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SINA Reports Fourth Quarter and Fiscal Year 2009 Financial Results
Mar 03, 2010 (04:03 PM EST)


SHANGHAI, March 3 /PRNewswire-Asia/ -- SINA Corporation (Nasdaq: 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 fourth quarter and fiscal year ended December 31, 2009.

In October 2009, SINA injected its online real estate advertising business into its majority-owned subsidiary China Online Housing Technology Corporation ("COHT") and exchanged its interest in COHT for approximately 33% interest in China Real Estate Information Corporation ("CRIC") upon the successful listing of CRIC on the NASDAQ Global Select Market ("Transaction"). As a result of the Transaction, the Company recognized a one-time gain of $376.6 million and deferred revenue relating to license agreements of $187.4 million. Beginning October 1, 2009, SINA no longer consolidates the financial results of COHT and instead accounts for its interest in CRIC using the equity method of accounting. SINA will report its interest in CRIC one quarter in arrears, which will enable the Company to provide its financial disclosure independent of CRIC's reporting schedule. Due to the adoption of lag reporting for its investment in CRIC, net income attributable to SINA and basic and diluted net income per share attributable to SINA for the fourth quarter and fiscal year of 2009 do not include fourth quarter of 2009 equity income from CRIC.

To assist management and investors in gaining a better understanding of SINA's operating performance for the fourth quarter of 2009 and future periods, in addition to the disclosure of GAAP results below, SINA's historical revenues and certain non-GAAP measures (namely, gross profit, operating expenses, income from operations and advertising gross margin) have been revised to exclude COHT's results, adjusting for the impact of the amended and restated advertising agency agreement on a pro forma basis as if the agreement had been effective at the beginning of the periods presented ("COHT's adjusted results"). For further information regarding the Transaction and the amended and restated advertising agency agreement, see Form 6-K furnished to the Securities and Exchange Commission on December 23, 2009. For a description and reconciliation of non-GAAP measures to the corresponding GAAP measures, see section below entitled "Unaudited Reconciliation of Non-GAAP to GAAP Results."

    Fourth Quarter 2009 Highlights
    -- Net revenues decreased 3% year over year and increased 2% quarter over
       quarter to $98.2 million.
    -- Non-GAAP net revenues increased 5% year over year and 8% quarter over
       quarter to $93.5 million, within SINA's guidance between $93.0 million
       and $96.0 million.
    -- Advertising revenues decreased 9% year over year and 1% quarter over
       quarter to $63.2 million.
    -- Non-GAAP advertising revenues grew 12% year over year and 17% quarter
       over quarter to $63.2 million, exceeding SINA's guidance between
       $61.0 million and $63.0 million.
    -- Non-advertising revenues increased 9% year over year and 7% quarter
       over quarter to $35.0 million.
    -- Non-GAAP non-advertising revenues decreased 5% year over year and 7%
       quarter over quarter to $30.3 million, below SINA's guidance between
       $32.0 million and $33.0 million.
    -- Net income attributable to SINA was $372.1 million, or $6.03 diluted
       net income per share attributable to SINA.
    -- Non-GAAP net income attributable to SINA decreased 35% year over year
       and 5% quarter over quarter to $19.1 million, or $0.31 adjusted
       non-GAAP diluted net income per share attributable to SINA.

    Fiscal 2009 Highlights
    -- Net revenues decreased 3% year-over-year to $358.6 million.
    -- Non-GAAP net revenues decreased 2% year-over-year to $328.2 million.
    -- Advertising revenues decreased 12% year-over-year to $227.9 million.
    -- Non-GAAP advertising revenues decreased 9% year over year to
       $202.2 million.
    -- Non-advertising revenues increased 18% year-over-year to $130.7 million.
    -- Non-GAAP non-advertising revenues increased 13% year-over-year to
       $126.0 million.
    -- Net income attributable to SINA was $411.9 million, or $6.95 diluted
       net income per share attributable to SINA.
    -- Non-GAAP net income attributable to SINA decreased 26% year over year
       to $69.8 million or $1.18 adjusted non-GAAP diluted net income per
       share attributable to SINA.

"The solid performance of our online brand advertising in the fourth quarter allowed us to end 2009 on a high note, despite a very tough start exacerbated by the global financial crisis. Excluding the adjusted results of SINA real estate online advertising business, our online advertising business in the fourth quarter of 2009 grew double digits sequentially and year over year. With China's economy expected to continue its recovery, we plan to leverage our position as the market leader in China's online media platform to accelerate the growth rate of our online advertising business," said Charles Chao, CEO of SINA.

