Cost of Revenues

Cost of revenues in fiscal year 2012 was $43.0 million, representing an increase of 22.8% from fiscal year 2011. The increase was mainly due to aerial photogrammetry-related costs in connection with the new large aerial photogrammetry contracts entered this year, outsourced data production and software development costs, and a general annual increase in salary and welfare for employees directly involved in data collection and processing.

Operating Expenses

Total operating expenses in fiscal year 2012 were $80.9 million, an increase of 46.3% from fiscal year 2011. Non-GAAP operating expenses, which exclude share-based compensation expenses, were $68.5 million, an increase of 36.7% from fiscal year 2011.

Research and development ("R&D") expenses increased 50.0% from fiscal year 2011 to $35.6 million. The increase was primarily due to higher salary and benefit expenses, a result of an increase in the number of R&D staff, higher share-based compensation expenses and outsourced development costs. Non-GAAP R&D expenses, which exclude share-based compensation expenses, increased 49.6% from fiscal year 2011 to $31.8 million.

Selling and marketing expenses increased 51.9% from fiscal year 2011 to $25.0 million. The increase was primarily due to higher salary and benefit expenses resulting from increased sales headcount, higher share-based compensation expenses, the increase of promotion and marketing expenses, office facility rental expenses and travel expenses. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, increased 37.9% from fiscal year 2011 to $20.3 million.

General and administrative expenses increased 34.5% from fiscal year 2011 to $20.3 million. The increase was primarily due to a general annual increase in salary and welfare, higher share-based compensation expenses and allowance for doubtful accounts provided in fiscal year 2012. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, increased 16.2% from fiscal year 2011 to $16.4 million.

Net Income Attributable to AutoNavi Shareholders

Net income attributable to AutoNavi shareholders was $36.5 million in fiscal year 2012, flat from fiscal year 2011. Diluted net income per American depositary share ("ADS") attributable to AutoNavi shareholders for the fiscal year 2012 was $0.73, flat with $0.73 from a year ago. One ADS represents four ordinary shares.

If you liked this article you might like

Chinese tech stocks: Shanghai IPOs are outperforming US shares

AutoNavi Holdings Ltd. Stock Downgraded (AMAP)

Why AutoNavi (AMAP) Stock Is Higher On Friday

Alibaba Steals March on Tencent with ChinaVision Deal

Is Alibaba Finally Readying for an IPO?