Form 6-K SINA CORP For: Aug 31

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2015

 

Commission File Number: 001-37361

 

 

SINA Corporation

(Registrant’s Name)

 

 

37F, Jin Mao Tower

88 Century Boulevard, Pudong

Shanghai 200121, China

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F x      Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

Table of Contents

 

TABLE OF CONTENTS

 

Signatures

3

 

Press Release regarding Results of Operations and Financial Condition for the Second Quarter Ended June 30, 2015, issued by SINA Corporation on August 18, 2015

 

2

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

	SINA CORPORATION
Date: August 20, 2015	By:	/s/ Bonnie Yi Zhang
		Bonnie Yi Zhang
		Chief Financial Officer

 

3

Exhibit 99.1

 

SINA Reports Second Quarter 2015 Financial Results

 

SHANGHAI, China—August 18, 2015—SINA Corporation (the “Company” or “SINA”) (NASDAQ: SINA), a leading online media company serving China and the global Chinese communities, today announced its unaudited financial results for the second quarter ended June 30, 2015.

 

Second Quarter 2015 Highlights

 

·          Net revenues increased 14% year over year to $213.6 million. Non-GAAP net revenues increased 14% year over year to $211.0 million.

·          Advertising revenues grew 13% year over year to $176.3 million. Non-advertising revenues were $37.3 million. Non-GAAP non-advertising revenues were $34.7 million.

·          Net income attributable to SINA was $11.7 million, or $0.19 diluted net income per share attributable to SINA. Non-GAAP net income attributable to SINA was $4.0 million, or $0.06 non-GAAP diluted net income per share attributable to SINA.

 

“We are delighted that SINA has further implemented its vertical and mobile strategies and launched a set of constructive corporate actions to better leverage SINA’s brand equity, capture business opportunities and give momentum to the capital market,” said Charles Chao, Chairman and CEO of SINA. “We have great confidence in the core business of the Company and the long-term growth we could achieve. On the mobile front, we have continually witnessed robust growth in user traffic and improved monetization for the past quarters.” Mr. Chao added.

 

“On the Weibo side, we continued to show strong momentum in both operational and financial fronts. In the second quarter 2015, Weibo recorded a non-GAAP earnings of $10.9 million, well above the street consensus. We are confident that with Weibo’s firm execution in growing user base and engagement, capitalizing on the mobile strategy and leveraging partnership with Alibaba to enable e-commerce transactions, the powerful social media platform and cohesive ecosystem that we have built can better fulfill the needs of users, customers and merchants at various dimensions and can generate sustainable earnings and cash flows and create long-term value to our shareholders.” Mr. Chao concluded.

 

Second Quarter 2015 Financial Results

 

For the second quarter of 2015, SINA reported net revenues of $213.6 million, compared to $187.0 million for the same period last year. Non-GAAP net revenues for the second quarter of 2015 totaled $211.0 million, compared to $184.4 million for the same period last year.

 

Online advertising revenues for the second quarter of 2015 were $176.3 million, compared to $155.8 million for the same period last year. The year-over-year growth in online advertising revenues resulted from an increase of $28.3 million in Weibo advertising and marketing revenues, offset by a decline of $7.9 million in portal advertising revenues.

 

 

Non-advertising revenues for the second quarter of 2015 were $37.3 million. Non-GAAP non-advertising revenues for the second quarter of 2015 were $34.7 million, compared to $28.6 million for the same period last year. The year-over-year growth in non-GAAP non-advertising revenues was mainly attributable to portal’s new business initiatives and the increases in revenues from Weibo’s game business and membership fees, partly offset by a decrease in Weibo data license revenue.

 

Gross margin for the second quarter of 2015 was 60%, compared to 61% for the same period last year. Advertising gross margin for the second quarter of 2015 was 61%, compared to 59% for the same period last year. Non-advertising gross margin for the second quarter of 2015 was 54%, compared to 67% for the same period last year. The decline in non-advertising margin was primarily due to lower margin contribution of portal’s new business, which is at the early stage of development.

 

Operating expenses for the second quarter of 2015 totaled $134.4 million, compared to $138.6 million for the same period last year. Non-GAAP operating expenses for the second quarter of 2015 totaled $120.1 million, compared to $116.9 million for the same period last year, primarily due to higher personnel costs, partially offset by decrease in sales and marketing expenditures.

 

Loss from operations for the second quarter of 2015 was $6.8 million, compared to $25.2 million for the same period last year. Non-GAAP income from operations for the second quarter of 2015 was $6.0 million, compared to a non-GAAP loss of $5.4 million for the same period last year.