Financial Results

For the fourth quarter of 2009, SINA reported net revenues of $98.2 million, compared to $101.5 million in the same period in 2008 and $96.4 million for the third quarter of 2009.

Non-GAAP net revenues for the fourth quarter of 2009 totaled $93.5 million, compared to $88.7 million in the same period in 2008 and $86.5 million for the third quarter of 2009. Non-GAAP advertising revenues were $63.2 million, compared to $56.7 million in the same period in 2008 and $53.9 million for the third quarter of 2009.

Non-advertising revenues for the fourth quarter of 2009 totaled $35.0 million, compared to $32.0 million in the same period in 2008 and $32.6 million for the third quarter of 2009. MVAS revenues amounted to $28.6 million for the fourth quarter of 2009, compared to $30.0 million in the same period in 2008 and $30.9 million for the third quarter of 2009. The decline in MVAS revenues in the fourth quarter of 2009 was primarily due to a decline in mobile revenues derived from direct advertising. Other non-advertising revenues for the fourth quarter of 2009 included $4.7 million resulting from the recognition of deferred revenue relating to the license agreements resulting from the Transaction. Excluding such license revenue, non-GAAP other non-advertising revenues were $1.7 million for the fourth quarter of 2009, compared to $2.0 million in the same period in 2008 and $1.7 million for the third quarter of 2009.

Net revenues for 2009 were $358.6 million, compared to $369.6 million for 2008. Non-GAAP net revenues for 2009 totaled $328.2 million, compared to $333.8 million for 2008. Non-GAAP advertising revenues for 2009 totaled $202.2 million, compared to $222.7 million in 2008. MVAS revenues for 2009 amounted to $119.3 million, compared to $103.3 million from the previous year. Non-GAAP other non-advertising revenues for 2009 were $6.7 million, compared to $7.8 million in 2008.

Gross margin for the fourth quarter of 2009 was 56%, down from 60% for the same period last year and 59% last quarter. Cost of revenues for the fourth quarter of 2009 include: 1) $2.2 million in stock-based compensation related to accelerated vesting of additional restricted share units granted to key managers and employees and 2) $0.5 million in stock-based compensation related to the private equity financed shares issued to management (see further description in the operating expenses section below). Non-GAAP advertising gross margin for the fourth quarter of 2009 was 60%, compared to 61% from the same period last year and 59% last quarter. MVAS gross margin for the fourth quarter of 2009 was 50%, flat over the same period in 2008 and down from 54% last quarter. The sequential decline in MVAS gross margin was primarily due to higher content cost along with a decline in mobile revenues without a proportional decline in mobile costs.

Gross margin for 2009 was 56%, down from 59% for 2008. Non-GAAP advertising gross margin was 56% for 2009, down from 60% for 2008. The decrease in non-GAAP advertising gross margin was due to a decline in advertising revenues without a proportionate reduction in advertising cost of revenues. MVAS gross margin for 2009 was 52%, compared to 54% in the prior year.

Operating expenses for the fourth quarter of 2009 totaled $58.2 million, compared to $39.3 million from the same period last year and $38.3 million from last quarter. Operating expenses for the fourth quarter of 2009 include: 1) $10.2 million in stock-based compensation related to the private equity financed shares issued to management, which reflects mostly the appreciation in fair value of the financed shares issued to management between the agreement date with New Wave Investment Holding Company Limited ("New-Wave") in September 2009, when the price was set, and the closing of the private equity financing two months later, which is determined as the measurement date for accounting purposes, 2) $7.5 million in stock-based compensation related to accelerated vesting of additional restricted share units granted to key managers and employees to recognize their significant contribution in 2009, and 3) $2.4 million in the amortization of intangible assets related to UC Instant Messaging platform. In the fourth quarter of 2009, SINA launched a new UC IM platform that was completely internally developed. Based on positive results, SINA has decided to discontinue the use of the acquired UC IM platform as of March 31, 2010 and expects to write off the remaining $2.4 million of intangible assets related to the acquired UC IM platform in the first quarter of 2010.

