May 4, 2012 (Chinavestor) This report provides basic analysis on the quarterly revenue and net income of Sina Corp. (NASDAQ: SINA) during 2003-2011. The following graph illustrates SINA’s quarterly revenue and net income under GAAP from 2003-2011.
(Reference: published data in quarterly income statements of SINA Corp.)
The revenue of SINA has increased gradually during the 2003-2011 period based on data in quarterly income statements. In comparison, its net income remained relative stable before the fourth quarter of 2009 and then underwent great fluctuation during the fourth quarter of 2009, the fourth quarter of 2010 and the third quarter of 2011.
For the fourth quarter of 2009, Sina Corp. (NASDAQ:SINA) earned a net income of ＄372.1 million which was much larger than the revenue (＄98.2 million) of the same period, while the non-GAAP net income for the same period was ＄19.1 million. Net loss attributable to SINA for the fourth quarter of 2010 was ＄100 million as a result of a write-down of ＄128.6 million related to an impairment of equity investment. Greater net loss of ＄336.3 million occurred in the third quarter of 2011 was mainly caused by non-cash impairment charges and other-than-temporary impairment write-downs on investments.
Now, taking out those extraordinary items, we get a much better picture of what's happening with Sina Corp. (NASDAQ:SINA).
The fact that revenue growth doesn't translate to net income growth is not specific to Sina Corp. (NASDAQ:SINA) alone. Sohu.com (NASDAQ:SOHU) has been facing the same problem, just revealed in the first quarter with estimates for 2012 Q2 as well.
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