CDC Software 3Q profit rises on lower costs

AP News
Posted: Nov 23, 2009 9:02 AM

CDC Software Corp., a Chinese business software developer whose shares began trading in the United States last summer, said Monday its third-quarter profit rose 47 percent on lower costs and expenses.

Profit rose to $6.2 million, or 22 cents per share, in the three months ended Sept. 30 compared with a profit of $4.2 million, or 15 cents per share, a year prior.

Revenue fell 20 percent to $48.6 million from $60.5 million.

Excluding charges, the company said it earned 33 cents per share. Analysts polled by Thomson Reuters expected profit of 31 cents per share on revenue of $48.7 million.

Cost of revenue fell 23 percent to $21.4 million while operating expenses fell 43 percent to $20 million.

CDC Software provides business software applications that enable customers to increase revenue and control costs by automating business processes and making it easier to access critical information.

The company is controlled by CDC Corp., a business software maker based in Hong Kong. In August, CDC sold 4.8 million American depositary shares of CDC Software at $12 a share. They ended trading Friday at $10 a share. CDC still owns an 83 percent stake and a 98 percent voting interest in CDC Software.