HARBIN, China, May 15, 2013 /PRNewswire/ -- China Education Alliance, Inc. ("China Education Alliance" or the "Company", OTCQX: CEAI), a China-based education resource and services company, today announced its first quarter 2013 financial results. The Company will host a conference call on Thursday, May 16, 2013, at 8 a.m. EDT ( 8 p.m. Beijing time the same day).
Financial Highlights for the First Quarter ended March 3 1 , 201 3
- Total revenues decreased by 49.2% to $2.4 million.
- Gross profit decreased 83.1% to $0.4 million
- Net loss of $3.7 million.
- Loss per share was $0.35 per fully diluted share.
"We are fully focused on finalizing our new information platform that will bring together teachers and students in a web-based environment and allow them to communicate in a more convenient and efficient way. Having been under development for quite some time, we are confident that this new platform will give us a definite competitive advantage. We have continued to test its functionality to our satisfaction and that of our content partners, as we added a wide array of new educational material. With the surge in growth and adoption of e-commerce platforms in China, we are eager to bring it to market this summer," said Mr. Xiqun Yu, Chairman and Chief Executive Officer of China Education Alliance.
First Quarter 201 3 Review:Revenue decreased by $2.4 million, or 49.2% to $2.4 million for the quarter ended March 31, 2013 from $4.8 million during the same period in 2012. Revenue from the on-line education division decreased by $1.4 million, or 69.6%, to $0.6 million for the quarter ended March 31, 2013 from $2.1 million for the quarter ended March 31, 2012. Revenue from the training center division decreased by $0.9 million, or 33.9%, to $1.8 million for the quarter ended March 31, 2013 from $2.7 million for the quarter ended March 31, 2012. The decline in revenue was primarily a result of a decline in revenue across all of our business. We believe revenue was affected by external factors including slowdown in economic growth within the PRC, untruthful allegations about our businesses, and increased competition. These factors contributed to the continuous decline in interest of existing and new students, which resulted in decrease in student enrollments and led to a decline in revenue as compared to the quarter ended March 31, 2012. We expect to improve the performance of our online education division in the future by providing students with more competitive, up-to-date study materials and easy access. We have contracted technology companies to design a new web-based platform providing video based long-distance teaching services which encompass online community system and online teaching management system. Additionally, we are seeking to establish more onsite training centers and optimize the operation of existing training centers. As such, we predict that our revenue will gradually recover after we launch the new web-based platform and set up more training centers.