SINA Reports Preliminary Fourth Quarter and Fiscal Year 2008 Financial Results

News Release

View printer-friendly version
<< Back

SINA Reports Preliminary Fourth Quarter and Fiscal Year 2008 Financial Results

SHANGHAI, March 16 /PRNewswire-Asia/ -- SINA Corporation (Nasdaq GS: SINA), a leading online media company and mobile value-added service (MVAS) provider for China and for the global Chinese communities, today announced its preliminary, unaudited financial results for the fourth quarter and fiscal year ended December 31, 2008.

    Fourth Quarter 2008 Highlights
    -- Net revenues increased 44% year-over-year and declined 4%
       quarter-over-quarter to $101.5 million, exceeding the Company's
       previous guidance between $98.0 million and $101.0 million.
    -- Advertising revenues grew 39% year-over-year and decreased 9%
       quarter-over-quarter to $69.5 million, within the Company's previous
       guidance between $69.0 million and $71.0 million.
    -- Non-advertising revenues increased 56% year-over-year and 10%
       quarter-over-quarter to $32.0 million, exceeding the Company's previous
       guidance between $29.0 million and $30.0 million.
    -- GAAP net income increased 46% year-over-year and 17%
       quarter-over-quarter to $25.6 million. Diluted net income per share was
       $0.42, compared to $0.29 for the same period last year and $0.36 last
       quarter.
    -- Non-GAAP* net income increased 44% year-over-year and 10%
       quarter-over-quarter to $29.6 million. Non-GAAP diluted net income per
       share was $0.49, compared to $0.34 for the same period last year and
       $0.44 last quarter.


    Fiscal 2008 Highlights
    -- Net revenues increased 50% year-over-year to $369.6 million.
    -- Advertising revenues grew 53% year-over-year to $258.5 million.
    -- Non-advertising revenues increased 44% year-over-year to $111.1 million.
    -- GAAP net income increased 54% year-over-year to $88.8 million. Diluted
       net income per share was $1.47, compared to $0.97 for fiscal 2007.
    -- Non-GAAP net income increased 52% year-over-year to $102.3 million.
       Non-GAAP diluted net income per share was $1.69, compared to $1.12 for
       fiscal 2007.


    *  Non-GAAP measures are disclosed below and reconciled to the
       corresponding GAAP measures in the section below titled "Reconciliation
       of Non-GAAP to GAAP Results."

"I am pleased to report a solid fourth quarter. For the year 2008, we have achieved outstanding results with record revenues and profits," said Charles Chao, CEO of SINA. "The spill-over of the global financial crisis into post-Olympic China has had a negative impact on the Chinese brand advertising market. Such impact has been severe in the first quarter of 2009, as many of our advertising customers have experienced delays in their budgeting process or advertising campaigns. Although we have seen significant rebound in market demand since the end of February, it is too soon to assess the overall growth trend for brand advertising in China for the rest of 2009. By leveraging our past experience in managing business cycles and our scale to afford critical, long-term investments, we believe we are well positioned for the market volatility and the opportunities beyond. In addition, our in-process merger with Focus Media's digital out-of-home business will further magnify SINA's scale, reach and market influence in China's new media space."

Preliminary Results May Be Subject to Material Adjustments

The Company's preliminary results for the fourth quarter of 2008 and for fiscal 2008 include $1.1 million and $12.6 million of foreign exchange gains mainly related to liquidation dividend distributions and capital repatriation from the closing of certain subsidiaries in the PRC ("foreign exchange gains"), which the Company recognized as other income under non-operating income. The Company and its independent accountant have recently determined that it is necessary to review the accounting treatment for the foreign exchange gains. If the Company concludes that the requirements for releasing cumulative translation adjustments of liquidated foreign subsidiaries and recognizing foreign exchange gains under Statement of Financial Accounting Standards No. 52, Foreign Currency Translation ("SFAS 52") and FASB Interpretation 37, Accounting for Translation Adjustments upon Sale of Part of an Investment in a Foreign Entity-an interpretation of FASB Statement No. 52 ("FIN 37") were not met, the Company will be required to defer such gains from non-operating income and net income in the current fiscal year.

