-- Total revenue grows 42% year-over-year -- Meeting guidance, net
revenue (non-GAAP)(1) increases to US$61 million, growing 42%
year-over-year -- Exceeding guidance, income from continuing
operations per basic share is US$0.20 BEIJING and SANTA CLARA,
Calif., Oct. 28 /PRNewswire-Asia-FirstCall/ -- AsiaInfo Holdings,
Inc. (NASDAQ:ASIA) ("AsiaInfo" or the "Company"), a leading
provider of telecom software solutions and IT security products and
services in China, today announced financial results for the third
quarter of 2009. "This past quarter marks another period of strong
growth in which we met net revenue and exceeded EPS guidance," said
Steve Zhang, AsiaInfo's president and chief executive officer.
"This is especially notable as it comes on top of nearly 45% net
revenue growth in the third quarter of 2008. During the quarter, we
also took our first step into Southeast Asia by establishing a
joint venture in Singapore, which will contribute sales and
marketing expertise and help us cultivate strong partnerships in
the region. In addition, in early October, we announced our
acquisition of SmartCall, which provides us with the resources and
expertise to fully execute end-to-end, targeted marketing
campaigns. Building off of our leading base of business
intelligence installations and consulting services, our SmartCall
business has strong potential to quickly expand from solely
operating in Sichuan province to a number of provinces in China.
Mr. Zhang concluded, "Looking forward, we are confident we will
finish 2009 on a strong note and see abundant opportunities across
all three of China's telecom operators in the coming year. In
addition, our focus on delivering robust organic growth while
remaining disciplined in our overseas expansion strategy will help
us to deliver long-term sustainable growth." Third Quarter 2009
Financial Results Total revenues for the third quarter of 2009 were
US$63.5 million, an increase of 41.8% year-over-year and 8.5%
sequentially. Meeting guidance, net revenue (non-GAAP) for the
third quarter of 2009 was US$60.9 million, an increase of 42.4%
year-over-year and 14.1% sequentially. The year-over-year and
sequential increases were primarily driven by strong performance
among all three major customers in the telecom business. During the
quarter, AsiaInfo announced contracts with four China Mobile
subsidiaries to upgrade BOSS Systems to NG-BOSS, six China Mobile
subsidiaries to upgrade China Mobile Business Intelligence Systems
to NG-BASS and a tender win to build P2P SMS Settlement System for
China Mobile headquarters. The Company also signed a contract with
China Unicom to build out a Device Management System that will
allow China Unicom to remotely diagnose and manage mobile devices
and contracts to integrate mobile and fixed-line Business Support
Systems ("BSS") for China Telecom in Heilongjiang and Henan
provinces. During the quarter, AsiaInfo also established a JV with
Singapore-based Alpha Growth International and at the beginning of
October, acquired a majority stake in an outbound calling services
company called SmartCall Holdings, Ltd. Gross margin for the
quarter was 54.6%, compared to 51.8% in the year-ago period and
49.1% in the previous quarter. The year-over-year and sequential
increases in gross margin were primarily due to a strong
contribution from higher-margin software solutions and services.
Gross profit as a percentage of net revenue (non-GAAP) was 57.0% in
the third quarter of 2009, compared to 54.2% in the year-ago period
and 53.9% in the previous quarter. The Company noted that gross
profit as a percentage of net revenue (non-GAAP) has remained
relatively stable, near 55% for the last several quarters. In the
third quarter of 2009, the AsiaInfo Technologies business unit,
which focuses on telecommunications software and services,
contributed 82.7% and 84.5% to total revenue and net revenue
(non-GAAP), respectively. Total revenue for the AsiaInfo
Technologies business unit increased 44.8% year-over-year and
slightly decreased 0.3% sequentially to US$52.6 million. Net
revenue (non-GAAP) for the AsiaInfo Technologies business unit
increased 47.0% year-over-year and 7.3% sequentially to US$51.4
million. The increases in net revenue (non-GAAP) mainly reflect an
increase in demand for the Company's software and service solutions
among the three major telecom customers in a highly competitive
market and an increasing number of contracts to upgrade and
maintain existing installations. In the third quarter of 2009, the
Lenovo-AsiaInfo business unit, which focuses on IT security
products and services, contributed 17.3% to total revenue and 15.5%
to net revenue (non-GAAP). Total revenue for the Lenovo-AsiaInfo
business unit increased 29.0% year-over-year and 87.0% sequentially
to US$11.0 million. Net revenue (non-GAAP) for the Lenovo-AsiaInfo
business unit increased 21.7% year-over-year and 73.3% sequentially
to US$9.4 million. The year-over-year increase was mainly due to
several major high-margin contracts signed with government agencies
and the sequential increase was partially due to seasonality, as
sales in the Lenovo-AsiaInfo business unit are typically weakest in
the first half of each year. Please refer to the end of this press
release for condensed segmented financial results for AsiaInfo's
two business units. Total operating expenses increased 36.9%
year-over-year and 9.5% sequentially to US$24.5 million. Sales and
marketing expenses increased 17.4% year-over-year and 13.0%
sequentially to US$11.2 million. The year-over-year and sequential
increases were mainly due to higher sales commission expenses
incurred upon signing new contracts. General and administrative
expenses increased 81.0% year-over-year and 3.3% sequentially to
US$3.8 million. The year-over-year increase was largely the result
of increases in share-based compensation related to the performance
stock unit awards granted to key employees on March 16, 2009.
