Global Sources reports strong growth in business

PUBLISHED : Thursday, 11 May, 2006, 12:00am
UPDATED : Thursday, 11 May, 2006, 12:00am

Updated at 7.21pm:
Global Sources, a Nasdaq-listed trade facilitator, on Thursday announced increased revenues on the back of strong year-on-year growth in its online, print and exhibitions business.

The company reported revenues of $30 million in first quarter of this year ? up 32 per cent from the previous corresponding period last year.

Net income was $4.4 million, or 11 cents a share, compared with $2 million, or 6c a share in the first quarter of last year.

The company said in a statement that revenues from its mainland businesses totalled $14.2 million during this period ? up 37 per cent from $10 million in the previous period.

Company chairman and chief executive officer Merle Hinrichs said: ?All three primary lines of our businesss ? online, print and exhibitions ? delivered strong year-over-year growth in the first quarter?.

He explained that new sales programmes drove both online and print revenue increases, and exhibition revenue benefited from the timing change of the IIC-China show.

Mr Hinrichs said the company was continuing to invest in the China Sourcing Fairs in Hong Kong and expand the trade shows into new places such as Dubai.

The company also announced a bonus share issue. Shareholders of record on March 15 received one additional share for every 10 common shares held. Bonus shares were distributed on April 17.

Looking ahead, chief financial officer Eddie Heng said: ?We are raising our revenue guidance and now expect 33 per cent revenue growth in the first half of this year as compared to the last year?s first half.?

He said the majority of the increase reflected growth in trade show business.

The company expected its first half revenue to be in the range of $72 million to $73 million and earning per diluted share is expected to be from 17 cents to 19 cents.

Global Sources is a B2B media company and trade facilitator of two-way trade with Greater China. It provides sourcing information to buyers and marketing services to suppliers.