ATA Announces Results for Third Quarter and Nine Months Fiscal Year 2009
BEIJING, Feb. 12 /PRNewswire-Asia-FirstCall/ -- ATA Inc. ("ATA" or the
"Company") (Nasdaq: ATAI), the leading provider of computer-based testing and
testing-related services in China, today announced unaudited financial results
for its fiscal third quarter ("Third Quarter 2009") and nine months ended
December 31, 2008.
Nine Months 2009 Highlights
-- Net revenue was RMB187.9million (US$27.5 million), up 31.4% from
RMB142.9 million in the comparable period of 2008.
-- Gross profit increased by 25.9% to RMB112.2 million (US$16.4 million),
from RMB89.1 in the comparable period of 2008.
-- Income from operations increased by 30.3% to RMB39.4 million (US$5.8
million), up from RMB30.2 million in the comparable period in 2008.
-- Net income increased by 34.0% to RMB34.7 million (US$5.1 million) from
RMB25.9 in the comparable period of 2008.
-- Net income excluding share based compensation expenses and foreign
currency exchange gain (losses) (non-GAAP) increased 21.2% to RMB38.6
million (US$5.7 million) from RMB31.9 million in the comparable period
of 2008.
-- Basic and diluted earnings per common share were RMB0.76 (US$0.11) and
RMB0.74 (US$0.11) for the nine months ended December 31, 2008 compared
to RMB1.18 (US$0.16) and RMB0.73 (US$0.10) for the nine months ended
December 31, 2007. Basic and diluted earnings per ADS were RMB1.52
(US$0.22) and RMB1.48 (US$0.22) for the nine months ended December 31,
2008 compared to RMB2.36 (US$0.32) and RMB1.45 (US$0.20) for the nine
months ended December 31, 2007. Each ADS represents two common shares
of the Company.
-- Basic and diluted earnings per common share excluding share based
compensation expenses and foreign currency exchange gain (losses)
(non-GAAP) were RMB0.85 (US$0.12) and RMB0.82 (US$0.12) and basic and
diluted earnings per ADS excluding share based compensation expenses
and foreign currency exchange gain (losses) (non-GAAP) were RMB1.70
(US$0.25) and RMB1.65 (US$0.24). Each ADS represents two common shares
of the Company.
-- For the nine months ended December 31, 2008, ATA delivered
approximately 4.4 million tests which increased 44.5% from
approximately 3.0 million tests in the same period last year. Average
revenue per test increased to RMB27.2 from RMB22.0 in the same period
last year.
Third Quarter 2009 Highlights
-- Net revenues increased by 1.7% year-over-year to approximately RMB67.8
million (US$9.9 million).
-- Gross profit decreased by 15.4% year-over-year to approximately RMB38.6
million (US$5.7 million).
-- Income from operations decreased by 40.0% year-over-year to
approximately RMB12.9 million (US$1.9 million).
-- Net income decreased by 20.0% year-over-year to approximately RMB13.9
million (US$2.0 million).
-- Net income excluding share-based compensation expenses and foreign
currency exchange losses (non-GAAP) decreased by 31.2% year-over-year
to approximately RMB15.2 million (US$2.2 million).
-- Basic and diluted earnings per common share were RMB0.30 (US$0.04) and
RMB0.30 (US$0.04), respectively, and basic and diluted earnings per ADS
were RMB0.61 (US$0.09) and RMB0.60 (US$0.09), respectively. Basic and
diluted earnings per common share excluding share-based compensation
expenses and foreign currency exchange losses (non-GAAP) were RMB0.33
(US$0.05) and RMB0.33 (US$0.05), respectively, and basic and diluted
earnings per ADS excluding share-based compensation expenses and
foreign currency exchange losses (non-GAAP) were RMB0.67 (US$0.10) and
RMB0.66 (US$0.10), respectively. Each ADS represents two common shares
of the Company.
-- For the quarter, ATA delivered approximately 1.5 million tests which
increased 51.0% from approximately 970,000 tests in the same period
last year. Revenue per test decreased to RMB35.0 from RMB38.4 in the
same period last year.
