Editorial Summary

CDC Corporation (Nasdaq: CHINA) announced 2007 full-year financial results after market close on Monday. Total revenue for 2007 was US$402.4 million, up 30 percent year-on-year. Fourth quarter revenues were $107.7 million, compared to $89 million in the fourth quarter of 2006. CDC reported a $101.7 million loss in 2007, compared to a net profit of $10.8 million in 2006. Fourth quarter net loss was $91.2 million, compared to a net loss of $2.2 million in the fourth quarter of 2006. The fourth quarter net loss included a $72.8 million charge for write-downs related to the company’s discontinued wireless value added services business, an $8.2 million charge for the write-down of investments in CDC Games and $11.5 million in other charges.

CDC Software revenues for the fourth quarter and full-year 2007 were $95 million and $349 million, respectively. CDC Games generated fourth quarter and full-year 2007 revenue of $7.9 million and $33.6 million, increases of 20 percent and 25 percent year-on-year, respectively. The company’s China.com portal recorded revenue of $4 million and $11.4 million in the fourth quarter and for the full year, respectively. WVAS revenues were $8.34 million for 2007, compared to $31.86 million in 2006.

CDC Corporation also announced first quarter 2008 estimates on Monday. The company is expecting total revenue of $98 million, with $86 million contributed by CDC Software, $8.7 million from CDC Games and $2.2 million from China.com.