Editorial Summary

Chinese telecom and security software and solutions provider AsiaInfo Holdings, Inc. (Nasdaq: ASIA) released first quarter 2008 results after market close on Wednesday. First quarter net revenue (total revenues excluding third party hardware costs) was $30.7 million, down 12 percent from the previous quarter and up 31 percent year-on-year. The company attributed revenue declines to normal seasonal fluctuations and the company's shifting focus to high-margin software solutions. AsiaInfo recorded net income of $4.3 million from continuing operations, compared to $6.6 million in the fourth quarter of 2007 and $5.0 million, including a $2.7 million one-time settlement gain, in the year-ago period.

Revenue from software products and solutions was $27.1 million for the first quarter, a decrease of 11 percent quarter-on-quarter and up 38 percent from the year-ago period. Service revenue was $3.3 million, down 23 percent sequentially and 6 percent from the same period last year. Third-party hardware revenue was $4.5 million, down 25 percent quarter-on-quarter and 34 percent year-on-year. Revenue from the company's Lenovo-AsiaInfo business unit contributed 8.9 percent to net revenue in the first quarter, compared to a 9.3 percent contribution in the year-ago period and 20.3 percent in the previous quarter.

AsiaInfo expects second quarter Non-GAAP net revenue between $33 million and $34 million with net income per basic share to range from $0.12 to $0.13.