closeATA Announces Preliminary Results for the Fourth Quarter and Fiscal Year Ended March 31, 2010
NEW YORK, June 4 /PRNewswire-Asia-FirstCall/ -- ATA Inc. ("ATA" or the "Company"; Nasdaq: ATAI), a leading provider of computer-based testing and testing-related services in China, today announced preliminary unaudited financial results for the fourth quarter and fiscal year ended March 31, 2010 ("Fourth Quarter 2010" and "Fiscal Year 2010", respectively).
The following are estimates of the Company's preliminary unaudited financial results for Fourth Quarter 2010 and Fiscal Year 2010. These preliminary financial results are subject to change. These results may, for example, become subject to adjustment based upon, among other things, completion of the fiscal-year reporting process, and could differ materially from the estimates provided below. For additional information regarding the various risks and uncertainties inherent in estimates of this type, see the section entitled "Cautionary Note Regarding Forward-Looking Statements" at the end of this press release.
Preliminary Fiscal Year 2010 Highlights
-- Net revenues increased 12.6% year-over-year to RMB245.0 million
(US$35.9 million).
-- Gross profit decreased 7.6% year-over-year to RMB115.5 million (US$16.9
million).
-- Loss from operations was RMB30.1 million (US$4.4 million) compared to
income from operations of RMB26.4 million in the previous fiscal year.
Included in the loss from operations were exceptional provisions of
RMB23.7 million (US$3.5 million) for long-term accounts receivables,
and share-based compensation charges of RMB2.5 million (US$0.4 million)
for two members of our senior management.
-- Net loss was RMB35.3 million (US$5.2 million) compared to net income of
RMB22.8 million in the previous fiscal year.
-- Net loss excluding share-based compensation expense and foreign
currency exchange loss (non-GAAP) was RMB27.6 million (US$4.0 million),
compared to net income excluding share-based compensation expense and
foreign currency exchange gain (non-GAAP) of RMB27.7 million in the
previous fiscal year.
-- Basic and diluted loss per ADS was RMB1.58 (US$0.23). Basic and diluted
loss per ADS excluding share-based compensation expense and foreign
currency exchange loss (non-GAAP) was RMB1.23 (US$0.18). Each ADS
represents two common shares of the Company.
-- ATA delivered approximately 5.8 million tests in Fiscal Year 2010, an
increase of 13.8% from the previous fiscal year.
Preliminary Fourth Quarter 2010 Highlights
-- Net revenues increased 59.1% year-over-year to RMB47.2 million (US$6.9
million).
-- Gross profit increased 35.4% year-over-year to RMB17.3 million (US$2.5
million).
-- Loss from operations increased to RMB38.0 million (US$5.6 million) from
a loss from operation of RMB13.0 million in the same period the
previous fiscal year. Included in the loss from operations were
exceptional provisions of RMB22.3 million (US$3.3 million) for
long-term accounts receivables, and share-based compensation charges of
RMB2.5 million (US$0.4 million) for two members of our senior
management.
-- Net loss increased to RMB38.1 million (US$5.6 million) from a loss of
RMB11.9 million in the same period the previous fiscal year.
-- Net loss excluding share-based compensation expense and foreign
currency exchange gain (loss) (non-GAAP) was RMB35.3 million (US$5.2
million), compared to a loss of RMB10.9 million in the same period the
previous fiscal year.
-- Basic and diluted loss per ADS was RMB1.72 (US$0.25). Basic and diluted
loss per ADS excluding share-based compensation expense and foreign
currency exchange gain (non-GAAP) was RMB1.60 (US$0.23). Each ADS
represents two common shares of the Company.
-- For the quarter, ATA delivered approximately 1.3 million tests, an
increase of 99.0% year-over-year.
Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, said, "We are pleased with our operating results for the fiscal fourth quarter and year ended March 31, 2010, especially with the strong results in our testing services where revenues increased 36.6% in Fiscal Year 2010. Total tests taken in Fiscal Year 2010 were up 13.8% to about 5.8 million tests. Our average revenue per test increased 20.0% to RMB 32.5 per test in Fiscal Year 2010 from the previous fiscal year, mainly due to the higher values per test, especially for the English language qualification tests and the HR Select tests.
