This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Noah Education CEO Discusses F2Q2011 Results - Earnings Call Transcript

The company’s actual results could differ materially from those contained in the risk factors section of the company’s final prospectus or recent filings filed with the Securities and Exchange Commission. Unless required by law, the company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

I would now like to turn the call over to Noah’s Chairman and CEO, Mr. Dong Xu. Sir, please go ahead.

Dong Xu

[Interpreted] Good morning and to some good evening. Thank you for joining us today on our second quarter fiscal 2011 results conference call. As you may have seen from our earnings release, this quarter revenue from our Education Services business grew a very impressive 264% year-over-year and exceeded our guidance as our Little New Star brand experienced ongoing franchise expansion and as Wentai Education joined Noah for its first full quarter and turned in an impressive performance. In addition to this current results obtained this quarter in this segment, we also laid the ground works for future success as we significantly built out our pipeline of Wentai Education School.

The education services market in China continues to expand rapidly and see increasing demand, yet the industry remains fragmented and nascent. We recognized these opportunities and other market leader, we believe we are well positioned to capitalize on them. We are committed to our strategic initiative of driving growth through the acquisition of complementary businesses and remain proactive in speaking out prospects on this front. We have maintained a solid cash position which also affords the flexibility to invest in our future as opportunities arrive.

While we are encouraged by our performance in the education services side of the business, our group net revenue for the quarter increased 58.6% year-over-year to RMB64.2 million and we recorded a net loss of RMB53.4 million. These declines were driven by the ongoing restructuring of our distribution network against a backdrop of increasing competition and evolving consumer demand. We are confident of the fact that the challenges faced within the ELP business over the past several quarters have addressed – impacted our financial results and recognize that our current position does not adequately align us with our long term goals and objectives. As such, we have taken action to consider strategic alternative for our ELP business.

Stock quotes in this article: NED 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs