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SINA Reports First Quarter 2013 Financial Results

              SINA Reports First Quarter 2013 Financial Results

PR Newswire

SHANGHAI, May 16, 2013

SHANGHAI, May 16, 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 first quarter ended
March 31, 2013.

First Quarter 2013 Highlights

  oNet revenues increased 19% year over year to $126.0 million. Non-GAAP net
    revenues increased 19% year over year to $121.3 million, exceeding the
    Company's guidance between $115.0 million and $119.0 million.
  oAdvertising revenues grew 20% year over year to $94.3 million, within the
    Company's guidance between $94.0 million and $96.0 million.
  oNon-advertising revenues increased 14% year over year to $31.7 million.
    Non-GAAP non-advertising revenues increased 17% year over year to $27.0
    million, exceeding the Company's guidance between $21.0 million and $23.0
    million.
  oNon-GAAP net income attributable to SINA was $1.5 million, or $0.02
    non-GAAP diluted net income per share attributable to SINA.

"As we start 2013, we are making good progress in transitioning from a
PC-centric to a mobile-centric Internet company with new product launches and
improved monetization," said Charles Chao, Chairman and CEO of SINA. "In
April, we formed a strategic alliance with Alibaba Group to catapult us into
social commerce. By partnering with Alibaba, Weibo is well positioned to play
a key role in the future of e-commerce, particularly in mobile commerce as we
explore ways for our users to search, share and buy the goods and services of
the millions of merchants on Taobao and Tmall."

First Quarter 2013 Financial Results

For the first quarter of 2013, SINA reported net revenues of $126.0 million,
compared to $106.2 million for the same period last year. Non-GAAP net
revenues for the first quarter of 2013 totaled $121.3 million, compared to
$101.5 million for the same period last year.

Online advertising revenues for the first quarter of 2013 were $94.3 million,
compared to $78.5 million for the same period last year. Non-advertising
revenues for the first quarter of 2013 totaled $31.7 million, compared to
$27.7 million for the same period last year. Mobile value-added services
("MVAS") revenues for the first quarter of 2013 decreased 17% year over year
to $15.9 million, while the rest of non-GAAP non-advertising revenues grew
180% year over year to $11.1 million. The year over year growth of
non-advertising revenues came primarily from Weibo value added services
("Weibo VAS"), which included revenue share from web games and membership fees
on Weibo.

Gross margin for the first quarter of 2013 increased to 51% from 46% for the
same period last year. Advertising gross margin for the first quarter of 2013
increased to 49% from 44% for the same period last year, due to advertising
revenues growing faster than advertising cost of revenues. Non-advertising
revenue gross margin for the first quarter of 2013 increased to 57% from 53%
for the same period last year, primarily due to the increase in proportion of
higher margin Weibo VAS.

Operating expenses for the first quarter of 2013 totaled $74.5 million,
compared to $67.2 million for the same period last year. Non-GAAP operating
expenses for the first quarter of 2013 were $69.8 million, compared to $64.1
million for the same period last year.The increase in non-GAAP operating
expenses was primarily due to higher personnel costs, professional services
and bad debt expenses, which were partially offset by lower marketing
expenditures.

Loss from operations for the first quarter of 2013 was $9.9 million, compared
to $18.1 million for the same period last year. Non-GAAP loss from operations
for the first quarter of 2013 was $9.3 million, compared to $18.9 million for
the same period last year.

Non-operating loss for the first quarter of 2013 was $4.5 million, compared to
$2.7 million income for the same period last year. As a result of E-House's
issuing new shares to its management at $3.52 per share on March 25, 2013,
SINA incurred a non-cash $10.2 million loss on the dilution of equity interest
in E-House from 25% to 22%. Non-operating loss in the first quarter of 2013
also included $1.5 million, or $4.8 million on a non-GAAP basis, in earnings
from equity investments, which were accounted for under the equity-method
accounting and reported on a one-quarter lag basis.

Net loss attributable to SINA for the first quarter of 2013 was $13.2 million,
compared to $13.7 million for the same period last year. Diluted net loss per
share attributable to SINA for the first quarter of 2013 was $0.20, compared
to $ 0.21 for the same period last year. Non-GAAP net income attributable to
SINA for the first quarter of 2013 was $1.5 million, compared to net loss of
$14.0 million for the same period last year. Non-GAAP diluted net income per
share attributable to SINA for the first quarter of 2013 was $0.02, compared
to net loss per share of $0.21 for the same period last year.

As of March 31, 2013, SINA's cash, cash equivalents and short-term investments
totaled $681.9 million, compared to $713.6 million as of December 31, 2012.
For the first quarter of 2013, cash used in operating activities was $5.9
million, capital expenditures totaled $25.4 million and depreciation expenses
amounted to $8.1 million.

