Led by solid growth in its software business, CDC Corp. yesterday reported second-quarter revenue of $111 million, a 10% increase over the $100.7 million reported in the second quarter of last year.
Significantly higher operating expenses, however, led to a net loss of $10.2 million. The loss was 174% greater than the net loss of $3.7 million reported by CDC Corp. in the same period a year ago.
Despite the bottom-line results, CDC Corp. CEO Peter Yip, in remarks to financial analysts today, expressed his satisfaction with the quarter. “Not only did CDC post all-time record revenue for the second quarter, we improved … adjusted net income,” he said. “And our new, lower cost structure has improved our operating leverage regardless of the economic environment, which we expect to be challenging.”
CDC Corp., whose business includes digital consumer products such as online games and information portals as well as enterprise software, saw revenue of $96.1 million from its CDC Software business in the second quarter ended June 30, 2008. That total — which includes enterprise software licenses, consulting, and services — was 8.7% greater than the $88.4 million reported by CDC Software in the second quarter of last year.