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SINA Reports Fourth Quarter 2012 Financial Results

              SINA Reports Fourth Quarter 2012 Financial Results

PR Newswire

SHANGHAI, Feb. 19, 2013

SHANGHAI, Feb. 19, 2013 /PRNewswire/ -- SINA Corporation (NASDAQ GS: SINA), a
leading online media company serving China and the global Chinese communities,
today announced its unaudited financial results for the fourth quarter ended
December 31, 2012.

Fourth Quarter 2012 Highlights

  oNet revenues increased 4% year over year to $139.1 million. Non-GAAP net
    revenues increased 4% year over year to $134.4 million, within the
    Company's guidance between $132.0 million and $136.0 million.
  oAdvertising revenues grew 7% year over year to $110.7 million, within the
    Company's guidance between $110.0 million and $112.0 million.
  oNon-advertising revenues decreased 4% year over year to $28.5 million.
    Non-GAAP non-advertising revenues decreased 5% year over year to $23.8
    million, reaching the high end of the Company's guidance between $22.0
    million and $24.0 million.
  oNet income attributable to SINA was $2.4 million, or $0.03 diluted net
    income per share attributable to SINA. Non-GAAP net income attributable
    to SINA was $9.0 million, or $0.13 non-GAAP diluted net income per share
    attributable to SINA.

Fiscal 2012 Highlights

  oNet revenues increased 10% year over year to $529.3 million. Non-GAAP net
    revenues increased 10% year over year to $510.6 million.
  oAdvertising revenues grew 12% year over year to $412.9 million.
  oNon-advertising revenues increased 2% year over year to $116.4 million.
    Non-GAAP non-advertising revenues increased 2% year over year to $97.7
    million.
  oNet income attributable to SINA was $31.7 million, or $0.47 diluted net
    income per share attributable to SINA. Non-GAAP net income attributable
    to SINA was $10.4 million, or $0.15 non-GAAP diluted net income per share
    attributable to SINA.

"2012 was a year of investment for SINA. We are delighted that Weibo
continued to gain popularity and Weibo monetization was off to a good start,"
said Charles Chao, CEO and Chairman of SINA. "In 2013, we will continue to
improve user experience and expand the scale of Weibo monetization, while turn
our focus to mobile Internet for all of our major product lines."

Fourth Quarter 2012 Financial Results

For the fourth quarter of 2012, SINA reported net revenues of $139.1 million,
compared to $133.4 million for the same period last year. Non-GAAP net
revenues for the fourth quarter of 2012 totaled $134.4 million, compared to
$128.7 million for the same period last year.

Online advertising revenues for the fourth quarter of 2012 were $110.7
million, compared to $103.7 million for the same period last year.
Non-advertising revenues for the fourth quarter of 2012 totaled $28.5
million, compared to $29.7 million for the same period last year. Mobile
value-added services ("MVAS") revenues for the fourth quarter of 2012
decreased 38% year over year to $13.2 million, while the rest of non-GAAP
non-advertising revenues grew 181% to $10.6 million, mainly from Weibo value
added services ("VAS"). As the market in China shifts towards mobile
Internet, the Company expects to further reallocate its resources away from
the low-margin MVAS business to Weibo VAS.

Gross margin for the fourth quarter of 2012 was 57%, compared to 54% for the
same period last year. Advertising gross margin for the fourth quarter of
2012 was 56%, the same as the corresponding period last year. Non-GAAP
advertising gross margin for the fourth quarter of 2012 was 57%, also the same
as last year. MVAS gross margin for the fourth quarter of 2012 was 45%,
compared to 35% for the same period last year, due to a shift in product mix.

Operating expenses for the fourth quarter of 2012 totaled $73.8 million,
compared to $66.7 million for the same period last year. Non-GAAP operating
expenses for the fourth quarter of 2012 were $69.0 million, compared to $62.3
million for the same period last year.The increase in non-GAAP operating
expenses was primarily due to higher personnel costs, lease expenses and
infrastructure spending, which were partially offset by lower marketing
expenditures.