 

Non-operating income for the second quarter of 2015 was $22.8 million, compared to a non-operating income of $31.2 million for the same period last year. Non-operating income for the second quarter of 2015 mainly included: (i) an $18.9 million gain from sale of marketable securities, which is excluded under non-GAAP measure; and (ii) a $5.5 million loss from equity method investment in E-House and reported one-quarter in arrears. Non-operating income for the second quarter of 2014 mainly included: (i) a gain of $29.1 million from Tencent’s acquisition of a 15% equity interest in Leju, a subsidiary of E-House, on a fully diluted basis from E-House; and (ii) a $6.8 million loss from the change in fair value of investor option liability in connection with Alibaba’s investment in Weibo.

 

Net income attributable to SINA for the second quarter of 2015 was $11.7 million, compared to $16.6 million for the same period last year. Diluted net income per share attributable to SINA for the second quarter of 2015 was $0.19, compared to $0.25 for the same period last year. Non-GAAP net income attributable to SINA for the second quarter of 2015 was $4.0 million, compared to $12.1 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA for the second quarter of 2015 was $0.06, compared to $0.17 for the same period last year.

 

 

As of June 30, 2015, SINA’s cash, cash equivalents and short-term investments totaled $1.9 billion, compared to $2.2 billion as of December 31, 2014. The decrease in cash, cash equivalents, and short-term investments was mainly due to the new investments made in the second quarter of 2015. For the second quarter of 2015, net cash provided by operating activities was $121.4 million, capital expenditures totaled $12.8 million, and depreciation and amortization expenses amounted to $9.9 million.

 

Other Developments

 

On April 11, 2014, the Company announced the adoption of a share repurchase program whereby SINA is authorized to repurchase its own ordinary shares with an aggregate value of up to $500 million. As of May 31, 2015, the expiration date of the program, the Company has repurchased approximately 8.1 million shares under the program for approximately $311 million in cash.

 

On June 1, 2015, the Company announced that it has entered into a legally binding subscription agreement with Charles Chao, Chairman and CEO of the Company, for the issuance and sale of 11,000,000 newly issued ordinary shares of the Company to Mr. Chao for a total purchase price of approximately $456 million in cash. The per share purchase price is $41.49, representing the average closing trading price of SINA’s ordinary shares for the 30 trading days ended May 29, 2015. The closing is expected to take place upon satisfaction of customary closing conditions. The shares subscribed under this transaction will be subject to a contractual lock-up restriction for six months after the closing.

 

On June 19, 2015, the Company announced that it has joined a consortium with respect to the proposed going-private transaction of E-House (China) Holdings Limited (“E-House”). To effectively execute its vertical strategy, the Company has agreed that should the transaction be completed, the Company will exchange all the E-House shares it beneficially owns (including shares acquired in the going-private transaction of E-House) upon the completion of the transaction with certain number of ordinary shares of Leju held by then E-House, based on an exchange ratio determined in accordance with a mutually agreed formula.

 

Non-GAAP Measures

 

This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP advertising and non-advertising gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income attributable to SINA and non-GAAP diluted net income per share attributable to SINA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company’s financial performance prepared in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may be defined differently than similar terms used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures.

 

 

The Company’s non-GAAP financial measures exclude recognition of deferred revenues in relation to the equity investment in E-House, stock-based compensation, amortization of intangible assets net of tax, adjustment for GAAP to non-GAAP reconciling items on the share of equity method investments, gain (loss) on the sale, deemed disposal and impairment on business, investment and non-controlling interest in a subsidiary, change in fair value of investor option liability, adjustment for GAAP to non-GAAP reconciling items for the gain (loss) attributable to non-controlling interests and amortization of convertible debt issuance cost. The Company’s management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company’s current financial results with the Company’s past financial results in a consistent manner, and (ii) in understanding and evaluating the Company’s current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains/losses and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.

 

Use of non-GAAP financial measures has limitations. The Company’s non-GAAP financial measures do not include all income and expense items that affect the Company’s operations.  They may not be comparable to non-GAAP financial measures used by other companies. Management compensates for these limitations by also considering the Company’s financial results prepared in accordance with U.S. GAAP. Reconciliations of the Company’s non-GAAP measures to the nearest comparable GAAP measures are set forth in the section below titled “Unaudited Reconciliation of Non-GAAP to GAAP Results.”