Business Outlook

SINA estimates that its non-GAAP net revenues for the second quarter of 2013
will be between $143 million and $147 million, including advertising revenues
to be between $117 million and $119 million, and non-GAAP non-advertising
revenues to be between $26 million and $28 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 earning/(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 revenue in relation to the CRIC Transaction 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. The Company's 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 9 p.m. Eastern Daylight Time on May 16,
2013 (or 9 a.m. Beijing Time on May 17, 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:                       +1 845 507 1607
Hong Kong:                +852 2810 7648
Passcode for all regions: 64835151

A replay of the conference call will be available through midnight Eastern
Daylight Time May 23, 2013. The dial-in number is +61 2 8199 0299. The
passcode for the replay is 64835151.

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
mobile (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 microblogging services and social networking services
that allow users to connect and share information anywhere, anytime and with
anyone on the platform.

Through these properties and other product lines and businesses, SINA offers
an array of online media and social networking services to its users to create
a rich canvas for businesses and brand advertisers to connect and engage with
their targeted audiences. SINA generates the majority of its revenues from
online advertising, MVAS and fee-based services.

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 global financial and credit market
crisis and its impact on the Chinese economy; the uncertain regulatory
landscape in 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; 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 and changes in
mobile operators' policies for MVAS in China; failure to successfully
integrate acquired businesses; risks associated with the Company's
investments, including equity pick-up and impairment; and 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, 2012 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
                               March 31,                         December 31,
                               2013             2012             2012
Net revenues:
 Advertising                $         $         $      
                                94,289           78,542       110,666
 Non-advertising            31,684           27,678           28,460
                               125,973          106,220          139,126
Cost of revenues:
 Advertising (a)           47,810           44,084           48,758
 Non-advertising            13,547           13,027           11,003
                               61,357           57,111           59,761
Gross profit                   64,616           49,109           79,365
Operating expenses:
 Sales and marketing (a)    30,024           34,744           34,688
 Product development (a)    30,801           25,023           28,508
 General and administrative 13,629           7,321            10,580
(a)
 Amortization of            12               108              12
intangibles
                               74,466           67,196           73,788
Income/(loss) from operations  (9,850)          (18,087)         5,577
Non-operating income/(loss):
 Interest and other income,  4,785            3,531            4,097
net
 Earning/(loss) from equity  1,526            (3,921)          (4,377)
investments, net
 Gain/(loss) on sale of and  (10,852)         3,061            (1,770)
impairment on investments, net
                               (4,541)          2,671            (2,050)
Income/(loss) before income    (14,391)         (15,416)         3,527
taxes
Income tax credit/(provision)  (185)            1,274            (1,379)
Net income/(loss)              (14,576)         (14,142)         2,148
 Less: Net loss attributable (1,405)          (402)            (207)
to noncontrolling interest
Net income/(loss) attributable $         $         $      
to SINA                        (13,171)          (13,740)         2,355
Basic net income/(loss) per    $         $         $      
share attributable to SINA       (0.20)          (0.21)       0.04
Diluted net income/(loss) per  $         $         $      
share attributable to SINA       (0.20)          (0.21)       0.03
Shares used in computing basic
 net income/(loss) per share 66,687           66,185           66,585
attributable to SINA
Shares used in computing
diluted
 net income/(loss) per share 66,687           66,185           66,930
attributable to SINA
(a) Stock-based compensation
in each category:
Cost of revenues - advertising $         $         $      
                                  568            807         731
Sales and marketing            790              766              1,022
Product development            791              1,067            830
General and administrative     3,118            1,133            2,953



SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
                                   March 31,               December 31,
                                   2013                    2012
 Assets
Current assets:
 Cash and cash equivalents         $                $       
                                   174,599                199,826
 Short-term investments            507,332                 513,772
 Accounts receivable, net          134,160                 135,251
 Prepaid expenses and other        40,966                  36,498
 current assets
  Total current assets        857,057                 885,347
Property and equipment, net        73,479                  76,640
Goodwill and intangible assets,    15,828                  15,840
net
Equity investments, net            454,382                 466,875
Other assets                       51,351                  38,204
Total assets                       $                 $      
                                   1,452,097               1,482,906
 Liabilities and Shareholders' Equity
Current liabilities:
 Accounts payable                  $             $         
                                   1,473                    7,994
 Accrued liabilities               159,360                 168,677
 Deferred revenues                 38,847                  36,892
 Income taxes payable              13,538                  13,466
  Total current liabilities    213,218                 227,029
Long-term deferred revenue         103,098                 107,784
Other long-term liabilities        2,225                   2,220
  Total liabilities            318,541                 337,033
Shareholders' equity
 SINA shareholders' equity         1,125,967               1,136,670
 Non-controlling interest          7,589                   9,203
  Total shareholders' equity  1,133,556               1,145,873
Total liabilities and              $                 $      
shareholders' equity               1,452,097               1,482,906