Income from operations for the fourth quarter of 2012 was $5.6 million,
compared to $6.0 million for the same period last year. Non-GAAP income from
operations for the fourth quarter of 2012 was $6.4 million, compared to $6.7
million for the same period last year.

Non-operating loss from for the fourth quarter of 2012 was $2.1 million,
compared to a non-operating income of $3.8 million from the same period last
year. Non-operating loss in the fourth quarter of 2012 included $4.4 million
in losses from equity investments, or $0.4 million in losses on a non-GAAP
basis, which were accounted for under the equity-method accounting and
reported on a one-quarter lagging basis.

Net income attributable to SINA for the fourth quarter of 2012 was $2.4
million, compared to $9.3 million for the same period last year. Diluted net
income per share attributable to SINA for the fourth quarter of 2012 was
$0.03, compared to $ 0.14 for the same period last year. Non-GAAP net income
attributable to SINA for the fourth quarter of 2012 was $9.0 million, compared
to $14.0 million for the same period last year. Non-GAAP diluted net income
per share attributable to SINA for the fourth quarter of 2012 was $0.13,
compared to $0.21 for the same period last year.

As of December 31, 2012, SINA's cash, cash equivalents and short-term
investments totaled $713.6 million, compared to $673.5 million as of December
31, 2011. For the fourth quarter of 2012, cash provided by operating
activities was $33.5 million, capital expenditures totaled $17.9 million and
depreciation expenses amounted to $7.5 million.

Business Outlook

SINA estimates that its non-GAAP net revenues for the first quarter of 2013
will be between $115 million and $119 million, including advertising revenues
to be between $94 million and $96 million, and non-GAAP non-advertising
revenues to be between $21 million and $23 million. Non-GAAP net revenues and
non-GAAP non-advertising revenues exclude the recognition of $4.7 million in
deferred license revenues related to SINA's equity investment in E-House/CRIC.

Non-GAAP Measures

This release contains the following non-GAAP financial measures: non-GAAP net
revenues, non-GAAP non-advertising revenues, non-GAAP advertising gross
margin, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP
income/(loss) from operations, non-GAAP equity earnings/(loss) from equity
investments, non-GAAP net income/(loss) attributable to SINA and non-GAAP
diluted net income/(loss) per share attributable to SINA. These non-GAAP
financial measures should be considered in addition to, not as a substitute
for, measures of the Company's financial performance prepared in accordance
with U.S. GAAP. The Company's non-GAAP financial measures may be defined
differently than similar terms used by other companies. Accordingly, care
should be exercised in understanding how the Company defines its non-GAAP
financial measures. Reconciliations of the Company's non-GAAP measures to the
nearest GAAP measures are set forth in the section below titled "Unaudited
Reconciliation of Non-GAAP to GAAP Results."

The Company's non-GAAP financial measures exclude certain items, including
share-based compensation, amortization of intangible assets, recognition of
deferred revenues and gain/loss resulting from the disposal, purchase or
impairment of a business, investment or non-controlling interest in a
subsidiary. The Company's management uses these non-GAAP financial measures
in their financial and operating decision-making, because management believes
these measures reflect the Company's ongoing business operations in a manner
that allows more meaningful period-to-period comparisons. The Company
believes that these non-GAAP financial measures provide useful information to
investors and others in the following ways: (i) in comparing the Company's
current financial results with the Company's past financial results in a
consistent manner, and (ii) in understanding and evaluating the Company's
current operating performance and future prospects in the same manner as
management does, if they so choose. The Company further believes the non-GAAP
financial measures provide useful information to both management and investors
by excluding certain expenses, gains/losses and other items (i) that are not
expected to result in future cash payments or (ii) that are non-recurring in
nature or may not be indicative of the Company's core operating results and
business outlook.

