CDC Corp. swings to loss in Q3

Shares of CDC Corp. (Nasdaq: CHINA) are edging lower in pre-market after the provider of enterprise software and online games reported that it swung to a net loss in the third quarter.

For the three months ended Sept. 30, the Chinese small cap recorded a net loss of $7.1 million, or $0.06 per share, compared with a net profit of $3.2 million, or $0.03 per share in the third quarter of 2006. Nine analysts polled by Thomson Financial were on average forecasting a net profit of $0.08 per share.

The company attributed the dive in net income to lower revenues of CDC Games and CDC’s MVAS business. Additionally, CDC said it incurred several one-time items including the sale of Ion Global for a gain of $6.3 million, a CDC Software restructuring charge of $1.6 million, a CDO (collateralized debt obligation) write-down of $6.6 million and a gain from a lease restructure of $3.8 million

Total revenues for the third quarter were $99.6 million, an increase of 27% over the $78.2 million CDC booked in the third quarter of 2006. The consensus of nine analysts surveyed by Thomson Financial was for revenues of $100.70 million.

Shares of CDC Corp. (CHINA) edged down $0.12, or 2.28%, to $5.14. Shares of CDC Corp. have been trading in the range of $5.10 to $11.45 for the past 52 weeks.

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