Research and development expenses increased 73.4% year-over-year
and 23.3% sequentially to US$10.8 million. The Company noted that
the increase in R&D expenses is in line with its strategy of
investing in the research and development of world-class products.
Income from operations for the third quarter of 2009 was US$10.2
million, an increase of 92.7% year-over-year and 59.1%
sequentially. Operating margin of total revenue(2) was 16.0% for
the third quarter of 2009, compared to 11.8% in the year-ago period
and 10.9% in the previous quarter. Operating margin of net revenue
(non-GAAP)(3) was 16.8% for the third quarter of 2009, compared to
12.4% in the year-ago period and 12.0% in the previous quarter. The
year-over-year margin improvement was mainly the result of
improving economies of scale and the Company's continued efforts to
improve operational efficiency. Other income for the third quarter
of 2009 was US$527 thousand, a decrease of 77.0% from US$2.3
million in the year-ago period and a decrease of 70.0% from US$1.8
million in the previous quarter. The year-over-year decrease was
largely the result of lower investment gains as well as lower
interest rates in the third quarter of 2009, which resulted in
lower interest income. The sequential decrease was the result of
the sale of certain short-term investments during the second
quarter of 2009, which realized a gain on investments of US$1.2
million. In the third quarter of 2009, AsiaInfo recorded net income
attributable to AsiaInfo Holdings, Inc. of US$9.1 million, or
US$0.20 per basic share, compared to US$6.1 million, or US$0.13 per
basic share, in the year-ago period and US$7.2 million, or US$0.16
per basic share, in the previous quarter. Net income attributable
to AsiaInfo Holdings, Inc. (non-GAAP)(4) was US$13.0 million in the
third quarter of 2009 or US$0.29 per basic share. Net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) in the year-ago
period was US$7.6 million or US$0.16 per basic share. Net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) in the previous
quarter was US$11.4 million or US$0.26 per basic share. Net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) increased 71.6%
year-over-year and 14.0% sequentially. As of September 30, 2009,
AsiaInfo had cash and cash equivalents and restricted cash totaling
US$195.8 million and short-term investments totaling US$40.0
million. Operating cash flow in the third quarter of 2009 was a net
inflow of US$9.5 million. Fourth Quarter 2009 Guidance AsiaInfo
expects fourth quarter 2009 net income from continuing operations
per basic share to be in the range of US$0.28 to US$0.29, an
increase of 460% to 480% year-over-year. Please note that in the
fourth quarter of 2008, there was a US$0.15 per basic share of
impairment loss on investment. The Company expects net revenue
(non-GAAP) to be in the range of US$70 million to US$72 million, an
increase of 37% to 40% year-over-year. (1) Net revenue (non-GAAP),
a non-GAAP measure, represents total revenue net of third-party
hardware costs. A reconciliation of net revenue (non-GAAP) to GAAP
revenue is provided at the end of this press release. (2) Operating
margin of total revenue is operating income divided by total
revenue. (3) Operating margin of net revenue (non-GAAP) is
operating income divided by net revenue (non-GAAP). (4) Net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) and net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share
measures exclude share-based compensation expenses, amortization of
acquired intangible assets, impairment loss on investment,
after-tax dividend income and gain on discontinued operations. A
reconciliation of these non-GAAP measures to the most directly
comparable GAAP measures is provided at the end of the press
release. ASIAINFO HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (UNAUDITED) (Amounts in thousands of US$, except
shares and per share amounts) Three Months Ended Nine Months Ended
September 30, September 30, 2009 2008 2009 2008 Revenues: Software
products and solutions $54,882 $37,479 $144,470 $94,631 Service
5,848 4,754 16,778 12,304 Third party hardware 2,803 2,562 11,829
14,924 Total revenues 63,533 44,795 173,077 121,859 Cost of
revenues: Software products and solutions 24,006 17,890 64,829
42,706 Service 2,161 1,667 6,058 5,085 Third party hardware 2,673
2,052 11,199 13,992 Total cost of revenues 28,840 21,609 82,086
61,783 Gross profit 34,693 23,186 90,991 60,076 Operating expenses:
Sales and marketing 11,223 9,556 31,689 25,663 General and
administrative 3,773 2,084 10,991 6,941 Research and development
10,842 6,253 26,849 15,940 Government grant (1,342) -- (1,342) --
Total operating expenses 24,496 17,893 68,187 48,544 Income from
operations 10,197 5,293 22,804 11,532 Other income: Interest income
540 1,151 1,698 3,433 Dividend income 4 230 178 533 Gain from sales
of short-term investments -- 954 1,210 4,587 Other expenses, net
(17) (43) (31) (573) Total other income, net 527 2,292 3,055 7,880
Income before provision for income taxes and discontinued
operations 10,724 7,585 25,859 19,412 Income taxes expense 1,646
1,490 3,793 3,817 Income from continuing operations 9,078 6,095
22,066 15,595 Income from discontinued operations -- -- -- 980 Net
income 9,078 6,095 22,066 16,575 Less: Net income (loss)
attributable to the noncontrolling interests 13 (4) 6 (4) Net
income attributable to AsiaInfo Holdings, Inc. $9,065 6,099 22,060
16,579 Earnings Per Share: Income from continuing operations
attributable to AsiaInfo Holdings, Inc. common stockholders: Basic
$0.20 $0.13 $0.49 $0.35 Diluted $0.19 $0.13 $0.48 $0.33 Income from
discontinued operations attributable to AsiaInfo Holdings, Inc.
common stockholders: Basic -- -- -- $0.02 Diluted -- -- -- $0.02
Net income attributable to AsiaInfo Holdings, Inc. common
stockholders: Basic $0.20 $0.13 $0.49 $0.37 Diluted $0.19 $0.13
$0.48 $0.35 Weighted average shares used in computation: Basic
45,772,678 45,731,067 44,629,386 45,208,453 Diluted 46,627,469
47,850,187 45,918,502 47,095,515 ASIAINFO HOLDINGS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands of
US$, except share and per share amounts) As of Sept 30, Dec 31,
2009 2008(1) ASSETS: Current Assets: Cash and cash equivalents
$184,219 $172,119 Restricted cash 11,551 12,510 Short term
investments 40,021 28,633 Accounts receivable, net (net of
allowances of $2,703 and $2,605 as of September 30, 2009 and
December 31, 2008, respectively) 100,144 52,011 Inventories 8,572
12,322 Other receivable 3,423 2,813 Deferred income taxes-current
3,244 3,334 Prepaid expenses and other current assets 7,649 5,425
Total current assets $358,823 $289,167 Long term investment 4,696
4,696 Property and equipment, net 2,992 2,887 Other acquired
intangible assets, net 2,314 3,008 Deferred income tax assets -
non-current 2,630 2,671 Goodwill 21,141 20,725 Total Assets
$392,596 $323,154 LIABILITY AND STOCKHOLDERS' EQUITY Current
Liabilities: Accounts payable 35,873 13,835 Accrued expenses 16,436
14,235 Deferred revenue 36,582 44,414 Accrued employee benefits
32,308 27,570 Other payables 6,111 5,288 Income taxes payable 2,734
646 Other taxes payable 6,234 6,311 Deferred income tax
liability-current 742 934 Total current liabilities $137,020
$113,233 Unrecognized tax benefits - non-current 2,159 1,326 Other
long term liabilities 135 135 Total liabilities $139,314 $114,694
Stockholders' equity: Common stock 496 464 Additional paid-in
capital 237,337 215,948 Treasury stock, at cost (27,749) (27,749)
Statutory reserve 17,212 17,212 Retained earnings (Accumulated
deficit) 6,494 (15,566) Accumulated other comprehensive income
19,428 18,093 Total AsiaInfo holding stockholders' equity $253,218
$208,402 Non controlling interest(2) 64 58 Total stockholders'
equity 253,282 208,460 Total Liabilities and Stockholders' Equity
$392,596 $323,154 (1) December 31, 2008 balances were extracted
from audited financial statements. (2) Amount in relation to
noncontrolling interest, formerly named minority interest, as of
December 31, 2008 is reclassified in accordance with FASB Statement
No. 160, Noncontrolling Interests in Consolidated Financial
Statements, which was adopted by the Company on January 1, 2009.
