Boston, MA 08/21/2014 (wallstreetpr) – VisionChina Media Inc (ADR) (NASDAQ:VISN) announced its unaudited financial results for the second quarter. The total revenues rose 14.2% to $30.5 million year-over-year. The gross margin came higher at 26.8% comparable to 16.8% in the prior year period.
The operating profit came at $2.0 million comparable to the loss of $5.2 million in 2Q2013. The net income came at $2.4 million in the second quarter. The Non-GAAP net income came at $2.5 million comparable to the loss of $5.1 million in 2Q2013.
The key highlights
Basic and diluted net income of VisionChina Media Inc (ADR) (NASDAQ:VISN) came at $0.48 per ADS and $0.42 per ADS respectively. One ADS of VisionChina is equal to 20 ordinary shares. Cash and cash equivalents of VisionChina came at $31.8 million. The net cash utilized in operating activities stands at $6.0 million. VisionChina covered almost 19 cities in its network that were secured either by joint venture contracts or exclusive agency agreements. The network covered 111,203 digital displays.
VisionChina broadcasting hours in its network came at 38,039 hours. The average advertising revenue came at $734 in terms of per broadcasting hour as compared to $665 in 2Q2013. The average advertising minutes sold stands at 8.65 per broadcasting hour in VisionChina’s network comparable to 7.13 advertising minutes in 2Q2013.
Management View
Mr. Limin Li, Chairman and the CEO, said that VisionChina Media Inc (ADR) (NASDAQ:VISN) is delighted with the momentum it has carried on since the fourth quarter of 2013. The core advertising business is performing well and has resulted in the growth in yearly profits. The operating and gross margin expansion reflects the strong operating leverage. VisionChina will move ahead focusing on the key initiatives. It will focus on creating the largest Wi-Fi network in mass transit system. The objective is to make it the main mobile internet point in urban outdoor space in China. Also, it will continue to work in the cost-control in the key areas. VisionChina Media Inc (ADR) (NASDAQ:VISN) expects to complete the fiscal year on a strong note.