"During the quarter, our core testing service business grew a solid 38% on
a net revenue basis, and on track to deliver robust growth for the full year,"
said Kevin Ma, ATA's Chairman and Chief Executive Officer. "We have continued
to benefit from the large-scale implementation of computer-based testing for
the banking, securities and futures industries in China this quarter. Our
overall financial sector-related test revenue and volume increased by 39% and
41% respectively amidst a global financial sector meltdown. This increase was
due to increased regulatory requirement for new licensure programs as well as
strong voluntary demand from industry professionals to seek professional
qualification as a differentiator in a tightened job market. Unfortunately we
have experienced a disappointing delay in the implementation of our contract
with the Ministry of Culture to provide nationwide preparation and testing for
Internet cafes in China. We had anticipated in our previous guidance that this
contract would make a strong contribution to our fiscal third quarter and
fiscal year 2009 results. We continue to expect that this contract will make a
significant contribution to our growth once it is implemented, and we remain
confident that the long-term fundamentals of our business remain solid. Going
forward, we will focus our efforts on the large opportunity within the
computer-based testing market where we have established strong entry barriers;
and as a result we have suspended our educational program cooperation plan
with Tsinghua University. This decision is in line with our strategy to deploy
our resources to capture the significant opportunities within the computer-
based testing services market by leveraging our testing technologies, track
record of success and distribution capabilities. As we sharpen our focus on
our computer-based testing business we look forward to the launch of the
Cambridge Young Learners English program as well as our recruitment services
in the upcoming quarters. Overall, we look forward to a very exciting calendar
year 2009 to convert our existing pipeline of potentially large governmental
testing contracts while at the same time making measurable progress into
opportunities with the private sectors."
ATA's Chief Financial Officer, Carl Yeung, stated, "While our business
remains robust amidst a global economic downturn, the timing of government-
related decisions remain a risk to our quarterly performance. While we do not
believe one quarter's performance reflects the fundamentals of ATA, the delay
in the implementation of training and testing for the Ministry of Culture
Internet cafe licensure test has resulted in lower than expected growth for
this quarter. In addition, the sales of our test preparation product, our NTET
training software, is also linked with timing of government budgets and thus
resulted in no sales of such product in the quarter. As a result we are
reporting lower gross, operating and net margins compared to the same period
last year, when large orders of NTET software took place. Going forward, in
light of the difficulty involved in predicting the timing of implementation of
such contracts, we will provide guidance without the effect of anticipated new
contracts and will manage risk by diversifying our service offerings to
address latent demand from the private sector for computer-based testing
solutions. Although our guidance will no longer reflect new or unimplemented
contracts, our upcoming opportunities including testing services for the PRC
Ministry of Finance, Ministry of Health and Ministry of Justice have
strengthened during the quarter and we remain confident we will be able to
convert these exciting opportunities in the quarters ahead. We are also
pleased to report that ATA Testing Authority (Beijing) Limited ("ATA
Testing"), one of the Company's principal PRC operating subsidiaries, was re-
certified as a "High and New Technology Enterprise", thereby allowing it to
enjoy a preferential tax rate of 15% which will significantly reduce our
overall effective tax rate. This qualification reinforces the strong
technology background of our company. As we look to the future we will
continue to monitor emerging opportunities for our computer-based testing
services as well as developments within the regulatory environment in China in
order to take advantage of opportunities to enhance shareholder value."
Financial Results for the Third Quarter 2009
For the Third Quarter 2009, net revenues were RMB67.8 million (US$9.9
million), representing a 1.7% increase over the same period last year. Net
revenues from testing services increased 37.5% over the same period last year
to RMB51.2 million (US$7.5 million). Net revenues from test-based education
services were flat at RMB12.1 million (US$1.8 million). Net revenues from test
preparation and training solutions were down 83.5% over the same period last
year to RMB2.4 million (US$0.4 million) as the Company recorded no sales of
NTET software in the quarter. Revenues from online test preparation and
training services increase by 134% to RMB2.4 million (US$0.4 million) from
RMB1.0 million in the same period last year. Other revenues, which include
testing-related marketing services, test development services and others,
decreased 17.4% to RMB2.0 million (US$0.3 million).
The overall number of tests the Company delivered increased by 51.0% year-
over-year to approximately 1.5 million in the Third Quarter 2009 compared to
the same period last year mainly due to the increase in the number of China
Banking Association tests to approximately 413,000 test takers in this quarter
compared to approximately 221,000 in the same period last year. In addition,
we successfully launched a new Broker Professional Qualification test title
for the Securities Association which contributed approximately 99,000 new test
takers during the quarter and we expect will become a strong test taker
contributor going forward. Average revenue per test decreased slightly from
RMB38.4 to RMB35.0 mainly due to 180,000 test takers for the NTET test that
has average revenue per test of RMB4.8 while the test was not offered in the
same period last year.