 

Conference Call

 

SINA will host a conference call from 10:10 p.m. — 10:50 p.m. Eastern Time on August 18, 2015 (or 10:10 a.m. — 10:50 a.m. Beijing Time on August 19, 2015) to present an overview of the Company’s financial performance and business operations. A live webcast of the call will be available through the Company’s corporate website at http://corp.sina.com.cn. The conference call can be accessed as follows:

 

US:	+1 845 675 0437
Hong Kong:	+852 3018 6771
China:	+400 620 8038
International:	+65 6713 5090
Passcode for all regions:	11310415

 

A replay of the conference call will be available through morning Eastern Time August 27, 2015. The dial-in number is +61 2 8199 0299. The passcode for the replay is 11310415.

 

 

About SINA

 

We are an online media company serving China and the global Chinese communities. Our digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile apps) and Weibo (social media) enables Internet users to access professional media and user generated content in multi-media formats from desktop personal computers and mobile devices and share their interests with friends and acquaintances.

 

SINA.com offers distinct and targeted professional content on each of its region-specific websites and a full range of complementary offerings. Our mobile portal, SINA.cn, provides news information and entertainment content from SINA.com customized for mobile users in WAP (mobile browser) and mobile application format. Weibo is a leading social media platform for people to create, distribute and discover Chinese-language content. Based on an open platform architecture, Weibo allows users to create and post feeds up to 140 Chinese characters and attach multi-media content, as well as access a wide range of organically and third-party developed applications, such as online games.

 

Through these properties and other product lines, we offer an array of online media and social media services to our users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.

 

Safe Harbor Statement

 

This press release contains forward-looking statements that relate to, among other things, SINA’s expected financial performance and SINA’s strategic and operational plans (as described, without limitation, in quotations from management in this press release). SINA may also make forward-looking statements in the Company’s periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “confidence,” “estimates” and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to SINA’s limited operating history in certain new businesses; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company’s quarterly operating results; the Company’s reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products, including portal, Weibo and MVAS products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties, such a Alibaba; the Company’s reliance on mobile operators in China to provide MVAS and changes in mobile operators’ policies for MVAS in China; failure to successfully integrate acquired businesses; risks associated with the Company’s investments, including equity pick-up and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA’s annual report on Form 20-F for the year ended December 31, 2014 and other filings with the Securities and Exchange Commission.

 

Contact:

Investor Relations

SINA Corporation

Phone: +86 10 5898 3336

Email: [email protected]

 

 

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. Dollars in thousands, except per share data)

 

		Three months ended									Six months ended
		June 30,						March 31,			June 30,
		2015			2014			2015			2015			2014
Net revenues:
Advertising		$	176,258		$	155,835		$	150,353		$	326,611		$	291,561
Non-advertising		37,340			31,178			34,234			71,574			66,930
		213,598			187,013			184,587			398,185			358,491
Cost of revenues:
Advertising *		68,978			63,384			63,949			132,927			118,240
Non-advertising		17,014			10,258			13,368			30,382			23,933
		85,992			73,642			77,317			163,309			142,173
Gross profit		127,606			113,371			107,270			234,876			216,318
Operating expenses:
Sales and marketing *		53,984			56,944			60,251			114,235			106,904
Product development *		51,788			47,696			51,613			103,401			92,231
General and administrative *		28,659			19,406			20,634			49,293			36,582
Impairment on goodwill		—			14,526			—			—			14,526
		134,431			138,572			132,498			266,929			250,243
Loss from operations		(6,825		)	(25,201		)	(25,228		)	(32,053		)	(33,925		)
Non-operating income:
Earning (Loss) from equity method investments, net		(2,729		)	2,912			3,652			923			11,634
Gain (Loss) on sale of and impairment on investments, net		19,032			26,932			(1,085		)	17,947			26,551
Change in fair value of investor option liability		—			(6,784		)	—			—			(46,972		)
Interest and other income, net		6,455			8,116			5,783			12,238			10,071
		22,758			31,176			8,350			31,108			1,284
Income (Loss) before income taxes		15,933			5,975			(16,878		)	(945		)	(32,641		)
Income tax benefits (expenses)		(3,022		)	1,474			2,985			(37		)	2,690
Net income (loss)		12,911			7,449			(13,893		)	(982		)	(29,951		)
Less: Net income (loss) attributable to non-controlling interests		1,243			(9,173		)	(3,584		)	(2,341		)	(13,407		)
Net income (loss) attributable to SINA		$	11,668		$	16,622		$	(10,309	)	$	1,359		$	(16,544	)
Basic net income (loss) per share attributable to SINA		$	0.20		$	0.25		$	(0.18	)	$	0.02		$	(0.25	)
Diluted net income (loss) per share attributable to SINA **		$	0.19		$	0.25		$	(0.18	)	$	0.02		$	(0.27	)
Shares used in computing basic net income (loss) per share attributable to SINA		58,417			65,806			58,753			58,585			65,920
Shares used in computing diluted net income (loss) per share attributable to SINA		58,910			65,918			58,753			58,837			65,920
* Stock-based compensation in each category:
Cost of revenues - advertising		$	1,139		$	724		$	1,423		$	2,562		$	1,499
Sales and marketing		2,594			1,103			2,622			5,216			2,250
Product development		3,104			1,530			3,495			6,599			2,885
General and administrative		7,689			4,072			5,834			13,523			7,682