Use of non-GAAP financial measures has limitations. Our non-GAAP financial
measures do not include all income and expense items that affect the Company's
operations. They may not be comparable to non-GAAP financial measures used by
other companies. Management compensates for these limitations by also
considering the Company's financial results prepared in accordance with U.S.
GAAP.

Conference Call

SINA will host a conference call at 8 p.m. Eastern Standard Time on February
19, 2013 (or 9 a.m. Beijing Time on February 20, 2013) to present an overview
of the Company's financial performance and business operations. A live
webcast of the call will be available through the Company's corporate website
at http://corp.sina.com. The conference call can be accessed as follows:

US:                       +1 646 254 3515
Hong Kong:                +852 3051 2745
Passcode for all regions: 94957366

A replay of the conference call will be available through midnight Eastern
Standard Time February 26, 2013. The dial-in number is +61 2 8199 0299. The
pass code for the replay is 94957366.

About SINA

SINA is an online media company serving China and the global Chinese
communities. Our digital media network of SINA.com (portal), SINA.cn (mobile
portal) and Weibo.com (social media) enable Internet users to access
professional media and user generated content in multi-media formats from the
web and mobile devices and share their interests with friends and
acquaintances.

SINA.com offers distinct and targeted professional content on each of its
region specific websites and a range of complementary offerings. SINA.cn
provides information and entertainment content from SINA portal customized for
WAP users. Based on an open-platform architecture to host organically
developed and third-party applications, Weibo.com is a form of social media,
featuring micro-blogging services and social networking services that allow
users to connect and share information anywhere, anytime and with anyone on
our platform.

Safe Harbor Statement

This press release contains forward-looking statements that relate to, among
other things, SINA's expected financial performance and SINA's strategic and
operational plans (as described, without limitation, in the "Business Outlook"
section and in quotations from management in this press release). SINA may
also make forward-looking statements in the Company's periodic reports to the
U.S. Securities and Exchange Commission, in its annual report to shareholders,
in press releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. SINA assumes no
obligation to update the forward-looking statements in this press release and
elsewhere. Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number
of important factors could cause actual results to differ materially from
those contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to: SINA's limited operating
history in certain new businesses; the current global financial and credit
market crisis and its impact on the Chinese economy; the uncertain regulatory
landscape in the People's Republic of China; fluctuations in the Company's
quarterly operating results; the Company's reliance on online advertising
sales and MVAS for a majority of its revenues; any failure to successfully
develop, introduce, drive adoption of or monetize new features and products,
including Weibo.com and MVAS products; the Company's reliance on mobile
operators in China to provide MVAS, changes in mobile operators' policies for
MVAS in China; any failure to successfully integrate acquired businesses;
risks associated with the Company's investments, including equity pick-up and
impairment; and any failure to compete successfully against new entrants and
established industry competitors. Further information regarding these and
other risks is included in SINA's annual report on Form 20-F for the year
ended December 31, 2011 and other filings with the Securities and Exchange
Commission.

Contact:

Investor Relations
SINA Corporation
Phone: 8610-82628888 x 3112
Email: ir@staff.sina.com.cn



SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. Dollars in thousands, except per share data)
                       Three months ended               Twelve months ended
                       December 31,          September  December 31,
                                             30,
                       2012       2011       2012       2012       2011
Net revenues:
                       $      $      $      $      $     
 Advertising                                           368,805
                       110,666   103,655    120,590    412,928
 Non-advertising    28,460     29,714     31,788     116,401    114,024
                       139,126    133,369    152,378    529,329    482,829
Cost of revenues:
 Advertising (a)   48,758     45,635     54,010     195,324    157,458
 Non-advertising    11,003     15,098     15,428     52,608     57,890
                       59,761     60,733     69,438     247,932    215,348
Gross profit           79,365     72,636     82,940     281,397    267,481
Operating expenses:
 Sales and          34,688     36,013     38,439     142,342    135,867
marketing (a)
 Product            28,508     21,464     28,392     108,062    65,533
development (a)
 General and        10,580     9,088      12,308     39,397     30,121
administrative (a)
 Goodwill                      -                     -          68,891
impairment
 Amortization of    12         107        12         144        731
intangibles
                       73,788     66,672     79,151     289,945    301,143
Income/(loss) from     5,577      5,964      3,789      (8,548)    (33,662)
operations
Non-operating income:
 Interest and other  4,097      3,539      4,388      16,798     16,327
income, net
 Earning/(loss) from
equity investments,    (4,377)    225        883        (10,730)   1,466
net
 Gain on sale of
/(impairment) on       (1,770)    -          3,004      37,065     (281,548)
investments,net
                       (2,050)    3,764      8,275      43,133     (263,755)
Income/(loss) before   3,527      9,728      12,064     34,585     (297,417)
income taxes
Provision for income   (1,379)    (713)      (1,592)    (2,730)    (5,001)
taxes
Net income/(loss)      2,148      9,015      10,472     31,855     (302,418)
 Less: Net
income/(loss)
attributable to        (207)      (264)      594        117        (326)
noncontrolling
interest
Net income/(loss)      $      $      $      $      $     
attributable to SINA                            
                       2,355       9,279   9,878     31,738     (302,092)
Basic net              $      $      $      $      $     
income/(loss) per                                  
share attributable to   0.04       0.14   0.15     0.48     (4.64)
SINA
Diluted net            $      $      $      $      $     
income/(loss) per                                  
share attributable to   0.03       0.14   0.14     0.47     (4.64)
SINA
Shares used in
computing basic
 net income/(loss)
per share attributable 66,585     66,021     66,496     66,401     65,121
to SINA
Shares used in
computing diluted
 net income/(loss)
per share attributable 66,930     66,767     66,874     66,849     65,121
to SINA
(a) Stock-based
compensation in each
category:
   Cost of revenues -  $      $      $      $      $     
   advertising                                    
                        731      1,065     865    3,154      3,346
   Sales and marketing 1,022      1,068      1,187      3,729      3,155
   Product development 830        1,132      1,011      3,776      3,082
   General and         2,953      2,030      3,267      8,699      7,024
   administrative





SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
                                     December 31,          December 31,
                                     2012                  2011
    Assets
 Current assets:
    Cash and cash equivalents        $              $       
                                     199,826              513,980
    Short-term investments           513,772               159,495
    Accounts receivable, net         135,251               112,469
    Other current assets             36,498                41,966
     Total current assets       885,347               827,910
 Property and equipment, net         76,640                74,511
 Goodwill and intangible assets,     15,840                15,974
 net
 Investments                         466,875               463,938
 Other assets                        38,204                9,114
 Total assets                        $               $      
                                     1,482,906             1,391,447
    Liabilities and Shareholders' Equity
 Current liabilities:
    Accounts payable                 $            $         
                                      7,994                8,854
    Accrued liabilities              205,569               174,972
    Income taxes payable             13,466                14,717
    Convertible debt                 -                     2,200
     Total current liabilities   227,029               200,743
 Long-term deferred revenue          107,784               126,529
 Other long-term liabilities         2,220                 1,826
     Total liabilities           337,033               329,098
 Shareholders' equity
    SINA shareholders' equity        1,136,670             1,055,670
    Noncontrolling interest          9,203                 6,679
     Total shareholders' equity  1,145,873             1,062,349
 Total liabilities and               $               $      
 shareholders' equity                1,482,906             1,391,447





SINA CORPORATION
UNAUDITED SEGMENT INFORMATION
(U.S. Dollars in thousands)
             Three months ended                          Twelve months ended
             December 31,             September 30,      December 31,
             2012          2011       2012               2012        2011
Net revenues
 Advertising $         $       $             $       $    
             110,666      103,655   120,590           412,928    368,805
 Mobile      13,243        21,281     19,079             69,008      83,457
 related
 Others      15,217        8,433      12,709             47,393      30,567
             $         $       $             $       $    
             139,126      133,369   152,378           529,329    482,829
Cost of
revenues
 Advertising $        $      $            $     # $    
             48,758        45,635   54,010            195,324    157,458
 Mobile      7,218         13,783     12,262             41,935      53,235
 related
 Others      3,785         1,315      3,166              10,673      4,655
             $        $      $            $       $    
             59,761        60,733   69,438            247,932    215,348



