China Digital TV Announces Unaudited Fourth Quarter and Full Year 2012 Results

China Digital TV Announces Unaudited Fourth Quarter and Full Year 2012 Results

PR Newswire

BEIJING, Feb. 26, 2013

BEIJING, Feb. 26, 2013 /PRNewswire/ -- 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, today announced its unaudited financial results for the fourth quarter
and full year ended December 31, 2012.

Highlights for the Fourth Quarter 2012

  oNet revenues in the fourth quarter of 2012 were US$23.2 million,
    representing a 20.6% decrease from the same period in 2011 and a 13.7%
    increase from the third quarter of 2012.
  oChina Digital TV shipped approximately 4.07 million smart cards in the
    fourth quarter of 2012, compared to 5.38 million in the same period in
    2011 and 3.84 million in the third quarter of 2012.
  oGross margin in the fourth quarter of 2012 was 76.2%, compared to 81.1% in
    the same period in 2011 and 75.8% in the third quarter of 2012.
  oDiluted earnings per American depositary share (one ADS representing one
    ordinary share), or ADS, in the fourth quarter of 2012 were US$0.07,
    compared to US$0.19 in the same period in 2011.

Highlights for Full Year 2012

  oNet revenues in 2012 were US$88.7 million, representing a 10.4% decrease
    from 2011.
  oChina Digital TV shipped approximately 15.35 million smart cards in 2012,
    compared to 18.31 million smart cards in 2011.
  oGross margin was 76.5% in 2012, compared to 80.7% in 2011.
  oDiluted earnings per ADS in 2012 were US$0.12 compared to US$0.69 in 2011.

"The fourth quarter was the strongest of 2012 for China Digital TV's smart
card shipments, driven by demand in second and third-tier cities as cable
operators sped up the pace of digitalization projects ahead of the year end,"
said Mr. Jianhua Zhu, China Digital TV's chairman and chief executive officer.
"We maintained our strong leadership position in the fourth quarter, winning a
59% share of the CA market in China. While the completion of network
consolidation in most provinces in 2012 led to smart card purchase delays by
some cable operators during the second and third quarters, we saw promising
growth in demand for our digital TV value added services and we are optimistic
about the potential of this market."

Mr. Zhu continued, "In the fourth quarter of 2012, China Digital TV continued
to make progress executing our strategy for next generation value added
services and product, including the deployment of VOD services to cable
operators, and the successful launch of our Network Broadcast Platform, a new
product that allows users to watch TV live from their iOS devices. We believe
that the development of our next generation products and service solutions
will be key to our ongoing diversification strategy."

Mr. Zhenwen Liang, China Digital TV's chief financial officer, commented, "In
the fourth quarter, our continued leading position in China's CA market
enabled us to benefit from the sequential increase in provincial cable
operator demand. China Digital TV is committed to building on the steady
progress we made in our value added services business during the fourth
quarter through continued R&D investment."

Fourth Quarter 2012 Results

(Note: Unless otherwise stated, all financial statement measures stated in
this press release are based on generally accepted accounting principles in
the United States ("U.S. GAAP").)

In the fourth quarter of 2012, China Digital TV generated net revenues of
US$23.2 million, a decrease of 20.6% from the fourth quarter of 2011 and an
increase of 13.7% from the third quarter of 2012. The year-over-year decrease
in net revenues was principally due to a decrease in smart cards sales. The
quarter-over-quarter increase in net revenues was principally due to an
increase in sales of other products, such as surface mounted chips and
multimedia home entertainment boxes, as well as an increase in smart card
sales.

In the fourth quarter of 2012, revenues from the Company's top five customers
accounted for 22.7% of total revenues, compared to 22.9% in the third quarter
of 2012.

Revenue Breakdown

                             For the three months ended                For the twelve months
                                                                        ended
                             December31,  September30,  December31,  December31,  December
                             2012          2012           2011          2012          31,
                                                                                      2011
                             (in U.S. dollars, in thousands)
Products:
Smart Cards                  $   19,329    $    18,463    $   26,795    $   75,185    $ 91,960
Otherproducts                   2,785          1,158         1,240         10,134      3,202
Subtotal                         22,114         19,621        28,035        85,319      95,162
Services:
Head-endsystemintegration      623            436           843           2,175       2,562
Head-end system development      177            359           191           987         736
Licensing income                 420            204           243           1,246       1,328
Royalty income                   203            55            275           382         742
Other services                   91             23            4             135         10
Subtotal                         1,514          1,077         1,556         4,925       5,378
Total revenues               $   23,628    $    20,698    $   29,591    $   90,244    $ 100,540

