This Day On The Street
Continue to site
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

China Digital TV's CEO Management Discuss Q2 2012 Results - Earnings Call Transcript

Further information regarding these and other risks and uncertainties is included in our registration statement on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements except as required under applicable law.

As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on China Digital TV’s investor relations website. I will now turn the call over to China Digital TV’s president, Mr. Li.

Dong Li

Thank you, Josh. Hello everyone and welcome.

I’d like to begin by sharing some updates on recent trends in China’s cable market. As cable network consolidation continues to move toward completion, we are seeing purchasing decisions increasingly being centralized at the provincial, rather than sub-provincial, level. As a result of this change, during the second quarter, we experienced some industry headwinds, primarily due to delayed purchases from a few provinces. However, we believe that the unmet demand for smart cards in these provinces will be fulfilled at a later stage.

In the second quarter, our shipment volumes were impacted by the industry-wide purchasing delays that I just mentioned. During Q2, smart card shipments were 3.74 million, compared with 4.64 million in the same period in 2011 and 3.70 million in the first quarter of 2012. During the second quarter, average selling price, or ASP, for smart cards decreased by 5.4% compared to Q1 2012. We maintain our expectation that ASP on an annual basis will be 5 to 8 percent lower this year compared with last year. In addition, the unit cost for smart cards decreased by 4.1% compared to the first quarter of 2012.

Despite industry headwinds in the second quarter, we remain confident in the long-term growth drivers of China’s cable sector. There are several trends that we believe give us reason to be optimistic about the sector going forward.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs