Based on current estimates and market conditions, Noah expects to generate in the range of US$3.7 million to US$4.0 million in revenue from education services for the fourth quarter of fiscal 2011. For the full fiscal year 2011, Noah expects to generate education services revenue between US$13.5 million and US$13.7 million.
"Looking ahead, our growth remains on track. The four Wentai kindergartens that were under conversion during the third fiscal quarter are due to contribute to revenue in the quarter ended June 2011, three new schools or kindergartens are scheduled to open by September 2011, and contracts have been signed to open three kindergartens and one school in 2012. The US$75 million cash, cash equivalents and short-term investments on our balance sheet at the end of March stands us in good stead to continue our organic and acquisitive growth. As we progress through this transitional period, we anticipate revenue in the range of RMB24.5 million – RMB26 million during the fourth fiscal quarter from Little New Star and Wentai Education, which constitute our existing education services portfolio."
Noah Education Holdings today announced that the board of directors of the Company has received an indicative non-binding offer from Mr. Benguo Tang, one of Noah's founders, to acquire Noah's Electronic Learning Product business and operating assets (excluding cash and the office building in Chengdu). In connection with the submission of the Offer, Mr. Tang has also resigned from his role as Noah's President and Chief Operating Officer. Mr. Tang submitted the offer to the Board on February 22, 2011. The offer indicated a preliminary price range of RMB90 million to RMB120 million. While evaluating the proposal from Mr. Tang, the Special Committee is also authorized to solicit offers from other potential purchasers and will continue to assess other alternatives, including closure of the ELP business.