New York November 22, 2002 Global Sources Ltd. has reported financial results for the quarter ended September 30, 2002.
Revenues for the quarter were $22.3 million versus $23.6 million in the third quarter of 2001, a decline of 5 percent. Revenues from China increased 13 percent compared to the third quarter of 2001, and now represent 37 percent of the company's total revenues, up from 31 percent at the same time last year.
Revenues from Online Services were $13.0 million, versus $13.6 million in the prior year's third quarter. Revenues from Other Media Services, which include print advertising, conferences and exhibitions and subscription revenues, were $9.1 million versus $9.8 million in the prior year's third quarter.
Net income for the third quarter was $1,042,000, or $0.04 per share, up from $799,000, or $0.03 per share, in the third quarter of 2001.
Cash flow from operations for the quarter was $6.4 million versus $5.8 million in the same quarter last year. EBITDA was $4.3 million versus $5.0 million in the prior year. As a result, the cash position increased to $32.7 million, which is up for the 6th consecutive quarter from $12.3 million at the end of March 2001. During the same period, the company also paid down all of its bank debt.
In summarizing the quarter's performance, Chairman and CEO Merle Hinrichs said, "The biggest contributor to our profitable results is China, where revenues are increasing at a substantial rate. This has enabled us to maintain a stable revenue base, in spite of the poor business environment in most other countries. Our strategy is to stay focused on building our leadership position and to be appropriately positioned for restored growth as the global economy improves."
Global Sources has recently added a new service for buyers that is well received. My Catalog gives buyers the use of Global Sources Online, plus additional features, content and services. For example, with My Catalog, buyers can indicate individual needs and receive Private Offers for innovative products. Through its alliance with WorldWide Retail Exchange, a number of major companies, including Aeon, Kingfisher, and Radio Shack, have begun using the service and their buyers report measurable bottom line benefits.
The company's non-financial metrics reflect the success of such initiatives. The company's community of active buyers, which is certified with Ernst & Young, increased to 369,885, up 28 percent from the corresponding period last year. Requests for information (RFIs) from these buyers to suppliers during the quarter grew 22 percent from the same quarter last year to 855,898.