The company reported fourth quarter 2000 revenue net revenue of US$14.1 million, representing a 117 percent increase over net revenue of US$6.5 million in the comparable fourth quarter of 1999 and a 6 percent sequential increase over the third quarter of 2000. Net income was US$1.0 million, or basic earning per share $0.025, for the fourth quarter of 2000 compared to a net loss of US$3.8 million, or basic earning per share negative $0.23, for the fourth quarter of 1999. During the fourth quarter of 2000, AsiaInfo achieved a significant milestone with the generation of positive EBITDA of US$215,073. At the end of 2000, net revenue backlog was US$36 million, representing a 100 percent increase over net revenue backlog at the same time a year ago.
Software revenue in the fourth quarter was a record US$5.4 million, a 192 percent increase over US$1.9 million in the same quarter of 1999 and a 10 percent sequential increase over US$4.9 million in the quarter ended September 30, 2000. Software revenue represented 38 percent of total net revenue in the fourth quarter of 2000, compared to 29 percent of total net revenue in the fourth quarter of the year before.
Gross revenue for the fourth quarter of 2000 was US$44.0 million, representing an increase of 268 percent over gross revenue of US$12.0 million in the same period in 1999. Gross profit for the fourth quarter of 2000 was US$10.9 million, representing an 11 percent sequential increase over last quarter’s US$9.8 million profit. Compared to the previous quarter, the increase in gross profit, gross margin and positive EBITDA reflected growth in high margin software revenues, increased contribution from high-end network solutions and continued cost control.
During the fourth quarter, AsiaInfo made significant improvements in the collection of accounts receivable, reducing Days Sales Outstanding from 127 days in the third quarter of 2000 to 115 days in the fourth quarter, which resulted from the adoption of standard contracts and improved service delivery process.
For the full year 2000, net revenue was US$44.6 million, a 77 percent increase over net revenue of US$25.2 million in 1999. Net loss was US$2.8 million, or $0.07 per share. Software revenue was US$16.6 million in 2000, representing 37 percent of total net revenue and a 155 percent increase over 1999 software revenue of US$6.5 million. Full year 2000 gross revenue was $176.1 million and gross profit was $31.4 million.
AsiaInfo continued its strong performance during the fourth quarter of 2000, capping a successful year in which net revenues grew by 77 percent, stated President and CEO, James Ding. During 2000, we implemented several key initiatives such as establishing two strategic business units – Software Products and Network Solutions, which will enable us to develop a stronger focus and create greater operating efficiency.
During the year, we expanded our high margin software business, as revenues increased 155 percent, Ding continued. Additionally, our customer base has been further diversified due to the deregulation of China’s telecommunications industry and our focus on meeting the needs of new players in the industry.
