VisionChina Q2 net up 3,039.7 pct y-o-y, raising Q3 estimate

VisionChina Media Inc. (VISN.Nasdaq), a leading operator of digital television advertising networks on mass transportation systems, recently reported its financial results for the second quarter, showing the company's net income sharply spiked 3, 039.7 percent y-o-y to 8.5 million U.S dollars.

The fully diluted net income per share in the second quarter of 2008 arrived at 0.12 dollars compared to 0.08 dollars in the first quarter of 2008.

The report shows that total revenues of VisionChina amounted 20.3 million dollars in the second quarter of 2008, an increase of 48.8 percent from the 13.6 million dollars in the first quarter of 2008 or an increase of 332.4 percent over the same period of 2007.

Operating profit in the second quarter of 2008 was 7.8 million dollars, up 71.1 percent from 4.5 million dollars in the first quarter of 2008, and a significant increase of 3,210.8 percent y-o-y.

On the basis of outstanding performance in the second quarter, the Company estimates its total revenues for the third quarter of 2008 will range from 34-36 million dollars, out of which advertising service revenue is expected to be between 33.8-35.8 million dollars.

Third quarter 2008 net income excluding share-based compensation expenses (non-GAAP) is expected to be 15-17.0 million dollars.

Besides, the Company has increased its full-year estimates of results of operations and expects that total revenues for full year 2008 will range from 101-105 million dollars. Net income for full year 2008, excluding share-based compensation expenses (non-GAAP), is expected to be between 44-48 million dollars.

Limin Li, chairman and CEO of VisionChina, is satisfied with the results, commenting that in spite of the negative impact on their operations and sales over the few weeks following the earthquake in Sichuan province in mid-May, the company could still beat its earlier expectation.

Li added that in the second quarter of 2008, VisionChina continued expanding the network coverage with a significant step of entering into Shanghai market.

The company vowed to continue to strengthen its market position as well as penetration in the prosperous markets.

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