China Digital TV Lowers Q2 2012 Guidance
China Digital TV, 6/25/12
China Digital TV Holding (NYSE: STV), provider of conditional access systems to China's digital television market, today announced updated guidance for the company's smart card shipment volume and net revenues for the second quarter ended June 30, 2012.
China Digital TV currently expects smart card shipment volume to be in the range of 3.7 mln to 3.8 mln and net revenues to be in the range of USD 22.4 mln to USD 23.8 mln for the second quarter of 2012. The company had previously announced that it expected smart card shipment volume for the second quarter of 2012 to be in the range of 4.4 mln to 4.6 mln and net revenues to be in the range of USD 25.44 mln to USD 26.41 mln.
The primary reason for the updated guidance is the lower-than-planned smart card sales in several provinces in China in the second quarter of 2012.
Zhu Jianhua Zhu, China Digital TV's chairman and chief executive officer commented, "As cable network consolidation has been largely completed, we observed that smart card purchasing decisions in recent months have become more centralized at the provincial level. Particularly in the second quarter, a number of municipalities in several provinces, for example Henan and Zhejiang, delayed purchasing activities while awaiting alignment from the provincial-level operator. While these factors affected our shipment in the second quarter, we believe that the unmet demand for smart cards in these provinces would be fulfilled at a later stage. However, at present, it is hard for us to predict a timeline."
China Digital TV expects to release its actual second quarter 2012 financial results in mid-to-late August 2012.
Keywords: Zhu Jianhua guidance consolidation television China Digital TV Holding conditional access smart card STV Q2 2012 revenue DTV
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