"Our strategy and actions remain on track. Our Fiscal Year 2010 was one of transition. First, we grew our testing business nicely, expanding in our testing support for the securities and banking industries, in the Test of English for International Communication, or TOEIC, and in the HR Select testing that helps to find the most qualified candidates for both hiring and internal promotions.
"Aligned with that expansion has been more aggressive marketing and business promotions, as well as other investments in our new businesses, including enriching the content of our HR Select testing services. The higher expenses did temporarily pressure our results in Fiscal Year 2010, but our actions this year were designed to help encourage and support additional revenues, not only for Fiscal Year 2010, but also in the years ahead.
"HR Select is a very good example of that long-term potential. More than 60,000 companies and organizations have been introduced and received fundamental training on that new innovative testing product since we introduced it. It does take a while for such innovative new methods to be adopted. So far, more than 50 companies and organizations have become paying customers for HR Select, so we are only in the beginning of what we believe will be a long-term growth curve for that human resources testing and evaluation business.
"On the other hand, the Chinese government has delayed implementing the national teachers' licensure program, or NTET, until the country is better prepared for the test. The delay resulted in our taking an expense provision in Fiscal Year 2010 for the related long-term NTET tutorial software accounts receivable because we do not know if the government will enforce and resume the funding for this licensing program.
"In the long term, we believe our strategy is very sound, and we are on track for delivering very good operating performances in the years ahead. We expect those attractive results should create substantial value for our shareholders."
Preliminary Financial Results for Fiscal Year 2010
For Fiscal Year 2010, ATA estimates net revenues of RMB245.0 million (US$35.9 million), representing a 12.6% increase over net revenues for the fiscal year ended March 31, 2009. The increase was mainly due to an estimated 36.6% increase in net revenues from testing services, driven in particular by growth in tests delivered for the banking and securities industry, as well as increases in net revenues from delivery of TOEIC tests to an estimated RMB19.3 million (US$2.8 million) in Fiscal Year 2010 from RMB1.2 million the previous fiscal year, and net revenues from HR Select testing services to an estimated RMB10.5 million (US$1.5 million) from nil the previous fiscal year. Test-based educational programs decreased by an estimated 25.3% as we continue to shift focus from this business to our core testing services and newer business lines, and an estimated 55.5% decrease in net revenues from test preparation and training solutions primarily due to decreased net revenues from NTET software sales compared with the previous fiscal year.
The total number of tests delivered was approximately 5.8 million, an increase of 13.8% over the fiscal year ended March 31, 2009.
Gross profit margin for the full year is expected to be 47.1% compared to 57.4% for the fiscal year ended March 31, 2009, primarily due to higher staff salaries and compensation resulting from the increase in headcount to support the business growth, other direct cost related to our TOEIC and HR Select businesses, an impairment of the prepaid royalty fee for certain course materials that the Company believes will not be used in the future, and amortization and depreciation expenses related to technology upgrades and the TOEIC royalty fee.
Operating expenses for the full year are estimated to have increased by 47.7% to RMB145.6 million (US$21.3 million) from RMB98.5 million in the previous fiscal year.
Research and development expenses are estimated to have increased by 39.8% to RMB22.7 million (US$3.3 million) from RMB16.2 million in the previous fiscal year, primarily due to the increase in employees and higher expenses for new businesses and updating our current test item database.
Sales and marketing expenses are estimated to have increased by 56.3% to RMB39.0 million (US$5.7 million) from RMB24.9 million in the previous fiscal year, primarily due to marketing and promotion expenses to support our TOEIC, HR Select and the Cambridge Young Learners English online tutorials businesses and other testing service promotions, as well as increased salaries and compensation expenses.
General and administrative expenses are estimated to have increased by 46.2% to RMB83.9 million (US$12.3 million) from RMB 57.4 million in the previous fiscal year, primarily due to an allowance of RMB23.7 million for doubtful accounts in relation to NTET software sales, and share-based compensation expenses.
