Nov 24 (Reuters) – Indian Prime Minister Manmohan Singh is in Washington for a state visit set to boost the burgeoning economic relationship between two countries, which had relatively marginal commercial dealings a decade ago. Following are key aspects of economic ties that took off with the end of the Cold War and the embrace of economic reforms by India — an adoption of market-friendly policies in which Singh played a prominent role earlier in his career: BILATERAL TRADE Two-way trade, just $5 billion in 1990, reached $14 billion in 2000 and rose to nearly $50 billion last year, according to U.S. figures, making the United States India’s largest trading partner. The United States sells India aircraft and parts, advanced machinery, cotton, fertilizers, and computer hardware. It imports Indian textiles and leather goods, Internet services, agricultural products, gems, leather products, and chemicals. India reckons trade has at least doubled in the past five years, while U.S. exports to India have tripled in that period. INVESTMENT U.S. cumulative direct investments through mid-2008 of nearly $16 billion in power and oil refineries, telecommunications, electronics, food processing and services make the United States one of India’s largest investors, according to U.S. statistics. The Indian embassy lists the United States as the largest portfolio investor in India. U.S.-bound investment from India has grown about 75 percent annually since 2002, the embassy says. INFORMATION TECHNOLOGY India says two in five of America’s Fortune 500 companies outsource their software in India. With India’s growing wealth, the telecoms sector has grown about 20 percent a year in recent years. India has courted investment in the sector, projecting that it needs some $84 billion worth of telecoms equipment to hit its target of 650 million subscribers by 2012. The U.S. high-tech regions of the Silicon Valley in California and Route 128 Corridor in Massachusetts have deep ties with their Indian counterparts, Bangalore and Hyderabad. NUCLEAR POWER The 2005 U.S.-India Civil Nuclear Agreement, which eases strictures on U.S. nuclear exports to India, opens India’s potential $150 billion market in power plants. This offers potential for big deals for U.S. nuclear reactor builders such as General Electric Co ( GE.N ) and Westinghouse Electric Co, a subsidiary of Japan’s Toshiba Corp ( 6502.T ). ARMS SALES India’s embassy says U.S. arms sales to India have risen from almost nothing a few years to about $3.5 billion last year. The United States is competing with Europe and Russia to supply India 126 multi-role fighter aircraft worth up to $10.4 billion, the biggest such market in decades. In March, the Obama administration approved a $2.1 billion sale to India of eight Boeing Co ( BA.N ) P-8I maritime patrol aircraft, the largest U.S. arms transfer to India to date. In January 2008, Washington and New Delhi clinched India’s previous largest U.S. arms purchase — six Lockheed Martin Corp ( LMT.N ) C-130J Super Hercules military transport planes valued at about $1 billion, including related gear, training and spares. (Reporting by Paul Eckert in Washington; Editing by Cynthia Osterman) ((paul.eckert@reuters.com; +1 202 789-8578; Reuters Messaging: paul.eckert.reuters.com@reuters.net)) Read more: Indian PM’s visit to US comes with rapid trade growth (at Reuters)

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* Dollar stabilises as short-covering emerges * Asian shares falter as investors take a breather * Gold pauses after setting new record overnight By Susan Fenton HONG KONG, Nov 24 (Reuters) – The dollar stabilised in early trade on Tuesday after losing ground in New York, while Asian shares slipped as investors shrugged off upbeat U.S. home sale data and took a breather after recent gains. The dollar recovered ground as investors in Asia grew more cautious ahead of a string of U.S. economic data this week and the start of the Christmas shopping season on Friday after the U.S. Thanksgiving holiday, which will be a key test of consumer confidence. The dollar was up 0.2 percent against a basket of major currencies after falling in New York where the market took comments by U.S. Federal Reserve official James Bullard on Sunday as further evidence the U.S. would maintain its very low interest rate policy for some time. Dealers in Tokyo said some investors on Tuesday were closing dollar short-positions ahead of the Thanksgiving holiday. Asian shares slid despite a solid performance on Wall Street, where the Dow Jones rose 1.3 percent as data showed existing home sales reached their highest level in two-and-a-half years. The MSCI index of Asia Pacific stocks traded outside Japan was down 0.4 percent but it has already rallied 66 percent this year, leading some investors to question whether economic data is strong enough to justify further gains at this stage. Revised third-quarter U.S. GDP data and a U.S. consumer confidence report later on Tuesday will give more clues on the strength of the world’s largest economy. Sales at U.S. retailers on Friday after the holiday could yield vital clues to the recovery power of American consumers, whose spending accounts for more than two-thirds of the economy. They could also signal whether Asian exporters can expect a rush of late orders before Christmas. The Thomson Reuters index of regional shares was virtually unchanged. “It’s a day-to-day situation. Any snippets of good news are well received here, but the gains are not necessarily sustained,” said David Spry, research manager at F.W. Holst in Australia, where the main stock index slipped 0.2 percent. “The market has anticipated a fair bit already and we haven’t got much to show for it yet, results don’t come out till February next year,” he said, referring to the next corporate profit reporting season. JAL HITS RECORD LOW  Continued… Go here to see the original: RPT-GLOBAL MARKETS-Dollar stabilises, Asia shares slip (at Reuters)

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Retail sales rose a full per cent to $34.9 billion in September, the seventh increase in nine months. The increases were widespread, with six of eight sectors showing gains, Statistics Canada reported Monday. In volume terms, retail sales increased 1.2 per cent. Following a sharp decline at the end of 2008, retail sales have been rising since the beginning of 2009. But September sales were still 3.3 per cent lower than in September 2008. “Whether its housing, auto sales or these retail sales figures, there is mounting evidence that the domestic side of Canada’s economy is in full recovery mode,” BMO economist Douglas Porter commented. The automotive sector was up one per cent from August, with all components recording higher sales. A two per cent gain in used and recreational motor vehicles and parts was a particular source of strength, the data agency noted. Excluding the automotive sector, retail sales rose 1.1 per cent in September, the largest gain since January. The main contributor to this increase was the food-and-beverage sector, where store sales rose 1.3 per cent. The largest increase was at general merchandise stores, where sales rose 1.9 per cent. Sales by miscellaneous retailers rose 1.7 per cent after four flat months. Sales at home furnishings and electronics stores increased 1.2 per cent, this segment’s biggest increase since July 2008. One of the rare weak spots in the month was the building and home-supply segment, down 0.2 per cent, Porter said. The sector had been relatively healthy due to Ottawa’s home renovation tax credit. Clothing and accessories stores were also down by 0.1 per cent. Regionally, sales rose in eight provinces in September. Quebec, with a 2.2 per cent increase, was the largest contributor. It was the province’s fourth rise in five months. The two provinces where retail sales did not increase were Saskatchewan and Alberta. Sales fell 0.9 per cent in Saskatchewan in September, partially offsetting an increase in August. Sales were flat in Alberta, following two months of declines. The report is “encouraging,” RBC economist Paul Ferley said, adding that it augurs well for September GDP to rise around 0.4 per cent, following a disappointing 0.1 per cent drop in August and flat growth in July. See the article here: Retail sales up 1% in September

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* US, Europe stocks rally on US home sales, euro zone data * US dollar slides as Fed comment, housing data weigh * Government debt slips as data saps safe-haven appeal * Oil rises on dollar’s weakness, China demand (Updates with U.S. markets, changes byline, dateline previously LONDON) By Herbert Lash NEW YORK, Nov 23 (Reuters) – Gold hit a fresh record high on dollar weakness and global stocks surged on Monday after upbeat economic news in the euro zone and better-than-expected U.S. home sales data bolstered appetite for riskier assets. European shares posted their biggest one-day percentage gain in more than five weeks and an early rally on Wall Street reversed most of the losses from a three-day sell-off last week. For details, see: [ID:nGEE5AM1P3][ID:nN23258224] U.S. gold futures hit record highs above $1,170 an ounce, gaining more than 2 percent, as the dollar weakened broadly on expectations U.S. interest rates would stay low for some time. [ID:nN23374082] Oil prices almost topped $80 a barrel, before paring some gains, as the sagging dollar and signs of buoyant demand from China, the world’s second-largest energy consumer, lifted commodity prices. [ID:nSYD484303] The dollar slid after a Federal Reserve official affirmed expectations that U.S. interest rates would stay low for some time and U.S. housing data dampened the currency’s safe-haven appeal. [ID:nN23425146] Sales of previously owned U.S. homes jumped in October from the previous month a record 10.1 percent to their highest level in more than 2-1/2 years, the National Association of Realtors said. [ID:nN23252398] Buyers rushed to take advantage of a popular tax credit for first-time buyers that had been scheduled to end in November. “The (housing) data adds to bearish U.S. dollar momentum, as stronger-than-expected home sales data is bullish for equity markets,” said George Davis, chief technical strategist at RBC Capital Markets in Toronto. “That decreases risk aversion and increases broad-based dollar weakness. In Europe, the euro zone’s dominant service sector grew at its fastest pace in two years in November, suggesting a recovery will continue in the fourth quarter, albeit at a slower rate, a key survey showed. [ID:nGEE5AM0RG] The FTSEurofirst 300 .FTEU3 index of top European shares rose 2.1 percent to close at 1,023.49 points, the biggest one-day percentage gain since Oct 14. The index, which has surged more than 58 percent since hitting a record low in early March, made up more than half the losses it suffered over the previous four sessions.  Continued… See the original post: GLOBAL MARKETS-Oil, global stocks surge on upbeat economic data (at Reuters)

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67 WALL STREET, New York – November 23, 2009 – The Wall Street Transcript has just published its TWST Investing Strategies Report offering a timely review of the sector to serious investors and industry executives. This 55 page feature contains expert industry commentary through in-depth interviews with highly experienced Money Managers. The full issue is available via The Wall Street Transcript Online . Topics covered: Investor Demand for Transparency – High-Liquidity Environment – Undervalued High Quality Companies – Inexpensive Valuation – Short Suggestions In Overvalued Growth Stocks – Stretched Balance Sheets – High Returns on Capital – Volume Growth – Multi-Cap Approach – Extreme Value Discipline – Macro Outlook – Value and Momentum – Lower Volatility Growth Companies include: Belo Corp (BLC); 3M (MMM); A.H. Belo (AHC); Affiliated Computer Services (ACS); American Safety (ASI); Ameriprise (AMP); Apache (APA); Apple (AAPL); Atwood Oceanics (ATW); Bank of America (BAC); Boeing (BA); Brown & Brown (BRO); Bunge (BG); CME Group (CME); Capstead Mortgage (CMO); Chevron (CVX); ChinaCast Education (CAST); Citi Trends (CTRN); Coca-Cola (KO); Cognizant Technology Solutions (CTSH); Conseco (CNO); Consolidated Edison (ED); Costco (COST); Cypress Semiconductor (CY); Danaher (DHR); Duke Energy (DUK); FARO Technologies (FARO); GIII Apparel (GIII); Gannett (GCI); Gilead Sciences (GILD); Goldman Sachs (GS); Goodrich (GR); Google (GOOG); Halliburton (HAL); Harley-Davidson (HOG); IBM (IBM); IDEX Corporation (IEX); IMS Health (RX); JPMorgan (JPM); Johnson & Johnson (JNJ); Kimberly-Clark (KMB); Kinross (KGC); Legg Mason (LM); NIC Inc. (EGOV); Nestle and Alcon (ACL); New York Times

Investors are due for a fresh slate of economic data this week, including figures on employment, production, home sales, and consumer confidence. Given the fragile state of the housing market, the National Association of Realtors’ existing home sales report for October will be closely watched–and likely to move stocks such as Toll Brothers ( TOL ), KB Home ( KBH ), Pulte Home ( PHM ), Lennar ( LEN ), and DR Horton ( DHI ). Visit link: Looking for Clues in Home Sales

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The interest rate outlook from PFG Best : Apologies for the lack of research since my last post on November 4 th , but I was out sick; luckily not the Swine Flu!  Let’s look back to that piece because frankly, my views haven’t changed much.  Of the two scenarios I laid out on the morning of November 4 th , I chose Scenario 2: “The FOMC does not change their language on rates.  Look for the 10 year T-Note futures to top out above 119-08 and 10 year T-Note cash yields to approach 3.35%.  This would add a small pop to stocks, a drift down in the USD and an increase in the price of gold; we are already seeing this scenario partially priced into the markets today.” This scenario has pretty much played out, although this week’s weak economic data added to the level of risk aversion in the markets, giving strength to the USD and pushing 10 year T-Note futures towards a new resistance of 120. We are continuing to experience the push and pull of risk aversion versus dollar weakness/interest rate concerns.   Post-FOMC comments, the US Dollar Index fell from 76.30 on November 4 th to 74.67 on November 16 th ; a 15 month low.  This move, coupled with weak economic data, played into a rebound in the US Dollar Index, bringing us a full point higher today at 75.67.  With these moves, the stock markets spiked up but have fallen from their highs on November 16 th .  I feel there is still some more room for the US Dollar Index to climb, with first resistance around $76.25-30, then $77.50 and near term support at $74.75. Next week should bring heavier volume trading on the 23 rd and 24 th and then a tapering in action beginning shortly after the 7 year T-Note auction on the afternoon of the 25 th given Thanksgiving.  Although we’re looking at a holiday week, numerous important data releases are occurring, so look for an increase in the VIX: November 23 rd : Existing Home Sales, 3 month and 6 month T-Bill auction (~ total of $62bn) and then the 2 year T-Note Auction (~$44bn) November 24 th : Q3 GDP, Case Shiller HPI, Consumer Confidence, 4 week T-Bill auction and then 5 year T-Note Auction (~$42bn). November 25 th : Durable Goods Orders, Personal Income, Initial Jobless Claims, Consumer Sentiment, New Home Sales, EIA Report and the 7 year T-Note auction ($32bn) Considering the numerous focus points of next week, I feel we should continue to see a pull back across the markets, excluding the USD, with a renewed aversion to risk.  For one reason, I believe we’ll see continued profit taking from gains made in November and increased concerns regarding the housing sector.  I believe we will see a downside correction in GDP for the 3 rd quarter, although only slightly.  I believe consumer confidence will slip again given the increasing unemployment rate and the impressively grim “underemployment” rate of 17.5% for October. What’s to Come : With this in mind, look for the S&P 500 to cross support at 1080, with solid support at 1065.  Look for Crude Oil to trade down to support just under $76 and then back up to resistance just above $80.  Late this week, 10 year T-Note futures bounced off of their support @ 120. However, given the possibility for negative surprises next week from economic data, coupled with the short/mid-duration treasury auctions, we will see a bounce between 118-16 to 120-16. However, if data next week surprises to the upside, which is much less likely, we could see the USD break support of $74.75 and approach $74.50 and 10 year T-Note futures approach the lower end of the channel.  Although there is room for the dollar to approach the $72 level we experienced in March 2008, it will be very difficult for this to actually happen for two reasons.  First, foreign central banks are in the process of deflating their currencies versus the USD.  Second, the FOMC is slowly, and slyly, changing their verbiage towards a stronger dollar “policy.” As the FOMC continues their “strong dollar” verbiage, not policy, the USD should strengthen as this verbiage is actually acting like policy for now.  Transparency from the FOMC is very important and it will be interesting to see how directly they address the USD and how its value is affecting the rest of the world and not just our economy over the coming weeks.  A weaker dollar makes sense for the US in order to balance our deficits and spark growth, especially exports.  Also, given the US has been prodding the Chinese to appreciate the Yuan for years now, a weaker dollar may be an interesting work-around to force the Chinese government to adjust their policies.  Looking out to when the FOMC might adjust rates, I still believe we will see a hike in the 2 nd quarter of next year; a rate reset to 50bps or 75bps is still an extremely low rate and well below historical levels. Additionally, as foreign central banks continue to sell their currencies and buy the USD to offset the appreciation of their currencies, we should see upside kicks to the USD, especially as the US Dollar Index bounces off of support levels just below $75; this is one reason for the recent strength in the US Dollar index. As we approach December and year-end, my main concerns are for potential profit taking at the end of the year as well as increased foreign central bank intervention and commentary.  With the massive gains that have occurred across the board in stocks and commodities, I believe we may experience a pullback in the 2 nd half of December from the recent highs alongside a strengthening of the USD.  However, outside of the profit taking, domestic and foreign central bank verbiage and policy will weigh heavily on markets as foreign nations begin to unravel their stimulus policies.  However, are investors ready for this unraveling and do they actually believe economies are strong enough to move forward on their own?  Only time will answer these questions, but it seems to me like the world economy is on a choppy but upward trajectory towards recovery. Eaven Horter PFGBEST Research Team ehorter@pfgbest.com See original here: THE TREND IS YOUR FRIEND…UNTIL IT’S NOT

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BURLINGTON, Vt. (AP) — Ben & Jerry’s has named its newest ice cream flavor after Vermont native and champion snowboarder Hannah Teter. Hannah Teter’s Maple Blondie — maple ice cream with blonde brownie pieces and a maple caramel swirl — marks the first time the ice cream company has named a flavor after an athlete. The maple is a nod to the charity she created, called Hannah’s Gold, and her Vermont upbringing. The Rutland Herald reports that the flavor will be sold in ice cream shops nationwide by the end of the month and in grocery stores by mid-December. Part of the sales will go to Teter’s charity, which funds infrastructure improvements and humanitarian projects in Africa. Information from: Rutland Herald, http://www.rutlandherald.com/ Read more: Ben & Jerry’s names new flavor after Hannah Teter (AP)

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Call it Amazon Marketplace envy. Wal-Mart (NYSE: WMT – News ) and Sears (NasdaqGS: SHLD – News ) recently created their own marketplaces — places on their Web sites that link to other online sellers. They hope that adding other retailers to their Web sites will help boost traffic and sales and help them become more competitive with Amazon.com (NasdaqGS: AMZN – News ), the Web’s leading retailer, as the Christmas shopping season unfolds. “They are trying to follow the Amazon model,” said Graham Jones, PriceGrabber’s vice president of merchant accounts. Comparison-shopping site Price-Grabber is another type of rival to the marketplaces of Amazon, Wal-Mart and Sears, since the idea for all these companies is to be the link to third-party sellers. PriceGrabber et al. get commissions on any such sales. “We’ve been doing this for 10 years and getting better at it every year,” Jones said, “so I don’t view (Sears and Wal-Mart) as a threat at this point.” Amazon’s marketplace has become a diamond in the rough for the company, some observers say. While the company doesn’t break out its marketplace sales, third-party items accounted for 31% of Amazon’s total unit sales last quarter, the same percentage as in the year-earlier quarter. The company also says the number of seller accounts — retailers that sell products on Amazon.com — rose 24% from the year-earlier quarter to 1.8 million. Amazon Fulfillment Tripled In its latest earnings release, Amazon said items shipped on behalf of third-party sellers that use its fulfillment service more than tripled compared with the year-earlier quarter. Wal-Mart and Sears have noted the success of Amazon Marketplace and are trying their best to copy it, says Sucharita Mulpuru, an analyst for Forrester Research. “They are looking to grow their share of the Web,” she said. It’s also relatively cheap and easy to do, says Mulpuru and Fiona Dias, executive vice president of strategy and marketing for GSI Commerce, which sells e-commerce and related services to companies. “They don’t have to have the inventory and many times they don’t have to do any of the fulfillment,” Dias said. “Basically, they put up a photo of an item and somebody else does all of the work and they charge retailers a pretty hefty commission to have the privilege of being in that marketplace.” Sears lists its commissions at 7% to 20% of a sale, and Amazon’s is in the same ballpark. Wal-Mart’s commissions couldn’t be determined. Sellers do this because they want to be where the buyers are, and the Amazons, Searses and Wal-Marts of the world attract the buyers, much like shopping malls use anchor tenants to attract shoppers. Wal-Mart so far lists three retailers in its marketplace: eBags, which sells bags and luggage items; CSN Stores, a retailer of home, apparel and related goods; and Pro Team, which sells licensed sports products. Ravi Jariwala, spokesman for Walmart.com, declined to provide many details about Walmart Marketplace. In an e-mail, Jariwala said the goal is to create a better shopping experience for consumers. “It’s to provide more selection and convenience to our customers,” he said. “Our focus is always on our customers, and by adding nearly 1 million new items we give them even more reasons to shop Walmart.com.” Levels Of Service He wouldn’t say how many third-party sellers Wal-Mart hopes or expects to host on its site. Sears is equally tight-lipped about its marketplace, which is in a beta test. Sears offers third-party sellers the option of three levels of service. Sears can handle entire transactions, or sellers can handle fulfillment and/or the order taking. Sears Marketplace is about giving more choices to online shoppers, says Sears spokesman Tom Aiello. “Customers wanted to be able to go to Sears.com and have a greater selection of products at their disposal,” he said. “When they come to the site, they don’t want to be turned away because we don’t carry what they are looking for.” Amazon ranked as the top retail site in the U.S. in October with nearly 70 million visitors, up 16% from a year ago, says comScore, a research firm. Wal-Mart ranked No. 3 at 31.8 million visitors, down 4%. Sears.com came No. 9, but rose 54% to nearly 14,000 unique visitors. For sellers, Amazon works, says Eric Best, chief executive of Mercent, which helps companies sell online. In the third quarter, 40 of Mercent’s largest clients increased their sales on Amazon by 70% compared with the year-earlier quarter, he says. “All you have to do is look at Amazon’s success to understand why Wal-Mart is getting into this business and Sears as well,” he said. But Amazon has far more traffic than Wal-Mart or Sears. And Amazon is one of the few big online-only sellers. Some retailers aren’t comfortable sharing any sales and customer information with rivals, says PriceGrabber’s Jones. “It’s really early, but I’m not convinced that Wal-Mart is going to get the thousands of stores (to sign up),” he said. Try out IBD Investing Tools absolutely FREE with a 2-Week FREE trial of investors.com. Original post: Wal-Mart And Sears Pulling An Amazon In The Marketplace (Investor’s Business Daily)

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Homebuilder D.R. Horton Inc., saw new home orders spike 26 percent from a year ago in the latest quarter as buyers raced to close deals and take advantage of a federal tax credit. But a wider-than-anticipated loss fueled by write-downs sent shares tumbling more than 15 percent Friday. AP – FILE – In this May 7, 2009 file photo, homes built by D.R. Horton Inc. are shown in … {”s” : “dhi”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} The surge in orders came as many first-time homebuyers sought to qualify for an $8,000 tax credit that was set to expire at the end of this month before Congress extended it into next year. D.R. Horton, which caters primarily to first-time buyers, and other builders have seen home orders improve thanks to the incentive. But the tax credit also has raised concerns that it has merely pulled sales forward. Some builders noted recently that customer traffic began to slow in September and October as would-be buyers realized they might not be able to close on a home by the tax-credit deadline. And new home sales in September dropped 3.6 percent nationwide — the first decline since March. D.R. Horton CEO Donald Tomnitz told Wall Street analysts orders began to slow this month, but predicted that completed sales would rise from now on. “We strongly believe our closings in 2010 will be greater than in 2009 and that we will continue this growth in the upcoming years,” Tomnitz said. Still, the builder cautioned that foreclosures, high levels of unsold homes and rising unemployment remain a challenge for the industry. “These headwinds continue to impact our business both in our sales volumes and operating margins,” the executive told analysts. The fallout from the sluggish economy and still-weak housing market continues to squeeze homebuilders, and D.R. Horton is no exception. The company, based in Fort Worth, Texas, hasn’t reported a quarterly profit since 2007. For the fiscal fourth quarter ended in September, D.R. Horton posted a loss of $231.9 million, or 73 cents per share, compared with a loss of $799.9 million, or $2.53 per share, a year earlier. Revenue plunged 42 percent to $1.01 billion. While the company stemmed its quarterly loss, it racked up $192.6 million in costs due to write-downs on the value of unsold homes, land and other assets. “We were looking for them to not have to write down as much inventory this quarter.” said Robin Diedrich, an analyst with investment firm Edward Jones. That contributed to the wider-than-expected loss. On average, analysts surveyed by Thomson Reuters forecast a quarterly loss of 30 cents per share on revenue of $1.11 billion. The disappointing results drove the company’s shares down $1.88, or 15.4 percent, to close at $10.37 Friday. The write-downs are necessary because foreclosures continue to escalate in many markets, driving down home values, which in turn forces builders to adjust the value of their assets. The homebuilder, which operates in 27 states, said homes closed during the quarter totaled 4,810, down about 30 percent from the same quarter of fiscal 2008. The average sales price slipped 4 percent to $205,100. D.R. Horton: http://www.drhorton.com/corp/ Read this articl e: D.R. Horton sees 26 perecent spike in 4Q orders (AP)