ASIAINFO HOLDINGS, INC. CONDENSED INFORMATION FOR REPORTABLE
SEGMENTS (UNAUDITED) (Amounts in thousands of US$) Three Months
Ended Sept 30, 2009 AsiaInfo Lenovo- Technologies AsiaInfo Total
Revenues: Software products and solutions $45,660 $9,222 $54,882
Service 5,703 145 5,848 Third party hardware 1,193 1,610 2,803
Total revenues 52,556 10,977 63,533 Cost of revenues: Software
products and solutions 21,217 2,789 24,006 Service 2,074 87 2,161
Third party hardware 1,133 1,540 2,673 Total cost of revenues
24,424 4,416 28,840 Gross profit 28,132 6,561 34,693 Business unit
expenses: Sales and marketing 8,531 2,692 11,223 General and
administrative 614 (143) 471 Research and development 8,162 2,680
10,842 Government grant (1,342) -- (1,342) Total business unit
expenses 15,965 5,229 21,194 Contribution profit (loss) $12,167
$1,332 $13,499 Corporate general and administration 3,302 Operating
profit $10,197 Three Months Ended Sept 30, 2008 AsiaInfo Lenovo-
Technologies AsiaInfo Total Revenues: Software products and
solutions $30,297 $7,182 $37,479 Service 4,624 130 4,754 Third
party hardware 1,367 1,195 2,562 Total revenues 36,288 8,507 44,795
Cost of revenues: Software products and solutions 15,223 2,667
17,890 Service 1,629 38 1,667 Third party hardware 1,298 754 2,052
Total cost of revenues 18,150 3,459 21,609 Gross profit 18,138
5,048 23,186 Business unit expenses: Sales and marketing 6,224
3,332 9,556 General and administrative (265) 119 (146) Research and
development 5,351 902 6,253 Government grant -- -- -- Total
business unit expenses 11,310 4,353 15,663 Contribution profit
(loss) $6,828 $695 $7,523 Corporate general and administration
2,230 Operating profit $5,293 Three Months Ended Jun 30, 2009
AsiaInfo Lenovo- Technologies AsiaInfo Total Revenues: Software
products and solutions $41,776 $5,375 $47,151 Service 5,883 48
5,931 Third party hardware 5,039 447 5,486 Total revenues 52,698
5,870 58,568 Cost of revenues: Software products and solutions
20,275 2,334 22,609 Service 1,892 75 1,967 Third party hardware
4,786 424 5,210 Total cost of revenues 26,953 2,833 29,786 Gross
profit 25,745 3,037 28,782 Business unit expenses: Sales and
marketing 7,569 2,360 9,929 General and administrative 727 -78 649
Research and development 7,787 1,005 8,792 Government grant -- --
-- Total business unit expenses 16,083 3,287 19,370 Contribution
profit (loss) $9,662 ($250) $9,412 Corporate general and
administration 3,003 Operating profit $6,409 Third Quarter 2009
Conference Call Details AsiaInfo management will hold an earnings
conference call at 5:00 p.m. Pacific Time / 8:00 p.m. Eastern Time
on October 28, 2009 (8:00 a.m. Beijing/Hong Kong Time on October
29, 2009). Management will discuss results and highlights of the
quarter and answer questions from investors. The dial-in numbers
for the conference call are as follows: U.S. Toll Free:
+1-866-549-1292 China Local Number: 400-681-6949 Hong Kong and
International: +852-3005-2050 The passcode for the call is 408313#.
A replay of the call will be available until 7:00 p.m. Eastern Time
on November 29, 2009 by dialing one of the following numbers: U.S.
Toll Free: +1-866-753-0743 China Toll Free: 800-869-7680 Hong Kong
and International: +852-3005-2020 The passcode for the replay is
134936#. Additionally, a live and archived webcast of this call
will be available on the Investor Relations section of the AsiaInfo
website at http://www.asiainfo.com/ . About AsiaInfo Holdings, Inc.