Non-GAAP operating expenses for the fourth quarter of 2009 were $34.9 million, compared to $32.6 million from the same period last year and $32.9 million from last quarter. The year over year and quarter over quarter increases in non-GAAP operating expenses were mainly due to higher marketing expenditures, increased bonuses and other personnel-related expenses, partially offset by lower professional service fees.

Operating expenses for 2009 were $163.1 million, compared to $144.7 million in 2008. Non-GAAP operating expenses were $122.9 million for 2009, a 1% increase from 2008.

Interest and other income for the fourth quarter of 2009 was $1.5 million, compared to $5.8 million from the same period last year and $1.8 million from last quarter. The decrease in interest and other income was primarily due to lower interest rates, despite the increase in cash, cash equivalents and short-term investments. Gain on investments, net for the fourth quarter of 2009 included a gain of $376.6 million related to the Transaction.

Interest and other income for 2009 was $8.4 million, compared to $18.3 million last year. As discussed above, the decrease in interest and other income was primarily due to lower interest rates.

Provision for income taxes for the fourth quarter of 2009 was $1.0 million, compared to $1.8 million from the same period last year and $3.3 million from last quarter. Provision for income taxes for the fourth quarter of 2009 included a $0.8 million release as a result of the removal of tax uncertainty related to a tax deduction approved during the quarter.

Provision for income taxes for 2009 was $8.3 million, compared to $14.0 million for 2008. Excluding the tax liability release discussed above, the effective tax rate for the China operation in 2009 was 11%, compared to 14% for 2008.

Net income attributable to SINA for the fourth quarter of 2009 was $372.1 million, compared to $25.2 million for the same period last year and $16.7 million last quarter. Diluted net income per share attributable to SINA for the fourth quarter of 2009 was $6.03, compared to $0.42 in the same period last year and $0.29 last quarter. Non-GAAP net income attributable to SINA was $19.1 million for the fourth quarter of 2009, compared to $29.2 million for the same period of 2008 and $20.1 million last quarter. Non-GAAP diluted net income per share attributable to SINA was $0.31 for the fourth quarter of 2009, compared to $0.48 from the same period last year and $0.34 from last quarter.

Net income attributable to SINA for 2009 totaled $411.9 million, or $6.95 diluted net income per share attributable to SINA, compared to $80.6 million, or $1.33 diluted net income per share attributable to SINA for 2008. Non-GAAP net income attributable to SINA was $69.8 million, or $1.18 diluted net income per share, for 2009, compared to $94.1 million, or $1.56 non-GAAP diluted net income per share, for 2008.

As of December 31, 2009, SINA's cash, cash equivalents and short-term investments totaled $821.5 million, compared to $603.8 million at the end of last year. Cash flow from operating activities was $34.3 million for the fourth quarter of 2009, compared to $44.5 million for the same period last year. Cash flow from operating activities was $98.1 million for 2009, compared to $114.0 million for 2008.

Business Outlook

SINA estimates that its non-GAAP net revenues for the first quarter of 2010 will be between $78.0 million and $80.0 million, with non-GAAP advertising revenues to be between $53.0 million and $54.0 million, or an increase of 43% to 46% year over year, and non-GAAP non-advertising revenues to be between $25.0 million and $26.0 million, or a decrease of 15% to 18 % year over year.

Excluding any new shares that may be granted, SINA estimates its stock-based compensation for the first quarter of 2010 to be between $3.0 million to $4.0 million.

Private Equity Financing

On November 27, 2009, SINA announced the completion of the subscription for ordinary shares by 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, pursuant to the agreement entered into between SINA and New Wave in September 2009. At the closing, SINA received gross proceeds of $180 million, and New Wave received approximately 5.6 million ordinary shares in SINA. The shares issued to New Wave are subject to a six month lock-up and have customary registration rights pursuant to a Registration Rights Agreement entered into between SINA and New Wave.

Share Repurchase Program

Under the $100 million share repurchase program approved by SINA's Board of Directors, SINA purchased approximately 2.5 million shares in the open market at an average price of $20.37 for total consideration of $50 million during 2009. The repurchase program expired on December 31, 2009.