 

**   Net income (loss) attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments.

 

 

SINA CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

 

		June 30,			December 31,
		2015			2014
Assets
Current assets:
Cash and cash equivalents		$	886,222		$	1,223,682
Short-term investments		1,046,616			942,856
Accounts receivable, net		288,238			259,764
Prepaid expenses and other current assets		238,693			109,214
Subtotal		2,459,769			2,535,516
Property and equipment, net		52,455			63,729
Goodwill and intangible assets, net		62,651			64,489
Long-term investments, net		1,025,013			860,003
Other assets		202,863			179,591
Total assets		$	3,802,751		$	3,703,328
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$	1,530		$	3,853
Accrued liabilities		449,367			320,268
Short-term loan		16,108			—
Deferred revenues		54,882			50,557
Income taxes payable		35,666			17,979
Subtotal		557,553			392,657
Convertible debt		800,000			800,000
Long-term deferred revenue		80,173			85,391
Other long-term liabilities		3,422			4,010
Total liabilities		1,441,148			1,282,058
Shareholders’ equity
SINA shareholders’ equity		2,068,240			2,145,772
Non-controlling interests		293,363			275,498
Total shareholders’ equity		2,361,603			2,421,270
Total liabilities and shareholders’ equity		$	3,802,751		$	3,703,328

 

 

SINA CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(U.S. Dollars in thousands)

 

		Three months ended									Six months ended
		June 30,						March 31,			June 30,
		2015			2014			2015			2015			2014
Net revenues
Portal:
Portal Advertising		$	88,391		$	96,252		$	71,193		$	159,584		$	180,125
Other		17,365			13,441			17,104			34,469			33,536
Subtotal		105,756			109,693			88,297			194,053			213,661
Weibo		107,842			77,320			96,290			204,132			144,830
		$	213,598		$	187,013		$	184,587		$	398,185		$	358,491
Cost of revenues
Portal:
Portal Advertising		$	41,047		$	46,512		$	38,974		$	80,021		$	85,968
Other		11,256			7,430			9,418			20,674			19,062
Subtotal		52,303			53,942			48,392			100,695			105,030
Weibo		33,689			19,700			28,925			62,614			37,143
		$	85,992		$	73,642		$	77,317		$	163,309		$	142,173

 

 

SINA CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(U.S. dollars in thousands, except per share data)

 

		Three months ended
		June 30, 2015									June 30, 2014									March 31, 2015
								Non-GAAP									Non-GAAP									Non-GAAP
		Actual			Adjustments			Results			Actual			Adjustments			Results			Actual			Adjustments			Results
Advertising revenues		$	176,258					$	176,258		$	155,835					$	155,835		$	150,353					$	150,353
Non-advertising revenues		37,340			(2,609		)(a)	34,731			31,178			(2,609		)(a)	28,569			34,234			(2,609		)(a)	31,625
Net revenues		$	213,598		$	(2,609	)	$	210,989		$	187,013		$	(2,609	)	$	184,404		$	184,587		$	(2,609	)	$	181,978
					(2,609		)(a)							(2,609		)(a)							(2,609		)(a)
					1,139		(b)							724		(b)							1,423		(b)
Gross profit		$	127,606		$	(1,470	)	$	126,136		$	113,371		$	(1,885	)	$	111,486		$	107,270		$	(1,186	)	$	106,084
														(6,705		)(b)
					(13,387		)(b)							(474		)(c)							(11,951		)(b)
					(906		)(c)							(14,526		)(d)							(902		)(c)
Operating expenses		$	134,431		$	(14,293	)	$	120,138		$	138,572		$	(21,705	)	$	116,867		$	132,498		$	(12,853	)	$	119,645
														(2,609		)(a)
					(2,609		)(a)							7,429		(b)							(2,609		)(a)
					14,526		(b)							474		(c)							13,374		(b)
					906		(c)							14,526		(d)							902		(c)
Income (Loss) from operations		$	(6,825	)	$	12,823		$	5,998		$	(25,201	)	$	19,820		$	(5,381	)	$	(25,228	)	$	11,667		$	(13,561	)
														(2,609		)(a)
														7,429		(b)
					(2,609		)(a)							369		(c)							(2,609		)(a)
					14,526		(b)							14,526		(d)							13,374		(b)
					697		(c)							2,279		(e)							694		(c)
					883		(e)							(26,932		)(f)							2,286		(e)
					(19,032		)(f)							6,784		(g)							1,085		(g)
					(3,236		)(h)							(7,791		)(h)							(2,644		)(h)
					1,099		(i)							1,398		(i)							1,111		(i)
Net income (loss) attributable to SINA		$	11,668		$	(7,672	)	$	3,996		$	16,622		$	(4,547	)	$	12,075		$	(10,309	)	$	13,297		$	2,988
Diluted net income (loss) per share attributable to SINA *		$	0.19					$	0.06		$	0.25					$	0.17		$	(0.18	)				$	0.04
Shares used in computing diluted net income (loss) per share attributable to SINA		58,910			—			58,910			65,918			—			65,918			58,753			36		(j)	58,789
Gross margin - advertising		61		%	1		%	62		%	59		%	1		%	60		%	57		%	1		%	58		%
Gross margin - non-advertising		54		%	-3		%	51		%	67		%	-3		%	64		%	61		%	-3		%	58		%

