Operating expenses in the fourth quarter increased to $1.7 million compared to $311,000 in the prior year period. This increase was a result of higher administrative expenses required to support a growing revenue base, as well as higher advertising costs, business taxes and expenses incurred as a result of being a publicly traded company. Operating income for the fourth quarter increased to $4.1 million from $2.6 million in the fourth quarter of 2006.
Net Income for the fourth quarter of 2007 increased 253% to $7.4 million, or $0.39 per diluted share, compared to $2.1 million, or $0.15 per diluted share in the prior year period. Net margin was 13.4% compared to 8.5% in the prior year period.
Total non-cash compensation in the fourth quarter was approximately $702,000, and the reversal of the previous years' tax provision due to a tax exemption granted by the tax authority was approximately $4.2 million.
Excluding the effect from these two items, net income margin was 6.9% and adjusted diluted earnings per share were $0.21. Management is providing a non-GAAP measure in order to enhance investors' and other readers' understanding and assessment of the Company's financial performance.
At the end of December 2007, the Company had retained earnings of $16.8 million and cash and cash equivalents of $63 million. The majority of the Company's cash was derived from its October 2007 stock offering that generated approximately $67 million in net proceeds.
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