Excluding the foreign exchange gains, fourth quarter 2008 and fiscal 2008 net income were $24.5 million and $76.2 million, respectively, and diluted net income per share were $0.41 and $1.26, respectively. Excluding the foreign exchange gains, fourth quarter 2008 and fiscal 2008 non-GAAP net income were $28.5 million and $89.7 million, respectively, and non-GAAP diluted net income per share were $0.47 and $1.48, respectively. Since the $12.6 million in foreign exchange gains for 2008 have been settled in US dollars as of December 31, 2008, the adjustments, if made, will not impact the Company's cash position, revenues or income from operations.

Because the requirements for releasing cumulative translation adjustments of liquidated foreign subsidiaries and recognizing foreign exchange gains are complex and the amount of work required to address such issue is time consuming, the Company has not yet reached a conclusion on such accounting treatment. There can be no assurance that any of the foreign exchange gains for 2008 will be recognized in the current fiscal year under SFAS 52 and FIN 37. The Company expects to disclose its conclusion on accounting for the foreign exchange gains by the filing of the Company's report on Form 20-F for fiscal 2008.

Financial Results

For the fourth quarter of 2008, SINA reported net revenues of $101.5 million, compared to $70.7 million in the same period in 2007 and $105.4 million for the third quarter of 2008. Advertising revenues for the fourth quarter of 2008 totaled $69.5 million, representing a 39% increase from the same period last year and a 9% decline from last quarter. Advertising revenues in China in the fourth quarter of 2008 reached $68.7 million, an increase of 40% year over year and a decline of 9% sequentially.

Non-advertising revenues for the fourth quarter of 2008 totaled $32.0 million, a 56% increase from the same period in 2007 and a 10% increase over the previous quarter. MVAS revenues amounted to $30.0 million for the fourth quarter of 2008, representing a 61% increase from the same period in 2007 and an 11% increase quarter over quarter.

For fiscal 2008, SINA reported net revenues of $369.6 million, compared to $246.1 million in 2007. Advertising revenues for fiscal 2008 totaled $258.5 million, an increase of 53% from 2007. Advertising revenues from China reached $255.1 million for fiscal 2008, representing a year-over-year growth of 54%. Non-advertising revenues for fiscal 2008 amounted to $111.1 million, an increase of 44% from 2007. The growth in non-advertising revenues came mostly from MVAS, which generated $103.3 million in revenues for fiscal 2008, representing a 47% increase year-over-year.

Gross margin for the fourth quarter of 2008 was 60%, down from 62% for the same period last year and up from 57% last quarter. Advertising gross margin for the fourth quarter of 2008 was 64%, compared to 64% in the same period last year and 58% for the previous quarter. Non-GAAP advertising gross margin for the fourth quarter of 2008 was 65%, flat over the same period last year and up from 59% last quarter. Lower advertising gross margin in the third quarter of 2008 can be mainly attributed to incremental increases in content and labor costs associated with the coverage of the 2008 Beijing Olympic Games. MVAS gross margin for the fourth quarter of 2008 was 50%, compared to 56% for the same period in 2007 and 53% last quarter. The decline in MVAS gross margin was primarily due to increased costs related to revenue sharing arrangements.

Gross margin for fiscal 2008 was 59%, down from 62% for fiscal 2007. Advertising gross margin for fiscal 2008 was 61%, compared to 62% for fiscal 2007. Non-GAAP advertising gross margin was 63% for fiscal 2008, flat over fiscal 2007. MVAS gross margin for fiscal 2008 was 54%, compared to 58% in the prior year. The decline in MVAS gross margin was primarily due to increased costs related to revenue sharing arrangements.

Operating expenses for the fourth quarter of 2008 totaled $39.3 million, an increase of 39% from the same period last year and a decline of 2% from last quarter. Non-GAAP operating expenses, which exclude stock-based compensation and amortization of intangible assets, were $36.2 million for the fourth quarter of 2008, an increase of 40% from the fourth quarter of 2007 and a decline of 2% from last quarter. The year-over-year increase in operating expenses was mainly due to increases in headcount, bonus and other payroll-related expenses as well as higher marketing expenditures.

Operating expenses for fiscal 2008 were $144.7 million, an increase of 44% from fiscal 2007. Non-GAAP operating expenses were $132.3 million for 2008, an increase of 43% from fiscal 2007. The year-over-year increase in operating expenses primarily relates to higher market expenditures and higher headcount, bonus and other payroll-related expenses.

