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Dice Holdings Inc. Reports Operating Results (10-Q)

July 25, 2012 | About:
10qk

10qk

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Dice Holdings Inc. (DHX) filed Quarterly Report for the period ended 2012-06-30.

Dice Holdings, Inc. has a market cap of $549.6 million; its shares were traded at around $8.23 with a P/E ratio of 16.4 and P/S ratio of 3.1. Dice Holdings, Inc. had an annual average earning growth of 0.8% over the past 5 years.

Highlight of Business Operations:

The Finance segment experienced a decline in revenue of $1.8 million, or 15.3%. The decrease was the result of continued declines in recruitment activity, beginning in the second half of 2011, primarily due to the global economic slowdown including the European debt crisis and United Kingdom recession causing companies to slow hiring, decreasing the demand for our product. Currency impact for the three month period ended June 30, 2012 was a decrease to revenue of approximately $250,000. In originating currency, revenue decreased 8% in the Asia Pacific region, 10% in the UK, 12% in North America, and 27% in Continental Europe.

Our cost of revenues for the three month period ended June 30, 2012 was $3.8 million compared to $3.6 million for the same period in 2011, an increase of $233,000, or 6.5%. The increase in cost of revenues was primarily the result of an increase of $241,000 in the Energy segment, due to an increase in costs associated with recruitment events, partially offset by a decrease in costs related to the hosting of our website. The Other and Tech & Clearance segments experienced increases of $81,000 and $45,000, respectively. The Tech & Clearance segment increased due to our investment in an integrated enterprise platform to better service all of our brands, and the related personnel and consulting services to drive this initiative. This was partially offset by a decrease in expense for sales tax liabilities. The Finance segment experienced a decrease in cost of revenues of $134,000 compared to same period in 2011. The decrease was primarily related to a decrease in expense for sales tax liabilities.

Sales and marketing expenses for the three month period ended June 30, 2012 were $16.0 million compared to $15.6 million for the same period in 2011, an increase of $465,000 or 3.0%. The Tech & Clearance segment experienced an increase in sales and marketing of $806,000 compared to the same period in 2011, to $10.4 million. The increase is primarily related to an increase in advertising and other marketing costs of $822,000, due to increased spend for our online advertising, email and social network campaigns, as well as various advertising programs focused on specific geographical markets. We drive usage by professionals of our sites through a combination of marketing and by improving product features and functionality.

Our cost of revenues for the six month period ended June 30, 2012 was $7.0 million compared to $6.3 million for the same period in 2011, an increase of $669,000, or 10.6%. The increase in cost of revenues was primarily the result of an increase of $343,000 in the Tech & Clearance segment. The increase at the Tech & Clearance segment was mainly due to our investment in an integrated enterprise platform to better service all of our brands, and the related personnel and consulting services to drive this initiative. The increase was partially offset by a decrease in expense for sales tax liabilities. The Energy segment experienced an increase of $318,000 related to costs associated with events and an increase in salary and related costs due to continued increases in sales performance, requiring additional customer support personnel. The increase in the Energy segment was partially offset by a decrease in costs related to the hosting of our website. The Other segment experienced an increase of $134,000, primarily related to costs associated with job fairs. Cost of revenues in the Finance segment decreased by $126,000 compared to the same period in 2011 due to a decrease in expense for sales tax liabilities.

During the six month period ended June 30, 2012, cash used by investing activities was $3.8 million compared to cash used of $1.9 million in the six month period ended June 30, 2011. Cash used by investing activities in the six month period ended June 30, 2012 was primarily attributable to $3.1 million to purchase fixed assets and $1.7 million for the purchase of investments, partially offset by $999,000 for sales of investments. Cash used by investing activities in the six month period ended June 30, 2011 was primarily attributable to $3.5 million of cash used to purchase fixed assets and $250,000 for purchases of investments, offset by a net amount of $1.9 million of sales of investments.

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