SINA CORPORATION
UNAUDITED ADDITIONAL INFORMATION
(U.S. Dollars in thousands)
                 Three months ended
                 March 31,                                December 31,
                 2013                 2012                2012
Net revenues
   Advertising   $      94,289  $      78,542  $      110,666
   MVAS          15,863               19,018              13,243
   Others        15,821               8,660               15,217
                 $     125,973   $    106,220    $      139,126
Cost of revenues
   Advertising   $      47,810  $      44,084  $      
                                                          48,758
   MVAS          11,026               11,677              7,218
   Others        2,521                1,350               3,785
                 $      61,357  $      57,111  $      
                                                          59,761







SINA CORPORATION
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(U.S. Dollars in thousands, except per share data)
                Three months ended
                March 31, 2013                         March 31, 2012                          December 31, 2012
                                             Non-GAAP                               Non-GAAP                               Non-GAAP
                Actual     Adjustments       Results   Actual     Adjustments       Results    Actual    Adjustments       Results
Advertising     $                          $       $                         $        $                          $ 
revenues        94,289                      94,289   78,542                      78,542    110,666                    110,666
Non-advertising 31,684     (4,686)     (c) 26,998    27,678     (4,686)     (c) 22,992     28,460    (4,686)     (c) 23,774
revenues
Net revenues    $         $            $        $        $            $         $        $            $ 
                125,973    (4,686)        121,287  106,220    (4,686)        101,534   139,126   (4,686)        134,440
                           568         (a)                      807         (a)                      731         (a)
                           (4,686)     (c)                      (4,686)     (c)                      (4,686)     (c)
Gross profit    $        $            $       $       $            $        $       $            $  
                64,616     (4,118)        60,498   49,109     (3,879)        45,230    79,365    (3,955)        75,410
                           (4,699)     (a)                      (2,966)     (a)                      (4,805)     (a)
                           (12)        (b)                      (108)       (b)                      (12)        (b)
Operating       $        $            $       $       $            $        $       $            $  
expenses        74,466     (4,711)        69,755   67,196     (3,074)        64,122    73,788    (4,817)        68,971
                           5,267       (a)                      3,773       (a)                      5,536       (a)
                           12          (b)                      108         (b)                      12          (b)
                           (4,686)     (c)                      (4,686)     (c)                      (4,686)     (c)
Income/(loss)   $       $            $      $        $            $         $      $            $   
from operations (9,850)        593       (9,257)   (18,087)     (805)       (18,892)  5,577        862       6,439
                           5,267       (a)                      3,773       (a)                      5,536       (a)
                           12          (b)                      108         (b)                      12          (b)
                           (4,686)     (c)                      (4,686)     (c)                      (4,686)     (c)
                           3,275       (d)                      3,578       (d)                      4,002       (d)
                           10,852      (e)                      (3,061)     (e)                      1,770       (e)
Net
income/(loss)   $         $            $      $        $            $         $      $            $   
attributable to (13,171)   14,720          1,549    (13,740)     (288)       (14,028)  2,355      6,634         8,989
SINA
Diluted net
income/(loss)   $                        $      $                        $      $                        $   
per share       (0.20)                         0.02   (0.21)                     (0.21)       0.03                      0.13
attributable to
SINA
Shares used in
computing
diluted
 net
income/(loss)
per share       66,687     268         (f) 66,955    66,185     -                 66,185     66,930    -                 66,930
attributable to
SINA
Gross margin -  49%        1%                50%       44%        1%                45%        56%       1%                57%
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/(loss) on sale of equity investment, (loss) on deemed disposal and (impairment) on investments, net
(f) To adjust the number of shares used in computing diluted net income per share from diluted net loss per share.
UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' GAAP TO NON-GAAP RESULTS*
                Three months ended
                March 31, 2013                         March 31, 2012                          December 31, 2012
                Actual     Adjustments       Non-GAAP  Actual     Adjustments       Non-GAAP   Actual    Adjustments       Non-GAAP
                                             Results                                Results                                Results
 To adjust              $                                 $                                 $     
stock-based                  1,632                                1,154                                2,274
compensation
 To adjust
amortization
expenses of
intangible
  assets
resulting from             1,202                                  1,688                                  1,287
business
acquisitions

Earning/(loss)  $       $            $      $      $            $      $      $            $   
from equity     1,967       2,834         4,801    (3,185)      2,842         (343)     (3,936)     3,561          (375)
investments,
net
 Share of
amortization of
equity
investments'
           $      $            $      $      $            $      $      $            $   
intangibles not (441)        441               (736)      736           -    (441)     441           
on their books                               -                                                                             -
                $       $            $      $      $            $      $      $            $   
                1,526       3,275         4,801    (3,921)      3,578         (343)     (4,377)     4,002          (375)
* Earning/(loss) from equity investments is recorded one quarter in arrears.

SOURCE SINA Corporation

Website: http://www.sina.com
 
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