The Company added 48 employees during the fiscal year 2010, and had a total of 537 employees as of March 31, 2010, compared with 489 as of March 31, 2009. The increase was due largely to the business development requirements of TOEIC, HR Select and the Cambridge Young Learners English online tutorials.
Loss from operations is estimated to be RMB30.1 million (US$4.4 million) compared to income from operations of RMB26.4 million in the previous fiscal year.
Net loss is estimated to be RMB35.3 million (US$5.2 million) compared to net income of RMB22.8 million in the previous fiscal year. Basic and diluted loss per common share is estimated to RMB0.79 (US$0.12), and basic and diluted loss per ADS is estimated to RMB1.58 (US$0.23).
Preliminary Financial Results for Fourth Quarter 2010
For Fourth Quarter 2010, ATA estimates net revenues of RMB47.2 million (US$6.9 million), representing a 59.1% increase year-over-year. This increase was mainly driven by an estimated 97.7% year-over-year increase in net revenues from testing services, including an estimated RMB25.4 million (US$3.7 million) net revenues from testing services for securities industry exams in Fourth Quarter 2010 compared to RMB13.6 million in the same period the previous fiscal year, an estimated RMB2.3 million (US$0.3 million) net revenues from delivery of TOEIC tests compared to RMB1.2 million in the same period the previous fiscal year, and an estimated RMB1.6 million (US$0.2 million) net revenues from HR Select testing services compared to nil in the same period the previous fiscal year. Net revenues from test-based educational programs increased an estimated 9.1% year-over-year, while test preparation and training solutions declined by an estimated 24.4%.
The overall number of tests delivered increased by 99.0% year-over-year to approximately 1.3 million in Fourth Quarter 2010.
Fourth Quarter 2010 gross profit is estimated to have increase by 35.4% year-over-year to RMB17.3 million (US$2.5 million) from RMB12.7 million in the same period the previous fiscal year. Gross margin is estimated to have decreased to 36.6% in Fourth Quarter 2010 from 42.9% in the same period the previous fiscal year, driven by an impairment of the prepaid royalty fee for certain course materials that the Company believes will not be used in the future.
Fourth Quarter 2010 operating expenses are estimated to have increased to RMB55.3 million (US$8.1 million) from RMB25.7 million in the same period the previous fiscal year, primarily due to the increase in general and administrative expenses related to an allowance of RMB22.3 million for doubtful accounts in relation to NTET software sales, and additional share-based compensation expenses.
Loss from operations is estimated to have increased to RMB38.0 million (US$5.6 million) from RMB12.9 million in the same period the previous fiscal year. Operating margin is expected to be negative 80.6% in the Fourth Quarter of 2010 compared to negative 43.8% in the same period the previous fiscal year.
Net loss for Fourth Quarter 2010 is estimated to have increased to RMB38.1 million (US$5.6 million) from RMB11.9 million in the same period the previous fiscal year. Basic and diluted loss per common share is estimated to RMB0.86 (US$0.13), and basic and diluted loss per ADS is estimated to RMB1.72 (US$0.25).
Non-GAAP Measures
Net loss excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) is expected to total RMB27.6 million (US$4.0 million) for Fiscal Year 2010, compared to net income excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB27.7 million in the previous fiscal year. Basic and diluted loss per common share excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Fiscal Year 2010 is expected to be RMB0.62 (US$0.09). Basic and diluted loss per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Fiscal Year 2010 is expected to be RMB1.23 (US$0.18).
Net loss excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) is expected to total RMB35.3 million (US$5.2 million) for Fourth Quarter 2010 compared to loss of RMB10.9 million in the same period the previous fiscal year. Basic and diluted loss per common share excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Fourth Quarter 2010 is expected to be RMB0.79 (US$0.12). Basic and diluted loss per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Fourth Quarter 2010 is expected to be RMB1.58 (US$0.23).
Please see the note about non-GAAP measures and the reconciliation table at the end of this press release.