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By Luann Lasalle, The Canadian Press MONTREAL – Prices for the latest hot digital gadgets have been falling, allowing consumers to trade up at lower prices, says the research firm NDP Group Canada. “It’s just an excellent opportunity right now to get a high-quality product at a really good price,” said Mark Haar, the research firm’s director of consumer electronics. For example, a 12-megapixel camera costs $330 down 59 per cent from $806 last year, while a 10-megapixel version, now costs $193 instead of last year’s price of $311, Haar said. “The cheaper cameras, they’re not selling the way they used to. The consumer is trading up in effect.” But Haar said prices aren’t coming down on everything. “Prices are falling in Canada but maybe not to the extent we may have thought,” he said. “They may be falling more in the U.S. It’s really going to be dependent on the category.” He noted prices for GPS devices have fallen this year, but added they fell more last year. The average price of laptop computers and the small netbook computers also have come down, he said. “That’s really a function of consumers moving toward that netbook, but if you take the netbooks out of the equation the declines aren’t that dramatic.” Netbooks can be found for $200 but usually average about $300. Prices for TVs have come down about 15 per cent on average in Canada versus as much as 30 per cent in the U.S., Haar said. “I think things have slowed down a little bit on the TV front,” he said of price chopping, noting there were deeper discounts a couple of years ago. The weak economy hasn’t helped with overall consumer spending down about 10 per cent this year, Haar said. Sony, Microsoft and Nintendo have all made price cuts to help boost the sales of their video game consoles. Canada’s consumer electronics industry is worth an estimated $12 billion a year. Retailers are also price chopping in anticipation of the holiday shopping season. Both Wal-Mart (NYSE: WMT ) and Sears Canada (TSX: SCC.TO ) have unveiled lower prices, particularly on bigger ticket items like LCD televisions and Blu-Ray players. Read this articl e: Consumers now able to get lower prices on higher quality electronics

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By The Canadian Press MONTREAL – A $250-million loan between Canadian and U.S. subsidiaries of AbitibiBowater is forcing the company to juggle its corporate structure to avoid a big tax bill. The Montreal-based company, which is operating under court protection from creditors, faces $55.25 million withholding tax in Canada, and potentially more in the United States, unless it is able to repay an inter-company loan this year. At the time of the merger between Abitibi-Consolidated and Bowater last year, the Canadian company agreed to lend AbitibiBowater US Holding LLC $201.6 million. That amount increased to about $250 million with interest as of April’s court protection. But the U.S. holding company “does not have sufficient funds” to repay the loan, according to a monitor’s report filed in Quebec Superior Court. Creation of two holding companies would allow the debt to be paid by transferring preferred units under similar terms and conditions. AbitibiBowater’s tax issue comes as the company struggled to avoid bankruptcy in light of a dropping demand for newsprint. The company, which reports in U.S. dollars, lost $511 million, of $8.85 per share for the period ended Sept. 30. That’s 69 per cent more than the $302 million, of $5.23 per share, loss a year earlier. Sales decreased 37 per cent to $1.09 billion. Read the original here: AbitibiBowater juggles to avoid large tax bills from $250 million loan

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STOCKHOLM–(BUSINESS WIRE)–Regulatory News: Financial highlights • Sales revenue for the third quarter of 2009 amounted to 15,709 MSEK compared to 24,822 MSEK in the third quarter of 2008. • EBITDA for the third quarter of 2009 amounted to 449 MSEK compared to negative 494 MSEK in the third quarter of 2008. • Operating income for the third quarter of 2009 amounted to 201 MSEK compared to negative 739 MSEK in the third quarter of 2008. • Net income for the third quarter of 2009 amounted to 648 MSEK compared to negative 1,656 MSEK in the third quarter of 2008. • Cash flow used in operating activities for the third quarter of 2009 was 977 MSEK compared to cash flow used in operating activities of 338 MSEK in the third quarter of 2008. • Weighted business refining margin for the third quarter of 2009 was 3.43 $/bbl compared to 7.84 $/bbl in the third quarter of 2008. This information was brought to you by Cision http://www.cisionwire.com Read the r est here: Corral Petroleum Holdning AB (Corral Finans AB): Interim Report for Nine Months Ended September 30, 2009 (Business Wire)

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ADA, Okla., Nov. 19 /PRNewswire-FirstCall/ — Pre-Paid Legal Services, Inc. (NYSE: PPD – News ) announced that on November 18, 2009, we received a proposed draft complaint from the Federal Trade Commission (”FTC”) seeking permanent injunctive relief, disgorgement of proceeds and other relief, including costs, relating to our Identity Theft Shield and Affirmative Defense Response System (”ADRS”) Program. The proposed draft complaint alleges our ADRS program and related materials violate Section 5(a) of the FTC Act regarding asserted misleading representations, express or implied. The proposed draft complaint also names Harland Stonecipher, our Chief Executive Officer, and Mark Brown, our Chief Marketing Officer, as defendants. We previously received a Civil Investigative Demand from the FTC on March 23, 2007 on the ADRS program. We have made voluntary revisions to the marketing materials originally provided to the FTC in 2007 and 2009. The FTC may decide to commence federal court proceedings with this proposed draft complaint. The ultimate outcome of the matter is not determinable but we will vigorously defend our interests in this matter. About Us – We believe our products are one of a kind, life events legal service plans. Our plans provide for legal service benefits provided through a network of independent law firms across the U.S. and Canada, and include unlimited attorney consultation, will preparation, traffic violation defense, automobile-related criminal charges defense, letter writing, document preparation and review and a general trial defense benefit. We have an identity theft restoration product we think is also one of a kind due to the combination of our identity theft restoration partner and our provider law firms. More information about our products and us can be found at our homepage at www.prepaidlegal.com . Forward-Looking Statements Statements in this press release, other than purely historical information, regarding our future plans and objectives and expected operating results, dividends and share repurchases and statements of the assumptions underlying such statements, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained herein are based on certain assumptions that may not be correct. They are subject to risks and uncertainties incident to our business that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are described in the reports and statements filed by us with the Securities and Exchange Commission, including (among others) those listed in our Form 10-K, Form 10-Q and Form 8-K, and include the risks that our membership persistency or renewal rates may decline, that we may not be able to continue to grow our memberships and earnings, that we are dependent on the continued active participation of our principal executive officer, that pending or future litigation may have a material adverse effect on us if resolved unfavorably to us, that we may have compromises of our information security, that during an economic downturn in the economy consumer purchases of discretionary items may be affected which could materially harm our sales, retention rates, profitability and financial condition, that we could be adversely affected by regulatory developments, that competition could adversely affect us, that we are substantially dependent on our marketing force, that our stock price may be affected by short sellers, that we have been unable to increase our employee group membership sales and that our active premium in force is not indicative of future revenue as a result of changes in active memberships from cancellations and additional membership sales. Please refer to pages 15 – 17 of our 2008 Form 10-K and pages 7 and 8 of our September 30, 2009 Form 10-Q for a more complete description of these risks. We undertake no duty to update any of the forward-looking statements in this release. Read more: Pre-Paid Legal Services Announces FTC Developments (PR Newswire)

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Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (zaner.com) a Chicago-based futures brokerage firm. Comments for Thursday, November 19, 2009 Looking Ahead to Today by Reflecting Back at Wednesday’s Price Action METALS: Higher closes yesterday for copper, gold, silver and platinum. Copper made a new recent high and close although settling near the lower end its trading range just like the silver and gold did. Gold made a new CONTRACT HIGH AND CLOSE while silver made a new recent high and close before both settled near the lower end of todays trading range as mentioned above. Platinum made a new CONTRACT HIGH before settling lower in reversal type action. Of course, all of the metals continue to be in strong bull markets overall. CURRENCIES: Higher for the Euro fx and Swiss franc while lower for the dollar index, British pound, Canadian and Aussie dollar along with the Japanese yen. The euro and franc continue to be in long-term up-trends with the latter looking stronger than the former but both in choppy action at this time. The yen made a new recent higher before selling off to close lower in reversal type action but still should test its higher sooner than later. The Canadian dollar also settled lower still in an uptrend overall with support under 9400 basis the December contract but needing to close over 9600 to help verify a continuation of its move higher. The pound and Aussie dollar also settled lower but are both still is in strong uptrends. The dollar finally had a strong close but continues to look very bearish overall. FINANCIALS: Higher settlements on Wednesday for the Eurodollars but lower for the notes and bonds. However, we have a little of everything off of today’s action. The Eurodollar made a new CONTRACT HIGH AND CLOSE while the bonds made a new recent high before settling lower in reversal type action. The notes just closed lower but are in a small BULL PENNANT. However, the overall results are still higher for all of the financials. See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at markethead.com. The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors. For more trading strategies, go to TradingMarkets.com/reports. Original post: What’s Up, What’s Down: Metals in Bull Market, Dollar Bearish (TradingMarkets.com)

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GRAPEVINE, Texas–(BUSINESS WIRE)–GameStop Corp. (NYSE: GME – News ), the world’s largest video game and entertainment software retailer, today reported sales and earnings results for the third quarter ended October 31, 2009. Total company sales in the quarter were $1.83 billion, an 8.2% increase as compared to sales of $1.70 billion in the prior year quarter. New software sales grew 9.4%, advancing our new video game market share by 150 basis points over last year. Used product sales increased 19.4%, on top of the 19.3% increase in the third quarter of 2008. Comparable store sales decreased 7.8%, attributable primarily to a decline in new video game hardware sales. The top five selling games during the quarter were Electronic Arts’ Madden NFL 10 , Microsoft’s Halo 3: ODST , Warner Home Video Games’ Batman: Arkham Asylum , 2K Sports’ NBA 2K10 and Nintendo’s Wii Sports Resort . Each of these new games was well received by consumers and met or exceeded our initial sales expectations. Net earnings for the quarter were $52.2 million, including $2.5 million of debt retirement costs ($1.6 million net of tax benefits). This represents an 11.8% increase as compared to net earnings of $46.7 million in the prior year period, including merger-related costs of $16.6 million ($10.5 million net of tax benefits). Diluted earnings per share were $0.31, including $0.01 of debt retirement cost, compared to $0.28 in the prior year quarter, including merger-related costs of $0.06 per diluted share. Daniel DeMatteo, GameStop Chief Executive Officer, stated, “A sharp focus on efficient operations in this challenging global economy delivered solid earnings results and significant market share gains. Gross margins expanded, led by a sequential 150 basis point improvement in the used category. Store foot traffic increased from the prior quarter, driven by strong new title releases and price cuts on all current generation platforms. “The holiday season has started strong. In the first 72 hours of its release, GameStop sold over 2.5 million copies worldwide of Call of Duty: Modern Warfare 2. We are optimistic that the huge success of this game will serve as a bellwether for what we can expect for the remainder of our holiday game sales. “We know consumers are looking for value in these difficult economic times. Our stores are prepared to deliver this holiday with the broadest selection of new and used games, the most knowledgeable gaming associates and the buy-sell-trade model, which offers affordable choices that meet the needs of all types of gaming customers.” Updated Guidance Based on strong initial results of the new software titles released earlier this month, such as Call of Duty: Modern Warfare 2 from Activision, New Super Mario Bros. from Nintendo and Ubisoft’s Assassin’s Creed 2 , we expect a solid fourth quarter in sales and earnings. For the fourth quarter of fiscal 2009, GameStop is reaffirming guidance of diluted earnings per share to range from $1.47 to $1.65, as compared to $1.39 in the prior year period. Comparable store sales are projected to range from -7.0% to -1.0%. Full year diluted earnings per share are forecast to range from $2.45 to $2.63, representing annual EPS growth of +2% to +10%. Comparable store sales are projected to range from -7.0% to -4.0% for the full year. Note that guidance does not include debt retirement costs or merger-related expenses. Conference Call and Webcast Information A conference call with GameStop Corp.’s management is scheduled for November 19, 2009 at 11:00 AM ET to discuss the third quarter sales and earnings results. The conference call will be simulcast on the Internet at http://investor.gamestop.com . The conference call will be archived on the website until December 3, 2009. About GameStop Headquartered in Grapevine, TX, GameStop Corp., a Fortune 500 and S&P 500 company, is the world’s largest video game and entertainment software retailer. The company operates 6,391 retail stores in 17 countries worldwide. The company also operates an e-commerce site, GameStop.com, and publishes Game Informer(R) magazine, a leading multi-platform video game publication. GameStop Corp. sells new and used video game software, hardware and accessories for video game systems from Sony, Nintendo, and Microsoft. In addition, the company sells PC entertainment software, related accessories and other merchandise. General information on GameStop Corp. can be obtained at the company’s corporate website: http://www.gamestopcorp.com . Safe Harbor This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, the outlook for the fourth quarter and fiscal year 2009, future financial and operating results, the company’s plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of GameStop’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. GameStop undertakes no obligation to publicly update or revise any forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the inability to obtain sufficient quantities of product to meet consumer demand; the timing of release of video game titles for next generation consoles; the risks associated with expanded international operations and the integration of recent acquisitions, including Micromania; the impact of increased competition and changing technology in the video game industry; and economic and other events that could reduce or impact consumer demand. Additional factors that could cause GameStop’s results to differ materially from those described in the forward-looking statements can be found in GameStop’s Annual Report on Form 10-K for the fiscal year ended January 31, 2009, filed with the SEC and available at the SEC’s Internet site at http://www.sec.gov or http://investor.gamestop.com .   GameStop Corp. Statements of Operations (in thousands, except per share data)     13 weeks 13 weeks ended ended Oct. 31, 2009 Nov. 1, 2008   Sales $ 1,834,727 $ 1,695,746 Cost of sales   1,311,643     1,222,317     Gross profit 523,084 473,429   Selling, general and administrative expenses 391,210 335,722 Depreciation and amortization 41,605 35,767 Merger-related expenses   0     16,605     Operating earnings 90,269 85,335   Interest expense, net 10,466 8,807 Debt extinguishment expense   2,461     0     Earnings before income tax expense 77,342 76,528   Income tax expense   25,117     29,859     Net earnings $ 52,225   $ 46,669     Earnings per common share: Basic $ 0.32 $ 0.29 Diluted $ 0.31 $ 0.28   Weighted average common shares outstanding: Basic 164,702 163,736 Diluted 168,113 167,995       Percentage of Sales:   Sales 100.0 % 100.0 % Cost of sales   71.5 %   72.1 %   Gross profit 28.5 % 27.9 %   SG&A expenses 21.3 % 19.8 % Depreciation and amortization 2.3 % 2.1 % Merger-related expenses   0.0 %   1.0 %   Operating earnings 4.9 % 5.0 %   Interest expense, net 0.6 % 0.5 % Debt extinguishment expense   0.1 %   0.0 %   Earnings before income tax expense 4.2 % 4.5 %   Income tax expense   1.4 %   1.7 %   Net earnings   2.8 %   2.8 %   GameStop Corp. Statements of Operations (in thousands, except per share data)     39 weeks 39 weeks ended ended Oct. 31, 2009 Nov. 1, 2008   Sales $ 5,553,984 $ 5,313,783 Cost of sales   3,993,381     3,882,825     Gross profit 1,560,603 1,430,958   Selling, general and administrative expenses 1,151,815 1,012,134 Depreciation and amortization 119,109 106,912 Merger-related expenses   0     16,605     Operating earnings 289,679 295,307   Interest expense, net 33,422 26,506 Debt extinguishment expense   5,323     2,331     Earnings before income tax expense 250,934 266,470   Income tax expense   89,591     100,513     Net earnings $ 161,343   $ 165,957     Earnings per common share: Basic $ 0.98 $ 1.02 Diluted $ 0.96 $ 0.99   Weighted average common shares outstanding: Basic 164,604 162,983 Diluted 167,981 167,813       Percentage of Sales:   Sales 100.0 % 100.0 % Cost of sales   71.9 %   73.1 %   Gross profit 28.1 % 26.9 %   SG&A expenses 20.7 % 19.0 % Depreciation and amortization 2.2 % 2.0 % Meger-related expenses   0.0 %   0.3 %   Operating earnings 5.2 % 5.6 %   Interest expense, net 0.6 % 0.5 % Debt extinguishment expense   0.1 %   0.1 %   Earnings before income tax expense 4.5 % 5.0 %   Income tax expense   1.6 %   1.9 %   Net earnings   2.9 %   3.1 %   GameStop Corp. Balance Sheets (in thousands, except per share data)     Oct. 31, Nov. 1, 2009 2008 ASSETS: Current assets: Cash and cash equivalents $ 292,027 $ 478,056 Receivables, net 52,543 50,730 Merchandise inventories 1,733,962 1,424,249 Prepaid expenses and other current assets 91,059 170,671 Deferred taxes   24,503   29,200   Total current assets   2,194,094   2,152,906     Property and equipment: Land 11,819 10,229 Buildings & leasehold improvements 516,492 404,660 Fixtures and equipment   692,660   590,565   1,220,971 1,005,454 Less accumulated depreciation and amortization   629,276   502,348   Net property and equipment   591,695   503,106     Goodwill, net 1,931,672 1,443,782 Other noncurrent assets   318,547   63,907   Total assets $ 5,036,008 $ 4,163,701       LIABILITIES AND STOCKHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 1,328,041 $ 1,102,639 Accrued liabilities   510,296   366,147   Total current liabilities 1,838,337 1,468,786     Other long-term liabilities 111,127 85,273 Senior notes payable, net of discount   447,121   545,462   Total liabilities   2,396,585   2,099,521     Stockholders’ equity: Preferred stock – authorized 5,000 shares; no shares issued or outstanding – – Class A common stock – $.001 par value; authorized 300,000 shares; 164,752 and 163,776 shares issued and outstanding, respectively 165 164 Additional paid-in-capital 1,334,481 1,299,721 Accumulated other comprehensive income (loss) 122,944 (23,870 ) Retained earnings   1,181,833   788,165   Total stockholders’ equity   2,639,423   2,064,180   Total liabilities and stockholders’ equity $ 5,036,008 $ 4,163,701           Schedule I GameStop Corp. Sales Mix     13 Weeks Ended 13 Weeks Ended Oct. 31, 2009 Nov. 1, 2008 Percent Percent Sales of Total Sales of Total Sales (in millions):   New video game hardware $ 321.4 17.5 % $ 328.4 19.3 % New video game software 769.4 41.9 % 703.3 41.5 % Used video game products 507.7 27.7 % 425.1 25.1 % Other 236.2 12.9 % 238.9 14.1 %         Total $ 1,834.7 100.0 % $ 1,695.7 100.0 %                           Schedule II GameStop Corp. Gross Profit Mix     13 Weeks Ended 13 Weeks Ended Oct. 31, 2009 Nov. 1, 2008   Gross Gross Gross Profit Gross Profit Profit Percent Profit Percent   Gross Profit (in millions):   New video game hardware $ 26.8 8.3 % $ 25.4 7.7 % New video game software 173.8 22.6 % 158.5 22.5 % Used video game products 240.0 47.3 % 204.8 48.2 % Other 82.5 34.9 % 84.7 35.5 %     Total $ 523.1 28.5 % $ 473.4 27.9 % Link: GameStop Reports Third Quarter 2009 Results (Business Wire)

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GameStop Reports Third Quarter 2009 Results (Business Wire)

DEVENS, Mass.–(BUSINESS WIRE)–American Superconductor Corporation (NASDAQ: AMSC – News ), a global power technologies company, affirmed financial forecasts for its fiscal year 2009 and provided its initial outlook for fiscal 2010 at the company’s Analysts’ Day today. The company reaffirmed that it expects revenues will grow more than 60 percent to a range of $300 million to $310 million in its fiscal 2009 compared to approximately $183 million in fiscal 2008. The company maintained its guidance for GAAP net income of $11 million to $13 million, or $0.24 to $0.29 per diluted share, for fiscal 2009. On a non-GAAP basis, the company continues to expect net income of $27 million to $29 million, or $0.59 to $0.64 per diluted share, for full year fiscal 2009. For fiscal 2010, the company expects to grow revenues to more than $400 million. The company also expects to generate GAAP net income of more than $36 million, or more than $0.77 per diluted share, and a non-GAAP profit of more than $54 million, or more than $1.15 per diluted share, for fiscal 2010. Please refer to the financial table included below for a reconciliation of GAAP to non-GAAP forecasts . “With more than $300 million of fiscal 2010 backlog in hand today, we have a strong platform to grow our total revenues to more than $400 million in fiscal 2010,” said Greg Yurek, AMSC’s founder and chief executive officer. “We expect substantial earnings growth in fiscal 2010, driven by increased revenues, greater productivity in all of our operations, and lower manufacturing costs as the result of initiatives we have undertaken in recent quarters.” AMSC’s Analysts’ Day will begin at 8:30 a.m. ET today and will include presentations from management regarding the company’s power technologies, business strategy and financial outlook. Those interested in listening to the live or archived broadcast via the Internet should log on to the “Investors” section of AMSC’s website, www.amsc.com/investors . About American Superconductor (NASDAQ: AMSC – News ) AMSC offers an array of proprietary technologies and solutions spanning the electric power infrastructure – from generation to delivery to end use. The company is a leader in alternative energy , providing proven, megawatt-scale wind turbine designs and electrical control systems. The company also offers a host of Smart Grid technologies for power grid operators that enhance the reliability, efficiency and capacity of the grid, and seamlessly integrate renewable energy sources into the power infrastructure. These include superconductor power cable systems, grid-level surge protectors and power electronics-based voltage stabilization systems. AMSC’s technologies are protected by a broad and deep intellectual property portfolio consisting of hundreds of patents and licenses worldwide. More information is available at www.amsc.com . American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, D-VAR, dSVC, PowerModule, PQ-IVR, Secure Super Grids, Windtec and SuperGEAR are trademarks or registered trademarks of American Superconductor Corporation or its subsidiaries. All other brand names, product names or trademarks belong to their respective holders. The Windtec logo and design is a registered European Union Community Trademark. Any statements in this release about future expectations, plans and prospects for the company, including our expectations regarding the future financial performance of the company and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: we have a history of operating losses, and we may incur losses in the future; a significant portion of our revenues are derived from a single customer, and a reduction in business with this customer could adversely affect our operating results; adverse changes in domestic and global economic conditions could adversely affect our operating results; changes in exchange rates could adversely affect our results from operations; our common stock may experience extreme market price and volume fluctuations, which may prevent our stockholders from selling our common stock at a profit and could lead to costly litigation against us that could divert our management’s attention; if we fail to implement our business strategy, our financial performance and our growth could be materially and adversely affected; we may not realize all of the sales expected from our backlog of orders and contracts; many of our revenue opportunities are dependent upon subcontractors and other business collaborators, and a reduction in orders stemming from these companies could adversely affect our operating results; our products face intense competition, which could limit our ability to acquire or retain customers; our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; and our international operations are subject to risks that we do not face in the U.S., which could have an adverse effect on our operating results. Reference is made to these and other factors discussed in the “Risk Factors” section of the company’s most recent quarterly or annual report filed with the Securities and Exchange Commission. In addition, any forward-looking statements included in this press release represent the company’s views as of the date of this release. While the company anticipates that subsequent events and developments may cause the company’s views to change, the company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the company’s views as of any date subsequent to the date this press release is issued. Reconciliation of Forecast GAAP Net Income to Non-GAAP Net Income for Fiscal Year 2009 (In millions, except per share data)     Low High Net Income $ 11.0 $ 13.0 Amortization of acquisition-related intangibles 1.9 1.9 Stock-based compensation 14.0 14.0 Restructuring 0.5 0.5 Tax effects (0.4) (0.4) Non-GAAP net income $ 27.0 $ 29.0 Non-GAAP net income per share $ 0.59 $ 0.64 Diluted shares outstanding 45.5 45.5     Reconciliation of Forecast GAAP Net Income to Non-GAAP Net Income for Fiscal Year 2010 (In millions, except per share data) (Numbers represent minimums)   Net Income $ 36.0 Amortization of acquisition-related intangibles 1.8 Stock-based compensation 16.5 Restructuring – Tax effects (0.3) Non-GAAP net income $ 54.0 Non-GAAP net income per share $ 1.15 Diluted shares outstanding 47.0 The rest is here: AMSC Announces Initial Fiscal Year 2010 Revenue and Earnings Forecasts (Business Wire)