Gross profit decreased by 15.4% to approximately RMB38.6 million (US$5.7
million) from RMB45.7 million in the same period last year. Gross margin
decreased to 57.0% in the Third Quarter 2009 from 68.5% in the same period
last year, driven by lower contribution from the Company's higher gross margin
test preparation and training solutions.
Operating expenses increased by 6.5% year-over-year to RMB25.8 million
(US$3.8 million) from RMB24.2 million in the same period last year, primarily
due to an increase in general and administrative expenses. General and
administrative expenses increased by 21.5% to RMB14.0 million (US$2.0
million), primarily due to a larger bad debt provision compared to the same
period last year. Sales and marketing expenses decreased by 6.5% to RMB7.8
million (US$1.1 million), primarily due to a decrease in share-based
compensation and agent fees paid to distributors of the Company's educational
programs in the quarter. Research and development expenses decreased by 8.5%
to RMB4.0 million (US$0.6 million) compared to the same period last year, as a
result of lower level of research and development activities.
Income from operations for the Third Quarter 2009 decreased by 40.0% to
approximately RMB12.9 million (US$1.9 million) from RMB21.5 million in the
same period last year. Operating margin was 19.0% in the Third Quarter 2009
compared to 32.2% in the same period last year.
Net income for the Third Quarter 2009 decreased by 20.0% to approximately
RMB13.9 million (US$2.0 million), including a RMB3.5 million income tax
refund, from RMB17.4 million in the same period last year. Basic and diluted
earnings per common share were RMB0.30(US$0.04) and RMB0.30(US$0.04),
respectively, and basic and diluted earnings per ADS were RMB0.61(US$0.09)
and RMB0.60(US$0.09), respectively.
Net income excluding share-based compensation expenses and foreign
currency exchange losses (non-GAAP) was RMB15.2 million (US$2.2 million) for
the Third Quarter 2009. Basic and diluted earnings per ADS excluding share-
based compensation expenses and foreign currency exchange losses (non-GAAP)
were RMB0.67(US$0.10) and RMB0.66(US$0.10), respectively. A reconciliation
of GAAP to non-GAAP measures is provided elsewhere in this release.
Nine Months Fiscal Year 2009 Results
For the nine months ended December 31, 2008, net revenue was RMB 187.9
million (US$27.5 million), up 31.4% from RMB142.9 million in the comparable
period of 2008. Gross profit increased by 25.9% to RMB112.2 million (US$16.4
million), from RMB89.1 million in the comparable period of 2008. Gross margin
was 59.7% for the nine months ended December 31, 2008 compared to 62.4% in the
comparable period in 2008. Income from operations increased 30.3% to RMB39.4
million (US$5.8 million), up from RMB30.2 million in the comparable period in
2008. Net income increased 34.0% to RMB34.7 million (US$5.1 million) from
RMB25.9 million in the comparable period of 2008. Net income excluding share
based compensation expenses and foreign currency exchange gain (losses) (non-
GAAP) increased 21.2% to RMB38.6 million (US$5.7 million). Basic and diluted
earnings per common share were RMB0.76(US$0.11) and RMB0.74(US$0.11) for the
nine months ended December 31, 2008 compared to RMB1.18(US$0.16) and RMB0.73(US$0.10) for the nine months ended December 31, 2007. Basic and diluted
earnings per ADS were RMB1.52(US$0.22) and RMB1.48(US$0.22). Basic and
diluted earnings per ADS were RMB1.52(US$0.22) and RMB1.48(US$0.22) for the
nine months ended December 31, 2008 compared to RMB2.36(US$0.32) and RMB1.45(US$0.20) for the nine months ended December 31, 2007. Basic and diluted
earnings per common share excluding share based compensation expenses and
foreign currency exchange gain (losses) (non-GAAP) were RMB0.85(US$0.12) and
RMB0.82(US$0.12) and basic and diluted earnings per ADS excluding share based
compensation expenses and foreign currency exchange gain (losses) (non-GAAP)
were RMB1.70(US$0.25) and RMB1.65(US$0.24).
Other Operating Data
As of December 31, 2008, ATA had 1,918 authorized test centers located
throughout China.