 

 

		Six months ended
		June 30, 2015									June 30, 2014
								Non-GAAP									Non-GAAP
		Actual			Adjustments			Results			Actual			Adjustments			Results
Advertising revenues		$	326,611					$	326,611		$	291,561					$	291,561
Non-advertising revenues		71,574			(5,218		)(a)	66,356			66,930			(6,741		)(a)	60,189
Net revenues		$	398,185		$	(5,218	)	$	392,967		$	358,491		$	(6,741	)	$	351,750
					(5,218		)(a)							(6,741		)(a)
					2,562		(b)							1,499		(b)
Gross profit		$	234,876		$	(2,656	)	$	232,220		$	216,318		$	(5,242	)	$	211,076
														(12,817		)(b)
					(25,338		)(b)							(1,645		)(c)
					(1,808		)(c)							(14,526		)(d)
Operating expenses		$	266,929		$	(27,146	)	$	239,783		$	250,243		$	(28,988	)	$	221,255
														(6,741		)(a)
					(5,218		)(a)							14,316		(b)
					27,900		(b)							1,645		(c)
					1,808		(c)							14,526		(d)
Loss from operations		$	(32,053	)	$	24,490		$	(7,563	)	$	(33,925	)	$	23,746		$	(10,179	)
														(6,741		)(a)
					(5,218		)(a)							14,316		(b)
					27,900		(b)							1,268		(c)
					1,391		(c)							14,526		(d)
					3,169		(e)							4,221		(e)
					(19,032		)(f)							(26,551		)(f)
					1,085		(g)							46,972		(g)
					(5,880		)(h)							(11,080		)(h)
					2,210		(i)							2,796		(i)
Net income (loss) attributable to SINA		$	1,359		$	5,625		$	6,984		$	(16,544	)	$	39,727		$	23,183
Diluted net income (loss) per share attributable to SINA *		$	0.02					$	0.10		$	(0.27	)				$	0.32
Shares used in computing diluted net income (loss) per share attributable to SINA		58,837			—			58,837			65,920			173		(j)	66,093
Gross margin - advertising		59		%	1		%	60		%	59		%	1		%	60		%
Gross margin - non-advertising		58		%	-4		%	54		%	64		%	-4		%	60		%

 

(a)         To adjust the recognition of deferred revenue related to the license agreements granted to E-House.

(b)         To adjust stock-based compensation.

(c)          To adjust  amortization of intangible assets and tax provision on amortization of intangible assets.

(d)         To adjust  the impairment on goodwill

(e)          To adjust the GAAP to Non-GAAP reconciling items on the share of equity method investments, net of share of amortization of intangibles not on their books.

(f)           To adjust gain (loss) on sale of investments, gain (loss) on deemed disposal and (impairment) on investments, net.

(g)         To adjust the change in fair value of investor option liability.

(h)         To adjust GAAP to Non-GAAP reconciling items for the gain (loss) attributable to non-controlling interests.

(i)            To adjust convertible debt issuance cost.

(j)            To adjust the number of shares for dilution resulted from convertible debt and unvested equity granted.

 

*                 Net income (loss) attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments.