Net loss narrowed to $1.97 million, or 9 cents per American Depositary Share, from $4.35 million, or 19 cents per ADS, in the same period a year earlier. Each ADS represents 16 ordinary shares of the company. Adjusted net loss narrowed year over year to $0.81 million from $3.2 million.
Revenue also increased 50.8% year over year to $56.1 million from $36.7 million. ChinaCache said net revenue growth occurred across its entire business, specifically in the Internet & Software, Media & Entertainment and Ecommerce sectors.
ChinaCache forecasts revenue of $49.4 million to $50.2 million for the first quarter of the fiscal year 2014, which would represent a year-over-year increase of 31.3% to 33.5%.
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TheStreet Ratings team rates CHINACACHE INTL HLDGS -ADR as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINACACHE INTL HLDGS -ADR (CCIH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."