Revenues from smart cards and other products were US$22.1 million in the
fourth quarter of 2012, a decrease of 21.1% from the same period in 2011 and
an increase of 12.7% from the third quarter of 2012. Sales of smart cards and
other products accounted for 93.6% of total revenues in the fourth quarter of
2012, compared to 94.8% in the third quarter of 2012. The year-over-year
decrease was primarily due to a decrease in the shipment volume of smart
cards. The quarter-over-quarter increase was principally due to an increase in
sales of other products, such as surface mounted chips and multimedia home
entertainment boxes, as well as an increase in the shipment volume of smart
cards.

Revenues from services were US$1.5 million in the fourth quarter of 2012, a
decrease of 2.7% from the same period in 2011 and an increase of 40.6% from
the third quarter of 2012. Service revenues accounted for 6.4% of total
revenues in the fourth quarter of 2012. The year-over-year decrease was
primarily due to a decline in revenues from head-end system integration and
royalty income. The quarter-over-quarter increase was largely due to
sequential revenue growth from services.

Gross profit in the fourth quarter of 2012 was US$17.7 million, a decrease of
25.3% from the same period in 2011 and an increase of 14.4% from the third
quarter of 2012. Gross margin, which is equal to gross profit divided by net
revenues, was 76.2% in the fourth quarter of 2012, compared to 81.1% in the
same period in 2011 and 75.8% in the third quarter of 2012. The year-over-year
decrease in gross margin was primarily due to a decrease in revenues from
smart cards sales and an increase in revenues from other products, which have
lower margins than smart cards. The quarter-over-quarter increase in gross
margin was mainly due to an increase in sales of surface mounted device
chipsets, which have a higher gross margin compared with other products, as
well as an increase in revenues from smart cards sales.

In the fourth quarter of 2012, the average selling price (the "ASP") of smart
cards decreased by 0.9% compared to the third quarter of 2012. In addition,
the unit cost of smart cards decreased by 11.3% compared to the third quarter
of 2012.

Operating expenses in the fourth quarter of 2012 were US$10.7 million, a
decrease of 1.8% from the same period in 2011 and an increase of 2.4% from the
third quarter of 2012.

  oResearch and development expenses for the fourth quarter of 2012 were
    US$4.5 million, an increase of 23.5% from the same period in 2011 and a
    decrease of 9.6% from the third quarter of 2012. The year-over-year
    increase was primarily due to the increased number of research and
    development staff. The quarter-over-quarter decrease was primarily due to
    decreases in share-based compensation expenses and project development
    expenses.
  oSelling and marketing expenses for the fourth quarter of 2012 were US$4.0
    million, a decrease of 5.4% from the same period in 2011 and an increase
    of 23.4% from the third quarter of 2012. The year-over-year decrease was
    mainly attributable to a decrease in share-based compensation expenses,
    which was partially offset by an increase in marketing expenditures. The
    quarter-over-quarter increase was primarily due to an increase in
    marketing activities.
  oGeneral and administrative expenses for the fourth quarter of 2012 were
    US$2.2 million, a decrease of 27.1% from the same period in 2011 and a
    decrease of 1.4% from the third quarter of 2012. The year-over-year and
    quarter-over-quarter decreases were mainly due to a decrease in
    share-based compensation expenses, which was partially offset by an
    increase in allowance for doubtful accounts.

Income from operations in the fourth quarter of 2012 was US$7.0 million, a
45.4% decrease from the same period in 2011 and a 39.7% increase from the
third quarter of 2012.

Operating margin, defined as income from operations divided by net revenues,
in the fourth quarter of 2012 was 30.1%, compared to 43.7% in the same period
in 2011 and 24.5% in the third quarter of 2012.

Interest income in the fourth quarter of 2012 was US$ 1.0 million, a 51.4%
decrease from the same period in 2011 and a 23.2% decrease from the third
quarter of 2012.

Income tax expenses in the fourth quarter of 2012 were US$4.6 million, an
increase of 49.4% from the same period in 2011 and a decrease of 66.4% from
the third quarter of 2012. The year-over-year increase was mainly due to
US$1.2 million in tax liabilities that were accrued in relation to certain VAT
refunds, and a deferred income tax expense of US$2.0 million accrued from the
undistributed retained earnings of the Company's PRC subsidiaries, which was
partially offset by a decrease in taxable income. The quarter-over-quarter
decrease was mainly due to the Company's accrual of US$12.1 million in
withholdings taxes in the third quarter of 2012 related to the undistributed
retained earnings of the Company's subsidiaries located in PRC as a result of
the Company's determination to distribute part of the undistributed retained
earnings of the Company's PRC subsidiaries during the quarter.

Net loss attributable to noncontrolling interest in the fourth quarter of 2012
was US$0.3 million, an increase of 50.9% from the same period in 2011 and a
decrease of 17.0% from the third quarter of 2012. The year-over-year increase
was primarily due to an increase in net loss incurred by the Company's
majority-owned subsidiaries. The quarter-over-quarter decrease was largely due
to a decrease in net loss incurred by the Company's majority-owned
subsidiaries.

Net income attributable to China Digital TV Holding Co., Ltd. in the fourth
quarter of 2012 was US$4.2 million, a decrease of 63.0% from the same period
in 2011 and as compared to a net loss attributable to China Digital TV of
US$11.4 million in the third quarter of 2012.

Non-GAAP net income / (loss) attributable to China Digital TV Holding Co.,
Ltd., defined as net income / (loss) excluding certain one time or non-cash
expenses, such as share-based compensation expenses, amortization of acquired
intangible assets from business acquisitions and equity method investments, in
the fourth quarter of 2012 was US$4.4 million, a decrease of 67.7% from the
same period in 2011 and as compared to a non-GAAP net loss of US$6.2 million
in the third quarter of 2012. For more information on these non-GAAP financial
measures, please see the tables captioned "Reconciliations of non-GAAP
measures" set forth at the end of this release.

Balance Sheet and Cash Flow

As of December 31, 2012, China Digital TV had cash and cash equivalents and
restricted cash totaling US$130.7 million. In the fourth quarter of 2012, cash
flow used in operations was approximately US$2.7 million.

Full Year 2012 Results

Net revenues in 2012 were US$88.7 million, a 10.4% decrease from US$99.1
million in 2011 primarily due to a decrease in smart card sales.

Revenues from smart cards and other products in 2012 were US$85.3 million, a
decrease of 10.3% from 2011, mainly due to a decrease in the shipment volume
of smart cards, which was partially offset by an increase in the sales of
other products. In 2012, revenues from the Company's top five customers
accounted for 21.0% of total revenues, compared to 25.9% in 2011.

Revenues from services were US$4.9 million in 2012, a decrease of 8.4% from
2011, primarily due to decreases in revenues from royalty income and head-end
system integration. Revenues from services represented 5.5% of total revenues
in 2012.

Gross profit was US$67.9 million in 2012, a decrease of 15.1% from US$80.0
million in 2011. Gross margin was 76.5% in 2012, compared to 80.7% in 2011.
The decrease in gross margin was primarily due to a decrease in smart cards
sales, and an increase in sales of other products, which have lower gross
margins than smart cards.

In 2012, the ASP of smart cards decreased by 2.5% compared to 2011. In
addition, the unit cost of smart cards decreased by 0.4% compared to 2011.

Operating expenses in 2012 were US$40.5 million, an increase of 14.8% from
US$35.2 million in 2011.

  oResearch and development expenses in 2012 increased by 32.4% to US$17.4
    million from US$13.1 million in 2011, mainly due to an increase in office
    rental and personnel related expenses resulting from increased headcount,
    which was partially offset by a decrease in share-based compensation
    expenses.
  oSales and marketing expenses in 2012 increased by 9.9% to US$13.6 million
    from US$12.4 million in 2011. The increase was primarily due to an
    increase in personnel related expenses resulting from increased headcount
    of sales and marketing staff.
  oGeneral and administrative expenses in 2012 decreased by 2.9% to US$9.4
    million from US$9.7 million in 2011. The decrease was primarily due to a
    decrease in share-based compensation expenses.

Income from operations in 2012 was US$27.5 million, a decrease of 38.6% from
2011.

Operating margin, defined as income from operations divided by net revenues,
was 30.9% in 2012, compared to 45.1% in 2011.

Net income attributable to China Digital TV Holding Co., Ltd. in 2012 was
US$6.9 million, a decrease of 83.1% from US$41.0 million in 2011.

