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BEIJING, Nov. 18, 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 third quarter ended September 30, 2013.
Highlights for the Third Quarter of 2013
Net revenues in the third quarter reached RMB275.4 million (US$45.0 million). This represents a 6.9% increase from the previous quarter and a 31.6% increase year-over-year.
Gross profit in the third quarter was RMB87.6 million (US$14.3 million), an increase of 8.6% from the previous quarter and 28.3% year-over-year.
Gross margin in the third quarter improved to 31.8%, compared to 31.3% in the second quarter of 2013. Adjusted gross margin (non-GAAP) in the third quarter was 36.3%.
Adjusted net loss (non-GAAP) was RMB16.0 million (US$2.6 million) in the third quarter, compared to adjusted net income of RMB12.6 million in the second quarter of 2013.
"We delivered a robust year-over-year revenue growth of 31.6% in the third quarter with gross margin improving to 31.8%. During the quarter, the Company recorded net revenue growth across each of its industry verticals, particularly in its Enterprise, and Internet and software verticals. Also, we are pleased to see continuous expansion of our Enterprise customer base which marks the highest increase among all of our customer segments. We believe our strong growth will continue in the fourth quarter and drive revenue to record highs," said Mr. Song Wang, Founder, Chairman and Chief Executive Officer of ChinaCache.
"China's Internet industry continues to be fueled by greater demand for higher quality Internet content and the urge of better connection speeds. Favorable government policies are also expected to drive growth in Internet traffic, which we expect will increase demand for our services. Additionally, we anticipate that growth in OTT and IPTV, as well as the continued expansion of 3G and the expected launch of 4G wireless technologies, will drive exponential increases in mobile traffic, creating a tremendous opportunity in the future for ChinaCache," added Mr. Wang. "In order to address these opportunities, we continue to make strategic investments in areas such as R&D, talents acquisition, product development and network resources to enhance our management system and operational capabilities. We've already implemented a CRM system and upgraded our ERP system, and will soon start the second phase of ERP upgrade. By implementing overall budget controls, human resources management and customer evaluations, we can increase our visibility and realize more effective and organized company operations. We see these initiatives important for us to maintain our competitive advantage and to benefit from not only China's rapidly developing Internet market, but also the overseas markets."