- Published: 29 October 2009
- Written by Editor
AsiaInfo Reports Third Quarter 2009 Financial Results
AsiaInfo Holdings, Inc. (Nasdaq: ASIA) ("AsiaInfo" or the "Company"), a leading provider of telecom software solutions and IT security products and services in China, today announced financial results for the third quarter of 2009.
"This past quarter marks another period of strong growth in which we met net revenue and exceeded EPS guidance," said Steve Zhang, AsiaInfo's president and chief executive officer. "This is especially notable as it comes on top of nearly 45% net revenue growth in the third quarter of 2008. During the quarter, we also took our first step into Southeast Asia by establishing a joint venture in Singapore, which will contribute sales and marketing expertise and help us cultivate strong partnerships in the region. In addition, in early October, we announced our acquisition of SmartCall, which provides us with the resources and expertise to fully execute end-to-end, targeted marketing campaigns.
Building off of our leading base of business intelligence installations and consulting services, our SmartCall business has strong potential to quickly expand from solely operating in Sichuan province to a number of provinces in China.
Mr. Zhang concluded, "Looking forward, we are confident we will finish 2009 on a strong note and see abundant opportunities across all three of China's telecom operators in the coming year. In addition, our focus on delivering robust organic growth while remaining disciplined in our overseas expansion strategy will help us to deliver long-term sustainable growth."
Third Quarter 2009 Financial Results
Total revenues for the third quarter of 2009 were US$63.5 million, an increase of 41.8% year-over-year and 8.5% sequentially. Meeting guidance, net revenue (non-GAAP) for the third quarter of 2009 was US$60.9 million, an increase of 42.4% year-over-year and 14.1% sequentially. The year-over-year and sequential increases were primarily driven by strong performance among all three major customers in the telecom business.
During the quarter, AsiaInfo announced contracts with four China Mobile subsidiaries to upgrade BOSS Systems to NG-BOSS, six China Mobile subsidiaries to upgrade China Mobile Business Intelligence Systems to NG-BASS and a tender win to build P2P SMS Settlement System for China Mobile headquarters. The Company also signed a contract with China Unicom to build out a Device Management System that will allow China Unicom to remotely diagnose and manage mobile devices and contracts to integrate mobile and fixed-line Business Support Systems ("BSS") for China Telecom in Heilongjiang and Henan provinces. During the quarter, AsiaInfo also established a JV with Singapore-based Alpha Growth International and at the beginning of October, acquired a majority stake in an outbound calling services company called SmartCall Holdings, Ltd.
Gross margin for the quarter was 54.6%, compared to 51.8% in the year-ago period and 49.1% in the previous quarter. The year-over-year and sequential increases in gross margin were primarily due to a strong contribution from higher-margin software solutions and services. Gross profit as a percentage of net revenue (non-GAAP) was 57.0% in the third quarter of 2009, compared to 54.2% in the year-ago period and 53.9% in the previous quarter. The Company noted that gross profit as a percentage of net revenue (non-GAAP) has remained relatively stable, near 55% for the last several quarters.
In the third quarter of 2009, the AsiaInfo Technologies business unit, which focuses on telecommunications software and services, contributed 82.7% and 84.5% to total revenue and net revenue (non-GAAP), respectively. Total revenue for the AsiaInfo Technologies business unit increased 44.8% year-over-year and slightly decreased 0.3% sequentially to US$52.6 million. Net revenue (non-GAAP) for the AsiaInfo Technologies business unit increased 47.0% year-over-year and 7.3% sequentially to US$51.4 million. The increases in net revenue (non-GAAP) mainly reflect an increase in demand for the Company's software and service solutions among the three major telecom customers in a highly competitive market and an increasing number of contracts to upgrade and maintain existing installations.