AsiaInfo Holdings, Inc. (NASDAQ:ASIA) is a leading provider of
high-quality software and customer solutions to many of China's
largest enterprises. In addition to providing software and customer
solutions to China's telecom carriers, the Company also offers a
wide range of security products and services to small, medium and
large sized Chinese enterprises across multiple vertical
industries. Organized as a Delaware corporation, AsiaInfo began
operations in the United States in 1993. The Company moved its
major operations to China in 1995 and played a significant role in
the construction of the national Internet backbones and provincial
access networks for all of China's major national telecom carriers,
including China Telecom, China Mobile, China Unicom and China
Netcom. Since 1998, AsiaInfo has continued to diversify its product
offerings and is now a major provider of enterprise software
solutions in China. For more information about AsiaInfo, please
visit http://www.asiainfo.com/ . Reconciliation of non-GAAP
Measures This earnings release presents the following "non-GAAP
financial measures" as defined by applicable U.S. securities
regulations. The presentation of these non-GAAP financial measures
is not meant to be considered in isolation or as a substitute for
our financial results prepared in accordance with GAAP. The
non-GAAP financial measures are provided as additional information
to help both management and investors compare business trends among
different reporting periods on a consistent and more meaningful
basis and enhance investors' overall understanding of the Company's
current financial performance and prospects for the future. These
non-GAAP measures have limitations, however, because they do not
include all items of income and expenses that impact the Company's
operations. Management compensates for these limitations by also
considering the Company's GAAP results. The non-GAAP financial
measures the Company uses are not prepared in accordance with, and
should not be considered an alternative to measurements required by
GAAP and should not be considered measures of the Company's
liquidity. Pursuant to relevant regulatory requirements, we are
providing the following reconciliations of the non-GAAP financial
measures to the most directly comparable GAAP measures. (1) Net
revenue (non-GAAP) AsiaInfo's net revenue (non-GAAP) represents
total revenue net of hardware costs that are passed through to our
customers. We believe total revenues net of hardware costs more
accurately reflects our core business, which is the provision of
software solutions and services, and provides transparency to our
investors. It is also the same measure used by our management to
evaluate the competitiveness and development of our business.
Reconciliation of net revenues (non-GAAP) to GAAP total revenues
2009 Q3 AsiaInfo Lenovo- Technologies AsiaInfo Total (in thousands
of US dollars) Net Revenue (Non-GAAP) 51,423 9,437 60,860 Third
Party Hardware Costs 1,133 1,540 2,673 Total Revenues 52,556 10,977
63,533 2008 Q3 AsiaInfo Lenovo- Technologies AsiaInfo Total (in
thousands of US dollars) Net Revenue (Non-GAAP) 34,990 7,753 42,743
Third Party Hardware Costs 1,298 754 2,052 Total Revenues 36,288
8,507 44,795 2009 Q2 AsiaInfo Lenovo- Technologies AsiaInfo Total
(in thousands of US dollars) Net Revenue (Non-GAAP) 47,912 5,446
53,358 Third Party Hardware Costs 4,786 424 5,210 Total Revenues
52,698 5,870 58,568 (2) Net income attributable to AsiaInfo
Holdings, Inc. (non-GAAP) Net income (non-GAAP) excludes
share-based compensation expenses, amortization of acquired
intangible assets, impairment loss on investment, after-tax
dividend income and gain on discontinued operations. We believe
that this non-GAAP financial measure provides meaningful
supplemental information regarding our performance by excluding
certain expenses and income that may not be indicative of our
operating performance. Management uses the net income attributable
to AsiaInfo Holdings, Inc. (non-GAAP) measure to gain a better
understanding of the Company's comparative operating performance
from period-to-period and as a basis of planning and forecasting
future periods. Management believes the Company's net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) measure, when
read in conjunction with the Company's GAAP net income measure and
other GAAP financial metrics, provides useful information to
investors by offering: a) the ability to make more meaningful
period-to-period comparisons of the Company's on-going operating
results; b) the ability to better identify trends in the Company's
underlying business and perform related trend analysis; c) a better
understanding of how management plans and measures the Company's
underlying business; and d) an easier way to compare the Company's
most recent results of operations against investor and analyst
financial models. Reconciliation of net income attributable to
AsiaInfo Holdings, Inc. (non-GAAP) to GAAP net income attributable
to AsiaInfo Holdings, Inc. Three Months Nine Months Ended Sept. 30
Ended Sept.30 2009 Q2 2009 2008 2009 2008 (in thousands of US
dollars) GAAP net income 9,065 6,099 22,060 16,579 7,205
Adjustments: -- Share-based compensation 3,593 1,303 8,633 2,643
3,858 -- Amortization of acquired intangible assets 316 385 945
1,231 316 -- Impairment loss on investment -- -- -- -- -- -- Gain
on discontinued operations -- -- -- (980) -- -- Dividend income,
net of tax (4) (230) (178) (533) (3) Non-GAAP net income 12,970
7,557 31,460 18,940 11,376 (3) Net income attributable to AsiaInfo
Holdings, Inc. (non-GAAP) per basic share Net income attributable
to AsiaInfo Holdings, Inc. (non-GAAP) is calculated based on net
income attributable to AsiaInfo Holdings, Inc. Like net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP), net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share
excludes share-based compensation expenses, amortization of
acquired intangible assets, impairment loss on investment,
after-tax dividend income and gain on discontinued operations.
