Business Outlook for the Third Quarter 2011: Total revenues $69.0 million to $70.5 million. Non-GAAP net income $13.75 million to $14.25 million (The Company's non-GAAP net income excludes share-based compensation expenses and impairments on investments). The Company bases these estimates on a foreign exchange rate of RMB6.50 to US$1.00.
Charm Communications announced today that it has acquired a 60% stake in privately-held ClickPro (www.clickpro.cn), a leading Chinese performance and search engine marketing (SEM) firm with proprietary technology and full-service capabilities, through an all-cash transaction expected to close in the third quarter of 2011. The newly acquired group will strengthen Charm's performance marketing platform by integrating with Charm's existing search and performance marketing business, which operates under Charm's digital marketing agency Charm Interactive, to form Charm's fourth major brand, Charm Click.
ClickPro is a leading SEM firm in China with a proprietary platform linked to Baidu and Google and full-service capabilities for SEM campaigns. ClickPro's performance marketing services and technologies have attracted a number of leading Chinese and international companies including SINA, 51job.com, PayPal, Estee Lauder, Air China, Gap and Li Ning. Additionally, the company has developed and maintained a client software paid-search optimization product used on Taobao, the largest online retail website in China with more than 50 million unique visitors daily. ClickPro has 58 employees, including 12 engineers, with offices in Shanghai, Beijing and Guangzhou. The company was founded in 2007 by founder, general manager and SEM pioneer Mr. Johnny Honggang Zhu, along with other former Google China and eBay China employees. While at Google China, Mr. Zhu developed and trained the company's first SEM team and headed sales support for its key accounts following his role as senior marketing director and head of digital marketing activities at eBay China. Mr. Zhu will lead Charm Click and report directly to Charm Communications Founder, Chairman and CEO, Mr. He Dang
"The acquisition of ClickPro is a strategic step in expanding our digital service capabilities and enhancing our SEM platform as we aim to become the number one performance marketing agency in China. China's SEM industry is in an early stage of development with over 50% annual growth expected from 2010-2014 according to iResearch. We believe the acquisition provides us the best team and technology to capitalize on the industry's growth potential while meeting our clients' increasing demand for performance marketing. As we further develop our SEM and open application services and technologies for leading websites like Baidu and Taobao, Charm's integrated advertising platform and large client base combined with ClickPro's proprietary platform and leading SEM operations will bolster Charm Click's ability to conduct integrated and targeted marketing campaigns on behalf of advertisers."
Business outlook for the second quarter of 2011: Total Revenues of $66.0 million to $67.5 million and non-GAAP Net Income of $11.25 million to $11.75 million. The Company bases these estimates on a foreign exchange rate of RMB6.58 to US$1.00.