This summary is based on the fourth quarter fiscal 2007 earnings call conducted by SINA Corp. (SINA: chart) on February 20, 2008.

Management:

CEO and President: Charles Chao
Acting CFO: Herman Yu
IR Manager: Cathy Peng

Key Investor Issues:

- GAAP diluted net income per share rose from 20 cents last year quarter to 29 cents in the current year quarter.
- Quarter-over-quarter net revenues were up 10% to $70.7 million from $56.4 million.

Fiscal Year 2007 Financial Highlights

- The net revenues increased by 16% to $246.1 million from $212.9 million in 2006.
- Advertising revenues grew by 41% to $168.9 million versus the tough 2006 despite the FIFA World Cup benefit.
- The Chinese advertising revenues grew by 41% to $165.2 million versus fiscal year 2006.
- The non-advertising revenues dipped 17% year-over-year to $77.2 million, due to a decline in MVAS non-advertising revenues, which were down 18% year-over-year to $70.5 million.

- GAAP net income jumped 45% year-over-year to $57.7 million. The diluted net income per share was firmer at 97 cents compared with 69 cents for fiscal year 2006.
- Non-GAAP net income closed the year 30% higher at $67.1 million from last year and non-GAAP diluted net income was $1.12 per share versus 88 cents per share past year.

- The gross margin for the year was 62%, a 1% drop from 63% in 2006, whilst advertising gross margin decreased to 62% versus 65% in the past year, due to increased costs associated with bandwidth and content.
- The mobile value-added service (MVAS) gross margin declined from 61% last year to the current 56% because of lower MVAS revenues without a proportionate decrease in related content and channel costs.

- Operating expenses marginally put on 2% to $100.4 million from last year figures and non-GAAP operating expenses increased by 4% in 2006 to $92.3 million in 2007.
- The full year short-term investments rose from $362.8 million in 2006 to $478 million in 2007.
- During the year, web traffic increased by 44% on an annual basis as more Chinese Internet users turn to the company for major event coverage.

Fourth-Quarter Financial Highlights

The fourth quarter net revenues surpassed the company’s previous guidance of $68 million to $70 million.

The realized net revenues increased by 10% quarter-over-quarter to $70.7 million whilst third quarter net revenues were $64.3 million. Non-advertising revenues also exceeded the management’s previous guidance of between $19 million and $20 million, following an 11% quarter-over-quarter increase to $20.6 million helped by improved MVAS business, which grew by 12% quarter-over-quarter.

Quarterly advertising revenues were $50.1 million, an increase of 40% from the same period last year and 9% sequential increase. The fourth quarter marked the seventh consecutive quarter that the company was able to grow online advertising revenues by at least 40% on a year-over-year basis.

The management reported that the growth in advertising revenues was mainly driven from China, which had total quarter revenues of $49.1 million, 41% firmer from fourth quarter fiscal 2006 and 10% versus third quarter fiscal 2007. The fourth quarter advertising represented 71% of total revenue as against 63% in the last year quarter. The financial services sector surpassed IT sector becoming the best sector for advertising revenue growth in the fourth quarter, 119% higher than last year quarter, and effectively became the third largest revenue contributor for the company for the first time.

During the quarter, China Mobile started to implement a score and ranking system among mobile service providers and the system helped curb the aggressive marketing efforts by smaller service providers and in turn helped provide a better competitive environment for market leaders like SINA.

The gross margin for the quarter was 62%, flat over the same period last year and last quarter.

- The advertising quarter gross margin was 64% compared with 65% in the year ago quarter.
- The non-GAAP advertising gross margin for the quarter was 65% versus 66% last year and flat over previous quarter.

The management reported fourth quarter operating expenses totaling $28.3 million, 15% higher over last year quarter.

Sequentially, the increase was 14% and quarter non-GAAP operating expenses were 15% higher at $25.8 million compared with $22.4 million fourth quarter of 2006. The sequential increase was 12% fueled by increased marketing expenses on corporate branding and MVAS business.

The company posted fourth quarter net income of $17.5 million, representing a 49% improvement from same period last year and 2% sequentially.