The number of weighted average ADSs used to calculate basic and diluted
earnings per ADS for the quarter ended December 31, 2008 were 22.8 million and
23.0 million respectively. Each ADS represents two common shares. ATA had 45.7
million common shares outstanding as of December 31, 2008.
Fourth Quarter 2009 and Full-Year Fiscal 2009 Guidance
For the fiscal fourth quarter 2009, ATA forecasts net revenues will be in
the range of RMB26.0 million to RMB28.0 million, representing a reduction in
the range of 4% to 10% compared to the fiscal fourth quarter 2008. ATA expects
that net revenues for the fiscal year ended March 31, 2009 will be in the
range of RMB214 million to RMB216 million, which would represent 24% to 25%
growth over fiscal year 2008. ATA preliminary guidance for net revenues for
fiscal year ended March 31, 2010 will be in the range of RMB260 million to
RMB280 million, which would represent 20% to 26% growth over forecasted net
revenues for fiscal year 2009. These forecasts reflect our new policy to not
include new or unimplemented contracts in our guidance. This is ATA's current
and preliminary view, which is subject to change. Our results of operations
for the Fourth Quarter 2009 are not necessarily indicative of our operating
results for any future periods.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on February 13,
2009, to discuss the results for the Third Quarter 2009. Joining Kevin Ma,
Chairman and Chief Executive Officer of ATA Inc., will be Walter Wang,
Director and President, and Carl Yeung, Chief Financial Officer. To
participate in the conference call, please dial +1-800-706-7748 five to ten
minutes prior to the scheduled conference call time and mention the pass code
30272548. International callers should dial +1-617-614-3473, and mention the
pass code 30272548.
If you are unable to participate in the call at this time, a replay will
be available on February 13, 2009 at 11:00 a.m. ET, through February 20, 2009.
To access the replay, dial +1-888-286-8010, international callers should dial
+1-617-801-6888, and enter the pass code 66516720.
This conference call will be broadcast live over the Internet and can be
accessed by all interested parties on ATA Inc.'s website at
http://www.ata.net.cn . To listen to the live webcast, please go to ATA Inc.'s
website at least fifteen minutes prior to the start of the call to register,
download, and install any necessary audio software. For those unable to
participate during the live broadcast, a replay will be available shortly
after the call on ATA Inc.'s website for 90 days.
Other Announcements:
ATA Testing was re-certified in December 2008 as a "High and New
Technology Enterprise" under China's new Enterprise Income Tax Law. As a
result, ATA Testing's income tax rate is 15% for the calendar years from 2008
to 2010. This qualification will be reviewed every three years. Since ATA
Testing has paid provisional income tax based on a 25% tax rate during the
first three calendar quarters in 2008, it has received a RMB3.5 million tax
refund for the overpayment on December 29, 2008. The Company intends to apply
for the same qualification for its other subsidiary, ATA Learning (Beijing)
Inc. and its consolidated variable interest entity, ATA Online (Beijing)
Education Technology Limited.
About ATA Inc.:
ATA is the leading provider of computer-based testing services in China.
The Company offers comprehensive services for the creation and delivery of
computer-based tests based on its proprietary testing technologies and test
delivery platform. The Company's computer-based testing services are used for
professional licensure and certification tests in various industries,
including information technology, or IT, services, banking, teaching,
securities, insurance and accounting. ATA's test center network comprised
1,918 authorized test centers located throughout China as of December 31,
2008, which the Company believes is the largest test center network of any
commercial testing service provider in China. Combined with its test delivery
technologies, this network allows ATA's clients to administer large-scale
nationwide tests in a consistent, secure and cost-effective manner. ATA has
delivered over 27 million tests including 17.8 million billable tests since it
commenced operations in 1999, and in June 2008 delivered tests to
approximately 470,000 test takers over a single weekend for the China Banking
Association through its test delivery platform. For further information,
please visit: http://www.ata.net.cn .
