China Digital TV lowers shipment and revenue forecast for Q2 2012
Louise Duffy ©RapidTVNews | 27-06-2012
Conditional access (CA) systems provider China Digital TV has announced updated guidance for its smart card shipment volume and net revenues for the second quarter ended 30 June 2012. The company currently expects smart card shipment volume to be in the range of 3.7 million to 3.8 million and net revenues to be in the range of US$22.4 million to US$23.8 million for the second quarter of 2012. It had previously announced that it expected smart card shipment volume for the second quarter of 2012 to be in the range of 4.4 million to 4.6 million and net revenues to be in the range of US$25.44 million to US$26.41 million.
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.
Jianhua Zhu, China Digital TV's chairman and chief executive officer, said: "As cable network consolidation has been largely completed, we observed that smart card purchasing decisions in recent months have become more centralised 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.
"Our leadership position in China's digital television industry remains strong. Going forward, we will continue to focus on providing the best products and services in conditional access, while improving operational efficiency and financial management to support long-term growth."
China Digital TV expects to release its actual second quarter 2012 financial results in mid-to-late August 2012.