Subaye, Inc. announced this morning its financial results for the fiscal year ended September 30, 2009.
The company’s revenues for the fiscal year ending September 30, 2009 totaled $47,987,000, up 64% from $29,172,000 in fiscal year 2008. Net income grew 159% year-over-year to $9,778,000, or $5.33 EPS, up from $2.47 EPS in the prior year period, both of which are adjusted for the recent reverse stock split. Net margin increased to 20% as compared to 13% in fiscal 2008.
Mr. Cai, the CEO, commented, “I am very pleased with our financial results for fiscal 2009. Our online membership business had a tremendous year. Our entertainment media division generated solid revenue growth and invested in some promising assets. Our trading business recovered nicely from the economic turmoil of the past year and is very well positioned moving ahead. I expect we will deliver double digit revenue and earnings growth in fiscal 2010.”
Mr. Crane, the CFO, added, “It is important to note that our EPS for 2009 does not account for the recent share issuances in the past few months and specifically the recent share exchange to acquire the minority interest of Subaye.com, Inc. We currently have approximately 6.7 million shares of common stock outstanding and if we applied this number of shares outstanding and factored in the effect of the share exchange in that we now own 100% of Subaye.com, Inc, our EPS would decrease substantially. However, we also incurred a significant one-time nonrecurring expense of approximately $6.7 million for an advertising promotion in the first half of fiscal 2009. If that one-time nonrecurring expense was added back to earnings, and all other stock issuances noted above were taken into account, our EPS would be approximately $2.93. An EPS of $2.93 represents growth of approximately 18% for fiscal 2009 as compared to fiscal 2008.”