Other Data
The number of weighted average ADSs used to calculate basic and diluted earnings per ADS for the quarter ended March 31, 2010 were 22.1 million. The number of weighted average ADSs used to calculate basic and diluted earnings per ADS for the year ended March 31, 2010 were 22.4 million. Each ADS represents two common shares.
ATA had 44.4 million common shares outstanding on March 31, 2010 and 45.7 million common shares outstanding on March 31, 2009.
Test centers
As of March 31, 2010, ATA had 1,988 authorized test centers located throughout China, compared with 1,925 centers as of March 31, 2009.
Guidance for Fiscal First Quarter 2011 and Fiscal Year 2011
For the fiscal first quarter 2011, ending June 30, 2010, ATA expects net revenues to be in the range of RMB78 million to RMB82 million.
For the fiscal year ending March 31, 2011, ATA expects net revenues to be in the range of RMB280 million to RMB300 million.
These are ATA's current projections, which are subject to change. You are cautioned that operating results in Fourth Quarter 2010 or Fiscal Year 2010 are not necessarily indicative of operating results for any future periods.
Correction
In our prior third quarter earnings release, we incorrectly referred to the "Chinese Certified Treasury Professional exam" for the Association of Financial Professionals. The test's correct name is "Associate Financial Planner", which is operated by FPSB China Ltd.
Conference Call and Webcast
ATA will host a conference call at 8:00 a.m. Eastern Daylight Time (New York) on Monday, June 7, 2010, to discuss the results of fourth quarter 2010 and fiscal year 2010.
Joining ATA Chairman and CEO Kevin Ma will be Walter Wang, Director and President and Benson Tsang, Chief Financial Officer and Chief Accounting Officer.
To participate in the conference call, please dial 1-866-783-2138 about 10 minutes prior to the scheduled conference call time and use the pass code 9475 6649. International callers should dial +1-857-350-1597 and use the pass code 9475 6649.
The live internet webcast of the conference call can be accessed on the investor relations section of ATA's website at http://www.ata.net.cn . To listen to the webcast, please go to ATA's website at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to listen during the live webcast, a replay will be available shortly after the call on the investor relations section of ATA's website (http://www.ata.net.cn ) and will remain available for 90 days.
A telephone replay of the call will be available from June 7, 2010 at 12:00 noon EDT, through June 28, 2010. To access the replay, please dial 1-888-286-8010 and enter the pass code 1216 7970; international callers should please dial +1-617-801-6888 and enter the pass code 1216 7970.
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. ATA's computer-based testing services are used for professional licensure and certification tests in various industries, including information technology services, banking, teaching, securities, insurance, and accounting.
ATA's test center network comprised 1,988 authorized test centers located throughout China as of March 31, 2010. The Company believes it has 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 more than 34 million tests, including more than 24 million billable tests, since ATA started operating in 1999. During a single weekend in June 2008, using its test delivery platform, ATA delivered tests to approximately 470,000 test takers for the China Banking Association.
For further information, please visit ATA's website at 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 terms such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "future," "intend," "look forward to," "outlook," "plan," "should, "will," and similar terms and include, among other things, the Company's guidance relating to anticipated financial and operating results for the fiscal first quarter of 2011 ending June 30, 2010 and statements regarding market trends, the potential growth and success of the Company's HR Select and other businesses, and the future overall operating performance of the Company.
The factors that could cause the Company's actual financial and operating results to differ from what the Company currently anticipates can include its ability to meet challenges associated with its rapid expansion, its ability to meet the expectations of current and future clients, its ability to deploy new test titles, its ability to win new enterprise contracts, its ability to convert its existing enterprise contracts into actual revenues, its ability to implement and maintain effective internal controls over financial reporting, the economy of China, uncertainties with respect to the China's legal and regulatory environments, and other factors stated in the Company's filings with the U.S. Securities and Exchange Commission.
