Beijing : China Digital TV Holding Co., Ltd. (NYSE: STV) (“China Digital TV” or the “Company”), the leading provider of conditional access (“CA”) systems to China’s expanding digital television market, has announced its unaudited financial results for the first quarter ended March 31, 2011.
Net revenues in the first quarter of 2011 were US$19.3 million, representing a 37.7% increase from the first quarter in 2010 and a 41.2% decrease from the fourth quarter of 2010.
China Digital TV shipped approximately 3.63 million smart cards during the first quarter of 2011, compared to 2.57 million and 6.10 million smart cards in the first quarter of 2010 and the fourth quarter of 2010, respectively.
Gross margin in the first quarter was 79.5%, compared to 77.5% in the same period in 2010 and 80.8% in the fourth quarter of 2010.
Diluted earnings per American depositary share (“ADS”) (one ADS representing one ordinary share) in the first quarter of 2011 were US$0.13, compared to US$0.10 in the same period in 2010.
“In line with our projections, cable television operators remained keen on investing in digitalization projects during the first quarter of 2011. Continued demand and stable prices for smart cards spurred another strong quarter, with an approximately 40% increase in both shipments and revenues compared to the first quarter of 2010,” said Mr. Jianhua Zhu, China Digital TV’s chairman and chief executive officer.
Mr. Zhu added, “We are particularly encouraged to have further extended our market share to 61.8% in the first quarter of 2011 from 59.1% in the fourth quarter of 2010, owing to our focus on customer base expansion and day-to-day execution. We believe that solidifying our leadership in CA systems not only protects us against short-term fluctuations in smart card demand caused by cable industry consolidation, but will also enhance our opportunities when China’s digital television market is ready for next generation products.”
“A balanced approach to operational efficiency and investment has enabled us to sustain profitable growth,” said Mr. Zhenwen Liang, China Digital TV’s chief financial officer. “We will continue to invest in research and development for new products and services in a number of areas to expand our revenue sources in the years ahead.”