INTAC Announces Results of Operations for the Nine Months Ended September 30, 2005
2005年12月20日 - 8:05AM
PRニュース・ワイアー (英語)
HONG KONG, Dec. 19 /PRNewswire-FirstCall/ -- On December 19, 2005,
INTAC International, Inc. (Nasdaq: INTN; FSE: WKN 805768) (the
"Company"), a leading provider of integrated educational and career
development services in China, today announced its results of
operations for the nine months ended September 30, 2005. As
previously announced on September 1, 2005, the Company has changed
its fiscal year-end from December 31 to September 30. As a result
of this change, the Company has prepared financial statements for
the nine-month transition period ended September 30, 2005.
Accordingly, the following discussion of results of operations will
compare the audited balances for the nine months ended September
30, 2005 to the unaudited balances for the nine months ended
September 30, 2004. Revenue for the Career Development and Training
Services Business Segment increased by $4.16 million to $4.22
million for the nine months ended September 30, 2005, from $58,975
for the same period in 2004. The increase results from the change
in focus of the Company's business plan from the distribution of
premium brand wireless handsets to career development and training
services, and primarily consisted of revenues from sales of its
education administration software. The Company expects Career
Development and Training Services Segment revenue to increase
during the remainder of 2005 and throughout 2006. Revenue for the
Distribution Segment decreased by $7.4 million, or 11.5%, to $57.0
million for the nine months ended September 30, 2005, from $64.4
million for the same period in 2004. The decrease is mainly due to
the Company's shift in emphasis from the distribution business to
the career development and training services business, as well as
the increased competition in the wireless handset distribution
industry in China. Gross profit for the Career Development and
Training Services Business Segment was $3.2 million and $58,975 for
the nine months ended September 30, 2005 and 2004. This generated a
gross margin of 75.4% and 100% for the nine month periods ended
September 30, 2005 and 2004, respectively. Gross profit for the
Distribution Business Segment decreased by $2.2 million to $2.7
million for the nine months ended September 30, 2005, from $4.9
million for the same period in 2004 and the gross margin decreased
by 2.8% to 4.9% for the nine months ended September 30, 2005, from
7.7% for the same period in 2004. Loss from operations was $1.5
million for the nine months ended September 30, 2005, as compared
to income from operations of $788,150 for the same period in 2004.
The decline in income from operations is primarily due to lower
distribution gross margins due to increased competition and higher
selling, general and administrative and product development costs,
partially offset by improved career development and training
services gross margins and the gain on sale of assets. Net loss for
the nine months ended September 30, 2005 was $1.5 million, as
compared to net income of $974,329 for the nine months ended
September 30, 2004. The decline in net income is primarily due to
lower distribution gross margins due to increased competition and
higher selling, general and administrative and product development
costs, partially offset by improved career development and training
services gross margins and the gain on sale of assets. "We spent
most of our time and efforts throughout the year 2005 on further
refining our business strategy and operations model," said Wei
Zhou, Chairman and Chief Executive Officer of INTAC. "Although we
incurred a loss for the first nine months of 2005, largely due to
the decrease of our distribution business revenue and related
margins, as well as the increased overhead expenses, we are glad to
see a major increase in our career development and training
services revenue, with its higher margins, as support for our
decision to shift our focus to career development and training
services. We expect that, with the stabilization of our
distribution business and the expected growth in our career
development and training business, we will soon be able to improve
our overall margins as well as return to profitability. "As we
announced on November 24, 2005, we have refocused and simplified
our strategic approach to providing top-class integrated mobile
telecommunications/internet services to China's education market,"
further commented Mr. Zhou, "In line with this refocused strategy,
our objective in 2006 is to further expand and enhance the business
prospects and opportunities afforded by our relationship with the
Ministry of Education ("MOE"), including educational software and
database marketing, and to successfully launch our INTAC Mobile
Telecommunications Institute. We believe these efforts, combined
with our strong relationship with the MOE, our nationwide sales and
distribution network, and our extensive student database, will
allow us to capitalize on our unique positioning and achieve
profitable growth in future years." About INTAC International, Inc.
INTAC International, Inc. is a leading provider of integrated
educational and career development services as well as management
software products for educational institutions in China. INTAC
International is also engaged in the distribution of premium brand
wireless handset products distribution business. Forward-Looking
Statements This press release contains certain "forward-looking
statements." Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, performance or achievements expressed or implied by
such forward-looking statements to differ materially from those
projected or implied. Factors that could cause or contribute to
such differences include, among other things: our ability to timely
complete our MTSE courseware and facilities; our ability to attract
trainees for our MTSE training program; changes in general business
conditions; the impact of competition in our industry, especially
in the Asia-Pacific Rim; the added expense structure assumed by us
as a U.S. public company; political and economic events and
conditions in jurisdictions in which we operate; Internet laws and
regulations of the government of The People's Republic of China, or
the PRC, that are unclear and may change in the near future;
regulation and censorship of information distribution in China
which may adversely affect our business; political and economic
policies of the PRC; the risk of the loss of the agreements, or the
exclusivity terms, with the PRC's Education Management Information
Center and the Ministry of Education; the high cost of Internet
access that may limit the growth of the Internet in China and
impede our growth; advertising and e-commerce customers that have
only limited experience using the Internet for advertising or
commerce purposes; the acceptance of the Internet as a commerce
platform in China which depends on the resolution of problems
relating to fulfilment and electronic payment; concerns about
security of e-commerce transactions and confidentiality of
information on the Internet that may increase our costs, reduce the
use of our Internet portal and impede our growth; our network
operations that may be vulnerable to hacking, viruses and other
disruptions, which may make our products and services less
attractive and reliable; changes in interest rates, foreign
currency fluctuations and capital market conditions; and other
factors including those detailed under the heading "Risk Factors"
and elsewhere in the INTAC's annual report on Form 10-K for the
fiscal year ended September 30, 2005, as filed with the Securities
and Exchange Commission. We disclaim any intention or obligation to
revise any forward-looking statements whether as a result of new
information, future events or otherwise. INTAC undertakes no
obligation to update any forward-looking statements made in this
media release. For further information, please contact: Lesley
Zhang Investor Relations Director Tel: (8610) 83914053 MP: (86)
13910406802 Email: . Internet: http://www.intac-international.com/
DATASOURCE: INTAC International, Inc. CONTACT: Lesley Zhang,
Investor Relations Director of INTAC International, Inc.,
+8610-83914053, or MP, +86-13910406802, or Web site:
http://www.intac-international.com/
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