In the third quarter of 2009, the Lenovo-AsiaInfo business unit, which focuses on IT security products and services, contributed 17.3% to total revenue and 15.5% to net revenue (non-GAAP). Total revenue for the Lenovo-AsiaInfo business unit increased 29.0% year-over-year and 87.0% sequentially to US$11.0 million. Net revenue (non-GAAP) for the Lenovo-AsiaInfo business unit increased 21.7% year-over-year and 73.3% sequentially to US$9.4 million. The year-over-year increase was mainly due to several major high-margin contracts signed with government agencies and the sequential increase was partially due to seasonality, as sales in the Lenovo-AsiaInfo business unit are typically weakest in the first half of each year. Please refer to the end of this press release for condensed segmented financial results for AsiaInfo's two business units.
Total operating expenses increased 36.9% year-over-year and 9.5% sequentially to US$24.5 million. Sales and marketing expenses increased 17.4% year-over-year and 13.0% sequentially to US$11.2 million. The year-over-year and sequential increases were mainly due to higher sales commission expenses incurred upon signing new contracts. General and administrative expenses increased 81.0% year-over-year and 3.3% sequentially to US$3.8 million. The year-over-year increase was largely the result of increases in share-based compensation related to the performance stock unit awards granted to key employees on March 16, 2009. Research and development expenses increased 73.4% year-over-year and 23.3% sequentially to US$10.8 million. The Company noted that the increase in R&D expenses is in line with its strategy of investing in the research and development of world-class products.
Income from operations for the third quarter of 2009 was US$10.2 million, an increase of 92.7% year-over-year and 59.1% sequentially. Operating margin of total revenue(2) was 16.0% for the third quarter of 2009, compared to 11.8% in the year-ago period and 10.9% in the previous quarter. Operating margin of net revenue (non-GAAP)(3) was 16.8% for the third quarter of 2009, compared to 12.4% in the year-ago period and 12.0% in the previous quarter. The year-over-year margin improvement was mainly the result of improving economies of scale and the Company's continued efforts to improve operational efficiency.
Other income for the third quarter of 2009 was US$527 thousand, a decrease of 77.0% from US$2.3 million in the year-ago period and a decrease of 70.0% from US$1.8 million in the previous quarter. The year-over-year decrease was largely the result of lower investment gains as well as lower interest rates in the third quarter of 2009, which resulted in lower interest income. The sequential decrease was the result of the sale of certain short-term investments during the second quarter of 2009, which realized a gain on investments of US$1.2 million.
In the third quarter of 2009, AsiaInfo recorded net income attributable to AsiaInfo Holdings, Inc. of US$9.1 million, or US$0.20 per basic share, compared to US$6.1 million, or US$0.13 per basic share, in the year-ago period and US$7.2 million, or US$0.16 per basic share, in the previous quarter.
Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP)(4) was US$13.0 million in the third quarter of 2009 or US$0.29 per basic share. Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) in the year-ago period was US$7.6 million or US$0.16 per basic share. Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) in the previous quarter was US$11.4 million or US$0.26 per basic share. Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) increased 71.6% year-over-year and 14.0% sequentially.
As of September 30, 2009, AsiaInfo had cash and cash equivalents and restricted cash totaling US$195.8 million and short-term investments totaling US$40.0 million. Operating cash flow in the third quarter of 2009 was a net inflow of US$9.5 million.
Fourth Quarter 2009 Guidance
AsiaInfo expects fourth quarter 2009 net income from continuing operations per basic share to be in the range of US$0.28 to US$0.29, an increase of 460% to 480% year-over-year. Please note that in the fourth quarter of 2008, there was a US$0.15 per basic share of impairment loss on investment. The Company expects net revenue (non-GAAP) to be in the range of US$70 million to US$72 million, an increase of 37% to 40% year-over-year.
(1) Net revenue (non-GAAP), a non-GAAP measure, represents total revenue
net of third-party hardware costs. A reconciliation of net revenue
(non-GAAP) to GAAP revenue is provided at the end of this press
release.
(2) Operating margin of total revenue is operating income divided by total
revenue.
(3) Operating margin of net revenue (non-GAAP) is operating income divided
by net revenue (non-GAAP).
(4) Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) and net
income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share
measures exclude share-based compensation expenses, amortization of
acquired intangible assets, impairment loss on investment, after-tax
dividend income and gain on discontinued operations. A reconciliation
of these non-GAAP measures to the most directly comparable GAAP
measures is provided at the end of the press release.
