China Digital TV posts USD 17mn revenue in Q3 2014

China Digital TV has reported a net revenue of USD 17 million in the third quarter of 2014, as compared to USD 23 million in the third quarter 2013. The company’s gross profit declined by 25% year-on-year to USD 12.8 million in the third quarter 2014.

Revenue from smart cards and other products stood at USD 15.9 million in the third quarter of 2014 as against USD 22.3 million in the same period in 2013. Revenue from services stood at USD 1.2 million in the third quarter of 2014, as compared to USD 1.1 million in the third quarter 2013.

China Digital TV has shipped over 3.35 million smart cards in the third quarter of 2014, compared to 4.76 million in the same period in 2013 and 3.55 million in the third quarter of 2014. In this quarter, the company has won deals – from Shanghai Oriental Cable Network firm to provide cloud service platform; Jishi Media company to provide new broadcast platforms and CANTV to supply 900,000 smart cards.

“During the third quarter of 2014, shipments of approximately 3.35 million smart cards came in slightly below our expectations as digital penetration increased,” said Dr Lu Zengxiang, acting Chief Executive Officer and acting Chief Financial Officer of China Digital TV. “Net revenues were still in line with guidance due to an unexpected delivery of surface mounted chips and system integrations overseas. In the domestic market, steady demand for smart cards was driven by our major customers, including those in Jiangxi, Shandong, Guangdong, Sichuan and Jiangsu provinces.”

China Digital TV ships 3.55 mn smartcards in Q2 2014

China Digital TV has reported that the smart cards shipment declined by 30,000 in the second quarter of 2014 year-on-year. The company has shipped over 3.55 million smart cards in the second quarter of 2014, as compared to 3.58 million in the same period in 2013 and 3.56 million in the first quarter of 2014. The company has posted a consolidated net revenue of USD 17.2 million in the second quarter of 2014, representing a 5.8% decrease from the same period in 2013 and a 5.6% decrease from the first quarter of 2014.

Revenue from smart cards and other products was USD 15.9 million in the second quarter of 2014, a decrease of 9.1% from the same period in 2013 and a decrease of 7.1% from the first quarter of 2014. “The year-over-year decrease was primarily due to a decrease in revenues from the sales of smart cards as a result of a decrease in the ASP,” said the company in a statement.

The company expects smart card shipment volumes in the third quarter of 2014 to be in the range of 3.6 million to 3.9 million. Net revenue from it in the third quarter of 2014 are expected to be in the range of USD 15.4 million to USD 16.6 million.

“Alongside the traditional CA market, we maintained our focus on value-added services this quarter, with our subsidiary Cybercloud continuing to explore market opportunities beyond partnerships with cable operators. There were exciting developments in our cloud computing business, including a new agreement with Jiangsu Mobile to develop cloud games for OTT set-top boxes and 4G cloud games on mobile, as well as the establishment of a streaming platform for Shandong Network TV covering China Telecom and Unicom broadband users in Shandong,” said Dr Lu Zengxiang, acting chief executive officer and acting chief financial officer of China Digital TV.

China Digital TV ships 17 million smart cards in 2013

China Digital TV Holding Company, a leading provider of conditional access (CA) systems to China’s digital television market, shipped approximately 4.95 million smart cards in the Q4 2013 compared to 4.07 million in the same period in 2012, and 4.76 million in the third quarter of 2013. Over the full year, the company shipped approximately 17 million smart cards, compared to 15.35 million smart cards in 2012.

“In addition to usual seasonal factors ahead of the Chinese New Year, the better-than-expected shipment volume for this quarter was largely due to increased smart card demand from key Chinese cable TV operators, including in Jiangsu, Guangdong, Sichuan, Shandong, and Jiangxi provinces,” said Jianhua Zhu, China Digital TV’s chairman and chief executive officer.

Zhu said solid growth in the overseas market continued to be an important driver of the company’s market diversification strategy – especiallykey markets such as Venezuela, Taiwan and India.