources Ltd. (NASDAQ: GSOL) reported second quarter IFRS EPS of $0.46 versus consensus $0.43 representing a year over year increase of 48 percent. Revenue came in at $61.4 million versus estimates of $58.98 million–a year over year decline of 8 percent.

In the release, the company highlighted key results:

  • Revenue was $61.4 million, as compared to $66.8 million.
    • Online revenue was $22.7 million, as compared to $30.0 million.
    • Exhibitions revenue was $33.3 million, as compared to $30.5 million.
    • Print revenue was $3.5 million, as compared to $4.4 million.
  • IFRS net income was $16.8 million, or $0.46 per diluted share, as compared to second quarter 2012 IFRS net income of $9.7 million, or $0.27 per diluted share.
  • Non-IFRS net income was $11.4 million, or $0.32 per diluted share, as compared to $11.0 million, or $0.31 per diluted share, for the second quarter of 2012.
  • Adjusted EBITDA was $13.2 million, as compared to $12.8 million for the second quarter of 2012.
  • Total deferred income and customer prepayments were $100.1 million as at June 30, 2013, as compared to $121.3 million as at June 30, 2012.

Global Sources’ CFO, Connie Lai, said: “Among the factors impacting second quarter results was the move of the China Sourcing Fairs in Miami from the third quarter last year to the second quarter this year. We also recorded a write down of approximately $2.5 million in consideration of goodwill impairment charges related to the China International Fashion Brand Fair – Shenzhen (FashionSZshow). In addition, we completed the sale of one of our properties in Shenzhen, which increased our cash by $15.2 million, and contributed capital gains of $8.7 million, net of transaction costs and related tax expenses. As a result, we closed the quarter with a cash and securities position of $135.1 million, as compared to $106.0 million at the end of June 2012, and we continue to have no debt.”

Company Profile:

Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China.

The core business facilitates trade between Asia and the world using English-language media such as online marketplaces (GlobalSources.com), print and digital magazines, sourcing research reports, private sourcing events, and trade shows.

More than 1 million international buyers, including 95 of the world’s top 100 retailers, use these services to obtain product and company information to help them source more profitably from overseas supply markets. These services also provide suppliers with integrated marketing solutions to build corporate image, generate sales leads and win orders from buyers in more than 240 countries and territories. (taken from the press release.)

[stock-tools exchange="NASDAQ" symbol="GSOL" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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