ASIAINFO HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands of US$, except shares and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues:
Software products
and solutions $54,882 $37,479 $144,470 $94,631
Service 5,848 4,754 16,778 12,304
Third party
hardware 2,803 2,562 11,829 14,924
Total revenues 63,533 44,795 173,077 121,859
Cost of revenues:
Software products
and solutions 24,006 17,890 64,829 42,706
Service 2,161 1,667 6,058 5,085
Third party
hardware 2,673 2,052 11,199 13,992
Total cost of
revenues 28,840 21,609 82,086 61,783
Gross profit 34,693 23,186 90,991 60,076
Operating expenses:
Sales and
marketing 11,223 9,556 31,689 25,663
General and
administrative 3,773 2,084 10,991 6,941
Research and
development 10,842 6,253 26,849 15,940
Government
grant (1,342) -- (1,342) --
Total operating
expenses 24,496 17,893 68,187 48,544
Income from
operations 10,197 5,293 22,804 11,532
Other income:
Interest income 540 1,151 1,698 3,433
Dividend income 4 230 178 533
Gain from sales
of short-term
investments -- 954 1,210 4,587
Other expenses,
net (17) (43) (31) (573)
Total other income,
net 527 2,292 3,055 7,880
Income before
provision for
income taxes and
discontinued
operations 10,724 7,585 25,859 19,412
Income taxes
expense 1,646 1,490 3,793 3,817
Income from
continuing
operations 9,078 6,095 22,066 15,595
Income from
discontinued
operations -- -- -- 980
Net income 9,078 6,095 22,066 16,575
Less: Net
income (loss)
attributable to
the noncontrolling
interests 13 (4) 6 (4)
Net income
attributable to
AsiaInfo Holdings,
Inc. $9,065 6,099 22,060 16,579
Earnings Per Share:
Income from
continuing
operations
attributable to
AsiaInfo Holdings,
Inc. common
stockholders:
Basic $0.20 $0.13 $0.49 $0.35
Diluted $0.19 $0.13 $0.48 $0.33
Income from
discontinued
operations
attributable to
AsiaInfo Holdings,
Inc. common
stockholders:
Basic -- -- -- $0.02
Diluted -- -- -- $0.02
Net income
attributable to
AsiaInfo Holdings,
Inc. common
stockholders:
Basic $0.20 $0.13 $0.49 $0.37
Diluted $0.19 $0.13 $0.48 $0.35
Weighted average
shares used in
computation:
Basic 45,772,678 45,731,067 44,629,386 45,208,453
Diluted 46,627,469 47,850,187 45,918,502 47,095,515
ASIAINFO HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands of US$, except share and per share amounts)
As of
Sept 30, Dec 31,
2009 2008(1)
ASSETS:
Current Assets:
Cash and cash equivalents $184,219 $172,119
Restricted cash 11,551 12,510
Short term investments 40,021 28,633
Accounts receivable, net (net of
allowances of $2,703 and $2,605 as of
September 30, 2009 and December 31,
2008, respectively) 100,144 52,011
Inventories 8,572 12,322
Other receivable 3,423 2,813
Deferred income taxes-current 3,244 3,334
Prepaid expenses and other current assets 7,649 5,425
Total current assets $358,823 $289,167
Long term investment 4,696 4,696
Property and equipment, net 2,992 2,887
Other acquired intangible assets, net 2,314 3,008
Deferred income tax assets - non-current 2,630 2,671
Goodwill 21,141 20,725
Total Assets $392,596 $323,154
LIABILITY AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable 35,873 13,835
Accrued expenses 16,436 14,235
Deferred revenue 36,582 44,414
Accrued employee benefits 32,308 27,570
Other payables 6,111 5,288
Income taxes payable 2,734 646
Other taxes payable 6,234 6,311
Deferred income tax liability-current 742 934
Total current liabilities $137,020 $113,233
Unrecognized tax benefits - non-current 2,159 1,326
Other long term liabilities 135 135
Total liabilities $139,314 $114,694
Stockholders' equity:
Common stock 496 464
Additional paid-in capital 237,337 215,948
Treasury stock, at cost (27,749) (27,749)
Statutory reserve 17,212 17,212
Retained earnings (Accumulated deficit) 6,494 (15,566)
Accumulated other comprehensive income 19,428 18,093
Total AsiaInfo holding stockholders' equity $253,218 $208,402
Non controlling interest(2) 64 58
Total stockholders' equity 253,282 208,460
Total Liabilities and Stockholders' Equity $392,596 $323,154
(1) December 31, 2008 balances were extracted from audited financial
statements.
(2) Amount in relation to noncontrolling interest, formerly named minority
interest, as of December 31, 2008 is reclassified in accordance with
FASB Statement No. 160, Noncontrolling Interests in Consolidated
Financial Statements, which was adopted by the Company on January 1,
2009.
ASIAINFO HOLDINGS, INC.
CONDENSED INFORMATION FOR REPORTABLE SEGMENTS (UNAUDITED)
(Amounts in thousands of US$)
Three Months Ended
Sept 30, 2009
AsiaInfo Lenovo-
Technologies AsiaInfo Total
Revenues:
Software products and solutions $45,660 $9,222 $54,882
Service 5,703 145 5,848
Third party hardware 1,193 1,610 2,803
Total revenues 52,556 10,977 63,533
Cost of revenues:
Software products and solutions 21,217 2,789 24,006
Service 2,074 87 2,161
Third party hardware 1,133 1,540 2,673
Total cost of revenues 24,424 4,416 28,840
Gross profit 28,132 6,561 34,693
Business unit expenses:
Sales and marketing 8,531 2,692 11,223
General and administrative 614 (143) 471
Research and development 8,162 2,680 10,842
Government grant (1,342) -- (1,342)
Total business unit expenses 15,965 5,229 21,194
Contribution profit (loss) $12,167 $1,332 $13,499
Corporate general and administration 3,302
Operating profit $10,197
Three Months Ended
Sept 30, 2008
AsiaInfo Lenovo-
Technologies AsiaInfo Total
Revenues:
Software products and solutions $30,297 $7,182 $37,479
Service 4,624 130 4,754
Third party hardware 1,367 1,195 2,562
Total revenues 36,288 8,507 44,795
Cost of revenues:
Software products and solutions 15,223 2,667 17,890
Service 1,629 38 1,667
Third party hardware 1,298 754 2,052
Total cost of revenues 18,150 3,459 21,609
Gross profit 18,138 5,048 23,186
Business unit expenses:
Sales and marketing 6,224 3,332 9,556
General and administrative (265) 119 (146)
Research and development 5,351 902 6,253
Government grant -- -- --
Total business unit expenses 11,310 4,353 15,663
Contribution profit (loss) $6,828 $695 $7,523
Corporate general and administration 2,230
Operating profit $5,293
Three Months Ended
Jun 30, 2009
AsiaInfo Lenovo-
Technologies AsiaInfo Total
Revenues:
Software products and solutions $41,776 $5,375 $47,151
Service 5,883 48 5,931
Third party hardware 5,039 447 5,486
Total revenues 52,698 5,870 58,568
Cost of revenues:
Software products and solutions 20,275 2,334 22,609
Service 1,892 75 1,967
Third party hardware 4,786 424 5,210
Total cost of revenues 26,953 2,833 29,786
Gross profit 25,745 3,037 28,782
Business unit expenses:
Sales and marketing 7,569 2,360 9,929
General and administrative 727 -78 649
Research and development 7,787 1,005 8,792
Government grant -- -- --
Total business unit expenses 16,083 3,287 19,370
Contribution profit (loss) $9,662 ($250) $9,412
Corporate general and administration 3,003
Operating profit $6,409
Third Quarter 2009 Conference Call Details
AsiaInfo management will hold an earnings conference call at 5:00 p.m. Pacific Time / 8:00 p.m. Eastern Time on October 28, 2009 (8:00 a.m. Beijing/Hong Kong Time on October 29, 2009). Management will discuss results and highlights of the quarter and answer questions from investors.