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DEARBORN, Mich., Nov. 18 /PRNewswire-FirstCall/ – Fusion snags coveted Car of the Year It’s official – Fusion rules, earning MOTOR TREND’s 2010 Car of the Year® award. The Fusion not only beat out such mainstream contenders as the Buick LaCrosse and Toyota Prius, but also premium-priced German imports including the BMW 7 Series and Mercedes-Benz E-Class to win the magazine’s prestigious award. Fusion, the No. 1-selling domestic car, outperformed the competition in design achievement, engineering excellence, intended function, efficiency, safety and value. No wonder MOTOR TREND calls Fusion a clear winner among 23 candidates for 2010 Car of the Year honors. more… Marisa Bradley | mbradl31@ford.com | 313.845.3971 2010 Fusion beats the odds, comes out on top, again Sales of Fusion, the most fuel-efficient midsize car in America, also are at an all-time high – despite industry sales being the lowest they’ve been since the 1980s. Fusion now ranks among America’s top 10-selling vehicles. The number of import shoppers considering Fusion is also breaking records, as more and more Toyota and Honda customers are taking a closer look at the impressive fuel economy and class-exclusive technologies Fusion has to offer. more… Angie Kozleski | akozlesk@ford.com | 313.323.1984 Smokin’ hot EcoBoost The power of EcoBoost goes far beyond its direct-injected turbo engine. Just look at the sales figures: October sales of vehicles boasting Ford’s innovative EcoBoost(TM) fuel-efficient technology are twice that of September. In addition, EcoBoost-equipped Taurus SHO customers are 10-plus years younger than base Taurus buyers, a demographic Ford is eager to have back in the fold. There’s good news on the conquest front as well, as 75 percent of Flex with EcoBoost buyers are trading in non-Ford vehicles on purchase. The momentum looks to continue as Ford will introduce four-cylinder EcoBoost variants next year. more… Alan Hall | ahall32@ford.com | 313.594.3744 Ford has the best of what’s new Any consumer who has had trouble parallel parking can appreciate Ford’s Active Park Assist. But drivers aren’t the only ones who love this technology – Popular Science has honored Active Park Assist with a 2009 Best of What’s New award. The system, which uses ultrasonic sensors to help drivers parallel park, underscores Ford’s commitment to enhancing the driver experience and providing value to the customer. This award makes for three years in a row that Ford has won top honors from the world’s leading science and technology magazine. more… Alan Hall | ahall32@ford.com | 313.594.3744 Fiesta Movement agents set to take over L.A.; vote for your favorite agent Get ready for a Fiesta party. Fiesta Movement agents are heading to L.A. for an awards ceremony celebrating their six-month journey as special agents for the new Ford Fiesta. Consumers can take part in the festivities by logging on to www.fiestamovement.com to vote for their favorite agent. A performance by the band Parachute marks the event as the perfect way to recognize the dedication and hard work of those involved in the Fiesta Movement. more… Angie Kozleski | akozlesk@ford.com | 313.323.1984 About Ford Motor Company Ford Motor Company (NYSE: F – News ) , a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company’s automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com . Original post: Ford E-News – Nov. 18, 2009 (PR Newswire)

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By Nicole Maestri SAN FRANCISCO (Reuters) – BJ’s Wholesale Club Inc (NYSE: BJ – News ) reported a 37 percent drop in quarterly profit on Wednesday, hurt by a charge for a proposed legal settlement regarding worker pay. Excluding the charge, its earnings per share met analysts’ expectations and the retailer reiterated its earnings forecast for the fourth-quarter, which includes the holiday season. But shares fell after the results failed to wow investors, who have come to expect BJ’s to beat estimates. JP Morgan analyst Charles Grom said investors could be disappointed since BJ’s had exceeded Wall Street’s earnings per share estimates for the previous 10 consecutive quarters. BJ’s shares, which have risen 16 percent since the retailer reported quarterly results in August, fell 2.3 percent to $35.51 in late morning New York Stock Exchange trading. Headed into the holiday season, Chief Executive Laura Sen said that pricing for general merchandise has been “extremely aggressive” across the industry. She expects consumers to wait until the last minute to complete their gift buying. “We saw that at Halloween, and I’m sure we’ll see that at Christmas too,” she said. “It’s really going to be important that we have a nice offering and hold ourselves ready to do business right to the end.” Given uncertainty around the economy and outlook for price deflation, the warehouse club operator said it wanted to complete its fourth quarter before providing a financial forecast for 2010. DEFLATION TAKES A TOLL ON SALES BJ’s profit for the third quarter that ended October 31 fell to $17.7 million, or 32 cents a share, from $28.2 million, or 48 cents a share, a year earlier. Excluding the 13 cent charge related to the proposed settlement of a legal claim, the profit was 45 cents a share, in line with the analysts’ average forecast, according to Thomson Reuters I/B/E/S. BJ’s Wholesale, the No. 3 U.S. warehouse club operator behind Costco Wholesale Corp (NasdaqGS: COST – News ) and Wal-Mart Stores Inc’s (NYSE: WMT – News ) Sam’s Club, has seen traffic rise amid the recession as shoppers seek its low prices on food and staple items, like diapers and paper towels. Shoppers pay an annual fee to shop in its clubs and get discounts on everything from televisions to frozen food. But its sales have faced tougher comparison to a year ago, when results were boosted by rising food and gasoline prices. As BJ’s reported earlier this month, sales rose 2 percent to $2.45 billion, while sales at its clubs open at least a year, or same-store sales, fell 2.5 percent. Excluding the impact of gasoline sales, its quarterly same-store sales rose 3.9 percent. While deflation in particular pressured sales of perishable items, BJ’s also said sales were hurt as it opened new locations closer to existing ones, siphoning off sales from the older stores. In the recently completed quarter, BJ’s said sales were stronger for cereal, computer equipment, frozen food, and health and beauty aids compared with a year ago. Sales were weaker for electronics, jewelry, milk, oils and shortenings, sporting goods, toys and trash bags. For the fourth quarter, it expects net sales to increase 10.5 percent to 12.5 percent and same-store sales to rise 5 percent to 7 percent. It said it still expects fourth-quarter earnings per share of 96 cents to $1.00, compared with analysts’ estimate of 97 cents. (Reporting by Dhanya Skariachan and Nicole Maestri; Editing by Derek Caney, Dave Zimmerman) Go here to see the original: BJ’s Wholesale profit off 37 percent, hurt by charge (Reuters)

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By Steve Lambert, The Canadian Press WINNIPEG – The Manitoba government says it will not harmonize its sales tax with the federal GST despite mounting pressure from the business community. “We’ve done a lot of work to look at what the benefit is, what the hit will be for our consumers, and, on balance, we believe that implementing this would be more of a negative,” Finance Minister Rosann Wowchuk said Tuesday. “It’s our view … that this (would) be very negative for our consumers.” The Winnipeg Chamber of Commerce, however, believes the province will experience job losses and a sluggish economy unless it follows the lead of Ontario, British Columbia and other jurisdictions that have merged their sales taxes. Blending the two offers big breaks to businesses that currently pay the provincial sales tax on goods they purchase. But a harmonized tax, like the GST, does not apply to such goods. That bonus, along with the reduction in red tape that comes through paying a single levy, makes provinces with a harmonized tax much more attractive for business, the chamber suggested Tuesday. “We cannot sustain our economy with that kind of differential in tax,” chamber president Dave Angus said. “We have to have an environment that’s going to attract investment and jobs.” Manitoba, Saskatchewan and Prince Edward Island are the only provinces with sales taxes that have not agreed to harmonization. Quebec and three of the Atlantic provinces merged their taxes in the mid-1990s, while Ontario and B.C. plan to switch to the single tax next July. Alberta has no provincial sales tax. The move has not gone over well with consumers, because a harmonized tax applies to many items not subject to a provincial sales tax. That list varies from province to province, but usually includes gasoline, heating fuel, children’s clothing and more. Premier Greg Selinger has said harmonization would cost Manitoba consumers up to $400 million a year and has promised he won’t agree to any blending of taxes that hurts consumers. But the chamber feels Manitoba has no choice. “As other provinces get more competitive, we lose opportunities,” Angus said. Wowchuk pointed out the government has cut other business taxes, including the small business income tax and the corporate capital tax. She is not convinced the lack of a harmonized tax would prompt Manitoba companies to uproot and move to another province. “It’s not my sense, if you look at Nova Scotia, that they’ve had a huge influx of business from when they moved to harmonization.” Read more: Chamber of Commerce calls on Manitoba to harmonize its sales tax with Ottawa

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By The Canadian Press BRAMPTON, Ont. – Loblaw Companies Ltd (TSX: L.TO ) saw its third-quarter profits jump by 20 per cent as the grocery chain benefited from cost containment and improved supply chain efficiencies. Canada’s largest food distributor reported Tuesday net income of $189 million or 69 cents per share for the quarter ended October 10. That was up from year-ago profit of $157 million or 57 cents per share. The company warned, however, that it expects to see its sales and margins face continuing challenges from decreasing inflation, competition and ongoing renovation and infrastructure programs in the future. Revenues totalled $9.47 billion for the quarter, compared to $9.49 billion last year. Analysts were expecting on average earnings of 62 cents per share before items and revenue of $9.62 billion, according to estimates compiled by Thomson Reuters. Loblaw, whose banner includes No Frills, Zehrs, Fortinos and Real Canadian Superstores, said it incurred a one-time charge of $25 million related to an investment in information technology and supply chain which negatively impacted its net earnings. The company added that its sales were negatively impacted by the sale of its food service business in the fourth quarter of 2008. “As we progressed through the third quarter, our sales were increasingly impacted by the significant decline in inflation and the ramp-up of our pricing investments,” said Galen Weston, Loblaw’s executive chairman. The company said same-store sales fell 0.6 per cent in the quarter, adding that the Thanksgiving holiday sales had helped boost figures. Loblaw noted that its recent acquisition of T&T Supermarket Inc. just before the quarter’s end had not significantly impacted earnings, but was expected to boost figures in the future. Loblaw shares closed at $30.40 Monday on the Toronto Stock Exchange. Link: Loblaw sees profit grow in Q3 as costs controlled, supply chain improved

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By The Associated Press ATLANTA – Home Depot Inc.’s third-quarter earnings fell 8.9 per cent as the housing and renovation markets remained weak, the nation’s largest home improvement retailer said Tuesday. The company also raised its full-year earnings outlook as the quarter’s earnings topped expectations. CEO Frank Blake said the company has seen signs of stabilization in real estate and has added market share in the quarter. Home Depot and other home-improvement retailers have faced sales declines as consumers hold back on do-it-yourself projects amid worry over jobs and home values. Although the U.S. housing market is stabilizing, after a nearly three-year decline, home prices remain far below their peak. On Monday, Home Depot’s smaller rival Lowe’s Cos. reported third-quarter profit fell 30 per cent as sales declined 3 per cent. Lowe’s also observed that some of the hardest-hit home markets are stabilizing and said it expects this year’s fourth quarter to be stronger than last year’s. Home Depot said declines in the average checkout receipt eased a bit in the quarter, falling 7.1 per cent to US$51.89, compared with 8.2 per cent for the year to date. Falling purchases of big-ticket items like major appliances have been a particular worry for Home Depot and Lowe’s. Net income was $689 million, or 41 cents per share, for the quarter ended Nov. 1. Revenue fell 8 per cent to $16.36 billion. Analysts polled by Thomson Reuters expected a profit of 36 cents per share on revenue of $16.27 billion. Sales at stores open at least a year fell 6.9 per cent. That figure is considered a key measurement for retailers because it excludes the effect of store expansions or closings. For the full year, Home Depot now expects earnings per share from continuing operations of about $1.50. That would be a 9.5 per cent increase from last year, better than the company’s previous expected range of flat to up 7 per cent. Home Depot now expects adjusted earnings of $1.55 per share for the full year. Analysts polled by Thomson Reuters expect $1.52. Originally posted here: Home Depot earnings fall 8.9 per cent; raises outlook amid signs of real estate stabilization

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With 620 restaurants, Buffalo Wild Wings ( BWLD ) is a little less than one-third the size of Applebee’s (which is owned, along with IHOP, by DineEquity ( DIN )) and a little more than one-third the size of Chili’s (owned by Brinker International ( EAT )). Sales for the two larger chains are expected to drop by double-digit percentages this year. Analysts forecast Buffalo’s sales for the year to increase 28%. What’s working? Analysts say the restaurant has separated itself from the bar-and-grill competition by becoming a hangout for sports fans. Two-thirds of sales come from wings and alcohol. Perhaps the big-game crowd is less budget-minded than families when it comes to meals out. Buffalo’s expansion efforts are aided by the company’s lack of debt and the tendency of its franchisees to earn healthy returns. Investors eyeing the stock today should do so cautiously, though, for two reasons. First, chicken wing prices are bizarrely high, recently topping even breast prices, likely because consumers are trading down from fancy dining to what they perceive as cheap eats. Buffalo has responded by pushing “boneless wings” (breast strips, really), but high wings costs are nonetheless crimping margins. Second, shares trade at a lofty 25 times forecast 2009 earnings. Go here to see the original: 3 Stocks With 25% Sales Growth

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SHANGHAI, Nov. 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 unaudited financial results for the quarter ended September 30, 2009. Third Quarter 2009 Highlights — Net revenues increased 7% quarter over quarter to $96.4 million, exceeding the Company’s guidance between $91.0 million and $94.0 million. — Advertising revenues increased 10% quarter over quarter to $63.8 million, exceeding the Company’s guidance between $60.0 million and $62.0 million. — Non-advertising revenues increased slightly quarter over quarter to $32.6 million, exceeding the Company’s guidance between $31.0 million and $32.0 million. — Net income attributable to SINA(*) was $16.7 million, or $0.29 diluted net income per share attributable to SINA, representing an increase of 25% quarter over quarter. — Non-GAAP net income attributable to SINA(**) was $20.1 million, or $0.34 diluted non-GAAP net income per share attributable to SINA, representing an increase of 17% quarter over quarter. (*) Net income attributable to SINA for the third quarter of 2008 has been revised (see explanation in the Form 6-K/A furnished to the Securities and Exchange Commission on June 5, 2009, which amends the Form 6-K furnished to the Securities and Exchange Commission on November 18, 2008). (**) Non-GAAP measures are described below and reconciled to the corresponding GAAP measures in the section below entitled “Unaudited Reconciliation of Non-GAAP to GAAP Results.” “Total revenues for the third quarter of 2009 exceeded our guidance, as we saw double-digit sequential growth in our online advertising business in China, on top of a 35% sequential growth last quarter. We are seeing signs of a strong recovery in the advertising market in China in the second half of this year, and we expect this momentum to continue with continuing recovery of the Chinese economy,” said Charles Chao, CEO of SINA. “In October 2009, we carved out our online real estate advertising business and merged it with China Real Estate Information Corporation (”CRIC”) to form the largest online and offline real estate information and consulting platform in China, which successfully listed on the NASDAQ on October 16th. This transaction marks a significant step in our strategy to explore multiple business opportunities in our dominant vertical areas by teaming up with other industry leaders. It is also a strong testament to the value of SINA brand and SINA platform.” Mr. Chao continued. Financial Results For the third quarter of 2009, SINA reported total revenues of $96.4 million, compared to $105.4 million in the same period in 2008 and $90.3 million for the second quarter of 2009. Advertising revenues for the third quarter of 2009 totaled $63.8 million, representing a 16% decrease from the same period last year and a 10% increase from last quarter. Online advertising revenues in the third quarter of 2008 were $76.2 million, boosted by SINA’s coverage of the 2008 Beijing Olympics. Non-advertising revenues for the third quarter of 2009 totaled $32.6 million, representing a 12% increase from the same period in 2008 and up slightly from the previous quarter. For the third quarter of 2009, MVAS revenues, which accounted for 95% of non-advertising revenues, reached $30.9 million, an increase of 14% from the same period last year and flat against the previous quarter. Gross margin for the third quarter of 2009 was 59%, compared to 57% for the same period last year and 56% last quarter. Advertising gross margin for the third quarter of 2009 was 61%, compared to 58% for the same period last year and the previous quarter. Excluding stock-based compensation and amortization of intangible assets, non-GAAP advertising gross margin for the third quarter of 2009 was 62%, compared to 59% for the same period last year and the previous quarter. Compared to the advertising gross margin of the current quarter, the lower margin in the third quarter of last year was mainly due to the acquisition of Olympic-related content. The sequential improvement in advertising gross margin was due to advertising revenues growing faster than advertising cost of revenues. MVAS gross margin for the third quarter of 2009 was 54%, compared to 53% in the same period last year and 50% last quarter. The sequential increase in MVAS gross margin was mainly due to a shift in product mix toward MVAS with lower revenue share arrangements. Operating expenses for the third quarter of 2009 totaled $38.3 million, representing a decrease of 4% from the same period last year and an increase of 5% from last quarter. Non-GAAP operating expenses for the third quarter of 2009, which exclude stock-based compensation and amortization of intangible assets, were $35.6 million, a decrease of 3% from the same period last year and an increase of 6% from last quarter. Income from operations for the third quarter of 2009 was $18.3 million, compared to $20.1 million for the same period last year and $13.6 million from last quarter. Non-GAAP income from operations for the third quarter of 2009 was $21.7 million, compared to $24.2 million for the same period last year and $17.4 million from last quarter. Interest and other income for the third quarter of 2009 were $1.8 million, compared to $4.1 million for the same period last year and $2.1 million last quarter. The year over year decrease in interest and other income was mainly due to lower interest rates, despite a year-over-year increase of $37.2 million in cash, cash equivalents and short-term investments. Non-operating item for the third quarter of 2008 also includes an investment loss of $0.8 million, as a result of taking a controlling interest in a follow-on investment of a web application development firm. Provision for income taxes for the third quarter of 2009 was $3.3 million, compared to $4.4 million for the same period last year and $2.0 million last quarter. The Company made a provision for income taxes for the third quarter of 2009 based on an estimated annual effective tax rate of approximately 12% for its China operations. Net income attributable to SINA for the third quarter of 2009 was $16.7 million, compared to $18.9 million in the same period last year and $13.3 million last quarter. Diluted net income per share attributable to SINA for the third quarter of 2009 was $0.29, compared to $0.31 from the same period last year and $0.23 from last quarter. Non-GAAP net income attributable to SINA for the third quarter of 2009 totaled $20.1 million, compared to $23.7 million in the same period last year and $17.1 million in the previous quarter. Non-GAAP diluted net income per share attributable to SINA for the third quarter of 2009 was $0.34, compared to $0.39 from the same period last year and $0.29 from last quarter. As of September 30, 2009, SINA’s cash, cash equivalents and short-term investments totaled $599.7 million, compared to $562.5 million and $582.0 million as of September 30, 2008 and June 30, 2009, respectively. Cash flow from operating activities for the third quarter of 2009 was $29.1 million, compared to $24.0 million for the same period last year and $18.8 million last quarter. Announced Merger On July 23, 2009, the Company announced that it entered into a definitive agreement to merge its online real estate business with E-House (China) Holdings Limited’s wholly-owned subsidiary CRIC. Pursuant to the Agreement, SINA injected its online real estate business into its majority-owned subsidiary China Online Housing Technology Corporation (”China Online Housing”). CRIC issued its ordinary shares to SINA in exchange for SINA’s equity interest in China Online Housing, giving SINA a 39% equity interest in CRIC (without giving effect to any initial public offering shares). The closing of the transaction was conditional upon, among other things, the closing of the public offering of CRIC and the listing of CRIC’s American depositary shares representing its ordinary shares on a major stock exchange in the United States, which was consummated on October 16, 2009, with the successful listing of CRIC on the NASDAQ Global Select Market. Announced Private Equity Financing On September 28, 2009, the Company announced that it entered into a definitive agreement for a private equity placement of its ordinary shares with New Wave Investment Holding Company Limited (New Wave), a British Virgin Islands company established and controlled by Charles Chao, SINA’s Chief Executive Officer, and other members of SINA’s management. At the closing, SINA will receive gross proceeds of $180 million, and New Wave will receive approximately 5.6 million ordinary shares in SINA. The shares issued to New Wave will be subject to a six month lock-up and will have customary registration rights pursuant to a Registration Rights Agreement entered into between SINA and New Wave. The Company expects to use the proceeds of the financing for future acquisitions and general corporate purposes. Business Outlook Upon the closing of CRIC’s initial public offering and the merger, SINA became CRIC’s second largest shareholder with approximately 33% of the total outstanding shares. The Company expects to account for its interest in CRIC using the equity method of accounting starting from October 1, 2009 and expects to recognize a material gain from the closing of the merger transaction with CRIC. Adjusting the advertising revenue forecast for the fourth quarter of 2009 to reflect the carve out of advertising revenues from the SINA real estate business and assumptions made using the terms under the amended and restated advertising agency agreement (for further information, see CRIC Form F-1), the Company estimates its total revenues for the fourth quarter of 2009 to be between $93 million and $96 million, with advertising revenues to be between $61 million and $63 million and non-advertising revenues to be between $32 million and $33 million. Under the adjusted basis, advertising revenues for the first quarter, second quarter and third quarter of 2009 would have been $37.0 million, $48.1 million and $53.9 million, respectively. If the advertising revenues from the SINA real estate business had not been carved out, the forecasted advertising revenues for the fourth quarter of 2009 would have been between $74 million and $76 million, and the forecasted total revenues for the fourth quarter of 2009 would have been between $106 million and $109 million. Stock-based compensation for the fourth quarter of 2009 is expected to be approximately $3 million, which excludes any new shares that may be granted. The issuance of ordinary shares to New Wave in the private equity financing is expected to occur shortly. The Company expects the issuance of ordinary shares to New Wave will have a dilutive effect on the Company’s outstanding shares in the fourth quarter of 2009. Share Repurchase Program Under the $100 million share repurchase program approved by the Company’s Board of Directors, as of November 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 million. The Company expects to continue the repurchase program with the remaining $50 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 “Unaudited 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 attributable to SINA, non-GAAP diluted net income per share attributable to SINA 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, gain/loss on the sale/purchase of business/investment and gain/loss on the sale of noncontrolling 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 an indicator used by management to measure 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 gain/loss on the sale/purchase of a business/ investment and gain/loss on the sale of non-controlling interest in subsidiary from its non-GAAP financial measure of net income attributable to SINA 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 8:00 p.m. Eastern Time today to present an overview of the Company’s financial performance and business operations for the third quarter of 2009. The dial in number for the call is +1-866-783-2138 (US) or +1-857-350-1597 (International) and the pass code is 84532385. A live webcast of the call will be available from 8:00 p.m. – 9:00 p.m. ET on Monday, November 16, 2009 (9:00 a.m. – 10:00 a.m. Beijing Time on November 17, 2009). The call can be accessed through the Company’s corporate web site at http://corp.sina.com . The call will be archived for 12 months on SINA’s corporate web site at http://corp.sina.com . A replay of the conference call will be available through November 22, 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 53029501. 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, the “Announced Merger” section, the “Announced Private Equity Financing” section, the “Share Repurchase Program” 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, the uncertain regulatory landscape in the People’s Republic of China, 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, changes by mobile operators in China to their policies for MVAS, any failure to successfully develop and introduce new products, including MVAS products, any failure to successfully integrate acquired businesses and risks associated with the merger of the Company’s online real estate business with CRIC. Further information regarding these and other risks is included in SINA’s Annual Report on Form 20-F for the year ended December 31, 2008 and its other filings with the Securities and Exchange Commission. For further information, please contact: SINA Corporation Cathy Peng Investor Relations Manager Phone: 86-10-82628888 x3112 Email: ir@staff.sina.com.cn SINA CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. Dollar in thousands, except per share data) Three months ended Nine months ended September 30, June 30, September 30, 2009 2008 2009 2009 2008 Net revenues: Advertising $63,782 $76,205 $57,755 $164,708 $188,981 Non-advertising 32,576 29,209 32,503 95,673 79,068 96,358 105,414 90,258 260,381 268,049 Cost of revenues: Advertising (a) 25,104 32,138 24,237 70,978 74,856 Non-advertising 14,627 13,117 15,751 43,873 34,761 39,731 45,255 39,988 114,851 109,617 Gross profit 56,627 60,159 50,270 145,530 158,432 Operating expenses: Sales and marketing (a) 21,757 22,264 21,118 58,704 58,363 Product development (a) 7,851 8,693 7,840 23,170 22,092 General and administrative (a) 8,324 8,709 7,287 21,804 23,944 Amortization of intangibles 412 411 411 1,234 926 38,344 40,077 36,656 104,912 105,325 Income from operations 18,283 20,082 13,614 40,618 53,107 Non-operating income: Interest and other income, net 1,848 4,070 2,069 6,904 12,483 Gain (loss) on investments — (779) — – 2,358 1,848 3,291 2,069 6,904 14,841 Income before income taxes 20,131 23,373 15,683 47,522 67,948 Provision for income taxes (3,268) (4,429) (1,991) (7,311) (12,254) Net income 16,863 18,944 13,692 40,211 55,694 Less: Net income attributable to the noncontrolling interest 160 91 354 421 213 Net income attributable to SINA $16,703 $18,853 $13,338 $39,790 $55,481 Basic net income per share attributable to SINA $0.31 $0.34 $0.25 $0.74 $1.00 Diluted net income per share attributable to SINA $0.29 $0.31 $0.23 $0.68 $0.92 Shares used in computing basic net income per share attributable to SINA 53,884 55,964 53,783 54,025 55,728 Shares used in computing diluted net income per share attributable to SINA 58,504 60,639 58,198 58,347 60,535 (a) Stock-based compensation included was as follows: Cost of revenues — advertising $622 $834 $634 $1,883 $2,412 Sales and marketing 558 482 560 1,638 1,598 Product development 435 428 414 1,285 1,470 General and administrative 1,305 1,887 1,720 4,714 5,249 SINA CORPORATION UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS (U.S. Dollar in thousands, except per share data) Three months ended September 30, 2009 Non-GAAP Actual Adjustments Results 622(a) 88(b) Gross profit $56,627 $710 $57,337 (2,298)(a) (412)(b) Operating expenses $38,344 $(2,710) $35,634 2,920(a) 500(b) Income from operations $18,283 $3,420 $21,703 2,903(a) 470(b) Net income attributable to SINA $16,703 $3,373 $20,076 Diluted net income per share attributable to SINA $0.29 $0.34 Shares used in computing diluted net income per share attributable to SINA 58,504 58,504 Gross margin –advertising 61% 1% 62% 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 attributable to SINA $18,853 $4,876 $23,729 Diluted net income per share attributable to SINA $0.31 $0.39 Shares used in computing diluted net income per share attributable to SINA 60,639 60,639 Gross margin –advertising 58% 1% 59% Three months ended June 30, 2009 Non-GAAP Actual Adjustments Results 634(a) 88(b) Gross profit $50,270 $722 $50,992 (2,694)(a) (411)(b) Operating expenses $36,656 $(3,105) $33,551 3,328(a) 499(b) Income from operations $13,614 $3,827 $17,441 3,315(a) 469(b) Net income attributable to SINA $13,338 $3,784 $17,122 Diluted net income per share attributable to SINA $0.23 $0.29 Shares used in computing diluted net income per share attributable to SINA 58,198 58,198 Gross margin –advertising 58% 1% 59% Nine months ended September 30, 2009 Non-GAAP Actual Adjustments Results 1,883(a) 265(b) Gross profit $145,530 $2,148 $147,678 (7,637)(a) (1,234)(b) Operating expenses $104,912 $(8,871) $96,041 9,520(a) 1,499(b) Income from operations $40,618 $11,019 $51,637 9,479(a) 1,409(b) Net income attributable to SINA $39,790 $10,888 $50,678 Diluted net income per share attributable to SINA $0.68 $0.87 Shares used in computing diluted net income per share attributable to SINA 58,347 58,347 Gross margin –advertising 57% 1% 58% Nine months ended September 30, 2008 Non-GAAP Actual Adjustments Results 2,412(a) 177(b) Gross profit $158,432 $2,589 $161,021 (8,317)(a) (926)(b) Operating expenses $105,325 $(9,243) $96,082 10,729(a) 1,103(b) Income from operations $53,107 $11,832 $64,939 10,726(a) 1,043(b) (3,137)(c) 779(d) Net income attributable to SINA $55,481 $9,411 $64,892 Diluted net income per share attributable to SINA $0.92 $1.07 Shares used in computing diluted net income per share attributable to SINA 60,535 60,535 Gross margin –advertising 60% 2%* 62% (a) To adjust stock-based compensation charges (b) To adjust amortization of intangible assets (c) To adjust gain on the sale of noncontrolling interest in a subsidiary (d) To adjust loss on the purchase of business and investments * Rounding SINA CORPORATION UNAUDITED SEGMENT INFORMATION (U.S. Dollar in thousands) Three months ended Nine months ended September 30, June 30, September 30, 2009 2008 2009 2009 2008 Net revenues Advertising $63,782 $76,205 $57,755 $164,708 $188,981 Mobile related 30,881 27,117 30,884 90,745 73,325 Others 1,695 2,092 1,619 4,928 5,743 $96,358 $105,414 $90,258 $260,381 $268,049 Cost of revenues Advertising $25,104 $32,138 $24,237 $70,978 $74,856 Mobile related 14,223 12,622 15,313 42,644 33,075 Others 404 495 438 1,229 1,686 $39,731 $45,255 $39,988 $114,851 $109,617 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. Dollar in thousands) September 30, December 31, 2009 2008 Assets Current assets: Cash and cash equivalents $464,232 $383,320 Short -term investments 135,428 220,504 Accounts receivable, net 81,479 79,183 Other current assets 18,640 9,424 Total current assets 699,779 692,431 Property and equipment, net 25,512 34,111 Goodwill and intangible assets, net 93,350 94,527 Other assets 9,667 1,425 Total assets $828,308 $822,494 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $1,337 $1,397 Accrued liabilities 79,768 76,119 Income taxes payable 13,163 17,391 Convertible debt 99,000 99,000 Total current liabilities 193,268 193,907 Other long-term liabilities 3,786 4,039 Total liabilities 197,054 197,946 Shareholders’ equity SINA shareholders’ equity 626,360 620,505 Noncontrolling interest 4,894 4,043 Total shareholders’ equity 631,254 624,548 Total liabilities and shareholders’ equity $828,308 $822,494 See the original post here: SINA Reports Third Quarter 2009 Financial Results (PR Newswire)

