BEIJING and SANTA CLARA, Calif., July 29
/PRNewswire-Asia-FirstCall/ -- -- Total revenue grows 39.3%
year-over-year -- Exceeding guidance, net revenue (non-GAAP)(1)
increases to US$53.4 million, growing 55.0% year-over-year --
Exceeding guidance, income from continuing operations per basic
share is US$0.16 -- Net income attributable to AsiaInfo Holdings,
Inc. (non-GAAP)(2) per basic share grows 85.7% year-over-year to
US$0.26 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 second quarter of 2009. "We delivered robust growth
during the quarter and exceeded both top- and bottom-line
guidance," said Steve Zhang, AsiaInfo's president and chief
executive officer. "Our comprehensive offerings, from system
implementation and maintenance services to high-value consulting,
continues to benefit from increasing expenditure on telecom
software, as operators build out and further optimize IT
infrastructure and integrate fixed-line, broadband and mobile
businesses to provide bundled service offerings." Second Quarter
2009 Financial Results Total revenues for the second quarter of
2009 were US$58.6 million, an increase of 39.3% year-over-year and
14.9% sequentially. Exceeding guidance, net revenue (non-GAAP) for
the second quarter of 2009 was US$53.4 million, an increase of
55.0% year-over-year and 12.0% sequentially. The year-over-year and
sequential increases were primarily driven by strong performance
among all three major customers in the telecom business. In the
second quarter of 2009, AsiaInfo announced contracts with seven
China Mobile subsidiaries to upgrade Business Intelligence ("BI")
systems to accommodate the rollout of China Mobile's TD-SCDMA 3G
network, a tender win to build a new billing system for China
Mobile's Beijing subsidiary to support its pre-paid business
contracts, and a contract with China Unicom to build out a
nationwide mobile email system to support email functions on mobile
phones. During the quarter, gross margin was 49.0%, compared to
45.0% in the year-ago period and 54.0% in the previous quarter. The
year-over-year increase in gross margin was primarily due to a
strong contribution from higher-margin software solutions and
services and a decrease in lower-margin, third-party hardware
sales, while the sequential decrease was largely due to increased
share-based compensation expenses related to the performance stock
unit awards granted to key employees on March 16, 2009. Gross
profit as a percentage of net revenue (non-GAAP) was 53.9% in the
second quarter of 2009, compared to 55.4% in the year-ago period
and 57.7% 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
second quarter of 2009, the AsiaInfo Technologies business unit,
which focuses on telecommunications software and services,
contributed 90.0% and 89.8% to total revenue and net revenue
(non-GAAP), respectively. Total revenue for the AsiaInfo
Technologies business unit increased 43.4% year-over-year and 11.8%
sequentially to US$52.7 million. Net revenue (non-GAAP) for the
AsiaInfo Technologies business unit increased 58.3% year-over-year
and 8.0% sequentially to US$47.9 million. The increases in net
revenue (non-GAAP) mainly reflect strong uptake for the Company's
software and service solutions among all three major telecom
customers in a highly competitive market after industry
restructuring and the issuance of 3G licenses. In the second
quarter of 2009, the Lenovo-AsiaInfo business unit, which focuses
on IT security products and services, contributed 10.0% to total
revenue and 10.2% to net revenue (non-GAAP). Total revenue for the
Lenovo-AsiaInfo business unit increased 10.6% year-over-year and
53.5% sequentially to US$5.9 million. Net revenue (non-GAAP) for
the Lenovo-AsiaInfo business unit increased 31.1% year-over-year
and 65.8% sequentially to US$5.4 million. The year-over-year
increase reflects a concerted effort to improve operations in this
division. Sequentially, the increase is partially due to
seasonality, as sales in the Lenovo-AsiaInfo business unit are
typically weakest in the first quarter, as well as several
significant contracts signed with government agencies. Please refer
to the end of this press release for condensed segmented financial
results for AsiaInfo's two business units. Total operating expenses
increased 44.4% year-over-year and 4.9% sequentially to US$22.4
million. Sales and marketing expenses increased 20.9%
year-over-year and decreased 5.8% sequentially to US$9.9 million.
The year-over-year increase was mainly due to higher sales
commission expenses incurred upon signing new contracts, while the
sequential decrease was due to a concerted effort to control sales
expenses. General and administrative expenses increased 62.5%
year-over-year and 2.4% sequentially to US$3.7 million. The
year-over-year and sequential increases were largely the result of
the aforementioned increased in share-based compensation expenses.