The dial-in numbers for the conference call are as follows:
U.S. Toll Free: +1-866-549-1292
China Local Number: 400-681-6949
Hong Kong and International: +852-3005-2050
The passcode for the call is 408313#.
A replay of the call will be available until 7:00 p.m. Eastern Time on November 29, 2009 by dialing one of the following numbers:
U.S. Toll Free: +1-866-753-0743
China Toll Free: 800-869-7680
Hong Kong and International: +852-3005-2020
The passcode for the replay is 134936#.
Additionally, a live and archived webcast of this call will be available on the Investor Relations section of the AsiaInfo website at http://www.asiainfo.com .
About AsiaInfo Holdings, Inc.
AsiaInfo Holdings, Inc. (Nasdaq: ASIA) is a leading provider of high-quality software and customer solutions to many of China's largest enterprises. In addition to providing software and customer solutions to China's telecom carriers, the Company also offers a wide range of security products and services to small, medium and large sized Chinese enterprises across multiple vertical industries.
Organized as a Delaware corporation, AsiaInfo began operations in the United States in 1993. The Company moved its major operations to China in 1995 and played a significant role in the construction of the national Internet backbones and provincial access networks for all of China's major national telecom carriers, including China Telecom, China Mobile, China Unicom and China Netcom. Since 1998, AsiaInfo has continued to diversify its product offerings and is now a major provider of enterprise software solutions in China.
For more information about AsiaInfo, please visit http://www.asiainfo.com .
Reconciliation of non-GAAP Measures
This earnings release presents the following "non-GAAP financial measures" as defined by applicable U.S. securities regulations. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. The non-GAAP financial measures are provided as additional information to help both management and investors compare business trends among different reporting periods on a consistent and more meaningful basis and enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP measures have limitations, however, because they do not include all items of income and expenses that impact the Company's operations. Management compensates for these limitations by also considering the Company's GAAP results. The non-GAAP financial measures the Company uses are not prepared in accordance with, and should not be considered an alternative to measurements required by GAAP and should not be considered measures of the Company's liquidity. Pursuant to relevant regulatory requirements, we are providing the following reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures.
(1) Net revenue (non-GAAP)
AsiaInfo's net revenue (non-GAAP) represents total revenue net of hardware costs that are passed through to our customers. We believe total revenues net of hardware costs more accurately reflects our core business, which is the provision of software solutions and services, and provides transparency to our investors. It is also the same measure used by our management to evaluate the competitiveness and development of our business.
Reconciliation of net revenues (non-GAAP) to GAAP total revenues
2009 Q3
AsiaInfo Lenovo-
Technologies AsiaInfo Total
(in thousands of US dollars)
Net Revenue (Non-GAAP) 51,423 9,437 60,860
Third Party Hardware Costs 1,133 1,540 2,673
Total Revenues 52,556 10,977 63,533
2008 Q3
AsiaInfo Lenovo-
Technologies AsiaInfo Total
(in thousands of US dollars)
Net Revenue (Non-GAAP) 34,990 7,753 42,743
Third Party Hardware Costs 1,298 754 2,052
Total Revenues 36,288 8,507 44,795
2009 Q2
AsiaInfo Lenovo-
Technologies AsiaInfo Total
(in thousands of US dollars)
Net Revenue (Non-GAAP) 47,912 5,446 53,358
Third Party Hardware Costs 4,786 424 5,210
Total Revenues 52,698 5,870 58,568
(2) Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP)
Net income (non-GAAP) excludes share-based compensation expenses, amortization of acquired intangible assets, impairment loss on investment, after-tax dividend income and gain on discontinued operations. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain expenses and income that may not be indicative of our operating performance. Management uses the net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) measure to gain a better understanding of the Company's comparative operating performance from period-to-period and as a basis of planning and forecasting future periods. Management believes the Company's net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) measure, when read in conjunction with the Company's GAAP net income measure and other GAAP financial metrics, provides useful information to investors by offering: a) the ability to make more meaningful period-to-period comparisons of the Company's on-going operating results; b) the ability to better identify trends in the Company's underlying business and perform related trend analysis; c) a better understanding of how management plans and measures the Company's underlying business; and d) an easier way to compare the Company's most recent results of operations against investor and analyst financial models.