Non-GAAP Measures

This release contains non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of SINA'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 revenues, 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 items, including stock-based compensation, amortization of intangible assets, gain on the sale of noncontrolling interest in a subsidiary, gain/loss on the sale/purchase of business and investments, and recognition of deferred revenues relating to the license agreements resulting from the Transaction as well as COHT's adjusted results (for certain non-GAAP measures) 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 comparing the Company's current financial results with the Company's past financial results in a consistent manner, and 2) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does, if they so choose. The Company's management further believes the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains/losses and other items (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 the recognition of deferred revenues relating to the license agreements resulting from the Transaction from its non-GAAP financial measures is useful for itself and investors, because they enable a more meaningful comparison of the Company's revenue performance between reporting periods. In addition, such revenues will not result in cash settlement in the future 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 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 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 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 gain/loss on the disposal/purchase of a business, investment or non-controlling interest in a 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 Company's management believes excluding COHT's results, adjusting for the impact of the amended and restated advertising agency agreement on a pro forma basis as if the agreement had been effective at the beginning of the periods presented, from certain non-GAAP financial measures (namely, non-GAAP revenues, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income from operations and non-GAAP advertising gross margin) to reflect the spin off of COHT is useful for itself and investors, because they enable management and investors to gain a better understanding of the Company's comparative operating performance (when comparing such results with the current period or forecasts) and future prospects.

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 on March 3, 2010 to present an overview of the Company's financial performance and business operations. A live Webcast of the call will be available from 8:00 p.m. - 9:00 p.m. ET on Wednesday, March 3, 2010 (9: 00 a.m. - 10: 00 a.m. Beijing Time on March 4, 2010). The call can be accessed through the Company's corporate web site at http://corp.sina.com . A dial-in to the conference is also available. The number is +1 800 659 2056 (US) or +1 617 614 2714 (International) and the pass code is 29588281. A replay of the conference call will be available through March 10, 2010 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 50658367.

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 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 CRIC, including the merger of SINA 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, including SINA's Report of Foreign Issuer on Form 6-K filed on December 23, 2009.

    For further information, please contact:

    SINA Corporation
     Cathy Peng
     Phone: +86-10-8262-8888 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     Twelve months ended
                                  December 31,   September    December 31,
                                 2009     2008   30, 2009    2009      2008
    Net revenues:
        Advertising             $63,187  $69,518  $63,782  $227,895  $258,499
        Non-advertising          34,999   32,020   32,576   130,672   111,088
                                 98,186  101,538   96,358   358,567   369,587
    Cost of revenues:
        Advertising  (a)         28,857   25,152   25,104    99,835   100,008
        Non-advertising          14,584   15,566   14,627    58,457    50,327
                                 43,441   40,718   39,731   158,292   150,335
    Gross profit                 54,745   60,820   56,627   200,275   219,252

    Operating expenses:
        Sales and marketing
         (a)                     26,429   21,421   21,757    85,133    79,784
        Product development
         (a)                     10,607    8,279    7,851    33,777    30,371
        General and
         administrative (a)      18,221    9,235    8,324    40,025    33,179
        Amortization of
         intangibles              2,904      411      412     4,138     1,337
                                 58,161   39,346   38,344   163,073   144,671
    Income (Loss) from
     operations                  (3,416)  21,474   18,283    37,202    74,581

    Non-operating income:
       Interest and other
        income, net               1,467    5,787    1,848     8,371    18,270
       Gain on investments,
        net                     375,055       --       --   375,055     2,358
                                376,522    5,787    1,848   383,426    20,628

    Income before income taxes  373,106   27,261   20,131   420,628    95,209
    Provision for income taxes   (1,012)  (1,788)  (3,268)   (8,323)  (14,042)

    Net income                  372,094   25,473   16,863   412,305    81,167
       Less: Net income
        attributable to the
        noncontrolling
        interest                     11     (316)    (160)     (410)     (529)

    Net income attributable to
     SINA                      $372,105  $25,157  $16,703  $411,895   $80,638

    Basic net income per share
     attributable to SINA         $6.55    $0.45    $0.31     $7.53     $1.44
    Diluted net income per
     share attributable to
     SINA                         $6.03    $0.42    $0.29     $6.95     $1.33

    Shares used in computing
     basic net income per
     share attributable to
     SINA                        56,810   56,100   53,884    54,722    55,821
    Shares used in computing
     diluted net income per
     share attributable to
     SINA                        61,704   60,277   58,504    59,259    60,474

    (a) Stock-based
     compensation included was
     as follows:
        Cost of revenues -
         advertising             $3,532     $839     $622    $5,415    $3,251
        Sales and marketing       4,361      509      558     5,999     2,107
        Product development       2,839      514      435     4,124     1,984
        General and
         administrative          13,111    1,718    1,305    17,825     6,967




