China Digital Media Corporation has announced quarterly revenue for the nine months ended September 30, 2006.
Financial Highlights for the nine months ended September 30, 2006 compared to the nine months ended September 30, 2005:
- Revenues increased 164%% to $12.7 million from $4.8 million.
- Gross profit increased 64% to $4.7 million from $3.2 million.
- Income from operation increased 2.3% to $2.6 million from $2.5 million.
- Net income before tax and minority interest decreased 43% to $2.6 million from $4.6 million.
With the expansion of business the Company has broadened the revenue base as compared with the same period of last year. Thanks to the increased revenue, income from operation increased during the nine months ended September 30, 2006 as compared to the nine months ended September 30, 2005 although the increase in depreciation of the Company's digital set top boxes (attributable to the further installation of approximately 100,000 digital set top boxes during the nine months ended September 30, 2006 compared to the same period of 2005) has eliminated certain gross margin. As a result, the net income before tax (excluding a one time payment discount of $1.8 million from a set top box supplier obtained in 2005) maintained at the similar level of the same period of last year. As compared to the net income for the nine months ended September 30, 2005 which included the one time payment discount, net income after tax showed a reduction from last year of $4.6 million to $1.8 million.
"We are progressing as planned; our core operations in DTV operations and advertising agency business has generated substantial growth for the Company compared to the same period of last year," said Daniel Ng, Chairman and CEO of China Digital Media Corporation. "We are delighted we have just completed a new round of financing with the support of institutional and high net worth investors which we believe will allow the Company to develop further and faster. The Company's management could, in addition, focus on developing new business opportunities and believe that this will drive the Company to grow and expand."
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