Reconciliation of net income attributable to AsiaInfo Holdings, Inc.
(non-GAAP) to GAAP net income attributable to AsiaInfo Holdings, Inc.
Three Months Nine Months
Ended Sept. 30 Ended Sept.30 2009 Q2
2009 2008 2009 2008
(in thousands of US dollars)
GAAP net income 9,065 6,099 22,060 16,579 7,205
Adjustments:
-- Share-based compensation 3,593 1,303 8,633 2,643 3,858
-- Amortization of acquired
intangible assets 316 385 945 1,231 316
-- Impairment loss on investment -- -- -- -- --
-- Gain on discontinued operations -- -- -- (980) --
-- Dividend income, net of tax (4) (230) (178) (533) (3)
Non-GAAP net income 12,970 7,557 31,460 18,940 11,376
(3) Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per basic share
Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) is calculated based on net income attributable to AsiaInfo Holdings, Inc. Like net income attributable to AsiaInfo Holdings, Inc. (non-GAAP), net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share excludes share-based compensation expenses, amortization of acquired intangible assets, impairment loss on investment, after-tax dividend income and gain on discontinued operations. Shares outstanding used in the computation of net income per share were the same as those used in the computation of net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share. Management believes that net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share, when used in conjunction with the Company's GAAP net income attributable to AsiaInfo Holdings, Inc. per share, provides useful information to investors for the same reasons discussed above regarding net income attributable to AsiaInfo Holdings, Inc. (non-GAAP). In addition, net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share allows investors to evaluate the Company's operating performance from period to period on a per share basis, thus providing a useful basis for assessing the Company's value on a per share basis.
Reconciliation of net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share to GAAP net income attributable to AsiaInfo Holdings, Inc. per share
Three Months Nine Months
Ended Sept. 30 Ended Sept.30 2009 Q2
2009 2008 2009 2008
(in thousands of US dollar)
GAAP net income per
basic share 0.20 0.13 0.49 0.37 0.16
Adjustments:
-- Share-based
compensation 0.08 0.03 0.19 0.06 0.09
-- Amortization of
acquired intangible
assets 0.01 0.01 0.02 0.03 0.01
-- Impairment loss on
investment -- -- -- -- --
-- Gain on discontinued
operations -- -- -- (0.02) --
-- Dividend income, net
of tax -- (0.01) -- (0.01) --
Non-GAAP net income per
basic share 0.29 0.16 0.70 0.43 0.26
Cautionary Note Regarding Forward-Looking Statements
The information contained in this document is as of October 28, 2009. AsiaInfo assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments.
This document contains forward-looking information about AsiaInfo's operating results and business prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: government telecommunications infrastructure and budgetary policy in China; our ability to maintain our concentrated customer base; the long and variable billing cycles for our products and services that can cause our revenues and operating results to vary significantly from period to period; our ability to meet our working capital requirements; our ability to retain our executive officers; our ability to attract and retain skilled personnel; potential liabilities we are exposed to because we extend warranties to our customers; risks associated with cost overruns and delays; our ability to develop or acquire new products or enhancements to our software products that are marketable on a timely and cost-effective basis; our ability to adequately protect our proprietary rights; the competitive nature of the markets we operate in; and political and economic policies of the Chinese government. A further list and description of these risks, uncertainties, and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and in our reports on Forms 10-Q and 8-K filed with the United States Securities and Exchange Commission and available at http://www.sec.gov .
For more information about AsiaInfo, please visit http://www.asiainfo.com .
For investor and media inquiries, please contact:
In China:
Sheryl Zhang
AsiaInfo Holdings, Inc.
Tel: +86-10-8216-6039
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Justin Knapp
Ogilvy Financial, Beijing
Tel: +86-10-8520-6556
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
In the United States:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