U.S. Federal Income Taxation

Based on the Company's analysis of the value of the Company's assets as of
December 31, 2012, the Company was classified as a passive foreign investment
company ("PFIC") during 2012 for U.S. federal income tax purposes. In
addition, based on analyses of the value of the Company's assets as of the end
of earlier years, the Company was a PFIC during the taxable years 2009 through
2011 for U.S. federal income tax purposes. The Company has substantial passive
assets in the form of cash and cash equivalents, among others, and can provide
no assurance that the Company will not continue to be classified as a PFIC for
the taxable year 2013 or future taxable years, as PFIC status is tested each
year and depends on the Company's assets and income in such year. U.S. holders
of the Company's ADSs during any year in which the Company was treated as a
PFIC will be subject to special rules. Further details about the PFIC rules
are available in the Company's annual reports on Form 20-F for the fiscal
years ended December 31, 2010 and 2011. U.S. holders of the Company's ADSs
should generally be able to make a mark-to-market election under the PFIC
rules. U.S. holders of Company's ADSs are advised to consult their own tax
advisors regarding the application of the PFIC rules to their particular
circumstances, including the consequences of making a mark-to-market election.

Business Outlook

Based on information available as of February 26, 2013, China Digital TV
expects smart card shipments for the first quarter of 2013 to be in the range
of 3.2 million and 3.5 million. Net revenues for the first quarter of 2013 are
expected to be in the range of US$ 14.7 million and US$16.0 million.

Conference Call Information

The Company will hold an earnings conference call at 7:00 p.m. on Tuesday,
February 26, 2013, U.S. Eastern Time (8:00 a.m. on Wednesday, February 27,
2013, Beijing/Hong Kong Time).

Conference Call Dial-in Information
United States Toll Free: +1-866-519-4004
International:          + 1-718-354-1231
Hong Kong:              +852-2475-0994
China Toll Free:        +400-620-8038 and +800-819-0121
Passcode:               China Digital TV Earnings Call

Please dial-in ten minutes before the call is scheduled to begin and provide
the passcode to join the call.

A replay of the call will be available for one week between 10:00 p.m. on
February 26, 2013 and 11:59 p.m. on March 5, 2013, U.S. Eastern Time.

Replay Information
United States: + 1-855-452-5696
International:                + 61-2-8199-0299
Conference ID:                96639455

In addition, a live and archived webcast of this conference call will be
accessible through the Investor Relations section of China Digital TV's
website at http://ir.chinadtv.cn.

Safe Harbor 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. Such forward-looking statements
are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates," "may," "should" and similar expressions. Such forward-looking
statements include, without limitation, statements regarding the outlook for
the first quarter of 2013 and comments by management in this announcement
about trends in the CA systems, digital television, cable television and
related industries in the PRC and China Digital TV's strategic and operational
plans and future market positions. China Digital TV may also make
forward-looking statements in its periodic reports filed with 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. Statements that are not
historical facts, including statements about China Digital TV's beliefs and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from projections contained or implied in
any forward-looking statement, including but not limited to the following:
competition in the CA systems, digital television, cable television and
related industries in the PRC and the impact of such competition on prices,
our ability to implement our business strategies, changes in technology, the
progress of the television digitalization in the PRC, the structure of the
cable television industry or television viewer preferences, changes in PRC
laws, regulations or policies with respect to the CA systems, digital
television, cable television and related industries, including the extent of
non-PRC companies' participation in such industries, and changes in political,
economic, legal and social conditions in the PRC, including the government's
policies with respect to economic growth, foreign exchange and foreign
investment.

Further information regarding these and other risks and uncertainties is
included in our annual report on Form 20-F and other documents filed with the
U.S. Securities and Exchange Commission. China Digital TV does not assume any
obligation to update any forward-looking statements, which apply only as of
the date of this press release.

About China Digital TV

Founded in 2004, China Digital TV 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.

For more information please visit the Investor Relations section of China
Digital TV's website at http://ir.chinadtv.cn. The information contained in
that website is not a part of this announcement.