Income from operations for the fourth quarter of 2008 was $21.5 million, compared to $15.7 million for the same period last year and $20.1 million from last quarter. Non-GAAP income from operations for the fourth quarter of 2008 was $25.6 million, compared to $18.7 million for the same period last year and $24.2 million from last quarter.

Income from operations for 2008 was $74.6 million, compared to $51.0 million last year. Non-GAAP income from operations for 2008 was $90.5 million, compared to $60.9 million last year.

Interest and other income for the fourth quarter of 2008 was $5.9 million, compared to $3.7 million from the same period last year and $7.1 million from last quarter. Other income for the fourth quarter of 2008 included $1.1 million in foreign exchange gains as described above.

Interest and other income for fiscal 2008 was $25.9 million, compared to $12.7 million last year. Other income for 2008 included $12.6 million in foreign exchange gains as described above.

For the fourth quarter of 2008, provision for income taxes was $1.8 million, compared to $1.9 million from the same period last year and $4.4 million from last quarter. On January 1, 2008, a new Enterprise Income Tax ("EIT") Law came into effect in China. For the first three quarters of 2008, the Company made an income tax provision without considering the tax benefits as a qualified new or high technology enterprise, because the Company was uncertain whether it was entitled to such tax benefits under the new EIT. During the fourth quarter of 2008, certain subsidiaries of the Company were reaffirmed as qualified new or high technology enterprises under the new EIT. Consequently, the Company made a provision for income taxes based on its reaffirmed status for fiscal 2008 and recorded the preferential tax benefits of certain subsidiaries in the fourth quarter of 2008.

For fiscal 2008, provision for income taxes was $14.0 million, compared to $6.5 million for fiscal 2007. The increase in provision for income taxes was mainly due to higher income earned in 2008 as well as higher effective tax rate due to expired tax holidays. Effective tax rate for fiscal 2008 was 14%, compared to 10% for fiscal 2007.

Net income for the fourth quarter of 2008 was $25.6 million, an increase of 46% from the same period last year and 17% from last quarter. Diluted net income per share for the fourth quarter of 2008 was $0.42 compared to $0.29 in the same period last year and $0.36 last quarter. Non-GAAP net income was $29.6 million for the fourth quarter of 2008, an increase of 44% from the same period last year and 10% from the previous quarter. Non-GAAP diluted net income per share for the fourth quarter of 2008 was $0.49, compared to $0.34 in the same period last year and $0.44 last quarter.

Net income for fiscal 2008 totaled $88.8 million or $1.47 diluted net income per share, compared to $57.7 million or $0.97 diluted net income per share for fiscal 2007. Non-GAAP net income was $102.3 million for fiscal 2008 or $1.69 non-GAAP diluted net income per share, compared to $67.1 million or $1.12 non-GAAP diluted net income per share for fiscal 2007.

As of December 31, 2008, SINA's cash, cash equivalents and short-term investments totaled $603.8 million, compared to $478.0 million at the end of last year. Cash flow from operating activities for the fourth quarter of 2008 was $46.9 million, compared to $31.9 million for the same period last year and $26.9 million for last quarter. For fiscal 2008, cash flow from operating activities was $124.1 million, compared to $89.1 million for fiscal 2007.

Business Outlook

The Company estimates that its total revenues for the first quarter of 2009 will be between $73 million and $77 million, with advertising revenues to be between $43 million and $46 million and non-advertising revenues to be between $30 million and $31 million. The foregoing estimates take into account, among other considerations, the recent slow down of the Chinese economy, the current global financial and credit market crisis and its current and anticipated impact on the Chinese economy and the low visibility that the Company currently has on its advertising business.

Excluding any new shares that may be granted, the Company estimates its stock-based compensation for the first quarter of 2009 to be between $3 million to $4 million.

Announced Merger

On December 22, 2008, the Company announced that it entered into a definitive agreement with Focus Media Holding Limited ("FMCN") to acquire substantially all of the assets of FMCN's digital out-of-home advertising networks, including LCD display network, poster frame network and certain in-store network. The transaction is intended to combine the new media platform of the two companies in China to provide more effective and integrated marketing solutions to customers. The transaction is subject to customary closing conditions and certain regulatory approvals and is expected to be completed in the first half of 2009. Based on the December 22, 2008 announcement, SINA will issue 47 million newly issued ordinary shares to FMCN as consideration for the acquired assets. FMCN will then distribute SINA shares to its shareholders shortly after the closing.