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SINA Reports Third Quarter 2009 Financial Results (PR Newswire)

Interesting note on methodology noted by a forum user (Licorice): Each month, questionnaires are mailed to a probability sample of approximately 5,000 employer firms selected from the larger Monthly Retail Trade Survey (MRTS). Firms responding to MARTS account for approximately 65% of the total national sales estimate. Advance sales estimates are computed using a link relative estimator. The change in sales from the previous month is estimated using only units that have reported data for both the current and previous month. There is no imputation or adjustment for nonrespondents in MARTS. Got it? The number is cooked.  Only same-store sale changes count and those stores that closed or were newly opened are ignored. This implies that the report will may slightly understate results in a rapidly-expanding environment for the first month (although that understatement will be corrected via revisions in the second month) but is almost certain to grossly overstate results in a weakening consumer retail environment – and those overstatements will not be corrected. Here’s why. A new store (that has no “last month” history) will typically have low sales numbers for its first month of operation, simply because nobody knows it’s there.  While most stores have some sort of “grand opening” or other promotion linked to their inception, the usual “buzz” associated with that tends to be fleeting (days.)  Traffic then tends to build with familiarity, assuming that the store is successful.  Since in a flat market this traffic comes from other competitors, the “new store” impact would tend to be neutral or slightly positive beyond actual sales results.  That is, the traffic taken by the new store (from existing retailers) will be counted, because the retailer that loses to the new store is counted and the new store is also counted.  The numbers balance; the under-reporting is limited to the initial “grand opening”, which is normally a one-off until traffic and familiarity builds, and the new store is reported both for prior and current months as soon as the first month passes.  This causes a revision (upward) in the second month of operation to the prior month’s results. But a closed store is ignored in the month it fails, and the traffic that shifts FROM it to other stores pumps their comps .vs. the previous month.   Therefore, as stores close it looks like retail activity actually increased when in fact at best it was flat. Examples will make this clear. We start with one store in the world that has net sales of “100″. Store #2 opens with sales of 10.  Half of that is new activity, half comes from Store #1.  First month shows a sales report of “95″, a decrease.  But in the next month Store #2’s numbers come online, the “95″ is revised to the (true) 105, and Store #2s numbers (which have climbed to 60, while Store #1 has lost share and now also has an amount of 60) are all reportable.  Net activity is now accurate at 120 and the previous month is revised to the (true) net 105. Store #1 and #2 both are operating with sales of 60.  Store #2 fails, and half of its business goes to Store #1.  In the month it fails Store #1 shows an increase and Store #2’s numbers are DROPPED ENTIRELY, since it did not report.   This is not revised.  We now report a “50% increase” in retail activity, which is total crap – we really had a 25% net decrease for the current month.   But the revision to the previous month does get posted, and depresses the previous month’s numbers. Did this just happen? The August to September 2009 percent change was revised from -1.5 percent (±0.5%) to -2.3 percent (±0.3%). Oh, it did!  Now we know where the revision to the previous month came from – stores closed in the present month and their sales loss was intentionally dropped from the current month . Cute folks, cute.  This intentional omission of stores that fail to report for the current month but did for the previous, instead of counting a closed store as the zero that it is , mean that so-called “improvements” by competitors who pick up the previous store’s traffic are not balanced by the loss of the failed store. As such the report intentionally overstates results and you cannot obtain an accurate magnitude for the distortion.  You can, however, detect that it happened by the negative revision to the previous month’s data – and in this case, we got a big one. If you were wondering how we can possibly have “improving” retail sales data when sales tax information from the states refuses to reflect this alleged “improvement” in retail sales, along with how states can post double-digit sales tax declines while “retail sales” are down by a much smaller percentage, you now understand.  The Census Bureau intentionally lies by omitting the “zero” for a store in the month it closes – that loss of sales is never reported – not even retrospectively in a revision the next month. The Market Ticker once again dissects The Goebbels Information Bureau residing in our Government. Read more from the original source: Goebbels Retail Sales?

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NEW YORK (Reuters) – Lowe’s Cos Inc (NYSE: LOW – News ), the second-largest U.S. home improvement chain, posted a 30 percent drop in quarterly profit as consumers put off big renovations as the U.S. housing market remains sluggish, sending shares down 2.1 percent in premarket trading. Reuters – A sign is seen outside the Lowes store in Westminster, Colorado February 20, 2009. REUTERS/Rick Wilking … {”s” : “hd,low”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} But the North Carolina-based chain gave a fourth-quarter profit forecast that could beat Wall Street expectations, noting that it was starting to see signs of improvement in some of the hardest-hit housing markets, including California and Florida. “The broad-based pressures of the macro environment are clearly evident in our sales as consumers continue to delay large purchases until they feel better about the economic outlook,” Lowe’s Chief Executive Robert Niblock said in a statement. Lowe’s profits fell to $344 million, or 23 cents per share, in the third quarter that ended on October 30, from $488 million, or 33 cents per share, a year earlier. Those results fell just short of analyst expectations of 24 cents per share, according to Thomson Reuters I/B/E/S. Sales during the quarter fell 3 percent to $11.37 billion, slightly above expectations of $11.28 billion. Same store sales, or sales at stores open for at least a year, fell 7.5 percent. Lowe’s, like bigger rival Home Depot Inc (NYSE: HD – News ), has suffered badly in the U.S. housing slump. In September, Lowe’s disappointed investors with a cautious forecast for its next fiscal year and said future growth would be fueled by expansion in underserved markets and overseas. Home Depot is due to report results on Tuesday. Lowe’s took an optimistic view of the fourth quarter and forecast that profits would range between 9 cents and 13 cents per share, which could beat analysts’ expectations of a 10 cent profit per share. Lowe’s said it expects total sales in the last quarter to be flat, while same-store sales, or sales at stores open for at least one year, would fall between 2 percent and 6 percent. It plans to open 13 new stores in the fourth quarter. Lowe’s opened 12 stores and closed one during the third quarter. Lowe’s shares fell to $21.40 premarket from its close of $21.85 on Friday. (Reporting by Phil Wahba and Franklin Paul; Editing by Lisa Von Ahn and Maureen Bavdek) Read the original post: Lowe’s profit falls 30 percent (Reuters)

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MOORESVILLE, N.C. (AP) — Lowe’s Cos., the No. 2 home-improvement retailer, said Monday its third-quarter profit fell 30 percent as customers continued to delay large purchases amid a weak economy. But Lowe’s said some of the hardest hit home markets are stabilizing. AP – FILE – In this Aug. 17, 2009 file photo, men leave a Lowe’s store with a supply of … {”s” : “low”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} Profit in the quarter ended Oct. 30 was $344 million, or 23 cents per share, down from $488 million, or 33 cents per share, in the same quarter last year. Results in the latest quarter included one-time costs related to closing some stores and no longer pursuing some future stores, as well as a tax benefit. Excluding those items, profit was 24 cents per share, matching analyst expectations according to a poll by Thomson Reuters. Revenue edged down 3 percent to $11.38 billion from $11.73 billion, narrowly beating an average analyst estimate of $11.28 billion. Sales in stores open at least one year fell 7.5 percent in the quarter. The metric is considered a key measurement of retailer health. “The broad-based pressures of the macro environment are clearly evident in our sales as consumers continue to delay large purchases until they feel better about the economic outlook,” said CEO Robert A. Niblock in a statement. Home-improvement retailers have seen sales slip as consumers cut back on big-ticket remodeling projects amid the recession. Although the U.S. housing market is stabilizing, after a nearly three-year decline, home prices remain far below their peak. Niblock said the company is beginning to see better performance in some of the hardest-hit housing markets, including California, Florida and parts of the desert Southwest. For the fourth quarter, the company predicts sales will be flat compared with the $9.98 billion reported in the year-ago quarter. Analysts expect revenue of $9.91 billion. Lowe’s expects earnings of 9 cents to 13 cents per share for the fourth quarter. Analysts expect earnings of 10 cents per share. For the year, the company expects sales to fall 2 percent to 3 percent, implying revenue of $46.75 billion to $47.24 billion. Analysts expect revenue of $46.84 billion. Lowe’s projects full-year earnings of $1.16 to $1.20 per share, while analysts expect $1.20 per share. Continue reading here: Lowe’s 3Q profit falls but co. sees signs for hope (AP)

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The insider buying & selling data for the week ending November 13th worsened substantially.  Total insider selling jumped to over $960MM vs last week’s reading of $729MM .   Buying fell to the nearly non-existent level of $29MM.   Sales by Bill Gates accounted for almost $200MM worth of the selling, but outside of these sales the selling was broad based.  Despite a soaring stock market, insiders continue to exhibit very little confidence in their own companies through the use of their personal fortunes. Click for large image Read this articl e: INSIDERS STILL VERY BEARISH ON THEIR OWN COMPANIES