                                 SINA CORPORATION
               UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS
                (U.S. Dollar in thousands, except per share data)

                                                   Three months ended
                                                   December 31, 2009
                                                                     Non-GAAP
                                            Actual    Adjustments     Results

    Advertising revenues                    $63,187                   $63,187
    Non-advertising revenues                 34,999     (4,686) (e)    30,313
    Revenues                                $98,186    $(4,686)       $93,500

                                                         3,037  (a)
                                                           495  (g)
                                                        (4,686) (e)
    Gross profit                            $54,745    $(1,154)       $53,591

                                                       (10,080) (a)
                                                       (10,231) (g)
                                                        (2,904) (b)
    Operating expenses                      $58,161   $(23,215)       $34,946

                                                        13,117  (a)
                                                        10,726  (g)
                                                         2,904  (b)
                                                        (4,686) (e)
    Income (Loss) from operations           $(3,416)   $22,061        $18,645

                                                        13,117  (a)
                                                        10,726  (g)
                                                         2,904  (b)
                                                      (375,055) (d)
                                                        (4,686) (e)
    Net income attributable to SINA        $372,105  $(352,994)       $19,111

    Diluted net income per share
     attributable to SINA                     $6.03                     $0.31
    Shares used in computing diluted
     net income per share attributable
     to SINA                                 61,704                    61,704

    Gross margin - advertising                  54%         6%            60%

                                                   Three months ended
                                                   December 31, 2008
                                                                     Non-GAAP
                                            Actual    Adjustments     Results

    Advertising revenues                    $69,518    (12,851) (f)   $56,667
    Non-advertising revenues                 32,020                    32,020
    Revenues                               $101,538   $(12,851)       $88,687

                                                           839  (a)
                                                            89  (b)
                                                       (10,593) (f)
    Gross profit                            $60,820    $(9,665)       $51,155

                                                        (2,741) (a)
                                                          (411) (b)
                                                        (3,603) (f)
    Operating expenses                      $39,346    $(6,755)       $32,591

                                                         3,580  (a)
                                                           500  (b)
                                                        (6,990) (f)
    Income (Loss) from operations           $21,474    $(2,910)       $18,564

                                                         3,569  (a)
                                                           470  (b)
    Net income attributable to SINA         $25,157     $4,039        $29,196

    Diluted net income per share
     attributable to SINA                     $0.42                     $0.48
    Shares used in computing diluted
     net income per share attributable
     to SINA                                 60,277                    60,277

    Gross margin - advertising                  64%        -3%            61%

                                                   Three months ended
                                                   September 30, 2009
                                                                     Non-GAAP
                                            Actual    Adjustments     Results

    Advertising revenues                    $63,782     (9,875) (f)   $53,907
    Non-advertising revenues                 32,576                    32,576
    Revenues                                $96,358    $(9,875)       $86,483

                                                           622  (a)
                                                            88  (b)
                                                        (7,797) (f)
    Gross profit                            $56,627    $(7,087)       $49,540

                                                        (2,298) (a)
                                                          (412) (b)
                                                        (2,757) (f)
    Operating expenses                      $38,344    $(5,467)       $32,877

                                                         2,920  (a)
                                                           500  (b)
                                                        (5,040) (f)
    Income (Loss) from operations           $18,283    $(1,620)       $16,663

                                                         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%        -2%            59%

                                                  Twelve months ended
                                                   December 31, 2009
                                                                     Non-GAAP
                                            Actual    Adjustments     Results

    Advertising revenues                   $227,895    (25,702) (f)  $202,193
    Non-advertising revenues                130,672     (4,686) (e)   125,986
    Revenues                               $358,567   $(30,388)      $328,179

                                                         4,920  (a)
                                                           495  (g)
                                                           265  (b)
                                                        (4,686) (e)
                                                       (20,409) (f)
    Gross profit                           $200,275   $(19,415)      $180,860

                                                       (17,717) (a)
                                                       (10,231) (g)
                                                        (4,138) (b)
                                                        (8,117) (f)
    Operating expenses                     $163,073   $(40,203)      $122,870

                                                        22,637  (a)
                                                        10,726  (g)
                                                         4,403  (b)
                                                        (4,686) (e)
                                                       (12,292) (f)
    Income from operations                  $37,202    $20,788        $57,990