SINA CORPORATION
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(U.S. Dollars in thousands, except per share data)
                Three months ended
                December 31, 2012                     December 31, 2011                      September 30, 2012
                                            Non-GAAP                               Non-GAAP                             Non-GAAP
                Actual     Adjustments      Results   Actual      Adjustments      Results   Actual    Adjustments      Results
Advertising     $                          $        $                          $        $                         $ 
revenues        110,666                    110,666  103,655                     103,655  120,590                   120,590
Non-advertising 28,460     (4,686)     (c) 23,774    29,714      (4,686)     (c) 25,028    31,788    (4,687)     (c) 27,101
revenues
Net revenues    $         $           $        $         $           $        $        $           $ 
                139,126    (4,686)       134,440  133,369     (4,686)       128,683  152,378   (4,687)       147,691
                           731         (a)                       1,065       (a)                     865         (a)
                           (4,686)     (c)                       (4,686)     (c)                     (4,687)     (c)
Gross profit    $        $           $       $        $           $       $       $           $  
                79,365     (3,955)       75,410   72,636      (3,621)       69,015   82,940    (3,822)       79,118
                           (4,805)     (a)                       (4,230)     (a)                     (5,465)     (a)
                           (12)        (b)                       (107)       (b)                     (12)        (b)
Operating       $        $           $       $        $           $       $       $           $  
expenses        73,788     (4,817)       68,971   66,672      (4,337)       62,335   79,151    (5,477)       73,674
                           5,536       (a)                       5,295       (a)                     6,330       (a)
                           12          (b)                       107         (b)                     12          (b)
                           (4,686)     (c)                       (4,686)     (c)                     (4,687)     (c)
Income from     $       $           $      $       $           $      $      $           $   
operations      5,577         862      6,439    5,964          716      6,680    3,789      1,655        5,444
                           5,536       (a)                                                            6,330       (a)
                           12          (b)                       5,295       (a)                     12          (b)
                           (4,686)     (c)                       107         (b)                     (4,687)     (c)
                           4,002       (d)                       (4,686)     (c)                     3,138       (d)
                           1,770       (e)                       3,958       (d)                     (3,004)     (e)
Net income      $       $           $      $       $           $       $      $           $  
attributable to 2,355       6,634        8,989    9,279        4,674        13,953   9,878      1,789        11,667
SINA
Diluted net
income per      $                       $      $                        $      $                       $   
share            0.03                        0.13    0.14                       0.21    0.14                     0.17
attributable to
SINA
Shares used in
computing
diluted
 net income
per share       66,930     -                66,930    66,767      -           (g) 66,767    66,874    -                66,874
attributable to
SINA
Gross margin -  56%        1%               57%       56%         1%               57%       55%       1%               56%
advertising
                Twelve months ended
                December 31, 2012                     December 31, 2011
                                            Non-GAAP                               Non-GAAP
                Actual     Adjustments      Results   Actual      Adjustments      Results
Advertising     $                          $        $                          $ 
revenues        412,928                    412,928  368,805                     368,805
Non-advertising 116,401    (18,745)    (c) 97,656    114,024     (18,745)    (c) 95,279
revenues
Net revenues    $         $           $        $         $           $ 
                529,329   (18,745)         510,584  482,829    (18,745)         464,084
                           3,154       (a)                       3,346       (a)
                           (18,745)    (c)                       (18,745)    (c)
Gross profit    $         $           $        $         $           $ 
                281,397   (15,591)         265,806  267,481    (15,399)         252,082
                                                                  (13,261)    (a)
                           (16,204)    (a)                       (731)       (b)
                           (144)       (b)                       (68,891)    (f)
Operating       $         $           $        $         $           $ 
expenses        289,945   (16,348)         273,597  301,143    (82,883)         218,260
