CDC Corp. Climbs To 2Q Profit, Shares Jump

NEW YORK (AP) — Business software company CDC Corp. on Monday reported a $3 million second-quarter profit, reversing a year-ago loss, as cost-cutting measures offset a drop in revenue.

Net income for the three months ended June 30 totaled 3 cents per share, compared with a loss of $10 million, or 9 cents per share, a year ago. Revenue fell 26 percent to $81.7 million from $111 million, but operating expenses dropped to $32.1 million from $57.6 million.

Analysts surveyed by Thomson Reuters expected profit of 2 cents per share and slightly higher revenue of $84.2 million.

The Hong Kong-based company also said it had completed the public offering of 4.8 million American Depositary Shares in subsidiary CDC Software Corp. at $12 each. It will continue to own an 83 percent stake and a 98 percent voting interest in the company.

CDC Software Corp., which recently began trading on the Nasdaq Global Market under the ticker symbol "CDCS," posted net income of $6 million, or 20 cents per share, compared with a loss of $241,000 a year earlier. CDC Software revenue fell 24 percent to $51 million from $67 million.

Analyst estimates for CDC Software results weren't available.

CDC shares rose 26 cents, or 10.2 percent, to $2.80 in after-hours trading after losing 7 cents to close the regular session at $2.54. CDC Software shares jumped $1.58, or 17.1 percent, to $10.80 after the market closed, after losing 21 cents, or 2.2 percent, to close at $9.22.