The financial information contained in this release should be read in conjunction with the consolidated financial statements and related notes included in the Company's annual report on S.E.C. Form 20-F for its fiscal year ended March 31, 2009, and other filings ATA has made with the U.S. Securities and Exchange Commission. The filings are available on the Securities and Exchange Commission's website at http://www.sec.gov and at ATA's website at http://www.ata.net.cn . For additional information on the risk factors that could adversely affect the Company's business, financial condition, results of operations, and prospects, please see the "Risk Factors" section of the Company's S.E.C. Form 20-F for the fiscal year ended March 31, 2009.
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 ATA 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 and assumptions will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
Currency Convenience Translation
The Company's financial information is stated in renminbi ("RMB"), the currency of the People's Republic of China. The translation of RMB amounts for Fourth Quarter 2010 and Fiscal Year 2010 into U.S. dollars is included solely for the convenience of readers and has been made at the rate of RMB 6.8258 to US$ 1.00, the noon buying rate as of March 31, 2010 in New York cable transfers of RMB per USD as set forth in the H.10 weekly statistical release of Federal Revenue Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under U.S. GAAP.
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 (loss) excluding share-based compensation expenses and foreign currency exchange gain (loss) and basic and diluted earnings per common share and ADS excluding share-based compensation expenses and foreign currency exchange gain (loss).
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" shown at the end of this news release.
ATA believes these non-GAAP financial measures provide meaningful supplemental information about its performance by excluding share-based compensation expenses and foreign currency exchange gain (loss), 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. 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 common 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 expense in ATA's business.
Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The table captioned "Unaudited Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures" shown at the end this news 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.
Financial statements follow.
ATA INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, March 31, March 31,
2009 2010 2010
RMB RMB USD
ASSETS
Current assets:
Cash 310,503,071 213,874,252 31,333,214
Accounts receivable, net 71,076,794 82,900,060 12,145,105
Inventories 2,287,260 2,115,220 309,886
Prepaid expenses and
other current assets 15,134,804 10,184,165 1,492,011
Total current assets 399,001,929 309,073,697 45,280,216
Property and equipment,
net 20,987,472 70,328,064 10,303,271
Goodwill 23,422,850 23,422,850 3,431,517
Intangible assets, net 25,994,261 23,206,591 3,399,835
Other assets 1,838,544 2,471,898 362,140
Total assets 471,245,056 428,503,100 62,776,979
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued expenses and
other payables 44,950,280 52,385,674 7,674,657
Deferred revenues 40,238,256 25,837,229 3,785,231
Total current
liabilities 85,188,536 78,222,903 11,459,888
Deferred revenues 5,626,153 4,673,805 684,726
Deferred tax
liabilities 189,583 131,524 19,269
Total liabilities 91,004,272 83,028,232 12,163,883
Shareholders' equity:
Common shares 3,503,619 3,418,709 500,851
Treasury shares (10,126,861) -- --
Receivable from
shareholders (5,226,173) -- --
Additional paid-in
capital 500,350,068 485,907,507 71,186,895
Accumulated other
comprehensive loss (16,157,846) (16,399,334) (2,402,551)
Accumulated deficit (92,102,023) (127,452,014) (18,672,099)
Total shareholders'
equity 380,240,784 345,474,868 50,613,096