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BEIJING, Nov. 16 /PRNewswire-Asia/ — Perfect World Co., Ltd. (Nasdaq: PWRD – News ; “Perfect World” or the “Company”), a leading online game developer and operator based in China, today announced its unaudited financial results for the third quarter ended September 30, 2009. (Logo: http://www.newscom.com/cgi-bin/prnh/20090416/CNTH023LOGO ) Third Quarter 2009 Highlights(1) — Total revenues were RMB590.0 million (USD86.4 million), an increase of 13.2% from 2Q09 and 54.5% from 3Q08 — Gross profit was RMB495.0 million (USD72.5 million), an increase of 8.9% from 2Q09 and 48.0% from 3Q08 — Operating profit was RMB297.7 million (USD43.6 million), an increase of 6.4% from 2Q09 and 48.8% from 3Q08. Non-GAAP operating profit(2) was RMB317.9 million (USD46.6 million), an increase of 6.0% from 2Q09 and 49.0% from 3Q08 — Net income attributable to the Company’s shareholders was RMB288.3 million (USD42.2 million), an increase of 9.8% from 2Q09 and 45.0% from 3Q08. Non-GAAP net income attributable to the Company’s shareholders(2) was RMB308.5 million (USD45.2 million), an increase of 9.1% from 2Q09 and 45.4% from 3Q08 — Basic and diluted earnings per ADS(3) were RMB5.83 (USD0.85) and RMB5.50 (USD0.81), respectively, as compared to RMB5.21 and RMB4.94, respectively, in 2Q09, and RMB3.53 and RMB3.34, respectively, in 3Q08. Non-GAAP basic and diluted earnings per ADS(2) were RMB6.24 (USD0.91) and RMB5.88 (USD0.86), respectively, as compared to RMB5.61 and RMB5.32, respectively, in 2Q09, and RMB3.77 and RMB3.56, respectively, in 3Q08 — Launched closed beta testing for “Fantasy Zhu Xian” on September 10, 2009 — Released the Company’s first movie “Sophie’s Revenge” in August 2009 (1) The U.S. dollar (USD) amounts disclosed in this press release, except for those transaction amounts that are actually settled in U.S. dollars, are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into USD in this release is based on the Federal Reserve Board certified exchange rate on September 30, 2009, which was RMB6.8262 to USD1.00. The percentages stated are calculated based on RMB. (2) As used in this press release, non-GAAP operating profit, non-GAAP net income attributable to the Company’s shareholders and non-GAAP earnings per ADS are defined to exclude share-based compensation charge from operating profit, net income attributable to the Company’s shareholders and earnings per ADS, respectively. See “Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non- GAAP Results” at the end of this press release. (3) Each ADS represents five ordinary shares. “We are pleased to announce our third quarter results which exceeded our expectations,” commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. “During the quarter, we launched a number of expansion packs for our existing games. ‘Zhu Xian 2.0 Special Edition’ is an example of a successful expansion pack that we launched, and we’re optimistic about its contribution to the business moving forward. We will continue to lengthen the life cycle of our games by dedicating more resources to creating larger, more innovative expansion packs.” “Shortly following the quarter end, we successfully launched our first 2D turn-based MMORPG, ‘Fantasy Zhu Xian.’ ‘Fantasy Zhu Xian’ has drawn a lot of interest since its launch and is a testament to our ability to leverage our strong 3D development capabilities and operating platform to effectively penetrate the 2D market. We believe its innovative features and the strong branding of our ‘Zhu Xian’ franchise will help us successfully push this game into lower tier cities.” “We keep strengthening our competitive advantages in our industry by strategically crafting a highly diversified portfolio of truly differentiated games. We have a rich pipeline of six games that span the 3D, 2.5D and 2D market segments. By utilizing our specialized game engines and production studios, we are building a variety of franchises that include flagship titles in each of these individual market segments.” “We continue to make progress overseas and remain a leader in the Chinese online game export market in terms of revenues and geographic coverage. During the quarter, we successfully launched our first 2.5D mysterious adventure MMORPG ‘Battle of the Immortals’ in Taiwan, Hong Kong and Macau, through our overseas partner. We also launched some of our other games to various international markets through several operators and signed new licensing agreements with our overseas partners. We have been quite happy with our progress in this area so far and we plan to continue to expand our global network.” “This quarter, we also released the first movie that was produced by our subsidiary, Beijing Perfect World Cultural Communication Co., Ltd. (’PW Cultural’). The release was a success, and more importantly, it allowed us to distinctively promote our corporate brand and co-promote our games. This was a good start and we expect PW Cultural to capture the growth of the broader entertainment industry, while generating valuable synergies with our core business through content generation and co-promotion in the future.” “We are fully committed to producing differentiated games in the 3D, 2.5D and 2D game markets. And we are confident in our ability to raise and maintain our game players’ interest in both new and existing games, thanks to our proprietary technology, the creativity of our R&D team and our strong operating platform. With our proven execution capabilities, we aim to sustain the stable growth of our Company and maximize shareholder value.” Third Quarter 2009 Financial Results Total Revenues Total revenues were RMB590.0 million (USD86.4 million) in 3Q09, an increase of 13.2%, or RMB68.7 million, from RMB521.3 million in 2Q09 and an increase of 54.5%, or RMB208.2 million, from RMB381.8 million in 3Q08. Online game operation revenues were RMB485.9 million (USD71.2 million) in 3Q09, as compared to RMB475.1 million in 2Q09 and RMB324.5 million in 3Q08. The sequential growth in online game operation revenues was primarily attributable to the successful release of expansion packs for some of the Company’s existing games and a series of successful marketing activities. The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 713,000 in 3Q09, as compared to 761,000 in 2Q09 and 717,000 in 3Q08. The active paying customers (APC) for games operated in mainland China under the item-based revenue model was approximately 1,643,000 in 3Q09, as compared to 1,877,000 in 2Q09 and 1,610,000 in 3Q08. The average revenue per active paying customer (ARPU) for games operated in mainland China under the item-based revenue model was RMB266 in 3Q09, as compared to RMB237 in 2Q09 and RMB196 in 3Q08. While ACU and APC decreased by 6.3% and 12.5% from 2Q09, which was mainly due to adverse seasonality factors affecting certain games, the Company still managed to increase ARPU by 12.2% from 2Q09 through a series of successful promotions and the launch of new expansion packs. Overseas licensing revenues were RMB58.8 million (USD8.6 million) in 3Q09, as compared to RMB46.2 million in 2Q09 and RMB57.3 million in 3Q08. The increase from 2Q09 was mainly due to the successful launch of “Battle of the Immortals” and “Pocketpet Journey West” in Taiwan, Hong Kong and Macau through local operators. Film and television revenues were RMB45.3 million (USD6.6 million) in 3Q09, as compared to Nil in 2Q09 and Nil in 3Q08. All the film and television revenues recognized in 3Q09 were related to the movie “Sophie’s Revenge” that was released in August 2009. Cost of Revenues The cost of revenues was RMB95.0 million (USD13.9 million) in 3Q09, as compared to RMB66.8 million in 2Q09 and RMB47.3 million in 3Q08. The online game related cost was RMB68.0 million (USD10.0 million) in 3Q09, as compared to RMB66.8 million in 2Q09 and RMB47.3 million in 3Q08. Starting from August 2009, Beijing Perfect World Network Technology Co., Ltd. (”PW Network”), the Company’s controlled entity, is subject to a 5.5% business tax and related tax in lieu of VAT. Previously, PW Network was subject to 17% VAT for the revenues from online game business in the PRC and 10% surcharge of payable VAT, and was entitled to a 14% VAT refund which expires at the end of 2010. The film and television cost was RMB27.0 million (USD4.0 million) in 3Q09, as compared to Nil in 2Q09 and Nil in 3Q08. All the film and television cost recognized in 3Q09 was related to the movie “Sophie’s Revenge.” Gross Profit and Gross Margin Gross profit was RMB495.0 million (USD72.5 million) in 3Q09, an increase of 8.9%, or RMB40.4 million, from RMB454.5 million in 2Q09, and an increase of 48.0%, or RMB160.4 million, from RMB334.5 million in 3Q08. Gross margin was 83.9% in 3Q09, as compared to 87.2% in 2Q09 and 87.6% in 3Q08. Operating Expenses Operating expenses were RMB197.3 million (USD28.9 million) in 3Q09, an increase of 12.8%, or RMB22.4 million, from RMB174.9 million in 2Q09, and an increase of 46.7%, or RMB62.8 million, from RMB134.5 million in 3Q08. The increase in operating expenses from 2Q09 was mainly attributed to higher sales and marketing expenses and R&D expenses. Sales and marketing expenses increased by 21.0%, or RMB15.3 million, from RMB72.7 million in 2Q09 to RMB88.0 million (USD12.9 million) in 3Q09. This was largely due to an increase in advertising and promotional expenses associated with the launch of “Zhu Xian 2.0 Special Edition” expansion pack, expenses related to attending a nationwide industrial exhibition in 3Q09, and the promotional expenses associated with the release of the movie “Sophie’s Revenge.” R&D expenses increased by 10.0%, or RMB6.5 million, from RMB65.0 million in 2Q09 to RMB71.5 million (USD10.5 million) in 3Q09. The increase from 2Q09 was primarily due to an increase in staff costs. General and administrative expenses increased by 1.8%, or RMB0.7 million, from RMB37.2 million in 2Q09 to RMB37.8 million (USD5.5 million) in 3Q09. Operating Profit Operating profit was RMB297.7 million (USD43.6 million) in 3Q09, an increase of 6.4%, or RMB18.0 million, from RMB279.7 million in 2Q09, and an increase of 48.8%, or RMB97.7 million, from RMB200.0 million in 3Q08. Non-GAAP operating profit was RMB317.9 million (USD46.6 million) in 3Q09, an increase of 6.0%, or RMB17.9 million, from RMB300.0 million in 2Q09, and an increase of 49.0%, or RMB104.5 million, from RMB213.4 million in 3Q08. Income Tax Expense Income tax expense was RMB11.1 million (USD1.6 million) in 3Q09, as compared to RMB19.8 million in 2Q09 and RMB8.8 million in 3Q08. Upon the expiration of the Company’s authorized ADS repurchase program in October 2009, the Board decided that the undistributed dividends of Beijing Perfect World Software Co., Ltd. (”PW Software”), the Company’s wholly-owned subsidiary, will be re-invested and that PW Software will not declare or pay any dividends in the foreseeable future. As such, the Company ceased the accrual of withholding tax on earnings of PW Software. This caused a decrease of income tax expense compared with 2Q09. Net Income attributable to the Company’s shareholders Net income attributable to the Company’s shareholders was RMB288.3 million (USD42.2 million) in 3Q09, an increase of 9.8%, or RMB25.7 million, from RMB262.6 million in 2Q09, and an increase of 45.0%, or RMB89.5 million, from RMB198.8 million in 3Q08. Non-GAAP net income attributable to the Company’s shareholders was RMB308.5 million (USD45.2 million) in 3Q09, an increase of 9.1%, or RMB25.7 million, from RMB282.9 million in 2Q09, and an increase of 45.4%, or RMB96.4 million, from RMB212.2 million in 3Q08. Basic and diluted earnings per ADS were RMB5.83 (USD0.85) and RMB5.50 (USD0.81), respectively, in 3Q09, as compared to RMB5.21 and RMB4.94, respectively, in 2Q09, and RMB3.53 and RMB3.34, respectively, in 3Q08. Non-GAAP basic and diluted earnings per ADS were RMB6.24 (USD0.91) and RMB5.88 (USD0.86), respectively, in 3Q09, as compared to RMB5.61 and RMB5.32, respectively, in 2Q09, and RMB3.77 and RMB3.56, respectively, in 3Q08. Cash and Cash Equivalents As of September 30, 2009, the Company had RMB1,194.0 million (USD174.9 million) of cash and cash equivalents, as compared to RMB945.7 million as of June 30, 2009. The increase was mainly due to net cash inflow generated from the Company’s online game operations. Recent Development Open Beta Testing for “Fantasy Zhu Xian” The Company launched open beta testing for “Fantasy Zhu Xian,” the Company’s first 2D turn-based MMORPG on October 22, 2009. Business Outlook Based on the Company’s current operations, total revenues for the fourth quarter of 2009 are expected to be between RMB578 million and RMB602 million, representing a decline of 2% to an increase of 2% on a sequential basis and an increase of 38% to 44% on a year-over-year basis. This reflects the expected growth from the Company’s existing games and the anticipated contribution from the newly launched “Fantasy Zhu Xian.” It also takes into consideration that the Company does not expect to release any movie in 4Q09. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release presents non-GAAP operating profit, non-GAAP net income attributable to the Company’s shareholders and non-GAAP earnings per ADS by excluding share-based compensation charge from operating profit, net income attributable to the Company’s shareholders and earnings per ADS, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and access the Company’s core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation charge has been and will be incurred and is not reflected in the presentation of the non-GAAP financial measures. It should be considered in the overall evaluation of our results. None of the non-GAAP measures is a measure of net income attributable to the Company’s shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP. We compensate for these limitations by providing the relevant disclosure of our share-based compensation charge in our reconciliations to the GAAP financial measures, which should be considered when evaluating our performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure are set forth at the end of this release. Conference Call Perfect World will host a conference call and live webcast at 7:00 am Eastern Standard Time (8:00 pm, Beijing time) on Monday, November 16, 2009. The dial-in details for the live conference call are as follows: — U.S. Toll Free Number: 1-866-519-4004 — International Dial-in Number: +65-6735-7955 — Mainland China Toll Free Number: 10-800-819-0121 — Hong Kong Toll Free Number: 80-093-0346 — U.K. Toll Free Number: 080-8234-6646 Conference ID: PWRD A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World’s website at http://www.pwrd.com . A telephone replay of the call will be available after the conclusion of the conference call through 10:00 am Eastern Standard Time, November 23, 2009. The dial-in details for the replay are as follows: — U.S. Toll Free Number: 1-866-214-5335 — International Dial-in Number: +61-2-8235-5000 Conference ID: 7973 (PWRD) About Perfect World Co., Ltd. ( http://www.pwrd.com ) Perfect World Co., Ltd. (NASDAQ: PWRD – News ) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company’s strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company’s current portfolio of self-developed online games includes massively multiplayer online role playing games (”MMORPGs”): “Perfect World,” “Legend of Martial Arts,” “Perfect World II,” “Zhu Xian,” “Chi Bi,” “Pocketpet Journey West,” “Battle of the Immortals” and “Fantasy Zhu Xian;” and an online casual game: “Hot Dance Party.” While a substantial portion of the revenues are generated in China, the Company’s games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time. Safe Harbor Statements This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the management’s quotations and “Business Outlook” contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to develop and operate new games that are commercially successful, the growth of the online game market and the continuing market acceptance of our games and in-game items in China and elsewhere, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, our ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Further information regarding these and other risks is included in Perfect World’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. All information provided in this press release and in the attachments is as of November 16, 2009, and Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. For further information, please contact: Perfect World Co., Ltd. Vivien Wang Investor Relations Officer Tel: +86-10-5885-1813 Fax: +86-10-5885-6899 Email: ir@pwrd.com http://www.pwrd.com Christensen Investor Relations Kathy Li Tel: +1-480-614-3036 Fax: +1-480-614-3033 Email: kli@christensenir.com Roger Hu Tel: +852-2117-0861 Fax: +852-2117-0869 Email: rhu@christensenir.com Perfect World Co., Ltd. Consolidated Balance Sheets Audited Unaudited Unaudited December 31, September 30, September 30, 2008 2009 2009 RMB RMB USD Assets Current assets Cash and cash equivalents 1,333,075,731 1,193,983,729 174,911,917 Restricted cash 150,361,200 5,020,173 735,427 Short-term investments 50,000,000 70,000,000 10,254,607 Accounts receivable, net 38,822,355 138,772,648 20,329,414 Due from related parties — 3,780,000 553,749 Prepayment and other assets 36,269,524 64,153,940 9,398,192 Deferred tax assets 1,734,207 1,598,053 234,106 Total current assets 1,610,263,017 1,477,308,543 216,417,412 Non current assets Equity investments 22,559,975 31,750,999 4,651,345 Property, equipment, and software, net 169,399,817 220,681,257 32,328,566 Construction in progress 714,083,386 756,833,799 110,871,905 Intangible assets, net 26,188,873 57,166,771 8,374,611 Goodwill — 116,256,000 17,030,852 Prepayments and other assets 18,702,700 37,106,247 5,435,857 Deferred tax assets 1,090,526 774,134 113,406 Total assets 2,562,288,294 2,697,877,750 395,223,954 Liabilities and Shareholders’ Equity Current liabilities Accounts payable 13,629,262 83,550,432 12,239,670 Advances from customers 78,388,312 115,086,018 16,859,456 Salary and welfare payable 61,907,164 77,983,829 11,424,193 Taxes payable 20,771,786 26,695,601 3,910,756 Accrued expenses and other liabilities 24,813,169 41,198,349 6,035,327 Share repurchase liability 386,648,554 — – Due to related party — 6,056,654 887,266 Deferred revenues 223,352,994 279,611,618 40,961,533 Deferred tax liabilities 26,000,000 19,747,245 2,892,861 Deferred government grants 620,000 1,450,000 212,417 Total current liabilities 836,131,241 651,379,746 95,423,479 Deferred revenues 32,554,670 26,199,864 3,838,133 Other long-term payable 28,000,000 — – Total liabilities 896,685,911 677,579,610 99,261,612 Shareholders’ Equity Ordinary shares (US$0.0001 par value, 10,000,000,000 shares authorized, 72,385,480 Class A ordinary shares issued and outstanding, 210,350,565 Class B ordinary shares issued and 210,147,840 Class B ordinary shares outstanding as of December 31, 2008; 10,000,000,000 shares authorized, 49,171,190 Class A ordinary shares issued and outstanding, 199,615,320 Class B ordinary shares issued and outstanding as of September 30, 2009) 223,481 198,273 29,046 Additional paid-in capital 1,177,967,483 360,088,043 52,750,878 Treasury stock (391,224,203) — – Statutory reserves 94,945,533 94,945,533 13,908,988 Accumulated other comprehensive loss (65,577,655) (65,604,264) (9,610,657) Retained earnings 849,267,744 1,615,619,731 236,679,226 Total Perfect World Shareholders’ Equity 1,665,602,383 2,005,247,316 293,757,481 Non-controlling interests — 15,050,824 2,204,861 Total Shareholders’ Equity 1,665,602,383 2,020,298,140 295,962,342 Total Liabilities and Shareholders’ Equity 2,562,288,294 2,697,877,750 395,223,954 Perfect World Co., Ltd. Unaudited Consolidated Statements of Operations Three months ended September 30, June 30, September 30, September 30, 2008 2009 2009 2009 RMB RMB RMB USD Revenues Online game operation revenues 324,484,312 475,110,023 485,875,480 71,178,032 Overseas licensing revenues 57,317,936 46,216,819 58,788,775 8,612,226 Film and television revenues — – 45,329,984 6,640,588 Total revenues 381,802,248 521,326,842 589,994,239 86,430,846 Cost of revenues Online game related cost (47,256,941) (66,788,320) (68,030,548) (9,966,094) Film and television cost — – (26,982,463) (3,952,779) Total cost of revenues (47,256,941) (66,788,320) (95,013,011) (13,918,873) Gross profit 334,545,307 454,538,522 494,981,228 72,511,973 Operating expenses Research and development expenses (47,033,562) (64,980,240) (71,504,518) (10,475,011) Sales and marketing expenses (61,371,931) (72,737,032) (87,999,196) (12,891,388) General and administrative expenses (26,135,551) (37,153,341) (37,812,217) (5,539,278) Total operating expenses (134,541,044) (174,870,613)(197,315,931) (28,905,677) Operating profit 200,004,263 279,667,909 297,665,297 43,606,296 Other income / (expenses) Investment loss (414,026) (1,072,144) (1,111,787) (162,871) Interest income 7,724,046 3,622,913 3,338,023 489,002 Others, net 259,476 13,436 174,544 25,570 Total other income, net 7,569,496 2,564,205 2,400,780 351,701 Profit before tax 207,573,759 282,232,114 300,066,077 43,957,997 Income tax expense (8,770,012) (19,752,495) (11,052,958) (1,619,196) Net income 198,803,747 262,479,619 289,013,119 42,338,801 Less: Net (loss)/ income attributable to non-controlling interests — (106,205) 692,008 101,375 Net income attributable to the Company’s shareholders 198,803,747 262,585,824 288,321,111 42,237,426 Net earnings per share, basic 0.71 1.04 1.17 0.17 Net earnings per share, diluted 0.67 0.99 1.10 0.16 Net earnings per ADS, basic 3.53 5.21 5.83 0.85 Net earnings per ADS, diluted 3.34 4.94 5.50 0.81 Shares used in calculating basic net earnings per share 281,733,114 251,956,208 247,418,982 247,418,982 Shares used in calculating diluted net earnings per share 297,574,386 265,820,234 262,334,324 262,334,324 Total share-based compensation cost included in: Cost of revenues (854,899) (1,342,444) (1,412,278) (206,891) Research and development expenses (5,885,419) (9,548,455) (8,841,744) (1,295,266) Sales and marketing expenses (1,315,404) (2,007,253) (2,085,910) (305,574) General and administrative expenses (5,304,841) (7,391,936) (7,886,096) (1,155,269) Perfect World Co., Ltd. Unaudited Consolidated Statements of Cash Flows Three months ended September 30, June 30, September 30, September 30, 2008 2009 2009 2009 RMB RMB RMB USD Cash flows from operating activities: Net income 198,803,747 262,479,619 289,013,119 42,338,801 Adjustments for: Share-based Compensation cost 13,360,563 20,290,088 20,226,028 2,963,000 Depreciation and amortization expense 5,989,719 11,075,334 12,165,961 1,782,245 Exchange loss 212,346 341,895 253,453 37,129 Investment loss 414,026 1,072,144 1,111,787 162,871 Loss / (gain) from disposal of property, equipment, and software — (16,603) 506,175 74,152 Changes in assets and liabilities: Accounts receivable (15,080,639) (9,353,651) (72,045,828)(10,554,309) Current Prepayments and other assets 2,560,308 (14,924,272) (4,041,415) (592,045) Deferred tax assets (107,018) 299,833 188,516 27,617 Film and television cost — (2,744,672) 18,334,598 2,685,916 Due from/to related parties — – 2,129,054 311,894 Non-current prepayments and other assets 481,283 (2,682,710) 4,514,147 661,297 Accounts payable (9,795,333) 15,946,954 11,435,763 1,675,275 Advances from customers 19,223,380 (687,123) 38,118,600 5,584,161 Salary and welfare payable 18,471,056 15,996,722 24,638,316 3,609,375 Taxes payable 1,172,897 (22,815,018) (7,071,562) (1,035,944) Accrued expenses and other liabilities 3,573,703 29,482,061 (26,626,737) (3,900,668) Deferred revenues 26,051,626 9,544,028 14,114,214 2,067,653 Deferred tax liabilities — 11,898,206 (11,869) (1,739) Deferred government grants 150,000 1,450,000 (620,000) (90,827) Net cash provided by operating activities 265,481,664 326,652,835 326,332,320 47,805,854 Cash flows from investing activities: Purchase of property, equipment, and software (62,749,284) (41,752,492) (59,754,724) (8,753,732) Purchase of intangible assets — (3,515,920) — – Decrease of restricted cash — 9,990,524 — – Purchase of short-term investments — – (30,000,000) (4,394,832) Cash paid for equity investments (3,000,000) (10,000,000) — – Cash paid for business acquisitions, net of cash acquired — (17,645,707) — – (Increase) / decrease in loan receivable — (3,000,000) 3,000,000 439,483 Proceeds from short-term investments — 50,000,000 — – Cash received from related party loan — 3,200,000 — – Net cash used in investing activities (65,749,284) (12,723,595) (86,754,724)(12,709,081) Cash flows from financing activities: Proceeds from exercises of share options 264,090 3,253,688 8,722,777 1,277,838 Repurchase of Company shares — (357,872,874) — – Net cash provided by / (used in) financing activities 264,090 (354,619,186) 8,722,777 1,277,838 Effect of exchange rate changes on cash and cash equivalents (1,588,665) (28,237) (40,868) (5,987) Net increase / (decrease) in cash 198,407,805 (40,718,183) 248,259,505 36,368,624 Cash and cash equivalents, beginning of the period 1,131,400,752 986,442,407 945,724,224 138,543,293 Cash and cash equivalents, end of the period 1,329,808,557 945,724,224 1,193,983,729 174,911,917 Supplemental disclosures of cash flow information: Cash paid during the period for income taxes (4,365,085) (31,554,325) (3,984,669) (583,732) Perfect World Co., Ltd. Reconciliation of unaudited GAAP and Non-GAAP Results Three months ended September 30, June 30, September 30, September 30, 2008 2009 2009 2009 RMB RMB RMB USD GAAP operating profit 200,004,263 279,667,909 297,665,297 43,606,296 Share based compensation charge 13,360,563 20,290,088 20,226,028 2,963,000 Non-GAAP operating profit 213,364,826 299,957,997 317,891,325 46,569,296 GAAP net income attributable to the Company’s shareholders 198,803,747 262,585,824 288,321,111 42,237,426 Share based compensation charge 13,360,563 20,290,088 20,226,028 2,963,000 Non-GAAP net income attributable to the Company’s shareholders 212,164,310 282,875,912 308,547,139 45,200,426 GAAP net earnings per ADS – Basic 3.53 5.21 5.83 0.85 – Diluted 3.34 4.94 5.50 0.81 Non-GAAP net earnings per ADS – Basic 3.77 5.61 6.24 0.91 – Diluted 3.56 5.32 5.88 0.86 ADSs used in calculating net earnings per ADS – Basic 56,346,623 50,391,242 49,483,796 49,483,796 – Diluted 59,514,877 53,164,047 52,466,865 52,466,865 Read more: Perfect World Announces Third Quarter 2009 Unaudited Financial Results (PR Newswire)

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Perfect World Announces Third Quarter 2009 Unaudited Financial Results (PR Newswire)

We here at TPC aren’t the only ones concerned about the parallels with Japan.  There appears to be an increasingly loud drumbeat over the shocking similarities between Japan in the 90’s and the U.S.   This morning, Hong Kong’s leader Donald Tsang had some rather alarming comments: “I’m scared and leaders should look out.  America is doing exactly what Japan did last time.” As opposed to dealing with our issues here at home, Tsang believes the Fed has created a dollar carry trade that is simply reflating bubbles all over the world: “We have a U.S. dollar carry trade at the moment.  Where is the money going — it’s where the problem’s going to be: Asia.  You can see asset prices going up, not only in Korea, in Taiwan, in Singapore and in Hong Kong, going up to levels that are incompatible or inconsistent with the economic fundamentals.” As we’ve previously mentioned, the parallels between the current deleveraging cycle here in the U.S. and Japan’s deleveraging cycle of the 90’s, are numerous.   Credit Writedowns recently posted this excellent video from Fox Business which succinctly touches on many of these similarities.   I highly recommend readers take a look (attached below). One of the most interesting takeaways from the video is the current tax situation in the U.S.   In Japan, the credit crisis was prolonged mainly because Japan attempted to bail their way out of their sinking ship.  Rather than deal with the problems directly (IT’S THE DEBT STUPID!) they attempted to circumvent the problem by creating an environment where the government spent hordes of money to prop up failing institutions.  Here in the U.S., we have not only bailed out failing institutions to the tune of several trillion dollars, but we have also continued to promote fiscal irresponsibility via government programs such as cash for clunkers and the first time homebuyers tax credit.  Making matters worse, we have a Federal Reserve and Treasury which have agreed to double team the ailing dollar as they print money to no end and effectively punish the prudent while rewarding the speculators (the same bastards that helped create this mess to begin with).  Our tax issues have not yet reared their ugly head, but trust me, they are coming. What we haven’t quite dealt with is how the government is going to overcome their massive revenue shortfalls and ever expanding debt.  As Jim Jubak recently described , they are going to come back to the consumer for another blow to the knees.  No, the bailouts weren’t enough.  Destroying the dollars in your pockets isn’t enough.  Because of their fiscal irresponsibility they are going to raise your taxes in 2010.  And don’t be fooled.  The income tax may not spike, but they will get you in every other way they can.  Sales tax, real estate taxes, etc etc.   You are paying for their mistakes.  Whether you were prudent or not. Richard Koo is convinced that we can spend our way out of this mess .  I am not so sure.  There’s only one way to deal with a debt problem.  Attack it head on and force those that made bad decisions to restructure and get their house in order or pay down that debt.  Injecting a bloated system with more debt does nothing but kick the can down the road (no matter what the stock market does in the near-term).   The video is attached: Read more from the original source: YOU SHOULD BE VERY CONCERNED ABOUT THE PARALLELS WITH JAPAN

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We here at TPC aren’t the only ones concerned about the parallels with Japan.  There appears to be an increasingly loud drumbeat over the shocking similarities between Japan in the 90’s and the U.S.   This morning, Hong Kong’s leader Donald Tsang had some rather alarming comments: “I’m scared and leaders should look out.  America is doing exactly what Japan did last time.” As opposed to dealing with our issues here at home, Tsang believes the Fed has created a dollar carry trade that is simply reflating bubbles all over the world: “We have a U.S. dollar carry trade at the moment.  Where is the money going — it’s where the problem’s going to be: Asia.  You can see asset prices going up, not only in Korea, in Taiwan, in Singapore and in Hong Kong, going up to levels that are incompatible or inconsistent with the economic fundamentals.” As we’ve previously mentioned, the parallels between the current deleveraging cycle here in the U.S. and Japan’s deleveraging cycle of the 90’s, are numerous.   Credit Writedowns recently posted this excellent video from Fox Business which succinctly touches on many of these similarities.   I highly recommend readers take a look (attached below). One of the most interesting takeaways from the video is the current tax situation in the U.S.   In Japan, the credit crisis was prolonged mainly because Japan attempted to bail their way out of their sinking ship.  Rather than deal with the problems directly (IT’S THE DEBT STUPID!) they attempted to circumvent the problem by creating an environment where the government spent hordes of money to prop up failing institutions.  Here in the U.S., we have not only bailed out failing institutions to the tune of several trillion dollars, but we have also continued to promote fiscal irresponsibility via government programs such as cash for clunkers and the first time homebuyers tax credit.  Making matters worse, we have a Federal Reserve and Treasury which have agreed to double team the ailing dollar as they print money to no end and effectively punish the prudent while rewarding the speculators (the same bastards that helped create this mess to begin with).  Our tax issues have not yet reared their ugly head, but trust me, they are coming. What we haven’t quite dealt with is how the government is going to overcome their massive revenue shortfalls and ever expanding debt.  As Jim Jubak recently described , they are going to come back to the consumer for another blow to the knees.  No, the bailouts weren’t enough.  Destroying the dollars in your pockets isn’t enough.  Because of their fiscal irresponsibility they are going to raise your taxes in 2010.  And don’t be fooled.  The income tax may not spike, but they will get you in every other way they can.  Sales tax, real estate taxes, etc etc.   You are paying for their mistakes.  Whether you were prudent or not. Richard Koo is convinced that we can spend our way out of this mess .  I am not so sure.  There’s only one way to deal with a debt problem.  Attack it head on and force those that made bad decisions to restructure and get their house in order or pay down that debt.  Injecting a bloated system with more debt does nothing but kick the can down the road (no matter what the stock market does in the near-term).   The video is attached: Read more from the original source: YOU SHOULD BE VERY CONCERNED ABOUT THE PARALLELS WITH JAPAN

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Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (zaner.com) a Chicago-based futures brokerage firm. Comments for Friday, November 13, 2009 Looking Ahead to Today by Reflecting Back at Thursday’s Price Action METALS: Lower closes yesterday for gold, silver, platinum and copper. Copper settled lower still in three weeks of consolidation. The overall trend is still higher while we wait to see which way copper breaks out. Gold keeps leading way making a new CONTRACT HIGH again but closing lower this time in reversal type action just missing a key reversal. Silver also closed lower along for the ride the latter still in resistance area feeling heavy overall to me. Platinum made a new contract high and then also closing lower in reversal type action but in a strong up-trend like gold. INDICES: Lower closes for the S&P, nasdaq along with the cash and DOW futures. All of the indices are still in up-trends with the nasdaq making a new contract high before settling lower in reversal type action. See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at markethead.com. The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors. For more trading strategies, go to TradingMarkets.com/reports. See original here: What’s Up, What’s Down: Metals Show Overall Bullish Trend (TradingMarkets.com)

