Boston, MA 03/13/2014 (wallstreetpr) – Global Sources Ltd. (Bermuda) (NASDAQ:GSOL) generates its revenue from proving integrated marketing services and information, mainly to the China market. Having just released earnings and announced shares tendering, the stock can be seen going skyward. As of 10:40 a.m. EDT, shares of the company were changing hands at $8.10, up 19.82 percent. Earlier in the day the shares escalated to $8.41, touching a new 52-week high.
Generally there is excitement around the stock and this has more to do with the announced shares tendering than the released fourth quarter results. We will be looking at what the company is offering shareholders in the tendering process and how that can impact your pocket as an investor. But first, here is a brief recap of the just announced results for the fiscal 2013 fourth quarter released before market Thursday.
Fourth Quarter Performance
Global Sources Ltd. (Bermuda) (NASDAQ:GSOL) reported IFRS net income as $5 million, translating to 14 cents per share as the amount attributed to the shareholders. The latest earnings figures were lower than the figures realized in the corresponding quarter of 2012 where net income was $11.2 million or 31 cents. As for the non-IFRS net income, Global Sources Ltd. (Bermuda) (NASDAQ:GSOL) reported $10.9 million or 30 cents per share, against $13.3 million or 37 cents per share in the fourth quarter of fiscal 2012.
Revenue in the fourth quarter came in at $60.1 million, down from $66.9 million last year.
Global Sources Ltd. (Bermuda) (NASDAQ:GSOL) expects revenue in the first half of the current fiscal year to come in the range of $88 – $90 million. But that will signal a decrease of between 3 and 5 percent compared to the $92.7 million revenue that was realized in the first half of 2013.
Shares Tendering
While Global Sources Ltd. (Bermuda) (NASDAQ:GSOL) ended up with largely unpopular results for the fourth quarter, that has not been a big concern to investors who are visibly buying the stock with eyes set on the tender opportunity.
The company has announced plans to tender 5 million shares at the price of $10 per share, which is a significant upside to the closing price of $6.76 on Wednesday. The tendering is expected to affect roughly 14.4 percent of the outstanding common shares. The process is planned to commence before end of April and be completed before end of May.
The 47.9 percent premium of the previous close is surely a good deal for shareholders.