Share Repurchase Program

Under the $100 million share repurchase program approved by the Company's Board of Directors, as of March 16, 2009, the Company has purchased approximately 2.5 million shares in the open market at an average price of $20.37 for a total consideration of $50.0 million. The Company expects to continue the repurchase program with the remaining $50.0 million on an opportunistic basis.

Non-GAAP Measures

This release contains non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of the Company's performance, should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with United States Generally Accepted Accounting Principles ("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.

Reconciliations of the Company's non-GAAP measures to the nearest GAAP measures are set forth in the section below titled "Reconciliation of Non-GAAP to GAAP Results." These non-GAAP measures include non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income, non-GAAP diluted net income per share and non-GAAP advertising gross margin.

The Company's management uses non-GAAP financial measures to gain an understanding of the Company's comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects. The Company's non-GAAP financial measures exclude certain special items, including stock-based compensation charge, amortization of intangible assets, amortization of convertible debt issuance costs, gain/loss on the sale/purchase of business/investment and gain/loss on the sale of minority interest in subsidiary from its internal financial statements for purposes of its internal budgets. Non-GAAP financial measures are used by the Company's management in their financial and operating decision-making, because management believes they reflect the Company's ongoing business in a manner that allows meaningful period-to-period comparisons. The Company's management believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: 1) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does, if they so choose, and 2) in comparing in a consistent manner the Company's current financial results with the Company's past financial results. The Company's management further believes the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains and losses (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 its core operating results and business outlook.

The Company's management believes excluding stock-based compensation from its non-GAAP financial measures is useful for itself and investors, as such expense will not result in future cash payment and is not indicative of the Company's core operating results and business outlook.

The Company's management believes excluding the non-cash amortization expense of intangible assets from its non-GAAP financial measures is useful for itself and investors, because they enable a more meaningful comparison of the Company's cash performance between reporting periods. In addition, such charges will not result in cash settlement in the future.

The Company's management believes excluding non-cash amortization expense of issuance cost relating to convertible bonds from its non-GAAP financial measure of net income is useful for itself and investors as such expense does not have any impact on cash earnings.

The Company's management believes excluding gain/loss on the sale/purchase of a business/ investment and gain/loss on the sale of minority interest in subsidiary from its non-GAAP financial measure of net income is useful for itself and investors, because such gains/losses are not indicative of the Company's core operating results.

The non-GAAP financial measures have limitations. They do not include all items of income and expense that affect the Company's operations. Specifically, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and, with respect to the non-GAAP financial measures that exclude certain items under GAAP, do not reflect any benefit that such items may confer to the Company. Management compensates for these limitations by also considering the Company's financial results as determined in accordance with GAAP.

Conference Call

SINA will host a conference call at 9:00 p.m. Eastern Time on March 16, 2009 to present an overview of the Company's financial performance and business operations. A live Webcast of the call will be available from 9:00 p.m. - 10:00 p.m. ET on Monday, March 16, 2009 (9:00 a.m. - 10:00 a.m. Beijing Time on March 17, 2009). The call can be accessed through the Company's corporate web site at http://corp.sina.com . A dial-in to the conference is also available. The number is +1-866-770-7051 (US) or +1-617-213-8064 (International) and the pass code is 65315821. A replay of the conference call will be available through March 23, 2009 at midnight Eastern Time. The dial-in number is +1-888-286-8010 (US) or +1-617-801-6888 (International). The pass code for the replay is 30870407.

About SINA

SINA Corporation (NASDAQ GS: SINA) is a leading online media company and mobile value-added service provider for China and for the global Chinese communities. With a branded network of localized websites targeting Greater China and overseas Chinese, the Company provides services through five major business lines including SINA.com (online news and content), SINA Mobile (MVAS), SINA Community (Web 2.0-based services and games), SINA.net (search and enterprise services) and SINA E-Commerce (online shopping). Together these business lines provide an array of services, including region-focused online portals, MVAS, social networking service (SNS), blog, audio and video streaming, album, online games, email, search, classified listings, fee-based services, e-commerce and enterprise e-solutions. The Company generates the majority of its revenues from online advertising and MVAS offerings, and, to a lesser extent, from search and other fee-based services.