Total liabilities and
shareholders' equity 471,245,056 428,503,100 62,776,979
ATA INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three-month Period Ended
March 31, December 31, March 31, March 31,
2009 2009 2010 2010
RMB RMB RMB USD
Net revenues 29,676,892 76,425,881 47,220,732 6,917,978
Testing
services 17,755,644 61,643,036 35,107,672 5,143,378
Test-based
educational
services 8,457,723 6,825,646 9,231,426 1,352,431
Test preparation
and training
solutions 904,610 4,994,058 684,283 100,250
Other revenue 2,558,915 2,963,141 2,197,351 321,919
Cost of revenues 16,931,946 38,495,552 29,960,425 4,389,291
Gross profit 12,744,946 37,930,329 17,260,307 2,528,687
Operating expenses:
Research and
development 4,217,381 5,337,596 6,082,845 891,155
Sales and
marketing 4,238,376 9,816,689 9,568,146 1,401,761
General and
administrative 17,277,172 13,081,097 39,648,543 5,808,629
Total operating
expenses 25,732,929 28,235,382 55,299,534 8,101,546
Income (loss)
from operations (12,987,983) 9,694,947 (38,039,227) (5,572,859)
Interest income 50,346 195,083 203,048 29,747
Foreign currency
exchange gain
(loss), net (3,872) 1,452 896 131
Earnings (loss)
before income
taxes (12,941,509) 9,891,482 (37,835,283) (5,542,981)
Income tax
benefit
(expense) 1,061,874 (3,448,995) (285,642) (41,847)
Net income
(loss) (11,879,635) 6,442,487 (38,120,925) (5,584,828)
Basic earnings
(loss) per
common share (0.26) 0.14 (0.86) (0.13)
Diluted earnings
(loss) per
common share (0.26) 0.14 (0.86) (0.13)
Basic earnings
(loss) per ADS (0.52) 0.28 (1.72) (0.25)
Diluted earnings
(loss) per ADS (0.52) 0.28 (1.72) (0.25)
ATA INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended
March 31, March 31, March 31,
2009 2010 2010
RMB RMB USD
Net revenues 217,545,303 245,031,543 35,897,850
Testing services 137,046,628 187,158,128 27,419,222
Test-based educational
services 42,545,536 31,786,398 4,656,802
Test preparation and
training solutions 25,071,400 11,149,124 1,633,380
Other revenue 12,881,739 14,937,893 2,188,446
Cost of revenues 92,608,631 129,535,003 18,977,263
Gross profit 124,936,672 115,496,540 16,920,587
Operating expenses:
Research and
development 16,240,618 22,708,310 3,326,835
Sales and marketing 24,921,910 38,951,021 5,706,441
General and
administrative 57,386,622 83,892,360 12,290,480
Total operating
expenses 98,549,150 145,551,691 21,323,756
Income (loss) from
operations 26,387,522 (30,055,151) (4,403,169)
Interest income 395,108 731,181 107,120
Subsidy income 2,000,000 -- --
Foreign currency
exchange gain
(loss), net 665,558 (283,875) (41,589)
Earnings (loss)
before income taxes 29,448,188 (29,607,845) (4,337,638)
Income tax expense (6,637,973) (5,742,146) (841,241)
Net income (loss) 22,810,215 (35,349,991) (5,178,879)
Basic earnings (loss)
per common share 0.50 (0.79) (0.12)
Diluted earnings (loss)
per common share 0.49 (0.79) (0.12)
Basic earnings
(loss) per ADS 1.00 (1.58) (0.23)
Diluted earnings
(loss) per ADS 0.98 (1.58) (0.23)
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
TO THE MOST COMPARABLE GAAP MEASURES
Three-month Period Ended Year Ended
March 31, March 31, March 31, March 31,
2009 2010 2009 2010
RMB RMB RMB RMB
GAAP net income (loss) (11,879,635) (38,120,925) 22,810,215 (35,349,991)
Share-based
compensation expenses 1,005,643 2,866,359 5,597,529 7,495,718
Foreign currency
exchange (gain)
loss, net 3,872 (896) (665,558) 283,875
Non-GAAP net income
(loss) (10,870,120) (35,255,462) 27,742,186 (27,570,398)
GAAP earnings (loss)
per common share
Basic (0.26) (0.86) 0.50 (0.79)
Diluted (0.26) (0.86) 0.49 (0.79)
Non-GAAP earnings (loss)
per common share
Basic (0.24) (0.80) 0.61 (0.62)
Diluted (0.24) (0.80) 0.60 (0.62)
For more information, please contact:
ATA Inc.
Benson Tsang, CFO
Phone: +86-10-6518-1122 x5107
Email: bensontsang@ata.net.cn
Christensen
Kathy Li
Phone: +1-212-618-1978
Email: kli@christensenir.com
Yuanyuan Chen
Phone: +86-10-5971-2001
Email: ychen@christensenir.com
SOURCE ATA Inc.
Released June 4, 2010