(19 November 2007 1:30 pm)

MUMBAI: China Digital TV which provides conditional access systems to China's growing digital television market has announced financial results for the three months ended 30 September, 2007.

Revenue for the quarter was $14.4 million, a 37.3 per cent increase from the third quarter of 2006 and a 28.9 per cent increase from the second quarter of 2007.

Net income for the quarter was $8.8 million, a 53 per cent increase from the third quarter of 2006 and a 46.9 per cent increase from the second quarter of 2007.

In the third quarter, China Digital TV entered into 18 new contracts to install systems, including contracts with provincial-level cable operators in Heilongjiang and Fujian, the municipal cable operator in Heze, Shandong province, and several cable operators in the city of Ningbo.

China Digital TV CEO Jianhua Zhu says, "We are pleased with our results for the third quarter of 2007. This quarter's strong performance reflects China Digital TV's leading market position in China's fast-developing digital television industry. With our established brand name, adaptable product solutions, consistently high-quality customer service and extensive industry partnerships, we are confident that we will
maintain our leading market position and grow along with this dynamic industry."

China Digital TV CFO Mason Xu says, "Our successful IPO last month on the New York Stock Exchange demonstrates the confidence of investors in China Digital TV's business model as well as in the tremendous potential of China's digital television industry. In the coming quarters, we hope to leverage our deep understanding of the local market, leading industry position and long-term commitment to R&D to capitalise further on this exciting growth."

Revenues from smart cards and related products were $12.8 million, a 40.1 per cent increase from the same period of 2006 and a 26.6 per cent increase from the second quarter. Smart card and related products sales were 88.7 per cent of the total revenues for the quarter.

China Digital TV shipped 1.9 million cards in the third quarter, 2007, a 32.9 per cent increase over the number of cards shipped in the same period of 2006 and a 23.6 per cent increase over the second quarter of 2007.

Revenues from services were $1.6 million, a 19 per cent increase over the same period in 2006 and a 49.6 per cent increase over the second quarter, 2007. Service revenue was 11.3 per cent of the total revenues for the quarter.
Gross profit for the quarter was $12 million, a 45.1 per cent increase from $8.3 million in the same period of 2006 and a 34 per cent increase over $8.9 million in the second quarter of 2007.