Safe Harbor Statement

This announcement 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 the "Business Outlook" section and 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 its proxy statements, in its offering circulars and prospectuses, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. SINA assumes no obligation to update the forward-looking statements in this release and elsewhere. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. 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, the current global financial and credit market crisis and its impact on the Chinese economy, the recent slower growth of the Chinese economy during the latter half of 2008, the uncertain regulatory landscape in the People's Republic of China, including the changes by mobile operators in China to their policies for MVAS, the Company's ability to develop and market other MVAS products, fluctuations in the Company's quarterly operating results, the Company's reliance on online advertising sales and MVAS for a majority of its revenues, the Company's reliance on mobile operators in China to provide MVAS, any failure to successfully develop and introduce new products and any failure to successfully integrate acquired businesses. Further information regarding these and other risks is included in SINA's Annual Report on Form 20-F for the year ended December 31, 2007 and its other filings with the Securities and Exchange Commission.



                               SINA CORPORATION
          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (U.S. Dollar in thousands, except per share data)

                                   Three months ended     Twelve months ended
                                                 September
                                  December 31,      30,       December 31,
                                 2008     2007     2008      2008      2007
    Net revenues:
        Advertising             $69,518  $50,130  $76,205  $258,499  $168,926
        Non-advertising          32,020   20,559   29,209   111,088    77,201
                                101,538   70,689  105,414   369,587   246,127
    Cost of revenues:
        Advertising (a)          25,152   18,017   32,138   100,008    63,466
        Non-advertising          15,566    8,735   13,117    50,327    31,236
                                 40,718   26,752   45,255   150,335    94,702
    Gross profit                 60,820   43,937   60,159   219,252   151,425

    Operating expenses:
        Sales and marketing (a)  21,421   15,198   22,264    79,784    50,555
        Product development (a)   8,279    5,905    8,693    30,371    21,942
        General and
         administrative (a)       9,235    6,903    8,709    33,179    26,738
        Amortization of
         intangibles                411      258      411     1,337     1,176
                                 39,346   28,264   40,077   144,671   100,411
    Income from operations       21,474   15,673   20,082    74,581    51,014

    Non-operating income:
       Interest and other
        income, net               5,910    3,748    7,089    25,923    12,731
       Investment gains (loss)       --       --     (779)    2,358       830
       Amortization of
        convertible debt
        issuance cost                --       --       --        --      (342)
                                  5,910    3,748    6,310    28,281    13,219

    Income before income taxes   27,384   19,421   26,392   102,862    64,233
    Provision for income taxes   (1,788)  (1,910)  (4,429)  (14,042)   (6,504)

    Net income                  $25,596  $17,511  $21,963   $88,820   $57,729


    Basic net income per share    $0.46    $0.32    $0.39     $1.59     $1.05
    Diluted net income per
     share                        $0.42    $0.29    $0.36     $1.47     $0.97

    Shares used in computing
     basic net income per share  56,100   55,477   55,964    55,821    55,038
    Shares used in computing
     diluted net income per
     share                       60,277   60,545   60,639    60,474    60,020

    Net income used for diluted
     net income per share
     calculation:
    Net income                  $25,596  $17,511  $21,963   $88,820   $57,729
    Amortization of convertible
     debt issuance cost              --       --       --        --       342
                                $25,596  $17,511  $21,963   $88,820   $58,071


    (a) Stock-based compensation
        included under SFAS 123R
        was as follows:
    Cost of revenues -
     advertising                   $839     $543     $834    $3,251    $1,788
    Sales and marketing             509      350      482     2,107     1,234
    Product development             514      352      428     1,984     1,593
    General and administrative    1,718    1,515    1,887     6,967     4,097



                               SINA CORPORATION
                  RECONCILIATION OF NON-GAAP TO GAAP RESULTS
              (U.S. Dollar in thousands, except per share data)

                                                  Three months ended
                                                   December 31, 2008
                                                                    Non-GAAP
                                          Actual  Adjustments         Results

                                                        839   (a)
                                                         89   (b)
    Gross profit                          $60,820      $928          $61,748