Research and development expenses increased 74.8% year-over-year
and 21.9% sequentially to US$8.8 million, mainly reflecting an
increase in headcount, which is in line with the Company's strategy
of continuing to invest in the research and development of
world-class products to take advantage of current and future market
opportunities. Income from operations for the second quarter of
2009 was US$6.4 million, an increase of 80.0% year-over-year and a
3.4% sequentially. Operating margin of total revenue(3) was 10.9%
for the second quarter of 2009, compared to 8.5% in the year-ago
period and 12.2% in the previous quarter. Operating margin of net
revenue (non-GAAP)(4) was 12.0% for the second quarter of 2009,
compared to 10.3% in the year-ago period and 13.0% 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, while the sequential
decline is largely the result of share-based compensation expenses
mentioned above. Other income for the second quarter of 2009 was
US$1.8 million, a decrease of 46.0% from US$3.3 million in the
year-ago period and an increase of 127.5% from US$772 thousand 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 second quarter of 2009, which resulted in lower interest
income. The sequential increase was the result of the sale of
certain short-term investments in April 2009. In the second quarter
of 2009, AsiaInfo recorded net income attributable to AsiaInfo
Holdings, Inc. of US$7.2 million, or US$0.16 per basic share,
compared to US$5.2 million, or US$0.12 per basic share, in the
year-ago period and US$5.8 million, or US$0.13 per basic share in
the previous quarter. Net income attributable to AsiaInfo Holdings,
Inc. (non-GAAP) was US$11.4 million in the second quarter of 2009
or US$0.26 per basic share. Net income attributable to AsiaInfo
Holdings, Inc. (non-GAAP) in the year-ago period was US$6.2 million
or US$0.14 per basic share. Net income attributable to AsiaInfo
Holdings, Inc. (non-GAAP) in the previous quarter was US$7.1
million or US$0.17 per basic share. Net income attributable to
AsiaInfo Holdings, Inc. (non-GAAP) increased 83.7% year-over-year
and 59.7% sequentially. As of June 30, 2009, AsiaInfo had cash and
cash equivalents and restricted cash totaling US$189.3 million and
short-term investments totaling US$35.4 million. Operating cash
flow in the second quarter of 2009 was a net outflow of
approximately US$307 thousand. First Half 2009 Financial Results
Total revenue for the first half of 2009 was US$109.5 million, an
increase of 42.1% year-over-year. Net revenue (non-GAAP) for the
first half of 2009 was US$101.0 million, an increase of 55.1%
year-over-year. In the first half of 2009, gross margin was 51.4%,
compared to 47.9% in the year-ago period. Gross profit as a
percentage of net revenue (non-GAAP) was 55.7% in the first half of
2009, compared to 56.6% in the year-ago period. Income from
operations for the first half of 2009 was US$12.6 million, an
increase of 102.1% year-over-year. In the first half of 2009,
AsiaInfo recorded net income attributable to AsiaInfo Holdings,
Inc. of US$13.0 million or US$0.30 per basic share, compared to
US$10.5 million or US$0.23 per basic share in the year-ago period,
an increase of 23.8% year-over-year. Net income attributable to
AsiaInfo Holdings, Inc. (non-GAAP) was US$18.5 million or US$0.42
per basic share in the first half of 2009, an increase of 62.3%
year-over-year. Third Quarter 2009 Guidance AsiaInfo expects third
quarter 2009 net income from continuing operations per basic share
to be in the range of US$0.17 to US$0.18, an increase of 30% to 38%
year-over-year. The Company expects net revenue (non-GAAP) to be in
the range of US$60 million to US$61 million, an increase of 40% to
42% year-over-year. (1) Net revenue (non-GAAP), a non-GAAP measure,
represents total revenue net of third-party hardware costs. A
reconciliation of net revenue (non-GAAP) to GAAP revenue is
provided at the end of this press release (2) Net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) and net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share
measures exclude acquired intangible assets, impairment loss on
investment, after-tax dividend income and gain on discontinued
operations. A reconciliation of these non-GAAP measures to the most
comparable GAAP measures is provided at the end of the press
release. (3) Operating margin of total revenue is operating income
divided by total revenue (4) Operating margin of net revenue
(non-GAAP) is operating income divided by net revenue (non-GAAP)
ASIAINFO HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED) (Amounts in thousands of US$, except shares
