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BEIJING, Aug. 19, 2013 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd. ("ChinaCache" or the "Company") (Nasdaq:CCIH), the leading total solutions provider of Internet content and application delivery services in China, today announced its unaudited condensed consolidated financial results for the second quarter ended June 30, 2013.
Highlights for the Second Quarter of 2013
Net revenues in the second quarter reached RMB257.7 million (US$42.0 million), exceeding previous expectation of RMB250 million to RMB255 million. This represents an 11.7% increase from the previous quarter and a 30.5% increase year-over-year.
Gross profit in the second quarter was RMB80.6 million (US$13.1 million), an increase of 13.3% from the previous quarter and 29.9% year-over-year.
Gross margin in the second quarter improved to 31.3%, compared to 30.9% in the first quarter of 2013. Adjusted gross margin (non-GAAP) in the second quarter was 35.6%.
Adjusted net income (non-GAAP) was RMB12.6 million (US$2.1 million) in the second quarter, compared to adjusted net loss of RMB7.5 million in the first quarter of 2013.
"We are pleased with the results we achieved in the second quarter, as we delivered strong sequential and year-over-year improvement across many of our key operating metrics, including revenue performance that exceeded our guidance. The growth this quarter was driven primarily by continued improvement in our enterprise vertical. Over the last several months we have greatly enhanced our offering through service and product enhancement and partnerships with industry leaders such as Microsoft and Kingsoft. We believe these strategic initiatives give us a comprehensive portfolio of value-added services that puts ChinaCache at the forefront of the emerging enterprise segment," said Mr. Song Wang, Founder, Chairman and Chief Executive Officer of ChinaCache.
"As attractive as the enterprise opportunity is for us, we are equally as excited by the prospects of mobile Internet, where exponential growth is being fueled by significant carrier investment in 3G and 4G infrastructure as well as the proliferation of smartphones in China. With a wide variety of solutions aimed at helping content owners and service providers maximize the efficiency of available network resources and optimize the end user experience, we believe we are poised to build upon our new generation of technology, Content-aware Network Services as we help to usher in a new era of connectivity not only in China, but throughout the world. I believe that ChinaCache has the right solution for the right market at the right time, and we look forward to capturing some of the sizeable growth potential that exists in our target markets," added Mr. Wang.