Friday, May 22, 2015

Global Sources records loss in Q1

News this week: Yesterday, NASDAQ-listed Global Sources released its financial results for the first quarter ended 31st March 2015. Revenues were US$22.2 million, down 36% compared with US$34.5 million last year. In the same period, the company recorded IFRS net loss of US$2.1 million, compared with IFRS net income of US$145,000 in 2014. The drop in revenue was largely due to the shifting of one of the company’s major exhibitions from the first quarter in 2014 to the second quarter in 2015.

More than 80% of Global Sources’ revenues were generated from its online business, amounting to US$17.9 million. That is a drop of 16% from US$21.3 million recorded last year. Revenues from print business accounted for 9.6% of total revenues at US$2.1 million, down 17% year-on-year from 2014’s US$2.6 million. Meanwhile, exhibitions revenues slipped to US$260,000, down from US$8.9 million in the same period last year. The company attributed the decline to the shift in timing of SIMM machinery shows (Shenzhen International Machinery Manufacturing Industry Exhibition and its related shows) from the first quarter of 2014 to the second quarter of 2015.

Global Sources’ executive chairman, Merle A. Hinrich, said, “Our first quarter results reflect the shift in timing of our SIMM machinery shows for the mainland China domestic market from the first quarter of 2014 to the second quarter of 2015. In April, we held our export-focused shows, including Global Sources Electronics, the world’s largest electronics sourcing trade show featuring a total of more than 5,500 booths.”

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

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