                                                     (2,741)  (a)
                                                       (411)  (b)
    Operating expenses                    $39,346   $(3,152)         $36,194

                                                      3,580   (a)
                                                        500   (b)
    Income from operations                $21,474    $4,080          $25,554


                                                      3,569   (a)
                                                        470   (b)
    Net income                            $25,596    $4,039          $29,635


    Diluted net income per share            $0.42                     $0.49

    Shares used in computing diluted
     net income per share                  60,277                    60,277

    Net income used in computing diluted
     net income per share:
    Net income                            $25,596                   $29,635
    Amortization of convertible debt
     issuance costs                            --                        --
                                          $25,596                   $29,635

    Gross margin - advertising                64%        1%              65%


                                                  Three months ended
                                                  December 31, 2007
                                                                    Non-GAAP
                                           Actual   Adjustments      Results


                                                           543 (a)
    Gross profit                            $43,937       $543       $44,480

                                                        (2,217)(a)
                                                          (258)(b)
    Operating expenses                      $28,264    $(2,475)      $25,789

                                                         2,760 (a)
                                                           258 (b)
    Income from operations                  $15,673     $3,018       $18,691


                                                         2,760 (a)
                                                           258 (b)
    Net income                              $17,511     $3,018       $20,529


    Diluted net income per share              $0.29                    $0.34

    Shares used in computing diluted
     net income per share                    60,545                   60,545

    Net income used in computing diluted
     net income per share:
    Net income                              $17,511                  $20,529
    Amortization of convertible debt
     issuance costs                              --                       --
                                            $17,511                  $20,529

    Gross margin - advertising                  64%         1%           65%


                                                   Three months ended
                                                   September 30, 2008
                                                                    Non-GAAP
                                           Actual  Adjustments       Results

                                                        834   (a)
                                                         88   (b)
    Gross profit                           $60,159     $922          $61,081

                                                     (2,797)  (a)
                                                       (411)  (b)
    Operating expenses                     $40,077  $(3,208)         $36,869

                                                      3,631   (a)
                                                        499   (b)
    Income from operations                 $20,082   $4,130          $24,212

                                                      3,628   (a)
                                                        469   (b)
                                                        779   (d)
    Net income                             $21,963   $4,876          $26,839


    Diluted net income per share             $0.36                     $0.44

    Shares used in computing diluted
     net income per share                   60,639                    60,639

    Net income used in computing diluted
     net income per share:
    Net income                             $21,963                   $26,839
    Amortization of convertible debt
     issuance costs                             --                        --
                                           $21,963                   $26,839

    Gross margin - advertising                 58%       1%              59%


                                                   Twelve months ended
                                                    December 31, 2008
                                                                    Non-GAAP
                                             Actual  Adjustments     Results

                                                         3,251 (a)
                                                           266 (b)
    Gross profit                            $219,252    $3,517      $222,769

                                                       (11,058)(a)
                                                        (1,337)(b)
    Operating expenses                      $144,671  $(12,395)     $132,276

                                                        14,309 (a)
                                                         1,603 (b)
    Income from operations                   $74,581   $15,912       $90,493

                                                        14,295 (a)
                                                         1,513 (b)
                                                           779 (d)
                                                        (3,137)(e)
    Net income                               $88,820   $13,450      $102,270


    Diluted net income per share               $1.47                   $1.69

    Shares used in computing diluted
     net income per share                     60,474                  60,474

    Net income used in computing diluted
     net income per share:
    Net income                               $88,820                $102,270
    Amortization of convertible debt
     issuance costs                               --                      --
                                             $88,820                $102,270

    Gross margin - advertising                   61%        2% *         63%


                                                 Twelve months ended
                                                  December 31, 2007
                                                                  Non-GAAP
                                             Actual  Adjustments   Results


                                                        1,788 (a)
    Gross profit                            $151,425   $1,788     $153,213

                                                       (6,924)(a)
                                                       (1,176)(b)
    Operating expenses                      $100,411  $(8,100)     $92,311

                                                        8,712 (a)
                                                        1,176 (b)
    Income from operations                   $51,014   $9,888      $60,902

                                                        8,712 (a)
                                                        1,176 (b)
                                                          342 (c)
                                                         (830)(d)
    Net income                               $57,729   $9,400      $67,129


