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China Digital TV - STV - Unaudited Third Quarter 2012 Results

11/21/2012 11:59:17 AM

China Digital TV Holding Co., Ltd. (NYSE: STV), the leading provider of conditional access systems to China's expanding digital television market, announced its unaudited financial results for the third quarter ended September 30, 2012.

STV - Highlights for the Third Quarter 2012

Net revenues in the third quarter of 2012 were US$20.4 million, representing a 21.4% decrease from the same period in 2011 and a 13.3% decrease from the second quarter of 2012.

China Digital TV shipped approximately 3.84 million smart cards in the third quarter of 2012, compared to 4.66 million in the same period in 2011 and 3.74 million in the second quarter of 2012.

Gross margin in the third quarter of 2012 was 75.8%, compared to 80.5% in the same period in 2011 and 76.4% in the second quarter of 2012.

Net loss per American depositary share (one ADS representing one ordinary share), or ADS, in the third quarter of 2012 was US$ 0.19, compared to diluted earnings per ADS of US$0.17 in the same period in 2011 and US$0.12 in the second quarter of 2012.

"China Digital TV saw a modest increase in sequential card shipments during the third quarter 2012 as China's CA market continued to be impacted by delays from some provincial-level cable operators," said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer. "Our leading position in China's CA market should enable China Digital TV to continue to benefit from China's ongoing cable penetration and digitalization as well as the conversion to high-definition set-top boxes over the next few years. In addition, China Digital TV continues to make good progress diversifying our product offerings and developing value-added services and partnership opportunities."

STV - Special Cash Dividend

On November 12, 2012, China Digital TV declared a special cash dividend equivalent to US$2.30 per ADS (each ADS representing one ordinary share, par value US$0.0005 per share). The special dividend is expected to be paid in two installments of US$1.00 and US$1.30 on or around December 3, 2012 and February 4, 2013, respectively.

STV - Business Outlook

Based on information available as of November 20, 2012, China Digital TV expects smart card shipment volume for the fourth quarter of 2012 to be in the range of 3.6 million to 3.9 million. Net revenues for the fourth quarter of 2012 are expected to be in the range of US$ 19.3 million to US$ 20.9 million.

About China Digital TV - STV

Founded in 2004, China Digital TV (STV) is the leading provider of CA systems to China's expanding digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its PRC subsidiary, Beijing Super TV Co., Ltd., and its affiliate, Beijing Novel-Super Digital TV Technology Co., Ltd., as well as subsidiaries of its affiliate.

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