Rice Rice releases summary of second quarter results

Rice Rice (NYSE:TAOM) released its second-quarter results for fiscal year 2013 as at June 30, with net revenue of $1.2 million, up 15% per cent year-on-year. Net profit was $300,000, compared with $3.2 million a year earlier.

Second Quarter Performance Summary:

Total net revenue was $12 million, up 15% from 10.5 million dollars a year earlier.

Net profit was $300,000, compared with $3.2 million a year earlier.

The basic and diluted earnings per share of the United States depository shares were $0.01, compared with $0.09 and $0.08 a year earlier.

Based on non-US General Accounting Standards (NON-GAAP), net profit was $1.6 million, compared with $3.8 million a year earlier.

Based on non-US general accounting standards, the basic and diluted earnings of each share of US depository shares were $0.04, compared with $0.10 a year earlier.

Second quarter business performance:

The number of active and paid users in virtual world operations on the mainland is 1.3 million, down 8%, down 26% year-on-year.

The operation of the mainland virtual world business per user average revenue of 37 yuan, the chain growth of 12%, year-on-year growth of 23%.

Performance analysis for the second quarter

Total net revenue

Total net revenue was $12 million, up 15% from 10.5 million dollars a year earlier.

Online Business net revenue of 8.6 million U.S. dollars, the same period a year ago also 8.6 million U.S. dollars.

NET line of business revenue of 3.4 million U.S. dollars, compared with the same period of 1.9 million U.S. dollars a year ago, a 79% increase.

Total service Cost

The total service cost was $3.5 million, compared with $2.3 million a year earlier.

The online business cost was $1.8 million trillion, compared with $1.7 million a year earlier.

The offline operating cost was $1.7 million trillion, compared with $600,000 a year earlier.

Gross profit and gross margin

Gross profit was $8.5 million trillion, up 5% from 8.1 million dollars a year earlier.

Gross margin was 70.8%, compared with 77.7% a year earlier.

Online business gross profit margin of 79.5%, compared with the same period last year 80.2%

Offline business gross Profit margin of 48.8%, compared with the same period last year 66.4%.

Total operating expenses

The total operating expenses were $9.1 million, compared with $7.5 million a year earlier.

The cost of product development was $3.3 million trillion, compared with $3 million a year earlier.

Sales and marketing expenses were 2.4 million dollars, down 16% from the 2.8 million dollars a year earlier.

General and administrative expenses were $3 million, compared with $2.7 million a year earlier.

Intangible assets impairment of 900,000 U.S. dollars, mainly related to the game "Wizard 101".

Equity investment Income (loss)

Equity investment losses of 70,000 U.S. dollars, and a year earlier the profit of 400,000 U.S. dollars.

Operating profit (loss)

Operating loss of 50 U.S. dollars, and a year earlier operating profit of 700,000 U.S. dollars.

Net profit

Net profit was $300,000, compared with $3.2 million a year earlier.

The basic and diluted earnings per share of the United States depository shares were $0.01, compared with $0.09 and $0.08 a year earlier.

Based on non-US GAAP, net profit was $1.6 million, compared with $3.8 million a year earlier.

Based on non-US general accounting standards, the basic and diluted earnings of each share of US depository shares were $0.04, compared with $0.10 a year earlier.

Cash and cash equivalents

As of June 30, 2013, the rice net had a cash and cash equivalent of USD 114.3 million, and as of March 31, 2013 it was $113.1 million.

Stock Repurchase

In the second quarter, the Rice net bought 786.11 million shares of US depository shares. As of June 30, 2013, according to the company's stock repurchase plan, the rice net has bought up about 8,820,970,000 shares of American depository stocks, with an average price of about $3.97.

Conference

The rice net will be in the U.S. Eastern Time August 22 8 o'clock in the morning (Beijing time August 22 evening 8 o'clock) to hold the earnings conference call. Listen to the phone number of the conference call as follows:

United States: 1-866-519-4004

International: 65-6723-9381

Mainland China: 400-620-8038

Hong Kong, China: 800-930-346

Password: Taomee

In addition, the rice Web site Investor Relations channel Http://www.media-server.com/m/p/q3whspod will broadcast the teleconference and provide recordings. (Li Ming)