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DALIAN, China, Nov. 13 /PRNewswire-Asia-FirstCall/ — – Q3 2009 net sales increased 41.0% to $63.3 million vs. Q3 2008; net income increased 73.3% to $17.1 million; EPS of $0.68 vs. $0.39 – First nine months of 2009 net contract sales increased 41.7% to $139.6 million YOY; net income increased 94.5% to $39.4 million; EPS was $1.57 vs. $0.81 – Cash flow from operations was $9.5 million for the first nine months of 2009 – Backlog on September 30, 2009 was approximately $52.7 Million – Management to host earnings conference call November 13th at 8:30 a.m. ET RINO International Corp. (OTC Bulletin Board: RINO – News ), which through its subsidiaries and controlled affiliates in the People’s Republic of China (collectively, the “Company” or “RINO”), designs, manufactures, installs and services proprietary and patented wastewater treatment, desulphurization equipment, and high temperature anti-oxidation systems for iron and steel manufacturers in the People’s Republic of China (”PRC”), today announced the Company’s financial results for the third quarter of 2009. SUMMARY FINANCIALS First Quarter 2009 Results Q3 2009* Q3 2008** CHANGE Sales $63.3 million $44.9 million +41.0% Gross Profit $26.1 million $20.6 million +27.1% Adjusted Net Income $19.7 million $15.7 million +25.5% GAAP Net Income $17.1 million $9.9 million +73.3% Adjusted EPS (Diluted) $0.78 $0.62 +25.8% GAAP EPS (Diluted) $0.68 $0.39 +74.4% *Q3 2009 included a $2.6 million non-cash charge related to the changes in the value of warrants. **Q3 2008 included $5.8 million in non-cash equity compensation charges not present in 2009. Adjusted Net Income and EPS are non-GAAP and utilized to illustrate operating numbers. First Nine Months of 2009 Results 2009 2008* CHANGE Sales $139.6 million $98.5 million +41.7% Gross Profit $56.3 million $43.6 million +29.1% Adjusted Net Income $43.8 million $31.9 million +37.2% GAAP Net Income $39.4 million $20.3 million +94.5% Adjusted EPS (Diluted) $1.74 $1.27 +37.0% GAAP EPS (Diluted) $1.57 $0.81 +93.8% * The first nine months of 2009 included a $4.4 million non-cash charge related to changes in values of warrants. **The first nine months of 2008 included $11.7 million in non-cash equity compensation expenses not present in 2009. Adjusted Net Income and EPS are non-GAAP and utilized to show operating numbers. 2009 Third Quarter Financial Results Net revenues for the third quarter ended September 30, 2009 increased 41.0% to $63.3 million as compared to $44.9 million for the third quarter in 2008. Revenue growth was driven by demand across its product lines, including a significant increase in both wastewater treatment and anti-oxidation systems and coatings sales. Specifically, the Company recorded $33.3 million in desulphurization revenues, a decrease of 11.8% from the third quarter of 2008, $15.1 million in wastewater treatment system sales, an increase of 241.9% from the third quarter of 2008, and $13.8 million in anti-oxidation equipment and coatings, an over 8-fold increase compared to the same year ago period. The Company recorded $1.1 million in machining service revenues. Cost of sales for the third quarter of 2009 was $37.2 million as compared to $24.3 million in the same period of 2008, an increase of 52.9%. Gross profit was $26.1 million in the third quarter of 2009, a 27.1% increase from $20.6 million for the same period in 2008, representing gross margins of approximately 41.3% and 45.8%, respectively. The 4.5% variance in gross margins was mainly attributable to outsourcing, which has enabled the Company to continue growing its revenue base without significantly expanding its facility. Total operating expenses for the third quarter of 2009 were $6.6 million, a 38.7% decrease from $10.7 million reported during the same period in 2008. The third quarter of 2008 included a non-cash stock compensation expense of $5.8 million related to a “Make Good Provision” relating to a private placement of the Company’s Common Stock in 2007. Eliminating this expense, operating expenses would have increased by 35.1%, which was primarily the result of $2.4 million in commission expenses for new contracts. Operating income for the third quarter of 2009 and 2008 was $19.6 million and $9.9 million, respectively, representing operating margins of 30.9% for the third quarter of 2009 compared to the third quarter 2008 operating margin of 22.0%, or 35.0% when adjusted to eliminate the non-cash expense. GAAP net income for the third quarter was $17.1 million, representing an increase of 73.3% as compared to $9.9 million reported in the same period in the prior year. Earnings per diluted share were $0.68 for the third quarter in 2009 as compared to $0.39 for the third quarter in 2008, which was based on 25.2 million shares outstanding. The Company did not incur any taxes during either period. During the third quarter of 2009 the Company incurred a non-cash charge of $2.6 million for the change in the value of warrants. Adjusting for non-cash charges in each respective period, net income for the third quarter of 2009 and 2008 was $19.7 million and $15.7 million, with $0.78 and $0.62 in earnings per diluted share. “The third quarter continued our momentum as we executed on our growth plan while making further improvements in all of our key financial metrics,” stated Mr. Zou Dejun, President and CEO of RINO International. “This was the first quarter we saw meaningful uptake by customers for our anti-oxidation systems. During the quarter we performed work on a total of 12 FGD desulphurization systems, 5 wastewater treatment systems and installed 7 anti-oxidation systems for a total of 23 customers. We are excited about our DXT desulphurization system which we believe will enable us to cement our position as the leader in this particular FGD application, while providing a strong conduit for growth during the next few years as adoption accelerates. In addition, our backlog as of September 30, 2009 was approximately $52.7 million, which represents 6 desulphurization, 4 wastewater treatment and 6 anti-oxidation projects. We believe our collective growth initiatives will continue to provide incremental and robust top-line and bottom line growth and we currently expect to surpass our previous revenue estimate of $176.5 million for 2009″. 2009 Nine Month Financial Results For the first nine months of 2009 revenues increased 41.7% to $139.6 million from $98.5 million in the year ago period. FGD sales increased 18.5% to $89.1 million and represented 63.8% of total sales. Wastewater treatment equipment increased 150.1% to $31.6 million and represented 22.6% of sales. Anti-oxidation equipment and coatings increased 308.9% to $17.4 million, representing 12.5% of total sales while machining services were $1.6 million. Cost of sales increased 51.7% to $83.4 million yielding gross profit of $56.3 million, an increase of 29.1% from $43.6 million reported in 2008. Gross margins were 40.3% compared to 44.2% during the first nine months of 2009 and 2008, respectively. Operating expenses decreased 39.1% to $14.1 million during the first nine months of 2009 from $23.1 million in 2008, which included an $11.7 million non-cash equity compensation charge. Income from operations increased 106.2% to $42.2 million from $20.5 million with operating margins of 30.2% compared to 20.8%, or 32.6% excluding the charge. GAAP Net income for the first nine months of 2009 increased 94.5% to $39.4 million from $20.3 million with corresponding diluted earnings per share of $1.57 compared to $0.81 in 2008 based on 25.1 million and 25.2 million diluted shares in each respective period. The Company incurred no income taxes in either period. During the first nine months of 2009 the Company incurred a non-cash charge of $4.4 million for the change in the value of warrants, with no associated charge in 2008. Adjusting for non-cash charges during each respective period, net income was $43.8 million and $31.9 million, yielding $1.74 and $1.27 in earnings per diluted share. “Our business continues to be driven by a number of factors centered around government mandates stipulating that iron and steel manufacturers be equipped with desulphurization systems. The Chinese Ministry of Industry and Information Technology showed its commitment to support this initiative by publishing a formal plan on July 31, 2009 which prioritizes steel FGD installations, sets specific desulphurization guidelines and targets, while offering priority funding by both the central and local governments and further support for domestic based technology. This is the single most important regulatory event since our Company was formed and clears a path toward doubling the number of sinters to be equipped with FGD systems annually through 2011. We expect that growth from our FGD system installations, in addition to the large Sludge Treatment System for the Dalian Government, will drive further growth during 2010.” Balance Sheet and Cash Flow Discussion Cash and cash equivalents as of September 30, 2009 were $29.0 million, representing an increase of 47.0% as compared to $19.7 million as of December 31, 2008. Working capital on September 30, 2009 was $115.4 million for the third quarter of 2009, an increase of 62.8% from $70.9 million on December 31, 2008. Accounts receivable stood at $44.6 million, a 13.5% decrease from $51.5 million reported as of December 31, 2008. The Company reported $8.8 million in short term loans payable, maintained a current ratio of 4.7 to 1 and saw stockholder’s equity increase 65.2% to $110.5 million as of September 30, 2009 as compared to $66.9 million as of December 31, 2008. For the nine months ended September 30, 2009, the Company generated $9.5 million in cash flow from operations, as compared to $10.0 million cash used in operation for the first nine months in 2008. The variance between cash flow and net income was mainly related to $34.7 million in advances for inventory purchases as the company prepares for several large project installations and $13.2 million in costs and estimated earnings surpassing billings for projects still underway. Conference Call The Company will host a conference call on November 13, 2009, at 8:30 a.m. ET. To attend the call, please use the dial information below. When prompted, ask for the “RINO International Call” and/or be prepared to provide the conference ID. Date: November 13, 2009 Time: 8:30am ET Conference Line Dial-In (U.S.): +1-877-941-8416 International Dial-In: +1-480-629-9808 Conference ID: 4182665 Webcast link: http://viavid.net/dce.aspx?sid=00006CFF Please dial in at least 10 minutes before the call to ensure timely participation. A playback will be available through November 20, 2009. To listen, please call +1-800-406-7325 within the United States or +1-303-590-3030 when calling internationally. Utilize the pass code 4182665 for the replay. About RINO International Corporation RINO International Corporation, through its direct and indirect subsidiaries, including Innomind Group Limited and Dalian Innomind Environment Engineering Co., Ltd., its contractually-controlled affiliate, Dalian RINO Environmental Engineering Science and Technology Co., Ltd. (”Dalian Rino”) and Dalian Rino’s wholly-owned subsidiaries, Dalian Rino Environmental Engineering Project Design Co., Ltd. and Dalian Rino Environmental Construction & Installation Project Co., Ltd., is a leading provider of environmental protection equipment for the iron and steel industry in China. Specifically, RINO designs, manufactures, installs and services proprietary and patented wastewater treatment, flue gas desulphurization equipment, and high temperature anti-oxidation systems, which are all designed to reduce either industrial pollution and/or improve energy utilization. RINO’s manufacturing facility maintains the ISO 9001 Quality Management System and ISO 14001 Environment Management System certifications, in addition to receiving numerous government and industry awards. Additional information about the Company is available at the Company’s website: http://www.rinogroup.com . Cautionary Statement Regarding Forward-Looking Information Certain statement in this press release may contain forward-looking information about the Company. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology, and statements which may include discussions of strategy, and statements about industry trends future performance, operations and products of each of the entities referred to above. Actual performance results may vary significantly from expectations and projections as a result of various factors, including, without limitation, the risks set forth “Risk Factors” contained in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. In addition, this press release contains certain Non-GAAP financial results. Management believes, given the nature of certain non-cash charges, the adjusted net income and EPS enables investors to understand the correct operating metrics of its business. Management does not intend, nor suggest that investors utilize, non-GAAP financial results to make investment decisions. For more information, please contact: For the Company: Jenny Liu Tel: +86-411-8766-2700 Email: jennyliu@rinogroup.com Investors: Matt Hayden HC International, Inc. Tel: +1-561-245-5155 Email: matt.hayden@hcinternational.net FINANCIAL STATEMENTS FOLLOW RINO INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008 ASSETS September 30, December 31, 2009 2008 (Unaudited) CURRENT ASSETS Cash and cash equivalents $29,020,242 $19,741,982 Restricted cash — 1,030,317 Notes receivable 717,363 2,157,957 Accounts receivable, trade, net of allowance for doubtful accounts of $342,749 and $0 as of September 30, 2009 and December 31, 2008, respectively 44,559,387 51,503,245 Costs and estimated earnings in excess of billings on uncompleted contracts 13,202,094 — Inventories 1,793,396 1,203,448 Advances for inventory purchases 56,754,792 21,981,669 Other current assets and prepaid expenses 678,271 517,847 Total current assets 146,725,545 98,136,465 PROPERTY, PLANT AND EQUIPMENT, NET 12,516,348 13,197,119 OTHER ASSETS Prepaid expenses (non-current) 64,576 73,350 Advances for equipment and construction material purchases 5,550,966 5,550,966 Prepayment for land use right 799,965 458,292 Intangible assets, net 1,161,499 1,211,608 Total other assets 7,577,006 7,294,216 Total assets $166,818,899 $118,627,800 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $5,471,857 $5,816,714 Short-term loan 8,802,000 8,802,000 Billings in excess of costs and estimated earnings on uncompleted contracts 1,484,554 — Customer deposits 3,712,082 3,609,407 Liquidated damages payable 20,147 2,598,289 Other payables and accrued liabilities 427,043 746,267 Notes payable 73,790 — Due to a stockholder 308,182 596,023 Tax Payable 11,013,805 5,062,901 Total current liabilities 31,313,460 27,231,601 Warrant Liabilities 512,498 — REDEEMABLE COMMON STOCK ($0.0001 par value, 5,464,357 shares issued with conditions for redemption outside the control of the company) 24,480,319 24,480,319 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Preferred Stock ($0.0001 par value, 50,000,000 shares authorized, none issued and outstanding) — – Common Stock ($0.0001 par value, 10,000,000,000 shares authorized, 25,330,769 shares and 25,040,000 shares issued and outstanding as of September 30, 2009 and December 31, 2008) 2,533 2,504 Additional paid-in capital 30,492,770 25,924,007 Retained earnings 63,271,930 28,570,948 Statutory reserves 10,491,526 6,196,478 Accumulated other comprehensive income 6,253,863 6,221,943 Total shareholders’ equity 110,512,622 66,915,880 Total liabilities and shareholders’ equity $166,818,899 $118,627,800 RINO INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 REVENUES: Contracts $62,194,946 $43,575,844 $138,030,264 $92,060,717 Services 1,107,257 1,305,292 1,602,308 6,482,958 63,302,203 44,881,136 139,632,572 98,543,675 COST OF SALES Contracts 36,452,495 23,298,573 81,701,500 51,144,465 Services 531,440 848,959 1,124,270 3,341,128 Depreciation 185,201 165,889 555,528 486,145 37,169,136 24,313,421 83,381,298 54,971,738 GROSS PROFIT 26,133,067 20,567,715 56,251,274 43,571,937 OPERATING EXPENSES Selling, general and administrative expenses 6,615,171 4,849,778 14,111,637 11,182,374 Research and development (61,564) — (31,749) 267,817 Stock compensation expense-shares placed in escrow — 5,832,960 — 11,665,920 TOTAL OPERATING EXPENSES 6,553,607 10,682,738 14,079,888 23,116,111 INCOME FROM OPERATIONS 19,579,460 9,884,977 42,171,386 20,455,826 OTHER INCOME (EXPENSE), NET Other (expense) income, net (3,144) 44,947 (8,923) 50,651 Change in fair value of warrants (2,592,201) — (4,402,335) — Interest income (expense), net 101,785 (72,810) (90,148) (241,650) Gain on liquidated damage settlement — – 1,746,120 — TOTAL OTHER EXPENSES, NET (2,493,560) (27,863) (2,755,286) (190,999) INCOME BEFORE PROVISION FOR INCOME TAXES 17,085,900 9,857,114 39,416,100 20,264,827 PROVISION FOR INCOME TAXES — – — – NET INCOME 17,085,900 9,857,114 39,416,100 20,264,827 OTHER COMPREHENSIVE INCOME: Foreign currency translation adjustment 169,559 335,796 31,920 4,051,389 COMPREHENSIVE INCOME $17,255,459 $10,192,910 $39,448,020 $24,316,216 WEIGHTED AVERAGE NUMBER OF SHARES: Basic 25,204,199 25,000,000 25,104,972 25,000,000 Diluted 25,220,159 25,153,941 25,112,087 25,152,127 EARNINGS PER SHARE: Basic $0.68 $0.39 $1.57 $0.81 Diluted $0.68 $0.39 $1.57 $0.81 RINO INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (UNAUDITED) 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES Net income $39,416,100 $20,264,827 Adjusted to reconcile net income to cash used in operating activities: Depreciation 717,490 603,965 Amortization 50,072 48,972 Allowance for bad debt 342,495 — Imputed interest 13,558 21,974 Amortization of long term prepaid expense 10,994 25,090 Stock compensation expense 28,324 11,665,920 Gain (expense) on liquidated damage settlement (1,746,120) 1,116,708 Change in fair value of warrants 4,402,335 — Changes in operating assets and liabilities Notes receivable 1,439,514 (4,804,195) Accounts receivable 6,596,159 (29,979,156) Costs and estimated earnings in excess of billings on uncompleted contracts (13,192,194) 2,413,818 Inventories (589,505) (63,928) Advances for inventory purchase (34,747,048) (10,826,678) Other current assets and prepaid expenses (160,940) 39,658 Accounts payable (344,598) (851,537) Billings in excess of costs and estimated earnings on uncompleted contracts 1,483,440 110,250 Customer deposits 102,598 3,816,435 Other payables and accrued liabilities (318,983) 1,169,036 Tax payable 5,946,440 (4,739,308) Net cash provided by (used in) operating activities 9,450,131 (9,968,149) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (37,232) (902,594) Advances for construction material and equipment purchases — (3,231,748) Prepayment for land use right (341,417) — Net cash used in investing activities (378,649) (4,134,342) CASH FLOWS FROM FINANCING ACTIVITIES Payment on due to shareholder (1,058,480) (1,785,305) Proceeds from shareholder advances 770,889 2,334,594 Decrease (increase) of restricted cash 1,030,317 (24,951) Increase in notes payable 73,735 — Proceeds from short-term loan 29,360,000 7,168,500 Bank loan repaid (29,315,000) — Payment to liquidated damage penalty (615,018) — Net cash provided by financing activities 246,443 7,692,838 EFFECT OF EXCHANGE RATE ON CASH (39,665) 385,533 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,278,260 (6,024,120) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 19,741,982 7,390,631 CASH AND CASH EQUIVALENTS AT END OF PERIOD $29,020,242 $1,366,511 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the period for: Interest $632,816 $352,529 Income taxes $229,880 $5,384,128 Shares issuance for liquidated damage penalty settlement $217,004 $– Continue reading here: RINO International Corp. Announces Record Third Quarter 2009 Financial Results (PR Newswire)

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RINO International Corp. Announces Record Third Quarter 2009 Financial Results (PR Newswire)

CHENGDU, China, Nov. 13 /PRNewswire-Asia-FirstCall/ — Tianyin Pharmaceutical Co., Inc., (NYSE Alternext: TPI), a manufacturer and supplier of modernized traditional Chinese medicine (”TCM”) based in Chengdu, China, today announced fiscal results for its first quarter ended September 30, 2009. Revenue for the first quarter of fiscal 2010 was approximately $13.4 million, an increase of 40.2% compared to $9.6 million for the first quarter of fiscal 2009. The increase resulted from higher sales volume of portfolio products, increased market penetration through the Company’s broad distribution channels, which was supported by additional production capacity from the new facility. Revenues from the top three selling products, Ginkgo Mihuan Oral Liquid, Arpu Shuangxin Oral Liquid, and Azithromycin Dispersible Tablets, were collectively $7.1 million and represented approximately 53.1% of total revenues for the quarter. During the fourth quarter of fiscal 2009 sales of the top three selling products were approximately $7.8 million, or 58.6% of total revenues. Cost of goods sold for the three months ended September 30, 2009 was approximately $6.3 million or 47.4% of revenue as compared to $4.7 million or 49.0% of revenue for the three months ended September 30, 2008, yielding a gross profit of $7.1 million and gross margins of 52.6%, compared to $4.9 million in gross profit and gross margins of 51.0% during the first quarter of fiscal 2009. Gross margins improved as a result of the product mix, in addition to enhanced cost controls and manufacturing efficiencies implemented during the production process. Operating expenses for the three months ended September 30, 2009 were approximately $4.3 million, up 58.7% compared to the same period in 2008. Selling, general and administration expenses for the period increased to approximately $4.1 million from $2.6 million in the first quarter of fiscal 2009 as a result of the implementation of Tianyin’s sales and marketing strategy, including increased sales payrolls and direct marketing expenses, in addition to a consulting expense amounted to $0.5 million paid to external service providers. Research and development expenses for the three months ended September 30, 2009 increased 134.1% to $0.2 million from the first quarter of fiscal 2009. Operating income for the first quarter of fiscal 2010 totaled approximately $2.7 million, a 26.9% increase from the $2.2 million reported for the first quarter of fiscal 2009. Operating margins were 20.5% and 22.6% for the first quarter of fiscal 2010 and fiscal 2009, respectively as the Company continued to spend aggressively on sales and marketing initiatives to generate incremental product sales. Net income was approximately $2.2 million in the first quarter of fiscal 2010, a 22.3% increase, compared to $1.8 million for the first quarter of fiscal 2009. The company had an effective tax rate of 18.9% and 16.7%, for the first quarter of fiscal 2010 and 2009, respectively. Diluted earnings per share were $0.08 compared to $0.07 for the first quarter of fiscal 2010 and fiscal 2009 respectively, based upon 27.5 million and 24.6 million shares. The divergence in the share account relates to accounting for the company’s preferred shares which are convertible into common, in addition to warrants which were exercised. “We are pleased to report another quarter of strong revenue growth and improved profitability. The results of our marketing strategies to support a high quality product portfolio are driving measured improvements in our revenue base. Additionally, increased production capacity is enabling us to accommodate higher volumes of several leading drugs, including Gingko Mihuan, through our distribution channels,” stated Dr. Guoqing Jiang, Tianyin’s Chief Executive Officer.” Balance Sheet and Cash Flow Cash and cash equivalents and restricted cash totaled $14.4 million on September 30, 2009 compared to $12.4 million on June 30, 2009. The Company had a current ratio of 5.8 to 1 and total stockholders’ equity of 46.2 million, which includes noncontrolling interest of $0.4 million, with total assets of $50.8 million versus total liabilities of $4.6 million on September 30, 2009. For the first three months of fiscal 2010, the Company generated $2.2 million in cash from operations versus $0.5 million for the same period in fiscal 2009. Business Development & Outlook On September 28, 2009, Tianyin appointed Mr. Tao Yang to the position of Chief Operating Officer. Mr. Yang has more than 18 years experience in the sales and marketing industry. He was appointed in November 2008 as Chief Advisor for Sales and Marketing and Special Advisor to Dr. Jiang, the CEO of the Company. Since then, Mr. Yang has helped implement a strategy to boost sales of leading products and further improve the efficiency of Tianyin’s sales and marketing team. On October 29, 2009, Tianyin announced it has formed a joint venture with Sichuan Mingxin Pharmaceutical Co., Ltd (”Mingxin”) named Sichuan Jiangchuan Pharmaceutical Co., Ltd. (”Jiangchuan”). Tianyin owns 77% of Jiangchuan and will utilize this as the foundation for a broader, longer-term strategy to build a significant presence in the rapidly growing Chinese macrolide antibiotics market, while diversifying its revenue base of western pharmaceuticals. On October 29, 2009 management increased fiscal 2010 guidance for the year which ends June 30, 2010 and expects to report revenues of more than $63.6 million and net income of at least $11.3 million, representing 48.3% and 43.0% year-over-year growth respectively. “The Chinese stimulus plan and favorable policies for the health care industry are now starting to manifest themselves throughout the pharmaceutical industry by driving sales of many popular pharmaceutical products and creating the catalyst for long-term secular growth. We are extremely excited about our recently announced Joint Venture, which is named Sichuan Jiangchuan Pharmaceutical Co. Ltd. This will enable us to capitalize on the large and rapidly growing macrolide antibiotics market. Supported by our existing marketing expertise and extensive distribution channels, we are confident that this new initiative will create a meaningful growth driver in fiscal 2011 and beyond, while complementing the organic growth of our current product portfolio with widely used western style medications. With a solid business foundation and favorable policies from the Chinese government, we will continue to execute on our long-term growth plan while creating both near and long-term value for our shareholders,” concluded Dr. Jiang. Conference Call The Company will host a conference call to discuss the 2010 first quarter financial results on Friday, November 13, 2009 at 10:30 a.m. ET. Interested participants should call +1-877-941-2321 within the United States, or US +1-480-629-9714 if calling internationally. The conference ID is 4182573. It is advisable to dial in approximately 5-10 minutes prior to 10:30 a.m. ET. If you are unable to participate in the call at the scheduled time, a playback will be available through November 21, 2009. To listen to the playback, please call +1-800-406-7325 from within the United States, or US +1-303-590-3030 internationally. Please use passcode 4182573 for the replay. About Tianyin Pharmaceuticals Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine (”TCM”) in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma.com . Safe Harbor Statement The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company’s filings with the Securities and Exchange Commission. For more information, please contact: For the Company: Allen Tang, Ph.D., MBA, Assistant to the CEO Tel: +86-158-2122-5642 Email: Allen.y.tang@gmail.com Investors: Mr. Matthew Hayden, HC International Tel: +1-561-245-5155 Email: matt.hayden@hcinternational.net Web: http://www.hcinternational.net Consolidated Balance Sheets (Unaudited) September 30, June 30, 2009 2009 (Unaudited) Assets Current assets: Cash and cash equivalents $14,352,876 $12,352,223 Accounts receivable, net of allowance for doubtful accounts of $172,182 and $171,947 at September 30, 2009 and June 30, 2009, respectively 7,121,470 5,620,519 Inventory 3,686,431 3,808,289 Advance payments 764,307 1,188,115 Loan receivable 293,400 — Other receivables 201,321 601,912 Other current assets 62,560 81,277 Total current assets 26,482,365 23,652,335 Property and equipment, net 10,014,096 9,642,526 Intangibles, net 14,302,974 12,037,483 Total assets $50,799,435 $45,332,344 Liabilities Current liabilities: Accounts payable and accrued expenses $1,577,677 $1,392,639 Short-term bank loans 1,400,985 1,399,075 VAT taxes payable 475,592 458,930 Income taxes payable 510,250 490,514 Other taxes payable 11,473 11,890 Dividends payable 233,683 325,417 Other current liabilities 341,957 307,934 Total current liabilities 4,551,617 4,386,399 Total liabilities 4,551,617 4,386,399 Equity Stockholders’ equity: Common stock, $0.001 par value, 50,000,000 shares authorized, 23,520,057 and 17,908,912 shares issued and outstanding at September 30, 2009 and June 30, 2009, respectively 23,520 17,909 Series A convertible preferred stock, $0.001 par value, 2,655,250 and 7,146,500 shares issued and outstanding at September 30, 2009 and June 30, 2009, respectively 2,655 7,147 Additional paid-in capital 22,740,187 19,694,514 Statutory reserve 2,299,807 2,299,807 Treasury stock (111,587) (111,587) Retained earnings 18,268,426 16,486,775 Accumulated other comprehensive income 2,587,237 2,551,380 Total stockholders’ equity 45,810,245 40,945,945 Noncontrolling interest 437,573 — Total equity 46,247,818 40,945,945 Total liabilities and equity $50,799,435 $45,332,344 Consolidated Statements of Operations and Comprehensive Income (Unaudited) For the Three Months Ended September 30, 2009 2008 Sales $13,405,203 $9,561,940 Cost of sales 6,349,227 4,682,624 Gross profit 7,055,976 4,879,316 Operating expenses: Selling, general and administrative 4,117,766 2,633,361 Research and development 192,490 82,638 Total operating expenses 4,310,256 2,715,999 Income from operations 2,745,720 2,163,317 Other income (expenses): Interest income 10,415 — Interest expense (19,975) (27,720) Other income (expenses) 39,502) 4,245 Total other expenses (49,062) (13,475) Income before provision for income tax 2,696,658 2,149,842 Provision for income tax 509,936 358,849 Net income before noncontrolling interest 2,186,722 1,790,993 Noncontrolling interest (2,526) — Net income 2,189,248 1,790,993 Other comprehensive income Foreign currency translation adjustment 35,857 89,434 Comprehensive income $2,225,105 $1,880,427 Basic earnings per share $0.10 $0.09 Diluted earnings per share $0.08 $0.07 Weighted average number of common shares outstanding Basic 19,735,790 15,357,818 Diluted 27,516,458 24,558,625 Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended September 30, 2009 2008 Cash flows from operating activities: Net Income $2,189,248 $1,790,993 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 197,037 119,399 Noncontrolling interest (2,526) — Share-based payments 512,209 — Loss on disposal of fixed assets 39,502 — Changes in current assets and current liabilities: Accounts receivable (1,492,362) (88,138) Inventory 126,979 (1,019,969) Other receivables 401,155 (339,566) Other current assets 18,750 152,822 Accounts payable and accrued expenses 183,242 (60,470) VAT taxes payable 16,025 (15,780) Income tax payable 19,054 16,489 Other taxes payable (433) (22,708) Other current liabilities 33,582 (29,277) Total adjustments 52,214 (1,287,198) Net cash provided by operating activities 2,241,462 503,795 Cash flows from investing activities: Additions to property and equipment (525,965) — Additions to intangible assets – drug (1,891,269) (175,668) Loan receivable (293,220) — Net cash used in investing activities (2,710,454) (175,668) Cash flows from financing activities: Additional paid-in capital 2,534,581 — Noncontrolling interest 439,830 — Payment of dividends (499,331) — Net cash provided by financing activities 2,475,080 — Effect of foreign currency translation on cash (5,435) 32,648 Net increase in cash and cash equivalents 2,000,653 360,775 Cash and cash equivalents – beginning 12,352,223 12,057,150 Cash and cash equivalents – ending $14,352,876 $12,417,925 Supplemental schedule of non cash activities Advance payments exchanged for intangible assets – drug $425,169 $– Originally posted here: Tianyin Pharmaceutical co., Inc. Announces Record First Quarter 2010 Financial Results (PR Newswire)

