Noah CEO Discusses F4Q10 Results - Earnings Call Transcript
Slide five offers the breakdown of our revenue this quarter. Our ELP business contributed RMB23.2 million, down 18.5% from last year. LNS contribution – contributed RMB10.3 million, which was above our initial guidance of RMB8 to RMB9 million and the business reached our target of 30% of topline growth.
Moving to slide six, our gross loss in the first quarter was RMB3.8 million, compared to gross profit of RMB6.5 million in the first quarter of fiscal 2009. For fiscal 2010 gross profit declined to RMB311.5 million, gross margin for the year was 45.8%, compared to 51.4% in fiscal year 2009, due to the impact of challenges encountered in our ELP segment this quarter, as well as the overall shift in our product mix towards lower price KLD.
During the first quarter, we did experience some increase in G&A expenses, sales and marketing and other expenses, which cost total operating expenses to increase 43% year-over-year to RMB87.8 million. This same factors cause operating expenses for the full fiscal year to rise 12.7% to RMB367 million. As our Chairman mentioned and as Jerry fed more light on in just a few minutes. We do recognize the need to proactive reduce spending and implement tight costs control and as such have developed an active costs saving plans that will help support our margins going forward.
R&D expenses was down 3.7% to RMB12.9 million in the quarter and 6.3% for the full fiscal year as we cut down our third-party content and software development costs.Sales and marketing expenses for the fourth quarter were up 6.8% to RMB36.9 million and up 4.2% to RMB219.5 million for the full year. G&A expenses increased 163.7% to RMB35.6 million in the quarter due to an increase in bad debt provision as well as prices in staff cost and real estate tax.
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