China Digital TV Unaudited First Quarter 2008 Results

Wednesday, May 14th, 2008 
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BEIJING, China — China Digital TV Holding, Co. Ltd. (NYSE: STV), the leading provider of conditional access (CA) systems to China’s rapidly growing digital television market, announced today its unaudited financial results for the first quarter ended March 31, 2008.

  • China Digital TV sold 2.3 million smart cards during the first quarter, an increase of 78.3% from the corresponding period in 2007 and a decrease of 11.5% from the fourth quarter of 2007.

First Quarter 2008 Results

For the first quarter of 2008, China Digital TV reported net revenues of US$17.2 million, an increase of 65.4% from US$10.4 million in the first quarter of 2007 and a decrease of 11.8% from US$19.5 million in the fourth quarter of 2007. The quarter-over-quarter decrease in net revenues was expected as the first quarter is typically the weakest season for smart card shipments. During the Chinese New Year period, the working calendar is shortened by one to two weeks when most network operators are not in operation. Additionally, cable operators tend to delay their purchase decisions until after the annual China Content Broadcasting Network (CCBN) industry show in March of each year.

In the first quarter of 2008, China Digital TV entered into 6 new contracts to install CA systems with network cable operators out of a total of 9 such contracts signed in China.

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