                                                                  16,607      (a)
                           19,358      (a)                       731         (b)
                           144         (b)                       (18,745)    (c)
                           (18,745)    (c)                       68,891      (f)
Income/(loss)   $       $           $      $         $           $  
from operations (8,548)        757      (7,791)   (33,662)    67,484         33,822
                                                                  16,607      (a)
                           19,358      (a)                       731         (b)
                           144         (b)                       (18,745)    (c)
                           (18,745)    (c)                       14,703      (d)
                           14,935      (d)                       68,891      (f)
                           (37,065)    (e)                       281,548     (e)
Net
income/(loss)   $        $           $       $          $           $  
attributable to 31,738    (21,373)         10,365   (302,092)  363,735          61,643
SINA
Diluted net
income/(loss)   $                       $      $                        $   
per share        0.47                        0.15   (4.64)                       0.92
attributable to
SINA
Shares used in
computing
diluted
 net
income/(loss)
per share       66,849     -                66,849    65,121      1,943       (g) 67,064
attributable to
SINA
Gross margin -  53%        0%          *    53%       57%         1%               58%
advertising
(a) To adjust
stock-based compensation
related to employee
incentives.
(b) To adjust
amortization of
intangible
assets.
(c) To adjust the recognition of deferred revenue mostly
related to the license agreements resulting from the CRIC
Transaction.
(d) To adjust share of equity investments' GAAP to Non-GAAP reconciling
items, net of share of amortization of intangibles not on their books.
(e) To adjust gain on
sale of/(impairment) on
equity investments
(f) To adjust
for impairment
of MVAS
goodwill
(g) To adjust the number of shares used in
computing diluted net loss per share from diluted
net income per share.
 * Rounding
UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY
INVESTMENTS' GAAP TO NON-GAAP RESULTS*
                Three months ended
                December 31, 2012                     December 31, 2011                      September 30, 2012
                Actual     Adjustments      Non-GAAP  Actual      Adjustments      Non-GAAP  Actual    Adjustments      Non-GAAP
                                            Results                                Results                              Results
 To adjust                 $                                 $                               $     
 stock-based                 2,274                                1,617                              2,046
 compensation
 To adjust
 amortization
 expenses of
 intangible
  assets
 resulting from            1,287                                  1,605                                749
 business
 acquisitions
 Earning/(loss)
 from equity    $       $           $      $       $           $      $      $           $   
 investments,   (3,936)      3,561         (375)    961      3,222        4,183    1,226      2,795        4,021
 net
 Share of
 amortization
 of equity
 investments'
  intangibles  $      $           $      $       $           $      $      $           $   
 not on their   (441)         441             (736)        736             (343)      343         
 books                                      -                                      -                                    -
                $       $           $      $       $           $      $      $           $   
                (4,377)      4,002         (375)    225      3,958        4,183      883    3,138        4,021
                Twelve months ended
                December 31, 2012                     December 31, 2011
                Actual     Adjustments      Non-GAAP  Actual      Adjustments      Non-GAAP
                                            Results                                Results
 To adjust                 $                                 $     
 stock-based                 7,435                                5,531
 compensation
 To adjust
 amortization
 expenses of
 intangible
  assets
 resulting from            $                                 6,216
 business                    5,387
 acquisitions
 Earning/(loss)
 from equity    $       $           $      $       $           $  
 investments,   (8,617)     12,822         4,205    4,422       11,747         16,169
 net
 Share of
 amortization
 of equity
 investments'
  intangibles  $       $           $      $       $           $   
 not on their   (2,113)      2,113              (2,956)       2,956           
 books                                      -                                      -
                $         $           $      $       $           $  
                (10,730)   14,935         4,205    1,466       14,703         16,169
 * Earning/(loss) from equity
 investments is recorded one quarter
 in arrears.



SOURCE SINA Corporation

Website: http://www.sina.com
 
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