Cautionary Note Regarding Forward-looking Statements
This announcement contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and as defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "look forward to," "outlook," "forecast,"
"will," "expect," "anticipate," "future," "intend," "plan," "believe,"
"estimate" and similar terminology and include, among other things, the
Company's guidance relating to anticipated financial and operating results for
the fiscal quarter ending March 31, 2009 and the fiscal years ending March 31,
2009 and March 31, 2010. Among the factors that could cause the Company's
actual financial and operating results to differ from what the Company
currently anticipates may include the Company's ability to meet challenges
associated with its rapid expansion, the Company's ability to meet the
expectations of current and future clients, the Company's ability to deploy
new test titles, the Company's ability to win new enterprise contracts, the
Company's ability to convert its existing enterprise contracts into actual
revenue, the Company's ability to implement and maintain effective internal
controls over financial reporting, the health of the PRC economy, and
uncertainties with respect to the PRC legal and regulatory environments. The
financial information contained in this release should be read in conjunction
with the consolidated financial statements and notes thereto included in the
Company's annual report on Form 20-F for its fiscal year ended March 31, 2008,
which was filed with the U.S. Securities and Exchange Commission on August 28,
2008 and is available on the Securities and Exchange Commission's website at
http://www.sec.gov . For additional information on these and other important
factors that could adversely affect our business, financial condition, results
of operations and prospects, see the "Risk Factors" section of the Company's
Form 20-F for the fiscal year ended March 31, 2008.
The forward-looking statements in this release involve known and unknown
risks and uncertainties and are based on current expectations, assumptions,
estimates and projections about the Company and the markets in which it
operates. The Company undertakes no obligation to update forward-looking
statements, which speak only of the Company's views as of the date of this
release, to reflect subsequent events or circumstances, or to changes in its
expectations, except as may be required by law. Although the Company believes
that the expectations expressed in these forward-looking statements are
reasonable, the Company cannot assure you that its expectations will turn out
to be correct, and investors are cautioned that actual results may differ
materially from the anticipated results.
About Non-GAAP Financial Measures
To supplement ATA's consolidated financial information presented in
accordance with U.S. generally accepted accounting principles ("GAAP"), ATA
uses the following measures defined as non-GAAP financial measures by the U.S.
Securities and Exchange Commission: net income excluding share-based
compensation expenses and foreign currency exchange gain (losses) and basic
and diluted earnings per ADS excluding share-based compensation expenses and
foreign currency exchange gain (losses). The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in accordance
with GAAP. For more information on these non-GAAP financial measures, please
see the table captioned "Unaudited Reconciliations of Non-GAAP Measures to the
Most Comparable GAAP Measures" set forth at the end of this release.
ATA believes that these non-GAAP financial measures provide meaningful
supplemental information regarding its performance and liquidity by excluding
share-based compensation expenses and foreign currency exchange gain (losses),
which may not be indicative of its operating performance from a cash
perspective. ATA believes that both management and investors benefit from
these non-GAAP financial measures in assessing its performance and when
planning and forecasting future periods. These non-GAAP financial measures
also facilitate management's internal comparisons to ATA's historical
performance and liquidity. ATA computes its non-GAAP financial measures using
a consistent method from quarter to quarter. ATA believes these non-GAAP
financial measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by management in
its financial and operational decision making. A limitation of using non-GAAP
net income excluding share-based compensation expenses and basic and diluted
earnings per share and per ADS excluding share-based compensation expenses is
that share-based compensation charges have been and are expected to continue
to be for the foreseeable future a significant recurring expenses in ATA's
business. Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP measure.
The accompanying table captioned "Unaudited Reconciliations of Non-GAAP
Measures to the Most Comparable GAAP Measures" set forth at the end this
release has more details on the reconciliations between GAAP financial
measures that are most directly comparable to the non-GAAP financial measures
used by ATA.
Currency Convenience Translation
The Company's financial information is stated in RMB. The translation of
RMB amounts for the Third Quarter 2009 into United States dollars is included
solely for the convenience of readers and has been made at the rate of
RMB6.8225 to US$1.00, the noon buying rate as of December 31, 2008 in the City
of New York for cable transfers in RMB per US dollar as certified for customs
purposes by the Federal Reserve Bank of New York. Such translations should not
be construed as representations that RMB amounts could be converted into US
dollars at that rate or any other rate, or to be the amounts that would have
been reported under US GAAP.