                                                        22,596  (a)
                                                        10,726  (g)
                                                         4,313  (b)
                                                      (375,055) (d)
                                                        (4,686) (e)
    Net income attributable to SINA        $411,895  $(342,106)       $69,789

    Diluted net income per share
     attributable to SINA                     $6.95                     $1.18
    Shares used in computing diluted
     net income per share attributable
     to SINA                                 59,259                    59,259

    Gross margin - advertising                  56%         0%   *        56%

                                                  Twelve months ended
                                                   December 31, 2008
                                                                     Non-GAAP
                                            Actual    Adjustments     Results

    Advertising revenues                   $258,499    (35,765) (f)  $222,734
    Non-advertising revenues                111,088                   111,088
    Revenues                               $369,587   $(35,765)      $333,822

                                                         3,251  (a)
                                                           266  (b)
                                                       (28,145) (f)
    Gross profit                           $219,252   $(24,628)      $194,624

                                                       (11,058) (a)
                                                        (1,337) (b)
                                                       (11,083) (f)
    Operating expenses                     $144,671   $(23,478)      $121,193

                                                        14,309  (a)
                                                         1,603  (b)
                                                       (17,062) (f)
    Income from operations                  $74,581    $(1,150)       $73,431

                                                        14,295  (a)
                                                         1,513  (b)
                                                        (3,137) (c)
                                                           779  (d)
    Net income attributable to SINA         $80,638    $13,450        $94,088

    Diluted net income per share
     attributable to SINA                     $1.33                     $1.56
    Shares used in computing diluted
     net income per share attributable
     to SINA                                 60,474                    60,474

    Gross margin - advertising                  61%        -1%            60%


    (a) To adjust stock-based compensation related to employee incentives
    (b) To adjust  amortization of intangible assets
    (c) To adjust gain on the disposal of noncontrolling interest in a
        subsidiary
    (d) To adjust gain/loss on the disposal/purchase of business and
        investments
    (e) To adjust the recognition of deferred revenue related to the license
        agreements resulting from the Transaction.
    (f) To exclude COHT's results, adjusting for the impact of the amended
        and restated advertising agency agreement on a pro forma basis as if
        the agreement had been effective at the beginning of the period
        presented
    (g) To adjust stock-based compensation related to the private equity
        financed shares issued to management

    * Rounding


                                 SINA CORPORATION
                          UNAUDITED SEGMENT INFORMATION
                           (U.S. Dollar in thousands)

                                   Three months ended     Twelve months ended
                                  December 31,  September     December 31,
                                 2009      2008  30, 2009    2009      2008
    Net revenues
    Advertising                $63,187   $69,518  $63,782  $227,895  $258,499
    Mobile related              28,596    29,993   30,881   119,341   103,318
    Others                       6,403     2,027    1,695    11,331     7,770
                               $98,186  $101,538  $96,358  $358,567  $369,587

    Cost of revenues
    Advertising                $28,857   $25,152  $25,104   $99,835  $100,008
    Mobile related              14,207    14,930   14,223    56,851    48,005
    Others                         377       636      404     1,606     2,322
                               $43,441   $40,718  $39,731  $158,292  $150,335




                                   SINA CORPORATION
                     UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                (U.S. Dollar in thousands)

                                               December 31,      December 31,
                                                    2009              2008
                               Assets
    Current assets:

        Cash and cash equivalents                  $746,423         $383,320
        Short -term investments                      75,095          220,504
        Accounts receivable, net                     74,999           79,183
        Other current assets                         22,381            9,424
              Total current assets                  918,898          692,431

    Property and equipment, net                      23,022           34,111
    Goodwill and intangible assets, net              87,740           94,527
    Investments                                     580,606               --
    Other assets                                      3,576            1,425
    Total assets                                 $1,613,842         $822,494

          Liabilities and Shareholders' Equity
    Current liabilities:
        Accounts payable                             $1,918           $1,397
        Accrued liabilities                         108,970           76,119
        Income taxes payable                         14,526           17,391
        Convertible debt                             99,000           99,000
             Total current liabilities              224,414          193,907

    Other long-term liabilities                     166,729            4,039
             Total liabilities                      391,143          197,946

    Shareholders' equity
        SINA shareholders' equity                 1,221,727          620,505
        Noncontrolling interest                         972            4,043
             Total shareholders' equity           1,222,699          624,548

    Total liabilities and shareholders'
     equity                                      $1,613,842         $822,494

SOURCE SINA Corporation