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Tianyin Pharmaceutical co., Inc. Announces Record First Quarter 2010 Financial Results (PR Newswire)

DUBLIN–(BUSINESS WIRE)– Research and Markets ( http://www.researchandmarkets.com/research/f4355f/readytouse_finan ) has announced the addition of the “ Ready-to-Use Financial Modeling Spreadsheets for CFOs of VC-Funded Companies ” audioconference to their offering. In Ready-to-Use Financial Modeling Spreadsheets for CFOs of VC-Funded Companies , the analyst shares already-created financial models in Microsoft Excel that have proven especially useful for other CFOs of VC-Funded companies, that can be used as-is or customized for your company. Take the 90 minutes to view this webinar (on your computer, mobile phone, iPod or printed out) to incorporate any or all of these models into how you monitor the financials of your company and make sure you are taking advantage of the best available tools used by other CFOs of VC-Funded companies. Upon ordering, we will email you a link to download the webinar for viewing on your computer, mobile media device (iPod/iPhone, Blackberry), or printed out. The downloaded files will include the PowerPoint presentation, audio narration and jpeg images of the slides (for watching on your mobile media device). The webinar is led by an expert on financial modeling spreadsheets for CFOs of VC-Funded companies, Chako Ando, and focuses on: Everything you need to know in 90 minutes about updating your financial modeling spreadsheets to be using “best-available” tools that other CFOs of VC-Funded companies are using 10 financial models in excel, that can be used as-is or customized on Sales Forecasts, Personnel, Expenses, Profit & Loss, P&L, Cap Ex, Cash Flow, Financing, Balance Sheet, and Valuation Perspective on how to customize these models to fit your needs, as well as step-by-step instructions written directly into the spreadsheets Case studies of how other CFOs of VC-Funded companies use these models, how they tweak each model to fit their company and important lessons learned For more information visit http://www.researchandmarkets.com/research/f4355f/readytouse_finan See original here: Research and Markets: Ready-to-Use Financial Modeling Spreadsheets for CFOs of VC-Funded Companies (Business Wire)

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CHICAGO ( TheStreet ) — Call it the new Gold Rush — in miniature. As cell phones morph from communication devices to all-purpose entertainment gadgets, developers have scrambled to get in on the action. But as so often happens, that once-open landscape has been staked out by large, well-funded players. But there may still be room for creative small businesses to get in on the public appetite for on-the-go games. This week, videogame maker Electronic Arts underscored the importance of mobile and online games in its second-quarter earnings report. Although the company boasted that overall sales and market share were up this year, it’s also winnowing out its lower-selling videogames to focus on winners such as “Madden NFL” and “Rock Band.” Early next year, about 1,500 jobs will be eliminated, 20% of the company’s workforce. “We’re cutting the projects and the support activities that don’t make economic sense and freeing up more resources to push our key titles even harder,” Chief Financial Officer Eric Brown told Reuters. Despite the cost-cutting, Electronic Arts did make one major investment by buying Playfish , which makes games that run on social-network sites such as Facebook. Revenue for Electronic Arts’ mobile-games division is up 9% over last year, and the Playfish purchase is a way to continue that growth. Given Americans’ current spending habits, it makes sense that Electronic Arts would focus on games that cost a dollar or two. And they’ve already made major inroads in the mobile market. Of the top 10 games sold for Verizon cell phones, eight are made by Electronic Arts. AT&T is also getting in on the action. This spring, the company launched AT&T Apps Beta, an online testing ground where developers allow customers to try out potential new applications. The best will then be sold by AT&T to its subscribers. It’s an obvious spin-off of Apple’s phenomenally successful App Store, where about 100,000 applications are available for the iPhone. By opening up the store to both large corporations and independent developers, Apple unleashed a wave of creativity and boosted iPhone sales. But are the hundreds of small businesses that produce mobile apps seeing a big payoff? Probably not. Take the case of Steve LaVietes, a programmer and film visual-effects artist who runs Lonely Star Software in Santa Monica, Calif. His company’s word-search games Quordy and Muddled have gotten rave reviews and a fair amount of media attention. But he hasn’t quit his day job. LaVietes describes his sales as “modestly successful,” with the games selling anywhere from 10 to 50 copies per day at $2.99. Quordy has sold as many as 980 copies a day after being featured on prominent tech sites. While it’s not enough to make a full-time living, LaVietes says he’s happy with the experience so far. “For me, Apple’s 30% cut is fully justified by their handling of the purchase and download transactions. It wouldn’t be worth my time to sell a product for $2.99 if I had to manage those details.” But partnering with any large company has its challenges. “I’ve shared the standard frustrations regarding turnaround time for approval and updates, although that has improved quite a bit over time,” he says. “I’ve both benefited from and been confounded by the unknown process in which Apple chooses which apps to feature prominently within the store.” That placement can make or break a new application, so creative marketing is key for small, unknown companies. While LaVietes tried advertising on Facebook, he found press reviews and word-of-mouth have been far more effective in making sales. One of the smartest things LaVietes did was to link Quordy to iPhone contact lists: Players can issue “challenges” to their contacts, drawing new people into the game and, in turn, allowing them to challenge others. LaVietes also benefited by getting in early. Quordy was one of the first games offered by the App Store when it was launched. “Having a larger initial set of customers continues to keep sales modest but steady through word-of-mouth,” he says. “I’m not certain that I’d see the same success launching today.” The barriers to entry may have gotten higher over the past year, but that hasn’t stopped others from leaping into the cell-phone market. Creating a mobile application can expose your business to a wider market or make a statement about how tech-savvy you are. It may be worth doing — as long as you don’t expect to get rich. The rest is here: App Makers Get In On Ground Floor of Boom (TheStreet.com)

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BAODING, China, Nov. 13 /PRNewswire-Asia-FirstCall/ — Yingli Green Energy Holding Company Limited (NYSE: YGE – News ; “Yingli Green Energy” or the “Company”), one of the world’s leading vertically integrated photovoltaic (”PV”) product manufacturers, today announced its unaudited consolidated financial results for the quarter ended September 30, 2009. Third Quarter 2009 Consolidated Financial and Operating Highlights — Total net revenues were RMB 2,225.2 million (US$326.0 million) and PV module shipment volume increased more than 80% quarter over quarter. — Gross profit was RMB 447.6 million (US$65.6 million), with a gross margin of 20.1%. — Operating income was RMB 242.8 million (US$35.6 million), with an operating margin of 10.9 %. — Net income(1) was RMB 120.8 million (US$17.7 million) and diluted earnings per ordinary share and per American depositary share (”ADS”) was RMB 0.79 (US$0.12). — On an adjusted Non-GAAP(2) basis, net income was RMB 184.2 million (US$27.0 million) and diluted earnings per ordinary share and per ADS was RMB 1.20 (US$0.18). “I am pleased to announce strong results for the third quarter, with record highs in shipment volume and net revenues and healthy growth in net income,” said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “The main driving force for these results was increased market demand for our ‘Yingli Solar’ brand products as the solar project financing environment continued to improve and as we began to see the benefits of our recently implemented competitive pricing strategy, which leverages our favorable cost structure. Additionally, our continuous focus on high quality products and customer service enabled us to continue to expand our market share and raise recognition of our products in both established and emerging solar markets during the quarter, which we expect will help drive growth in the quarters to come.” “I am also very pleased to report that our gross margin continued to increase, reaching 20.1% in the third quarter from 18.3% in the second quarter of 2009 and 15.3% in the first quarter of 2009, underlining our ability to improve profitability by reducing both polysilicon and processing costs while achieving significant shipment volume growth,” Mr. Miao continued. Mr. Miao concluded, “To maintain our leading position, we will continue to focus on research and development and integrating our value chain. I am pleased to report that Project PANDA has achieved its first phase target ahead of schedule, producing next-generation cells with an average conversion efficiency rate of 18% or higher on our pilot production line. Also of note, our in-house polysilicon manufacturing plant, Fine Silicon, is set to begin trial production in December 2009. With Fine Silicon on-line, we will become one of a limited number of PV manufacturers in the world with a fully vertically integrated business model, covering the manufacturing process from polysilicon to PV modules. In addition, we will be the first vertically integrated PV product manufacturer in the world to have all of our production facilities located on one site. We believe this will enable us to further optimize our cost structure and capture profit at nearly every stage of the PV industry value chain, thus driving profitability and allowing us to better serve our global customer base.” Third Quarter 2009 Financial Results Total Net Revenues Total net revenues were RMB 2,225.2 million (US$326.0 million) in the third quarter of 2009, an increase of 48.5% from RMB 1,498.9 million in the second quarter of 2009 and a slight increase from RMB 2,209.8 million in the third quarter of 2008. The increase from the second quarter of 2009 was primarily due to the more than 80% increase in PV module shipment volume resulting from the improved credit environment in major PV markets, increased brand awareness, continued promotional efforts and improved product bankability, and was partially offset by a lower average selling price. Gross Profit and Gross Margin Gross profit in the third quarter of 2009 was RMB 447.6 million (US$65.6 million), an increase of 63.5% from RMB 273.8 million in the second quarter of 2009 and a decrease of 9.1% from RMB 492.6 million in the third quarter of 2008. Gross margin was 20.1% in the third quarter of 2009, up from 18.3% in the second quarter of 2009 and down from 22.3% in the third quarter of 2008. The increase in gross margin from the second quarter of 2009 was primarily due to the decrease in the blended cost of polysilicon as a result of lower polysilicon purchase prices and consumption of comparatively higher priced polysilicon inventory as well as decreasing polysilicon usage per watt and lower non-polysilicon cost in the third quarter of 2009. Operating Expenses Operating expenses in the third quarter of 2009 were RMB 204.8 million (US$30.0 million), compared to RMB 167.0 million in the second quarter of 2009 and RMB 115.5 million in the third quarter of 2008. The increase in operating expenses from the second quarter of 2009 was primarily attributable to the increase in selling expenses and general and administrative expenses consistent with the large increase in PV module shipment volume, as well as higher research and development expenses in connection with the progress of a series of research and development initiatives, including Project PANDA. Operating expenses as a percentage of total net revenues were 9.2% in the third quarter of 2009, compared to 11.1% in the second quarter of 2009 and 5.2% in the third quarter of 2008. The decrease in operating expenses as a percentage of total net revenues from the second quarter of 2009 was mainly due to the increase in total net revenues. Operating Income and Margin Operating income in the third quarter of 2009 was RMB 242.8 million (US$35.6 million), an increase of 127.4% from RMB 106.8 million in the second quarter of 2009 and a decrease of 35.6% from RMB 377.1 million in the third quarter of 2008. Operating margin was 10.9% in the third quarter of 2009, compared to 7.1% in the second quarter of 2009 and 17.1% in the third quarter of 2008. The increase in operating margin from the second quarter of 2009 was mainly due to increased gross margin and decreased operating expenses as a percentage of net revenues. Interest Expense Interest expense was RMB 100.6 million (US$14.7 million) in the third quarter of 2009, compared to RMB 115.9 million in the second quarter of 2009 and RMB 34.8 million(3) in the third quarter of 2008. After excluding non-cash interest expenses, interest expense was RMB 68.2 million (US$10.0 million) in the third quarter of 2009, compared to RMB 79.1 million in the second quarter of 2009 and RMB 31.6 million in the third quarter of 2008. The weighted average interest rate for the borrowings in the third quarter of 2009 was 6.66%, a decrease from 6.88% in the second quarter of 2009, both measured on a basis excluding non-cash interest expenses. The decrease in weighted average interest rate was a result of the Company’s efforts to reduce funding costs. Foreign Currency Exchange Gain Foreign currency exchange gain was RMB 71.8 million (US$10.5 million) in the third quarter of 2009, compared to a foreign currency exchange gain of RMB 108.7 million in the second quarter of 2009 and a foreign currency exchange loss of RMB 133.1 million in the third quarter of 2008. The foreign currency exchange gain in the third quarter of 2009 was primarily due to the appreciation of the Euro against the Renminbi. Income Tax Expense Income tax expense was RMB 31.0 million (US$4.5 million) in the third quarter of 2009, compared to an income tax expense of RMB 16.0 million in the second quarter of 2009 and an income tax benefit of RMB 0.2 million in the third quarter of 2008. The increase in income tax expense from the second quarter of 2009 was primarily attributable to the increased net operating income generated by Tianwei Yingli. Under the PRC Enterprise Income Tax Law and the various implementation rules, Tianwei Yingli was subject to an enterprise income tax rate of 0% in 2008 and 12.5% in 2009, and Yingli Energy (China) Company Limited (”Yingli China”), a wholly-owned subsidiary of the Company, was subject to an enterprise income tax rate of 15% in both 2008 and 2009. Net Income As a result of the factors discussed above, net income was RMB 120.8 million (US$17.7 million) in the third quarter of 2009, compared to a net loss of RMB 393.7 million in the second quarter of 2009 and net income of RMB 147.6 million in the third quarter of 2008. Diluted earnings per ordinary share and per ADS was RMB 0.79 (US$0.12) in the third quarter of 2009, compared to diluted loss per ordinary share and per ADS of RMB 3.03 in the second quarter of 2009. On an adjusted non-GAAP basis, net income was RMB 184.2 million (US$27.0 million) in the third quarter of 2009, compared to adjusted non-GAAP net income of RMB 119.8 million in the second quarter of 2009. Adjusted non-GAAP diluted earnings per ordinary share and per ADS was RMB 1.20 (US$0.18) in the third quarter of 2009, compared to adjusted non-GAAP diluted earnings per ordinary share and per ADS of RMB 0.91 in the second quarter of 2009. Balance Sheet Analysis As of September 30, 2009, Yingli Green Energy had RMB 2,657.6 million (US$389.3 million) in cash and restricted cash, and RMB 3,045.3 million (US$446.1 million) in working capital, compared to RMB 2,620.6 million in cash and restricted cash, and RMB 4,356.4 million in working capital, as of June 30, 2009. Long-term bank borrowings decreased to RMB 1,107.5 million (US$162.2 million) as of September 30, 2009 from RMB 1,971.9 million as of June 30, 2009 and short-term borrowings increased to RMB 3,142.8 million (US$460.4 million) as of September 30, 2009 from RMB 1,817.5 million as of June 30, 2009. The change in the balances of long-term bank borrowings and short-term borrowings in the third quarter was primarily due to the reclassification of long-term bank borrowings and short-term borrowings. As of the date of this press release, the Company had approximately RMB 7,623 million in authorized lines of credit, of which RMB 4,897 million had been utilized. Business Outlook for Full Year 2009 Given the strong third quarter results and greater visibility into market demand for the fourth quarter, the Company is updating its annual PV module shipment target to be in the estimated range of 490 MW to 500 MW from the previous expected range of 450 MW to 500 MW for fiscal year 2009, which represents an increase of 74.0% to 77.6% compared to fiscal year 2008. In addition, the Company is updating its gross margin target for fiscal year 2009 to be in the estimated range of 19% to 20% from the previous expected range of 18% to 20%. Non-GAAP Financial Measures To supplement the financial measures calculated in accordance with GAAP, this press release includes certain non-GAAP financial measures of adjusted net income (loss) and adjusted diluted earnings (loss) per ordinary share and per ADS, each of which is adjusted to exclude items related to share-based compensation, accretion of the non-cash interest expense resulting from the derivative liabilities bifurcated from the Company’s convertible notes issued in January 2009, from the beneficial conversion feature from the convertible notes issued in July 2009, from the freestanding warrants issued in connection with a loan facility provided by ADM Capital in April 2009, and from the equity component bifurcated from the Company’s convertible notes issued in December 2007 upon the adoption and retroactive application of FSP APB14-1, the non-cash interest expense in connection with the conversion of the Company’s convertible notes issued in January 2009, the non-cash interest expense in connection with the change in the fair value of interest rate swap entered into in June 2009, the non-cash loss on debt extinguishment resulting from the early full repayment of ADM Capital loan, the subsequent non-cash changes in the fair value of the derivative liabilities and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interests in Tianwei Yingli. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company’s core operating results as such items are not directly attributable to the underlying performance of the Company’s business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company’s current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release. Currency Conversion Solely for the convenience of readers, certain Renminbi amounts have been translated into U.S. dollar amounts at the rate of RMB 6.8262 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board, as of September 30, 2009. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollar amounts at such rate, or at any other rate. The percentages stated in this press release are calculated based on Renminbi. Conference Call Yingli Green Energy will host a conference call and live webcast to discuss the results at 8:00 AM Eastern Standard Time (EST) on Friday, November 13, 2009, which corresponds to 9:00 PM Beijing/Hong Kong time the same day. The dial-in details for the live conference call are as follows: — U.S. Toll Free Number: +1-800-291-9234 — International dial-in number: +1-617-614-3923 — Passcode: 82289455 A live and archived webcast of the conference call will be available on the Investors section of Yingli Green Energy’s website at http://www.yinglisolar.com . A replay will be available shortly after the call on Yingli Green Energy’s website for 90 days. A replay of the conference call will be available until November 27, 2009 by dialing: — U.S. Toll Free Number: +1-888-286-8010 — International dial-in number: +1-617-801-6888 — Passcode: 45378350 About Yingli Green Energy Yingli Green Energy Holding Company Limited (NYSE: YGE – News ) is one of the world’s leading vertically integrated PV product manufacturers. Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. Based in Baoding, China, Yingli Green Energy sells its PV modules to system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com . Safe Harbor Statement This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy’s control, which may cause Yingli Green Energy’s actual results, performance or achievements to differ materially from those in the forward- looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy’s filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. (1) Upon adoption of FASB Statement 160 (”SFAS 160″), effective January 1, 2009, net income (loss) has been adjusted to include net income (loss) attributed to non-controlling interests and Yingli Green Energy. For convenience purposes, all references to “net income (loss)” in this press release, unless otherwise specified, represent “net income (loss) attributable to Yingli Green Energy” for all periods presented. (2) All non-GAAP measures exclude share-based compensation, accretion of non-cash interest expenses resulting from the derivative liabilities bifurcated from the Company’s convertible notes issued in January 2009, from the beneficial conversion feature recognized from the convertible notes issued in July 2009, from the freestanding warrants issued in connection with a loan facility provided by a fund managed by Asia Debt Management Hong Kong Limited (”ADM Capital”) in April 2009, and from the equity component bifurcated from the Company’s convertible notes issued in December 2007 upon the adoption and retroactive application of Financial Accounting Standards Board Staff Position Accounting Principles Board 14-1 (”FSP APB14-1″), “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)”, the non-cash interest expense in connection with the conversion of the Company’s convertible notes issued in January 2009, the non-cash interest expense in connection with the change in the fair value of interest rate swap entered into in June 2009, the non-cash loss on debt extinguishment resulting from the early full repayment of the ADM Capital loan, the subsequent non-cash expense in the fair value of the derivative liabilities and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interests in Baoding Tianwei Yingli New Energy Resources Co., Ltd. (”Tianwei Yingli”), an operating subsidiary of the Company. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company’s use of non-GAAP information set forth elsewhere in this press release. (3) The Company’s previously reported unaudited third quarter 2008 financial results have been revised to reflect an increase in interest expense from RMB 31.6 million to RMB 34.8 million in the third quarter of 2008 due to the adoption and retroactive application of FSP APB 14- 1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).” For further information, please contact: In China: Qing Miao Director, Investor Relations Yingli Green Energy Holding Company Limited Tel: +86-312-3100-502 Email: ir@yinglisolar.com Courtney Shike Brunswick Group LLC Tel: +86-10-6566-2256 Email: cshike@brunswickgroup.com In the United States: Katie Cralle Brunswick Group LLC Tel: +1-212-333-3810 Email: kcralle@brunswickgroup.com YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (In thousands) December 31, 2008 (As adjusted)(1) September 30, 2009 RMB RMB US$ ASSETS Current assets: Cash and restricted cash 1,218,148 2,657,583 389,321 Accounts receivable, net 1,464,973 2,692,593 394,450 Inventories 2,040,731 1,749,987 256,363 Prepayments to suppliers 774,014 419,716 61,486 Prepaid expenses and other current assets 563,267 608,499 89,142 Total current assets 6,061,133 8,128,378 1,190,762 Prepayments to suppliers 674,164 672,994 98,590 Property, plant and equipment, net 3,385,682 6,273,888 919,089 Land use rights 63,022 267,519 39,190 Goodwill and intangible assets, net 666,429 625,583 91,645 Investments in and advances to affiliates, including an acquisition deposit 192,537 21,372 3,131 Other assets 24,829 19,124 2,801 Total assets 11,067,796 16,008,858 2,345,208 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term bank borrowings, including current portion of long-term bank borrowings 2,044,200 3,142,810 460,404 Accounts payable 628,903 1,355,637 198,593 Other current liabilities and accrued expenses 84,563 255,432 37,419 Advances from customers 51,933 41,398 6,065 Dividend payable 10,956 10,956 1,605 Other amounts due to related parties, including an entrusted loan 8,864 276,818 40,552 Total current liabilities 2,829,419 5,083,051 744,638 Convertible senior notes 1,214,814 1,272,451 186,407 Senior secured convertible notes — 71,611 10,491 Long-term bank borrowings, excluding current portion 662,956 1,107,506 162,243 Accrued warranty cost, excluding current portion 114,691 156,201 22,883 Other liabilities 73,646 72,986 10,692 Total liabilities 4,895,526 7,763,806 1,137,354 Shareholders’ equity: Ordinary shares 9,922 11,353 1,663 Additional paid-in capital 3,724,358 6,146,494 900,427 Accumulated other comprehensive income 31,206 18,442 2,702 Retained earnings 1,011,633 597,233 87,491 Total Yingli Green Energy shareholders’ equity 4,777,119 6,773,522 992,283 Noncontrolling interests 1,395,151 1,471,530 215,571 Total shareholders’ equity 6,172,270 8,245,052 1,207,854 Total liabilities and shareholders’ equity 11,067,796 16,008,858 2,345,208 (1) Reflects retrospective application of SFAS 160, “Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No.51.” and retrospective application of FSP APB 14-1, “Accounting for Convertible Debt Instruments that May be Settled in Cash upon Conversion (Including Partial Cash Settlement).” YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (In thousands, except for share, ADS, per share and per ADS data) Three months ended September 30, June 30, September 30, 2008 2009 2009 (As adjusted)(1) RMB RMB RMB US$ Net revenues: Sales of PV modules 2,193,203 1,460,715 2,210,404 323,812 Sales of PV systems 2,809 32,813 1,303 191 Other revenues 13,765 5,374 13,499 1,978 Total net revenues 2,209,777 1,498,902 2,225,206 325,981 Cost of revenues: Cost of PV modules sales (1,710,361) (1,193,400) (1,765,289) (258,605) Cost of PV systems sales (2,047) (26,626) (946) (139) Cost of other revenues (4,731) (5,089) (11,390) (1,669) Total cost of revenues (1,717,139) (1,225,115) (1,777,625) (260,413) Gross profit 492,638 273,787 447,581 65,568 Selling expenses (35,347) (39,626) (47,992) (7,031) General and administrative expenses (60,458) (81,233) (101,903) (14,928) Research and development expenses (19,702) (46,130) (54,880) (8,039) Total operating expenses (115,507) (166,989) (204,775) (29,998) Income from operations 377,131 106,798 242,806 35,570 Other income (expense): Interest expense (34,782) (115,923) (100,565) (14,732) Interest income 2,067 830 1,303 191 Foreign currency exchange gain (loss) (133,056) 108,710 71,788 10,517 Loss on debt extinguishment — (244,745) — – Loss on derivative liabilities — (204,246) — – Other income 581 836 3,113 455 Earnings (loss) before income taxes 211,941 (347,740) 218,445 32,001 Income tax benefit (expense) 234 (15,998) (31,031) (4,546) Net income (loss) 212,175 (363,738) 187,414 27,455 Less: Earnings attributable to the noncontrolling interests (64,545) (29,943) (66,568) (9,752) Net income (loss) attributable to Yingli Green Energy 147,630 (393,681) 120,846 17,703 Weighted average shares and ADSs outstanding Basic 127,447,821 130,044,300 148,379,700 148,379,700 Diluted 129,410,578 130,044,300 153,660,518 153,660,518 Earnings (loss) per share and per ADS Basic 1.16 (3.03) 0.81 0.12 Diluted 1.14 (3.03) 0.79 0.12 Reconciliation of Non-GAAP measures to GAAP measures Three months ended September 30, June 30, September 30, 2008 2009 2009 RMB RMB RMB US$ Non-GAAP income attributable to Yingli Green Energy 175,307 119,794 184,241 26,990 Share-based compensation attributable to Yingli Green Energy (10,854) (14,721) (15,990) (2,342) Amortization of intangible assets attributable to Yingli Green Energy (13,639) (12,971) (15,058) (2,206) Loss on derivative liabilities attributable to Yingli Green Energy — (204,246) — – Loss on debt extinguishment attributable to Yingli Green Energy — (244,745) — – Non-cash interest expenses attributable to Yingli Green Energy (3,184) (36,792) (32,347) (4,739) Net income (loss) attributable to Yingli Green Energy 147,630 (393,681) 120,846 17,703 Non-GAAP diluted earnings per share and per ADS 1.34 0.91 1.20 0.18 Share-based compensation per share and per ADS (0.08) (0.11) (0.10) (0.01) Amortization of intangible assets per share and per ADS (0.10) (0.10) (0.10) (0.01) Loss on derivative liabilities per share and per ADS — (1.57) — – Loss on debt extinguishment per share and per ADS — (1.88) — – Non-cash interest expenses per share and per ADS (0.02) (0.28) (0.21) (0.04) Diluted earnings (loss) per share and per ADS 1.14 (3.03) 0.79 0.12 See the article here: Yingli Green Energy Reports Third Quarter 2009 Results (PR Newswire)