ATA INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31, December 31,
2008 2008 2008
RMB RMB USD
ASSETS
Current assets:
Cash 332,196,672 340,018,595 49,837,830
Accounts receivable, net 63,502,408 71,246,371 10,442,854
Inventories 2,951,966 2,059,291 301,838
Prepaid expenses and other current
assets 4,657,608 6,970,290 1,021,663
Total current assets 403,308,654 420,294,547 61,604,185
Property and equipment, net 10,668,300 20,590,610 3,018,045
Goodwill 6,880,123 6,880,123 1,008,446
Other assets 15,776,667 18,244,094 2,674,107
Total assets 436,633,744 466,009,374 68,304,783
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued expenses and other
payables 29,822,313 42,062,090 6,165,202
Deferred revenues 36,707,916 23,946,119 3,509,875
Total current liabilities 66,530,229 66,008,209 9,675,077
Deferred revenues 7,025,971 6,299,200 923,298
Total liabilities 73,556,200 72,307,409 10,598,375
Shareholders' equity:
Common shares: 3,656,210 3,503,619 513,539
Treasury shares (16,106,940) (7,509,483) (1,100,694)
Receivable from shareholders -- (5,226,173) (766,020)
Additional paid-in capital 498,374,024 499,356,450 73,192,591
Accumulated other comprehensive
loss (7,933,512) (16,200,060) (2,374,505)
Accumulated deficit (114,912,238) (80,222,388) (11,758,503)
Total shareholders' equity 363,077,544 393,701,965 57,706,408
Total liabilities and
shareholders' equity 436,633,744 466,009,374 68,304,783
ATA INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three-month Period Ended
December September December December
31, 2007 30, 2008 31, 2008 31, 2008
RMB RMB RMB USD
Net revenues 66,679,479 51,696,431 67,840,049 9,943,576
Testing services 37,246,748 14,175,165 51,230,721 7,509,083
Test-based educational
services 12,129,552 10,937,400 12,126,220 1,777,387
Test preparation and
training solutions 14,833,274 21,215,476 2,443,226 358,113
Other revenue 2,469,905 5,368,390 2,039,882 298,993
Cost of revenues 21,006,379 17,321,775 29,191,272 4,278,677
Gross profit 45,673,100 34,374,656 38,648,777 5,664,899
Operating expenses:
Research and development 4,323,493 4,778,038 3,958,021 580,142
Sales and marketing 8,361,547 6,908,588 7,813,891 1,145,312
General and administrative 11,503,629 13,911,591 13,979,559 2,049,038
Total operating expenses 24,188,669 25,598,217 25,751,471 3,774,492
Income from operations 21,484,431 8,776,439 12,897,306 1,890,407
Subsidy income -- 2,000,000 -- --
Interest income 136,084 61,664 92,626 13,577
Foreign currency exchange
gain (losses), net (428,868) 135,115 (75,332) (11,042)
Earnings before income
taxes 21,191,647 10,973,218 12,914,600 1,892,942
Income tax benefit
(expense) (3,830,160) (2,628,085) 982,410 143,996
Net income 17,361,487 8,345,133 13,897,010 2,036,938
Basic earnings per common
share 0.79 0.18 0.30 0.04
Diluted earnings per common
share 0.48 0.18 0.30 0.04
Basic earnings per ADS 1.59 0.36 0.61 0.09
Diluted earnings per ADS 0.95 0.36 0.60 0.09
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE
GAAP MEASURES
Three-month Period Ended
December 31, December 31,
2007 2008
RMB RMB
GAAP net income 17,361,487 13,897,010
Share-based compensation expenses 4,307,792 1,235,687
Foreign currency exchange losses 428,868 75,332
Non-GAAP net income 22,098,147 15,208,029
GAAP earnings per ADS:
Basic 1.59 0.61
Diluted 0.95 0.60
Share-based compensation expenses per ADS:
Basic 0.39 0.05
Diluted 0.24 0.05
Foreign currency exchange (gain) losses
per ADS:
Basic 0.04 0.01
Diluted 0.02 0.01
Non-GAAP earnings per ADS:
Basic 2.02 0.67
Diluted 1.21 0.66
Non-GAAP earnings per common share:
Basic 1.01 0.33
Diluted 0.61 0.33
For further information, please contact:
ATA Inc.
Carl Yeung, CFO
Tel: +86-10-6518-1122 ext. 5107
Email: ir@ata.net.cn
Website: http://www.ata.net.cn
CCG Elite Investor Relations
Crocker Coulson, President
Tel: +1-646-213-1915
Ed Job, CFA
Tel: +1-646-213-1914
Email: ed.job@ccgir.com
Website: http://www.ccgirasia.com
SOURCE ATA Inc.
Released February 12, 2009