and per share amounts) Three Months Six Months Ended June 30, Ended
June 30, 2009 2008 2009 2008 Revenues: Software products and
solutions $47,151 $30,013 $89,588 $57,152 Service 5,931 4,209
10,930 7,550 Third party hardware 5,486 7,836 9,026 12,362 Total
revenues 58,568 42,058 109,544 77,064 Cost of revenues: Software
products and solutions 22,609 13,660 40,823 24,816 Service 1,967
1,704 3,897 3,418 Third party hardware 5,210 7,644 8,526 11,940
Total cost of revenues 29,786 23,008 53,246 40,174 Gross profit
28,782 19,050 56,298 36,890 Operating expenses: Sales and marketing
9,929 8,212 20,466 16,107 General and administrative 3,652 2,248
7,218 4,857 Research and development 8,792 5,029 16,007 9,687 Total
operating expenses 22,373 15,489 43,691 30,651 Income from
operations 6,409 3,561 12,607 6,239 Other income: Interest income
534 1,067 1,158 2,282 Dividend income 3 84 174 303 Gain on sale of
short-term investment 1,210 2,359 1,210 3,533 Other (expenses)
income, net 9 (256) (14) (530) Total other income, net 1,756 3,254
2,528 5,588 Income before provision for income taxes and
discontinued operations 8,165 6,815 15,135 11,827 Income taxes
expense 962 1,594 2,147 2,327 Income from continuing operations
7,203 5,221 12,988 9,500 Income from discontinued operations -- --
-- 980 Net income 7,203 5,221 12,988 10,480 Less: Net loss
attributable to the noncontrolling interest (2) -- (7) -- Net
income attributable to AsiaInfo Holdings $7,205 5,221 12,995 10,480
Income from continuing operations per share: Basic $0.16 $0.12
$0.30 $0.21 Diluted $0.16 $0.11 $0.29 $0.20 Income from
discontinued operations per share: Basic -- -- -- $0.02 Diluted --
-- -- $0.02 Net income per share Basic $0.16 $0.12 $0.30 $0.23
Diluted $0.16 $0.11 $0.29 $0.22 Weighted average shares used in
computation: Basic 44,586,996 45,094,860 44,048,268 44,944,271
Diluted 45,917,056 47,044,412 45,554,547 46,715,304 ASIAINFO
HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands of US$, except share and per share amounts)
As at Jun. 30, Dec. 31, 2009 2008(1) ASSETS: Current Assets: Cash
and cash equivalents $177,470 $172,119 Restricted cash 11,853
12,510 Short term investments 35,376 28,633 Accounts receivable,
net (net of allowances of $3,084 and $2,605 as of March 31, 2009
and December 31, 2008, respectively) 103,225 52,011 Inventories
7,477 12,322 Other receivable 3,190 2,813 Deferred income
taxes-current 3,334 3,334 Prepaid expenses and other current assets
4,625 5,425 Total current assets $346,550 $289,167 Long-term
investment 4,696 4,696 Property and equipment, net 2,781 2,887
Other acquired intangible assets, net 2,629 3,008 Deferred income
tax assets- non-current 2,671 2,671 Goodwill 21,138 20,725 Total
Assets $380,465 $323,154 LIABILITY AND STOCKHOLDERS EQUITY Current
Liabilities: Accounts payable 54,334 13,835 Accrued expenses 15,698
14,235 Deferred revenue 31,260 44,414 Accrued employee benefits
23,693 27,570 Other payables 7,410 5,288 Income taxes payable 298
646 Other taxes payable 5,908 6,311 Deferred income tax
liability-current 1,085 934 Total current liabilities $139,686
$113,233 Unrecognized tax benefits - non-current 2,127 1,326 Other
long term liabilities 135 135 Total liabilities $141,948 $114,694
Stockholders' equity: Common stock $487 $464 Additional paid-in
capital 231,932 215,948 Treasury stock, at cost (27,749) (27,749)
Statutory reserve 17,212 17,212 Accumulated deficit (2,571)
(15,566) Accumulated other comprehensive income 19,155 18,093 Total
AsiaInfo holding stockholders' equity $238,466 $208,402
Noncontrolling interest(2) 51 58 Total stockholders' equity 238,517
208,460 Total Liabilities and Stockholders' Equity $380,465
$323,154 (1) December 31, 2008 balances were extracted from audited
financial statements. (2) Amount in relation to noncontrolling
interest, formerly named minority interest, as of December 31, 2008
is reclassified in accordance with FASB Statement No. 160,
Noncontrolling Interest, which was adopted by the Company on
January 1, 2009. ASIAINFO HOLDINGS, INC. CONDENSED INFORMATION FOR
REPORTABLE SEGMENTS (UNAUDITED) (Amounts in thousands of US$) Three
Months Ended June 30, 2009 AsiaInfo Lenovo Total Technologies
-AsiaInfo 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 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 $6,409 (Amounts in thousands
of US$) Three Months Ended June 30, 2008 AsiaInfo Lenovo Total
Technologies -AsiaInfo Revenues: Software products and solutions
$25,875 $4,138 $30,013 Service 4,042 167 4,209 Third party hardware
6,834 1,002 7,836 Total revenues 36,751 5,307 42,058 Cost of