For investor and media inquiries, please contact:

In China:

Nan Hao
Investor Relations Manager
Tel: +86-10-6297-1199 x 9780
E-mail: ir@chinadtv.cn

Josh Gartner
Brunswick Group
Tel: +86-10-5960-8610
E-mail: chinadigital@brunswickgroup.com

In the US:

Cindy Zheng
Brunswick Group
Tel: +1-212-333 3810
E-mail: chinadigital@brunswickgroup.com



China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
(in thousands of U.S. dollars, except share and per share data)
                                      For the threemonthsended
                                      December 31,  September30,  December 31,
                                      2012          2012           2011
Revenues:
 Products                            $ 22,114      $  19,621      $ 28,035
 Services                              1,514          1,077         1,556
Total revenues                          23,628         20,698        29,591
 Business taxes                        (475)          (341)         (417)
Net revenues                            23,153         20,357        29,174
Cost of revenues:
 Products                              (4,390)        (3,901)       (4,557)
 Services                              (1,109)        (1,030)       (970)
Total cost of revenues                  (5,499)        (4,931)       (5,527)
Gross Profit                            17,654         15,426        23,647
Operating expenses:
 Research and development expenses     (4,484)        (4,960)       (3,630)
 Selling and marketing expenses        (4,000)        (3,241)       (4,230)
 General and administrative            (2,209)        (2,241)       (3,031)
expenses
Total operating expenses                (10,693)       (10,442)      (10,891)
Income from operations                  6,961          4,984         12,756
 Interest income                       1,031          1,343         2,120
 Interest expense                      -              -             (545)
Loss from forward contract            -              -             (413)
 Impairment loss on long-term          -              (4,487)       -
investments
 Other income                          273            170           660
Income before income tax                8,265          2,010         14,578
Income tax (expenses) / benefits
 Income tax-current                    (12,205)       (1,718)       (3,393)
 Income tax-deferred                   7,636          (11,899)      335
Netincome                                                         
/(loss)beforenetlossfromequity
method investments                      3,696          (11,607)      11,520
Net income / (loss) from equity         200            (235)         (285)
method investments
Net income / (loss)                     3,896          (11,842)      11,235
Net loss attributable to                347            418           230
noncontrolling interest
Net income / (loss) attributable to                                
China Digital TV Holding Co., Ltd     $             $              $
shareholders                            4,243          (11,424)      11,465
Net income / (loss) per share
attributable to

ordinary shareholders of China
Digital TV Holding Co., Ltd
Basic                                 $ 0.07        $  (0.19)      $ 0.19
Diluted                               $ 0.07        $  (0.19)      $ 0.19
Net income / (loss)                   $ 3,896       $  (11,842)    $ 11,235
Other comprehensive income, net of
tax
                                        1,242          1,416         3,665
 Foreign currency translation
adjustment
                                                       
Comprehensive income / (loss)           5,138                        14,900
                                                       (10,426)
Comprehensive loss attributable to
                                        320            385           230
 noncontrolling interest
Comprehensive income / (loss)
attributable to                                        

ordinary shareholders of China        $ 5,458       $             $ 15,130
Digital
                                                       (10,041)
TV Holding Co., Ltd
Weighted average shares used in
calculating

net income / (loss) per ordinary
share
Basic                                   59,056,895     59,004,438    58,977,669
Diluted                                 59,193,350     59,004,438    59,087,442



China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars)
                                                   December 31,  December 31,
                                                   2012          2011
ASSETS
Current assets:
 Cash and cash equivalents                         $   130,697   $  201,557
 Restricted cash                                       18           55,679
 Notes receivable                                      4,101        9,168
 Accounts receivable, net                              38,283       31,030
 Inventories                                           5,678        3,918
 Prepaid expenses and other current assets             5,245        6,768
 Deferred costs-current                                299          524
 Deferred income taxes - current                       1,503        1,352
Total current assets                                  185,824      309,996
 Property and equipment, net                          1,630        1,751
 Intangible assets, net                                198          450
 Goodwill                                              547          541
 Long-term investments - equity method investments     4,268        7,766
 Deferred costs-non-current                            301          379
 Deferred income taxes - non-current                   797          455
Total assets                                           193,565      321,338
LIABILITIES AND EQUITY
Current liabilities:
 Short-term loan                                       -            55,193
 Accounts payable                                      1,215        1,487
 Accrued expenses and other current liabilities       12,305       9,313
 Dividend payable                                      77,970       33,172
 Deferred revenue – current                            7,473        7,745
 Income tax payable                                    3,476        1,902
 Deferred income taxes - current                       4,812        -
Total current liabilities                              107,251      108,812
 Deferred revenue-non-current                          255          401
 Government subsidies                                  3,867        1,803
Total Liabilities                                    111,373      111,016
EQUITY
China Digital TV Holding Co., Ltd. shareholders'

equity:
 Ordinary shares                                       30           29
 Additional paid-in capital                            28,753       126,583
 Statutory reserve                                     17,856       17,694
 Retained earnings                                     6,765        36,401
 Accumulated other comprehensive income                26,083       25,735
Total China Digital TV Holding Co., Ltd
                                                       79,487       206,442
shareholders' equity
Noncontrolling interest                                2,705        3,880
Total equity                                           82,192       210,322
TOTAL LIABILITIES AND EQUITY                       $   193,565   $  321,338



