GUANGZHOU, China, July 15 /PRNewswire-Asia-FirstCall/ --
-- Online video subscriber growth in third quarter fiscal year ending June
30 driven by organic growth in Guangdong province, sales staff
additions and entrance into new markets.
-- Growth in cloud computing business drives additional revenues and
visitors to Company's website http://www.subaye.com .
-- Significant future growth opportunities from secular growth in Chinese
online advertising, expansion into new geographies and higher
penetration of new services.
-- Subaye to ring Opening Bell in ceremony for NASDAQ today
Subaye, Inc. (Nasdaq: SBAY) ("Subaye" or the "Company"), a leading
outsourced marketing services provider in China engaged in online video
advertising and cloud computing business solutions, announced today it had
34,382 paying online video advertising customers as of June 30th, 2010, an
increase of 112% year-to-date for its fiscal year ending September 30, 2010,
and an increase of 56% since the Company's second fiscal quarter ended March
31, 2010. The current level of 34,382 paying members generates a monthly run
rate of approximately $4.0 million in revenues, or $48.3 million annually.
Third Quarter Fiscal Year 2010 Update
The 56% growth in Subaye's paying customer base from March 31, 2010
through June 30, 2010, was driven by an increase of 38% in paying members in
Guangdong Province, the Company's original and core online video advertising
market. Subaye saw strong new paying member growth from both its largest
province of Guangdong and from its new markets. In its third quarter ended
June 30, 2010, Subaye added an additional 12,363 new paying members, with
5,419 new paying members coming from Guangdong Province and 6,944 new paying
members coming from new markets. Year-to-date for the Company's fiscal year
ending September 30, 2010, paying members have more than doubled from 16,211
at September 30, 2009.
Sequential Quarter Comparison
This is the first quarter in which total new paying members from new
markets exceeded that from Guangdong Province. Fiscal year-to-date, new member
growth in Guangdong Province accelerated from 30% in May to 38% in June due to
increased productivity from the more than 300 sales staff the Company has
added in the past nine months.
Number of Paying Subscribers Growth Rate
3/31-6/30 FY 2010
Regions: 9/30/09 12/31/09 3/31/10 6/30/10 2010 To Date
Guangdong 16,211 15,478(2) 16,998 22,417 +32% +38%
Hong Kong -- -- 1,361 1,361 -- --
Taiwan -- -- 739 739 -- --
Hunan -- -- 2,921 2,921 -- --
Hainan -- -- -- 3,133 -- --
Hubei(1) -- -- -- 3,811 -- --
Total 16,211 15,478 22,019 34,382 +56% +112%
(1) First significant revenues to be earned in July 2010 as a result of
pro rata subscription-based revenue model. The commission paid to
agents equals 25% of 1st twelve months' revenues.
(2) Decrease in quarterly revenues a result of end of DVD promotion;
members who participated in DVD promotion were no longer incentivized
to remain paying members.
Cloud Computing (CC)
Since Subaye started promoting its Cloud Computing services in March 2010,
it has increased the number of paying subscribers to 7,344, an increase of
2,144, or 41%. Growth has accelerated month-over-month in every month since
March, increasing by 4% in April, 15% in May, and 18% in June. Through its
growing sales force of 615 at the end of May 31, 2010, the Company sells a
cost-effective, user friendly and scalable solution that allows SMEs to manage
their customer and supplier information. The 7,344 paying customers at June 30,
2010 generates approximately $0.7 million of revenues per month, or $8.8
million per year.
"The tremendous growth in our online video advertising customer base shows
that our strategic refocus on this business is starting to bear fruit," stated
Mr. Cai. "We are well positioned to continue capturing additional market share
in the fast-growing Chinese online advertising market as we increase our sales
force from 300 at September 30, 2009 to 1,500 by the end of our fiscal 2010 in
September, 30, 2010. We now have a second driver to our core online business
with the increased adoption of our Cloud Computing services. By providing a
cost-effective solution for SMEs to more effectively sell to a growing base of
customers on our website, http://www.subaye.com , we are making great progress
toward becoming a premier online business service provider for Chinese
entrepreneurs."
Investors, media and other interested parties can view a demonstration of
the Company's video showcase on its website http://www.subaye.com . Today's
NASDAQ ceremony to be attended by its Chief Executive Officer Mr. Zhiguang Cai
and its Chief Financial Officer Mr. James Crane can also be accessed through
its website.
About Subaye, Inc.
Subaye, Inc. is a leading outsourced marketing services provider in China
engaged in online video advertising and cloud computing business solutions.
Subaye's online video advertising network provides production, upload, storage,
and publishing onto video sharing websites. Subaye also offers cloud computing
business solutions and is in the process of developing an online mall with 3D
imaging throughout the online customer interface. Visitors of Subaye's
websites, namely, http://www.subaye.com , view video showcases of Subaye
members, primarily small to mid-size enterprises ("SMEs"), and select products
or services they wish to purchase. Paying members utilizing Subaye's video
advertising platform pay a membership fee of approximately $117.0 per month.
The Company previously conducted a trade services and an entertainment media
business. For further information on Subaye, Inc., please visit
http://www.subaye.net .
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current expectations,
estimates and projections about Subaye, Inc.'s industry, management's beliefs
and certain assumptions made by management. Readers are cautioned that any
such forward-looking statements are not guarantees of future performance and
are subject to certain risks, uncertainties and assumptions that are difficult
to predict. Because such statements involve risks and uncertainties, the
actual results and performance of the Company may differ materially from the
results expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Subaye, Inc.'s operations are conducted in the
People's Republic of China ("PRC") and, accordingly, are subject to special
considerations and significant risks not typically associated with companies
in North America. These include risks associated with, among others, the
political, economic and legal environment and foreign currency exchange. The
Company's results may be adversely affected by changes in the political and
social conditions in the PRC and by changes in governmental policies with
respect to laws and regulations, anti-inflationary measures, currency
conversion, remittances abroad, and rates and methods of taxation. Other
potential risks and uncertainties include but are not limited to the ability
to procure, properly price, retain and successfully complete projects, and
changes in products and competition. Unless otherwise required by law, the
Company also disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions to the
forward-looking statements made here. Readers should review carefully reports
or documents the Company files periodically with the Securities and Exchange
Commission
For more information, please contact:
Company:
James Crane
Chief Financial Officer
P.R.C. Cell: +86-186-0125-0891
U.S. Office: +1-617-209-4199
Investor Relations:
Ted Haberfield
HC International, Inc.
Tel: +1-760-755-2716 (US)
Email: thaberfield@hcinternational.net
Web: http://www.hcinternational.net
SOURCE Subaye, Inc.