revenues: Software products and solutions 12,230 1,430 13,660
Service 1,636 68 1,704 Third party hardware 6,492 1,152 7,644 Total
cost of revenues 20,358 2,650 23,008 Gross profit 16,393 2,657
19,050 Business unit expenses: Sales and marketing 5,956 2,256
8,212 General and administrative 101 34 135 Research and
development 4,465 564 5,029 Total business unit expenses 10,522
2,854 13,376 Contribution profit (loss) $5,871 ($197) $5,674
Corporate general and administration 2,113 Operating profit $3,561
(Amounts in thousands of US$) Three Months Ended March 31, 2009
AsiaInfo Lenovo Total Technologies -AsiaInfo Revenues: Software
products and solutions $39,382 $3,055 $42,437 Service 4,847 152
4,999 Third party hardware 2,924 616 3,540 Total revenues 47,153
3,823 50,976 Cost of revenues: Software products and solutions
16,914 1,300 18,214 Service 1,848 82 1,930 Third party hardware
2,778 538 3,316 Total cost of revenues 21,540 1,920 23,460 Gross
profit 25,613 1,903 27,516 Business unit expenses: Sales and
marketing 8,416 2,121 10,537 General and administrative 726 122 848
Research and development 6,295 920 7,215 Total business unit
expenses 15,437 3,163 18,600 Contribution profit (loss) $10,176
($1,260) $8,916 Corporate general and administration 2,718
Operating profit $6,198 Second 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 July 29, 2009 (8:00
a.m. Beijing/Hong Kong Time on July 30, 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 Toll Free:
800-701-1223 Hong Kong and International: +852-3005-2050 The
passcode for the call is 408313#. To participate on the call,
please R.S.V.P. to Justin Knapp by email at or by phone at
+86-10-8520-6556. A replay of the call will be available until 8:00
p.m. Eastern Time on August 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 web cast of this call will be available on the Investor
Relations section of the AsiaInfo web site 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 contains presentations of 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 nearest 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 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 2008 Q2 AsiaInfo Lenovo Technologies AsiaInfo
Total (in thousands of US dollars) Net Revenue (Non-GAAP) 30,259
4,155 34,414 Third Party Hardware Costs 6,492 1,152 7,644 Total
Revenues 36,751 5,307 42,058 2009 Q1 AsiaInfo Lenovo Technologies
AsiaInfo Total (in thousands of US dollars) Net Revenue (Non-GAAP)
44,375 3,285 47,660 Third Party Hardware Costs 2,778 538 3,316
Total Revenues 47,153 3,823 50,976 (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, gain on discontinued operations, and gain on
settlement of escrow. 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 financials, 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 Six Months
Ended Jun. 30 Ended Jun. 30 2009 Q1 2009 2008 2009 2008 (in US
dollar thousands) GAAP net income 7,205 5,221 12,995 10,480 5,790
Adjustments: - Share based compensation 3,858 650 5,040 1,340 1,182
- Amortization of acquired intangible assets 316 399 628 845 312 -
Impairment loss on investment -- -- -- -- -- - Gain on discontinued
operations -- -- -- (980) -- - Dividend income, net of tax (3) (84)
(174) (303) (171) Non-GAAP net income 11,376 6,186 18,489 11,382
7,113 (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, gain on discontinued operations, and
gain on settlement of escrow. 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 Six
Months Ended Jun. 30 Ended Jun. 30 2009 Q1 2009 2008 2009 2008 (in
US dollar thousands) GAAP net income Per Basic Share 0.16 0.12 0.30
0.23 0.13 Adjustments: - Share based compensation 0.09 0.01 0.11
0.03 0.03 - Amortization of acquired intangible assets 0.01 0.01
0.01 0.02 0.01 - Impairment loss on investment -- -- -- -- -- -
Gain on discontinued operations -- -- -- (0.02) -- - Dividend
income, net of tax -- -- -- (0.01) -- Non-GAAP net income Per Basic
Share 0.26 0.14 0.42 0.25 0.17 Cautionary Note Regarding
Forward-Looking Statements The information contained in this
document is as of June 30, 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: Justin Knapp Ogilvy Financial, Beijing Tel:
+86-10-8520-6556 Email: In the United States: Ms. Jessica Barist
Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email:
DATASOURCE: AsiaInfo Holdings, Inc. CONTACT: In China: Sheryl
Zhang, AsiaInfo Holdings, Inc. at +86-10-8216-6039 or ; Justin
Knapp, Ogilvy Financial, Beijing at +86-10-8520-6556 or ; In the
United States: Jessica Barist Cohen, Ogilvy Financial, New York at
+1-646-460-9989 or Web site: http://www.asiainfo.com/
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