China Distance Education Holdings Limited reported unaudited financial results for the first quarter of fiscal year 2018 ended December 31, 2017. For the quarter, the company's net revenue increased by 12.2% to $35.9 million from $32.0 million in the prior year period. Operating income decreased by 35.8% to $5.1 million from $8.0 million in the prior year period. Net income was $94,000, compared with net income of $8.6 million in the prior year period. Non-GAAP net income was $0.6 million compared with net income of $9.1 million in the prior year period. Basic and diluted net income per American Depositary Share ("ADS") were $0.003, compared with basic and diluted net income per ADS of $0.260 and $0.259, respectively, for the first quarter of fiscal 2017. Basic and diluted non-GAAP net income per ADS was $0.018, compared with basic and diluted non-GAAP net income per ADS of $0.276 and $0.275, respectively, for the first quarter of fiscal 2017. Cash flow from operations decreased by 19.9% to $13.2 million from $16.5 million in the first quarter of fiscal 2017. Net operating cash inflow decreased by 19.9% to $13.2 million in the first quarter of fiscal 2018 from $16.5 million in the prior year period. The decrease in operating cash inflow was mainly attributable to the decrease in net income before non-cash items generated in the first quarter of fiscal 2018. Income before income taxes was $2,919,000 compared to $11,975,000 a year ago. Basic and diluted net income per share was $0.001 compared to $0.065 a year ago. capital expenditures was $1.2 million. Net income attributable to the company was $8,555,000 or $0.065 per basic and diluted share compared to $94,000 or $0.001 per basic and diluted share a year ago. Non-GAAP operating income was $8,455,000 compared to $5,612,000 a year ago.

For the second quarter of fiscal 2018, the company expects to generate total net revenue in the range of $27.8 million to $28.9 million, representing year-over-year growth of approximately 27% to 32%.

For fiscal year 2018, the company expects to generate total net revenues in the range of $150.6 million to $157.2 million, representing year-over-year growth of approximately 15% to 20%.