The highlight was a US$11.2 million increase in online advertising revenue to US$25.8 million, as the Company’s flagship website Global Sources Online (www.globalsources.com) continued to expand its community of international merchandise importers and exporters.
Global Sources’ online business was also profitable. The Company reported 1999 operating income of US$3.6 million, up more than 600% over 1998, for online advertising, resulting from increasing reliance on the Internet among importers and exporters, and the economies of scale associated with its revenue growth.
Global Sources has established critical mass, and a range of focused, proven online services that our community is happy to pay for, said Chairman and CEO Merle Hinrichs. We have a rock-solid base for further rapid growth.
The Company overall reported net income of US$11.0 million on revenues of US$91.9 million in 1999 compared to net income of US$11.6 million on revenues of US$95.9 million in 1998. Net income per share was US$0.44 in 1999 compared with US$0.46 in 1998.
The Global Sources community of active buyers grew to more than 195,000 by the year-end, with suppliers hosting more than 75,000 product profiles online per day at Global Sources Online. In 1999, Global Sources Online users made more than 1,790,000 requests for information on the site, representing more than 200 sales leads per hour for suppliers. Traffic, as measured by user sessions, grew by more than 160% year-on-year.
In the area of trade transactions, the Company focused on the development of Transact, its web-enabled order management software, and Connect, a web-based messaging platform being rolled out in the second quarter of 2000. Software development costs capitalized in 1999 amounted to approximately US$4.6 million.