Shares outstanding used in the computation of net income per share
were the same as those used in the computation of net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share.
Management believes that net income attributable to AsiaInfo
Holdings, Inc. (non-GAAP) per share, when used in conjunction with
the Company's GAAP net income attributable to AsiaInfo Holdings,
Inc. per share, provides useful information to investors for the
same reasons discussed above regarding net income attributable to
AsiaInfo Holdings, Inc. (non-GAAP). In addition, net income
attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share allows
investors to evaluate the Company's operating performance from
period to period on a per share basis, thus providing a useful
basis for assessing the Company's value on a per share basis.
Reconciliation of net income attributable to AsiaInfo Holdings,
Inc. (non-GAAP) per share to GAAP net income attributable to
AsiaInfo Holdings, Inc. per share Three Months Nine Months Ended
Sept. 30 Ended Sept.30 2009 Q2 2009 2008 2009 2008 (in thousands of
US dollar) GAAP net income per basic share 0.20 0.13 0.49 0.37 0.16
Adjustments: -- Share-based compensation 0.08 0.03 0.19 0.06 0.09
-- Amortization of acquired intangible assets 0.01 0.01 0.02 0.03
0.01 -- Impairment loss on investment -- -- -- -- -- -- Gain on
discontinued operations -- -- -- (0.02) -- -- Dividend income, net
of tax -- (0.01) -- (0.01) -- Non-GAAP net income per basic share
0.29 0.16 0.70 0.43 0.26 Cautionary Note Regarding Forward-Looking
Statements The information contained in this document is as of
October 28, 2009. AsiaInfo assumes no obligation to update any
forward-looking statements contained in this document as a result
of new information or future events or developments. This document
contains forward-looking information about AsiaInfo's operating
results and business prospects that involve substantial risks and
uncertainties. You can identify these statements by the fact that
they use words such as "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe," and other words and terms
of similar meaning in connection with any discussion of future
operating or financial performance. Among the factors that could
cause actual results to differ materially are the following:
government telecommunications infrastructure and budgetary policy
in China; our ability to maintain our concentrated customer base;
the long and variable billing cycles for our products and services
that can cause our revenues and operating results to vary
significantly from period to period; our ability to meet our
working capital requirements; our ability to retain our executive
officers; our ability to attract and retain skilled personnel;
potential liabilities we are exposed to because we extend
warranties to our customers; risks associated with cost overruns
and delays; our ability to develop or acquire new products or
enhancements to our software products that are marketable on a
timely and cost-effective basis; our ability to adequately protect
our proprietary rights; the competitive nature of the markets we
operate in; and political and economic policies of the Chinese
government. A further list and description of these risks,
uncertainties, and other matters can be found in our Annual Report
on Form 10-K for the fiscal year ended December 31, 2008, and in
our reports on Forms 10-Q and 8-K filed with the United States
Securities and Exchange Commission and available at
http://www.sec.gov/ . For more information about AsiaInfo, please
visit http://www.asiainfo.com/ . For investor and media inquiries,
please contact: In China: Sheryl Zhang AsiaInfo Holdings, Inc. Tel:
+86-10-8216-6039 Email: Justin Knapp Ogilvy Financial, Beijing Tel:
+86-10-8520-6556 Email: In the United States: Ms. Jessica Barist
Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email:
DATASOURCE: AsiaInfo Holdings, Inc. CONTACT: In China - Sheryl
Zhang of AsiaInfo Holdings, Inc., +86-10-8216-6039, or ; or Justin
Knapp of Ogilvy Financial, Beijing, +86-10-8520-6556, or ; Or In
the United States - Ms. Jessica Barist Cohen of Ogilvy Financial,
New York, +1-646-460-9989, or Web site: http://www.asiainfo.com/
Copyright