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Yingli Green Energy Reports Third Quarter 2009 Results (PR Newswire)

BAODING, China, Nov. 13 /PRNewswire-Asia-FirstCall/ — Yingli Green Energy Holding Company Limited (NYSE: YGE – News ; “Yingli Green Energy” or the “Company”), one of the world’s leading vertically integrated photovoltaic (”PV”) product manufacturers, today announced its unaudited consolidated financial results for the quarter ended September 30, 2009. Third Quarter 2009 Consolidated Financial and Operating Highlights — Total net revenues were RMB 2,225.2 million (US$326.0 million) and PV module shipment volume increased more than 80% quarter over quarter. — Gross profit was RMB 447.6 million (US$65.6 million), with a gross margin of 20.1%. — Operating income was RMB 242.8 million (US$35.6 million), with an operating margin of 10.9 %. — Net income(1) was RMB 120.8 million (US$17.7 million) and diluted earnings per ordinary share and per American depositary share (”ADS”) was RMB 0.79 (US$0.12). — On an adjusted Non-GAAP(2) basis, net income was RMB 184.2 million (US$27.0 million) and diluted earnings per ordinary share and per ADS was RMB 1.20 (US$0.18). “I am pleased to announce strong results for the third quarter, with record highs in shipment volume and net revenues and healthy growth in net income,” said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “The main driving force for these results was increased market demand for our ‘Yingli Solar’ brand products as the solar project financing environment continued to improve and as we began to see the benefits of our recently implemented competitive pricing strategy, which leverages our favorable cost structure. Additionally, our continuous focus on high quality products and customer service enabled us to continue to expand our market share and raise recognition of our products in both established and emerging solar markets during the quarter, which we expect will help drive growth in the quarters to come.” “I am also very pleased to report that our gross margin continued to increase, reaching 20.1% in the third quarter from 18.3% in the second quarter of 2009 and 15.3% in the first quarter of 2009, underlining our ability to improve profitability by reducing both polysilicon and processing costs while achieving significant shipment volume growth,” Mr. Miao continued. Mr. Miao concluded, “To maintain our leading position, we will continue to focus on research and development and integrating our value chain. I am pleased to report that Project PANDA has achieved its first phase target ahead of schedule, producing next-generation cells with an average conversion efficiency rate of 18% or higher on our pilot production line. Also of note, our in-house polysilicon manufacturing plant, Fine Silicon, is set to begin trial production in December 2009. With Fine Silicon on-line, we will become one of a limited number of PV manufacturers in the world with a fully vertically integrated business model, covering the manufacturing process from polysilicon to PV modules. In addition, we will be the first vertically integrated PV product manufacturer in the world to have all of our production facilities located on one site. We believe this will enable us to further optimize our cost structure and capture profit at nearly every stage of the PV industry value chain, thus driving profitability and allowing us to better serve our global customer base.” Third Quarter 2009 Financial Results Total Net Revenues Total net revenues were RMB 2,225.2 million (US$326.0 million) in the third quarter of 2009, an increase of 48.5% from RMB 1,498.9 million in the second quarter of 2009 and a slight increase from RMB 2,209.8 million in the third quarter of 2008. The increase from the second quarter of 2009 was primarily due to the more than 80% increase in PV module shipment volume resulting from the improved credit environment in major PV markets, increased brand awareness, continued promotional efforts and improved product bankability, and was partially offset by a lower average selling price. Gross Profit and Gross Margin Gross profit in the third quarter of 2009 was RMB 447.6 million (US$65.6 million), an increase of 63.5% from RMB 273.8 million in the second quarter of 2009 and a decrease of 9.1% from RMB 492.6 million in the third quarter of 2008. Gross margin was 20.1% in the third quarter of 2009, up from 18.3% in the second quarter of 2009 and down from 22.3% in the third quarter of 2008. The increase in gross margin from the second quarter of 2009 was primarily due to the decrease in the blended cost of polysilicon as a result of lower polysilicon purchase prices and consumption of comparatively higher priced polysilicon inventory as well as decreasing polysilicon usage per watt and lower non-polysilicon cost in the third quarter of 2009. Operating Expenses Operating expenses in the third quarter of 2009 were RMB 204.8 million (US$30.0 million), compared to RMB 167.0 million in the second quarter of 2009 and RMB 115.5 million in the third quarter of 2008. The increase in operating expenses from the second quarter of 2009 was primarily attributable to the increase in selling expenses and general and administrative expenses consistent with the large increase in PV module shipment volume, as well as higher research and development expenses in connection with the progress of a series of research and development initiatives, including Project PANDA. Operating expenses as a percentage of total net revenues were 9.2% in the third quarter of 2009, compared to 11.1% in the second quarter of 2009 and 5.2% in the third quarter of 2008. The decrease in operating expenses as a percentage of total net revenues from the second quarter of 2009 was mainly due to the increase in total net revenues. Operating Income and Margin Operating income in the third quarter of 2009 was RMB 242.8 million (US$35.6 million), an increase of 127.4% from RMB 106.8 million in the second quarter of 2009 and a decrease of 35.6% from RMB 377.1 million in the third quarter of 2008. Operating margin was 10.9% in the third quarter of 2009, compared to 7.1% in the second quarter of 2009 and 17.1% in the third quarter of 2008. The increase in operating margin from the second quarter of 2009 was mainly due to increased gross margin and decreased operating expenses as a percentage of net revenues. Interest Expense Interest expense was RMB 100.6 million (US$14.7 million) in the third quarter of 2009, compared to RMB 115.9 million in the second quarter of 2009 and RMB 34.8 million(3) in the third quarter of 2008. After excluding non-cash interest expenses, interest expense was RMB 68.2 million (US$10.0 million) in the third quarter of 2009, compared to RMB 79.1 million in the second quarter of 2009 and RMB 31.6 million in the third quarter of 2008. The weighted average interest rate for the borrowings in the third quarter of 2009 was 6.66%, a decrease from 6.88% in the second quarter of 2009, both measured on a basis excluding non-cash interest expenses. The decrease in weighted average interest rate was a result of the Company’s efforts to reduce funding costs. Foreign Currency Exchange Gain Foreign currency exchange gain was RMB 71.8 million (US$10.5 million) in the third quarter of 2009, compared to a foreign currency exchange gain of RMB 108.7 million in the second quarter of 2009 and a foreign currency exchange loss of RMB 133.1 million in the third quarter of 2008. The foreign currency exchange gain in the third quarter of 2009 was primarily due to the appreciation of the Euro against the Renminbi. Income Tax Expense Income tax expense was RMB 31.0 million (US$4.5 million) in the third quarter of 2009, compared to an income tax expense of RMB 16.0 million in the second quarter of 2009 and an income tax benefit of RMB 0.2 million in the third quarter of 2008. The increase in income tax expense from the second quarter of 2009 was primarily attributable to the increased net operating income generated by Tianwei Yingli. Under the PRC Enterprise Income Tax Law and the various implementation rules, Tianwei Yingli was subject to an enterprise income tax rate of 0% in 2008 and 12.5% in 2009, and Yingli Energy (China) Company Limited (”Yingli China”), a wholly-owned subsidiary of the Company, was subject to an enterprise income tax rate of 15% in both 2008 and 2009. Net Income As a result of the factors discussed above, net income was RMB 120.8 million (US$17.7 million) in the third quarter of 2009, compared to a net loss of RMB 393.7 million in the second quarter of 2009 and net income of RMB 147.6 million in the third quarter of 2008. Diluted earnings per ordinary share and per ADS was RMB 0.79 (US$0.12) in the third quarter of 2009, compared to diluted loss per ordinary share and per ADS of RMB 3.03 in the second quarter of 2009. On an adjusted non-GAAP basis, net income was RMB 184.2 million (US$27.0 million) in the third quarter of 2009, compared to adjusted non-GAAP net income of RMB 119.8 million in the second quarter of 2009. Adjusted non-GAAP diluted earnings per ordinary share and per ADS was RMB 1.20 (US$0.18) in the third quarter of 2009, compared to adjusted non-GAAP diluted earnings per ordinary share and per ADS of RMB 0.91 in the second quarter of 2009. Balance Sheet Analysis As of September 30, 2009, Yingli Green Energy had RMB 2,657.6 million (US$389.3 million) in cash and restricted cash, and RMB 3,045.3 million (US$446.1 million) in working capital, compared to RMB 2,620.6 million in cash and restricted cash, and RMB 4,356.4 million in working capital, as of June 30, 2009. Long-term bank borrowings decreased to RMB 1,107.5 million (US$162.2 million) as of September 30, 2009 from RMB 1,971.9 million as of June 30, 2009 and short-term borrowings increased to RMB 3,142.8 million (US$460.4 million) as of September 30, 2009 from RMB 1,817.5 million as of June 30, 2009. The change in the balances of long-term bank borrowings and short-term borrowings in the third quarter was primarily due to the reclassification of long-term bank borrowings and short-term borrowings. As of the date of this press release, the Company had approximately RMB 7,623 million in authorized lines of credit, of which RMB 4,897 million had been utilized. Business Outlook for Full Year 2009 Given the strong third quarter results and greater visibility into market demand for the fourth quarter, the Company is updating its annual PV module shipment target to be in the estimated range of 490 MW to 500 MW from the previous expected range of 450 MW to 500 MW for fiscal year 2009, which represents an increase of 74.0% to 77.6% compared to fiscal year 2008. In addition, the Company is updating its gross margin target for fiscal year 2009 to be in the estimated range of 19% to 20% from the previous expected range of 18% to 20%. Non-GAAP Financial Measures To supplement the financial measures calculated in accordance with GAAP, this press release includes certain non-GAAP financial measures of adjusted net income (loss) and adjusted diluted earnings (loss) per ordinary share and per ADS, each of which is adjusted to exclude items related to share-based compensation, accretion of the non-cash interest expense resulting from the derivative liabilities bifurcated from the Company’s convertible notes issued in January 2009, from the beneficial conversion feature from the convertible notes issued in July 2009, from the freestanding warrants issued in connection with a loan facility provided by ADM Capital in April 2009, and from the equity component bifurcated from the Company’s convertible notes issued in December 2007 upon the adoption and retroactive application of FSP APB14-1, the non-cash interest expense in connection with the conversion of the Company’s convertible notes issued in January 2009, the non-cash interest expense in connection with the change in the fair value of interest rate swap entered into in June 2009, the non-cash loss on debt extinguishment resulting from the early full repayment of ADM Capital loan, the subsequent non-cash changes in the fair value of the derivative liabilities and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interests in Tianwei Yingli. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company’s core operating results as such items are not directly attributable to the underlying performance of the Company’s business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company’s current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release. Currency Conversion Solely for the convenience of readers, certain Renminbi amounts have been translated into U.S. dollar amounts at the rate of RMB 6.8262 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board, as of September 30, 2009. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollar amounts at such rate, or at any other rate. The percentages stated in this press release are calculated based on Renminbi. Conference Call Yingli Green Energy will host a conference call and live webcast to discuss the results at 8:00 AM Eastern Standard Time (EST) on Friday, November 13, 2009, which corresponds to 9:00 PM Beijing/Hong Kong time the same day. The dial-in details for the live conference call are as follows: — U.S. Toll Free Number: +1-800-291-9234 — International dial-in number: +1-617-614-3923 — Passcode: 82289455 A live and archived webcast of the conference call will be available on the Investors section of Yingli Green Energy’s website at http://www.yinglisolar.com . A replay will be available shortly after the call on Yingli Green Energy’s website for 90 days. A replay of the conference call will be available until November 27, 2009 by dialing: — U.S. Toll Free Number: +1-888-286-8010 — International dial-in number: +1-617-801-6888 — Passcode: 45378350 About Yingli Green Energy Yingli Green Energy Holding Company Limited (NYSE: YGE – News ) is one of the world’s leading vertically integrated PV product manufacturers. Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. Based in Baoding, China, Yingli Green Energy sells its PV modules to system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com . Safe Harbor Statement This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy’s control, which may cause Yingli Green Energy’s actual results, performance or achievements to differ materially from those in the forward- looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy’s filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. (1) Upon adoption of FASB Statement 160 (”SFAS 160″), effective January 1, 2009, net income (loss) has been adjusted to include net income (loss) attributed to non-controlling interests and Yingli Green Energy. For convenience purposes, all references to “net income (loss)” in this press release, unless otherwise specified, represent “net income (loss) attributable to Yingli Green Energy” for all periods presented. (2) All non-GAAP measures exclude share-based compensation, accretion of non-cash interest expenses resulting from the derivative liabilities bifurcated from the Company’s convertible notes issued in January 2009, from the beneficial conversion feature recognized from the convertible notes issued in July 2009, from the freestanding warrants issued in connection with a loan facility provided by a fund managed by Asia Debt Management Hong Kong Limited (”ADM Capital”) in April 2009, and from the equity component bifurcated from the Company’s convertible notes issued in December 2007 upon the adoption and retroactive application of Financial Accounting Standards Board Staff Position Accounting Principles Board 14-1 (”FSP APB14-1″), “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)”, the non-cash interest expense in connection with the conversion of the Company’s convertible notes issued in January 2009, the non-cash interest expense in connection with the change in the fair value of interest rate swap entered into in June 2009, the non-cash loss on debt extinguishment resulting from the early full repayment of the ADM Capital loan, the subsequent non-cash expense in the fair value of the derivative liabilities and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interests in Baoding Tianwei Yingli New Energy Resources Co., Ltd. (”Tianwei Yingli”), an operating subsidiary of the Company. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company’s use of non-GAAP information set forth elsewhere in this press release. (3) The Company’s previously reported unaudited third quarter 2008 financial results have been revised to reflect an increase in interest expense from RMB 31.6 million to RMB 34.8 million in the third quarter of 2008 due to the adoption and retroactive application of FSP APB 14- 1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).” For further information, please contact: In China: Qing Miao Director, Investor Relations Yingli Green Energy Holding Company Limited Tel: +86-312-3100-502 Email: ir@yinglisolar.com Courtney Shike Brunswick Group LLC Tel: +86-10-6566-2256 Email: cshike@brunswickgroup.com In the United States: Katie Cralle Brunswick Group LLC Tel: +1-212-333-3810 Email: kcralle@brunswickgroup.com YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (In thousands) December 31, 2008 (As adjusted)(1) September 30, 2009 RMB RMB US$ ASSETS Current assets: Cash and restricted cash 1,218,148 2,657,583 389,321 Accounts receivable, net 1,464,973 2,692,593 394,450 Inventories 2,040,731 1,749,987 256,363 Prepayments to suppliers 774,014 419,716 61,486 Prepaid expenses and other current assets 563,267 608,499 89,142 Total current assets 6,061,133 8,128,378 1,190,762 Prepayments to suppliers 674,164 672,994 98,590 Property, plant and equipment, net 3,385,682 6,273,888 919,089 Land use rights 63,022 267,519 39,190 Goodwill and intangible assets, net 666,429 625,583 91,645 Investments in and advances to affiliates, including an acquisition deposit 192,537 21,372 3,131 Other assets 24,829 19,124 2,801 Total assets 11,067,796 16,008,858 2,345,208 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term bank borrowings, including current portion of long-term bank borrowings 2,044,200 3,142,810 460,404 Accounts payable 628,903 1,355,637 198,593 Other current liabilities and accrued expenses 84,563 255,432 37,419 Advances from customers 51,933 41,398 6,065 Dividend payable 10,956 10,956 1,605 Other amounts due to related parties, including an entrusted loan 8,864 276,818 40,552 Total current liabilities 2,829,419 5,083,051 744,638 Convertible senior notes 1,214,814 1,272,451 186,407 Senior secured convertible notes — 71,611 10,491 Long-term bank borrowings, excluding current portion 662,956 1,107,506 162,243 Accrued warranty cost, excluding current portion 114,691 156,201 22,883 Other liabilities 73,646 72,986 10,692 Total liabilities 4,895,526 7,763,806 1,137,354 Shareholders’ equity: Ordinary shares 9,922 11,353 1,663 Additional paid-in capital 3,724,358 6,146,494 900,427 Accumulated other comprehensive income 31,206 18,442 2,702 Retained earnings 1,011,633 597,233 87,491 Total Yingli Green Energy shareholders’ equity 4,777,119 6,773,522 992,283 Noncontrolling interests 1,395,151 1,471,530 215,571 Total shareholders’ equity 6,172,270 8,245,052 1,207,854 Total liabilities and shareholders’ equity 11,067,796 16,008,858 2,345,208 (1) Reflects retrospective application of SFAS 160, “Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No.51.” and retrospective application of FSP APB 14-1, “Accounting for Convertible Debt Instruments that May be Settled in Cash upon Conversion (Including Partial Cash Settlement).” YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (In thousands, except for share, ADS, per share and per ADS data) Three months ended September 30, June 30, September 30, 2008 2009 2009 (As adjusted)(1) RMB RMB RMB US$ Net revenues: Sales of PV modules 2,193,203 1,460,715 2,210,404 323,812 Sales of PV systems 2,809 32,813 1,303 191 Other revenues 13,765 5,374 13,499 1,978 Total net revenues 2,209,777 1,498,902 2,225,206 325,981 Cost of revenues: Cost of PV modules sales (1,710,361) (1,193,400) (1,765,289) (258,605) Cost of PV systems sales (2,047) (26,626) (946) (139) Cost of other revenues (4,731) (5,089) (11,390) (1,669) Total cost of revenues (1,717,139) (1,225,115) (1,777,625) (260,413) Gross profit 492,638 273,787 447,581 65,568 Selling expenses (35,347) (39,626) (47,992) (7,031) General and administrative expenses (60,458) (81,233) (101,903) (14,928) Research and development expenses (19,702) (46,130) (54,880) (8,039) Total operating expenses (115,507) (166,989) (204,775) (29,998) Income from operations 377,131 106,798 242,806 35,570 Other income (expense): Interest expense (34,782) (115,923) (100,565) (14,732) Interest income 2,067 830 1,303 191 Foreign currency exchange gain (loss) (133,056) 108,710 71,788 10,517 Loss on debt extinguishment — (244,745) — – Loss on derivative liabilities — (204,246) — – Other income 581 836 3,113 455 Earnings (loss) before income taxes 211,941 (347,740) 218,445 32,001 Income tax benefit (expense) 234 (15,998) (31,031) (4,546) Net income (loss) 212,175 (363,738) 187,414 27,455 Less: Earnings attributable to the noncontrolling interests (64,545) (29,943) (66,568) (9,752) Net income (loss) attributable to Yingli Green Energy 147,630 (393,681) 120,846 17,703 Weighted average shares and ADSs outstanding Basic 127,447,821 130,044,300 148,379,700 148,379,700 Diluted 129,410,578 130,044,300 153,660,518 153,660,518 Earnings (loss) per share and per ADS Basic 1.16 (3.03) 0.81 0.12 Diluted 1.14 (3.03) 0.79 0.12 Reconciliation of Non-GAAP measures to GAAP measures Three months ended September 30, June 30, September 30, 2008 2009 2009 RMB RMB RMB US$ Non-GAAP income attributable to Yingli Green Energy 175,307 119,794 184,241 26,990 Share-based compensation attributable to Yingli Green Energy (10,854) (14,721) (15,990) (2,342) Amortization of intangible assets attributable to Yingli Green Energy (13,639) (12,971) (15,058) (2,206) Loss on derivative liabilities attributable to Yingli Green Energy — (204,246) — – Loss on debt extinguishment attributable to Yingli Green Energy — (244,745) — – Non-cash interest expenses attributable to Yingli Green Energy (3,184) (36,792) (32,347) (4,739) Net income (loss) attributable to Yingli Green Energy 147,630 (393,681) 120,846 17,703 Non-GAAP diluted earnings per share and per ADS 1.34 0.91 1.20 0.18 Share-based compensation per share and per ADS (0.08) (0.11) (0.10) (0.01) Amortization of intangible assets per share and per ADS (0.10) (0.10) (0.10) (0.01) Loss on derivative liabilities per share and per ADS — (1.57) — – Loss on debt extinguishment per share and per ADS — (1.88) — – Non-cash interest expenses per share and per ADS (0.02) (0.28) (0.21) (0.04) Diluted earnings (loss) per share and per ADS 1.14 (3.03) 0.79 0.12 See the article here: Yingli Green Energy Reports Third Quarter 2009 Results (PR Newswire)

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Yingli Green Energy Reports Third Quarter 2009 Results (PR Newswire)