China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
(in thousands of U.S. dollars, except share and per share data)
                                                 For the twelve months ended
                                                 December 31,   December 31,
                                                 2012           2011
Revenues:
 Products                                       $  85,319      $ 95,162
 Services                                          4,925         5,378
Total revenues                                      90,244        100,540
 Business taxes                                    (1,501)       (1,445)
Net revenues                                        88,743        99,095
Cost of revenues:
 Products                                          (16,880)      (16,100)
 Services                                          (3,952)       (3,027)
Total Cost of Revenues                              (20,832)      (19,127)
Gross Profit                                        67,911        79,968
Operating expenses:
 Research and development expense                  (17,402)      (13,140)
 Selling and marketing expenses                    (13,606)      (12,377)
 General and administrative expenses               (9,444)       (9,723)
Total operating expenses                            (40,452)      (35,240)
Income from operations                              27,459        44,728
 Interest income                                   6,318         6,810
 Interest expense                                  (739)         (1,452)
 (Loss) /gain from forward contract                (690)         404
 Impairment loss on long-term investments          (4,487)       -
 Other income / (expense)                          549           594
Income before income tax                            28,410        51,084
Income tax (expenses) / benefits
 Income tax-current                                (18,035)      (10,344)
 Income tax-deferred                               (4,197)       582
Net income before net loss from equity              6,178         41,322
method investments
Net (loss) / income from equity method              (640)         (1,052)
investments
Net income                                          5,538         40,270
Net loss attributable to noncontrolling             1,389         730
interest
Net income attributable to China Digital TV      $  6,927       $ 41,000
Holding Co., Ltd shareholders
Net income per share attributable to
ordinary shareholders of China Digital TV
Holding Co., Ltd
Basic                                            $  0.12        $ 0.70
Diluted                                          $  0.12        $ 0.69
Net income                                       $  5,538       $ 40,270
Other comprehensive income, net of tax
                                                    536           12,175
 Foreign currency translation adjustment
                                                                 
Comprehensive income
                                                    6,074         52,445
Comprehensive income attributable to              1,201         730
noncontrolling interest
Comprehensive income attributable to                             
ordinary shareholders of China Digital
                                                 $             $ 
TV Holding Co., Ltd
                                                    7,275         53,175
Weighted average shares used in calculating
net income per ordinary share
Basic                                               59,011,396    58,934,912
Diluted                                             59,092,804    59,075,466

Reconciliation of Non-GAAP Measures

Non-GAAP net income attributable to China Digital TV Holding Co., Ltd.
Shareholders excludes certain one-time non-cash expenses, such as impairment
loss on long-term investments, share-based compensation expenses, amortization
of intangible assets acquired from business acquisitions and equity method
investments. The Company believes that the non-GAAP net income provides
meaningful supplemental information regarding the Company's performance and
liquidity by excluding certain non-cash expenses that may not be indicative of
its operating performance from a cash flow perspective. The Company believes
that both management and investors benefit from referring to this additional
information in assessing the Company's performance and when planning and
forecasting future periods.

                                           For the three months ended
                                           December31,  September30,  December31,
                                           2012          2012           2011
                                           (in U.S. dollars, in thousands)
Netincome
/(loss)attributabletoChinaDigitalTV  $    4,243    $   (11,424)   $   11,465

Holding Co., Ltd shareholders – GAAP
Share-based compensation expenses               114          646            2,083
Amortization of intangible assets from
business acquisitions and equity method         53           88             88
investments
Impairment loss on long-term investments        -            4,487          -
Net income / (loss) attributable to China
Digital TV Holding Co., Ltd shareholders   $    4,410    $   (6,203)    $   13,636
- Non-GAAP

SOURCE China Digital TV Holding Co., Ltd.

Website: http://ir.chinadtv.cn
 
Press spacebar to pause and continue. Press esc to stop.