There is (inaudible) disposal of the ELP business. We are even more intensely focused on capitalizing our opportunities that exist within this fast growing market. Our strong balance sheet with cash, cash equivalents and short-term investments of US$75 million at end of the March support our financial strength to take advantage of opportunities as they arrive.
With that, I will now turn the call over to Dora to walk you though the details of financial performance for the quarter.
Thank you, Jerry. As shown on Slide 3, net revenue in the third quarter was down 71.3% year-over-year to RMB72.7 million due to ongoing challenges within our ELP business. However, as Jerry just mentioned, we continue to see a strong performance from our education service business with revenue of RMB23.1 million directly exceeding our guidance. This growth represents a 115.5% increase from the third fiscal quarter of 2010.Taking a closer look at the segment on Slide 5. You can see its performance was supported by the contributions from Wentai education, which is fueling our growth as new schools come on board as well as stable performance from Little New Star.It is important to highlight that in addition to expanding our education service revenues we are also driving profitable growth within our continuing operations. As we have mentioned before, one of our strategic reasons for pursuing the education service base is because of the visibility and more attractive margin profile of this business with year-over-year net income growth of 158.2% outpacing topline expansion this quarter. You can clearly see that we are capitalizing on this favorable industry trends.Additionally, turning Slide 6, operating margins rose from 18.3% in first quarter of fiscal 2010 to 26.6% this quarter. Thanks to the increased contribution from Wentai and our efforts to maintain a lean operation structure, while net margin expanded to 23.5%.Read the rest of this transcript for free on seekingalpha.com
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