Business-to-business media group Global Sources Ltd. says both its revenue and profit have dropped in China as it reported financial results for the third quarter ended September 30, 2009.
Revenue for the third quarter of 2009 was USD30.6 million, compared to USD37.6 million in the third quarter in 2008. Total revenue derived from mainland China was USD21.8 million, compared to USD24.3 million last year.
Global Sources' chairman and CEO, Merle A. Hinrichs, stated: "As we expected, third quarter revenue was impacted by the difficult global trade environment. However, we are encouraged by an increase in sourcing and marketing activity, most particularly at our recently completed China Sourcing Fairs in Hong Kong. Accordingly, we are confident that our strong balance sheet, enhanced efficiencies, and an experienced and extensive sales representation network have us well positioned for the anticipated improvement in trade in 2010."
The company's profit, including a non-cash stock based compensation expense of USD940,000, was USD1.2 million, or USD0.03 per diluted share, compared to third quarter 2008 net income of USD2.3 million or USD0.04 per diluted share, which included a non-cash stock based compensation credit of USD379,000.
Of the company's total revenue, online revenue was USD20.9 million, compared to USD23.5 million at the same time last year. Exhibitions revenue was USD901,000, an increase of the USD511,000 from last year. However print revenue was USD7.9 million, a drop from USD11.9 million a year ago.