    Diluted net income per share               $0.97                 $1.12

    Shares used in computing diluted
     net income per share                     60,020                60,020

    Net income used in computing diluted
     net income per share:
    Net income                               $57,729               $67,129
    Amortization of convertible debt
     issuance costs                              342                    --
                                             $58,071               $67,129

    Gross margin - advertising                   62%       1%          63%



Below are reconciliations of non-GAAP net income to GAAP net income, Excluding foreign exchange gains as described in the "Preliminary Results May Be Subject to Material Adjustments section of the press release:


                                              Three months ended
                                              December 31, 2008
                                                                      Non-GAAP
                                     Actual       Adjustments          Results

                                                       3,569 (a)
                                                         470 (b)
    Net income                       $24,496          $4,039           $28,535


    Diluted net income per
     share                             $0.41                             $0.47

Shares used in computing diluted

     net income per share             60,277                            60,277

                                              Twelve months ended
                                              December 31, 2008
                                                                      Non-GAAP
                                      Actual       Adjustments         Results

                                                    14,295 (a)
                                                     1,513 (b)
                                                       779 (d)
                                                    (3,137)(e)
    Net income                       $76,212       $13,450             $89,662


    Diluted net income per
     share                             $1.26                             $1.48

Shares used in computing diluted

     net income per share             60,474                            60,474



(a) To adjust stock-based compensation charges

(b) To adjust amortization of intangible assets

(c) To adjust amortization of convertible debt issuance cost

(d) To adjust gain/loss on the sale/purchase of business and investments

(e) To adjust gain on the sale of minority interest in subsidiary

    * Rounding



                                 SINA CORPORATION
                          UNAUDITED SEGMENT INFORMATION
                            (U.S. Dollar in thousands)

                                  Three months ended      Twelve months ended
                                                September
                                December 31,       30,        December 31,
                                2008     2007      2008      2008      2007

    Net revenues
      Advertising              $69,518  $50,130   $76,205  $258,499  $168,926
      Mobile related            29,993   18,635    27,117   103,318    70,489
      Others                     2,027    1,924     2,092     7,770     6,712
                              $101,538  $70,689  $105,414  $369,587  $246,127

    Cost of revenues
      Advertising              $25,152  $18,017   $32,138  $100,008   $63,466
      Mobile related            14,930    8,111    12,622    48,005    29,339
      Others                       636      624       495     2,322     1,897
                               $40,718  $26,752   $45,255  $150,335   $94,702



                               SINA CORPORATION
               UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                          (U.S. Dollar in thousands)

                                                December 31,      December 31,
                                                    2008              2007
                          Assets
    Current assets:

         Cash and cash equivalents                $383,320          $271,666
         Short -term investments                   220,504           206,333
         Accounts receivable, net                   79,183            56,719
         Other current assets                        9,424             8,840
               Total current assets                692,431           543,558
    Property and equipment, net                     34,111            26,846
    Goodwill and intangible assets, net             94,527            89,358
    Other assets                                     1,425             2,501
    Total assets                                  $822,494          $662,263

Liabilities and Shareholders' Equity

    Current liabilities:
         Accounts payable                           $1,397              $940
         Accrued liabilities                        80,162            56,931
         Income taxes payable                       17,391             9,079
         Convertible debt                           99,000            99,000
              Total current liabilities            197,950           165,950
    Other long-term liabilities                      4,039             1,337
              Total liabilities                    201,989           167,287

    Shareholders' equity                           620,505           494,976

    Total liabilities and shareholders' equity    $822,494          $662,263

For more information, please contact:

Cathy Peng

SINA Corporation

Phone: +86-10-8262-8888 x3112

Email: ir@staff.sina.com.cn

SOURCE  SINA Corporation

    -0-                             03/16/2009
    /CONTACT: Cathy Peng, SINA Corporation at +86-10-8262-8888 x3112 or
ir@staff.sina.com.cn /
    /Web site:  http://corp.sina.com /
    (SINA)

CO:  SINA Corporation

ST:  China
IN:  MLM CPR TLS NET ITE
SU:  ERN ERP CCA





LG-DY
-- CNM042 --
0249 03/16/200917:00 EDThttp://www.prnewswire.com