Atai Life Sciences N.v. (NASDAQ:ATAI)

WEB NEWS

Friday, June 28, 2019

Acquisitions

BEIJING, June 28, 2019 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a company focused on providing students with quality educational experiences and services in China and abroad, today announced that the Company has entered into a definitive agreement (the “Definitive Agreement”) with Beijing Huanqiuyimeng Education Consultation Corp. (“ACG”) and certain of its major shareholders and core management members for the acquisition of ACG. ACG is a leading provider of educational services for students in China interested in applying for overseas art study.

As previously announced in a press release on April 9, 2019, the Company had entered into framework agreements and certain conditional share purchase agreement and deposit agreement in connection with the acquisition of ACG, pursuant to which ACG and its major shareholders, including its founder Mr. Jun Zhang, agreed to negotiate exclusively with ATA for the acquisition of 100% equity interest of ACG.

ATA to Issue Shares for Acquisition of ACG
Under the terms of the Definitive Agreement, ATA will issue 9,360,000 ordinary shares to Arts Consulting Limited (“ArtsCL”), the sole shareholder of ACG International Group Limited (“ACGIGL”) holding 69.04% equity interest in ACG, as consideration for 100% of shares of ACGIGL. Upon the closing of the transactions under the Definitive Agreement, ATA will become the sole shareholder of ACGIGL and indirectly hold 69.04% equity interest in ACG, and ArtsCL will become a holder of 16.5% of ATA’s shares calculated on a fully diluted basis.

The acquisition is expected to close before the end of August 2019, subject to the satisfaction of various conditions precedent in the Definitive Agreement, including but not limited to ATA receiving the business license, corporate seal and other important corporate documents of each and all subsidiaries wholly owned or controlled by ACGIGL, as well as the updated register of members and register of directors of ACGIGL reflecting that ATA has become its sole shareholder and that the individuals recognized or appointed by ATA have been named directors.

In addition, the Company has entered into separate conditional share purchase agreements with certain of ACG’s minority shareholders, pursuant to which ATA shall in aggregate acquire the remaining 30.96% equity interest in ACG from such minority shareholders. The closings of such acquisitions are respectively conditional upon the signing and effectiveness of the Definitive Agreement or the closing of the transactions under the Definitive Agreement.


Tuesday, May 14, 2019

Comments & Business Outlook

First Quarter 2019 Financial Results

  • ATA’s total net revenues for the three months ended March 31, 2019, were RMB1.6 million (US$0.2 million), compared to RMB0.1 million in the prior-year period. 
  • Net loss from continuing operations attributable to ATA Inc. for the three months ended March 31, 2019, was RMB12.9 million (US$1.9 million), compared to a net loss of RMB14.6 million in the prior-year period.

Mr. Kevin Ma, Chairman and CEO, stated, “We have been working diligently on creating fully integrated, subject-based PBL-driven programs for students while simultaneously seeking further acquisitions that would enhance these programs. The combination of technology and ‘first-hand’ overseas educational experience is where ATA can best leverage its experience and relationships to identify the best possibilities for growth. While we are still in the initial stages of reviewing a potential acquisition of ACG, we do believe it represents a unique opportunity to carve a leading position in the rapidly growing overseas art study market. We are excited by the potential of integrating our existing operations with that of ACG and continue exploring additional investment opportunities in the international education sector consistent with our investment criteria.”



Tuesday, April 9, 2019

Acquisitions

BEIJING, April 09, 2019 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a company focused on providing students with quality educational services in China and abroad, today announced that it entered into non-binding framework agreements (the “Framework Agreement”) and certain related conditional share purchase agreement and deposit agreement (collectively and together with the Framework Agreements, the “Preliminary Agreements”) with Beijing Huanqiuyimeng Education Consultation Corp. (“ACG”) and certain of its shareholders for a proposed acquisition of ACG.  ACG is a leading provider of educational services for students in China who are interested in applying for overseas art study.

ATA Exploring Potential Opportunities in International Education
Over the past year, ATA has continued to work toward its long-term goal of leveraging ATA’s expertise in assessment/education technologies and services, as well as industry relationships, to transform ATA into a leading international education service provider. The Company has been actively exploring merger and acquisition opportunities where ATA can create a unique value proposition for students and schools in China and abroad.

Management Commentary
Mr. Kevin Ma, ATA’s Chairman and CEO, stated, “Over the past few years, we have identified a significant opportunity to grow in certain strategic markets for domestic and international educational markets. The art education market is of particular interest due to rapidly growing interest in China and need for international education experience to enhance the learning capabilities of students.  The market has a low concentration, and we believe that ACG has a strong presence and is taking advantage of this opportunity to grow. ATA’s collaboration with ACG would provide considerable synergies in our core competencies as well as help to greatly enhance its market position.  In addition, we will also continue to explore and validate other potential areas of expansion where appropriate.”

Background on the International Art Education Market
Driven by increasing demand for more diverse international education opportunities by urban families in China, the overseas art education market is particularly attractive as a growing number of China-based students are seeking international education opportunities. China remains the world’s no. 1 source of international students and sends the largest number of students overseas for study. According to the Ministry of Education, 544,500 Chinese students pursued study abroad opportunities in 2016, more than triple the 179,800 students who sought overseas education in 2008.

ACG – A Leading Service Provider of Overseas Art Education in China (https://www.acgorg.net/)
With 22 direct campus locations covering 21 cities throughout China, ACG specializes in providing portfolio preparation courses, consultation of overseas art study application and other relevant services to students and young professionals who are interested in art and aiming at studying art abroad. In the past few years, ACG has been dedicated to creating an overall ecology in the field of international creative education and building a one-stop business line in order to upgrade and enhance the comprehensive commercial benefits of the Company. Utilizing its offline national sales network and online platform, ACG is expanding rapidly in the overseas art education market in China.

By leveraging the synergies between ATA’s and ACG’s respective services, operational capabilities, markets, resources and competencies, ATA believes the management team of ACG will be in a better position to maintain its leadership position within the industry and accelerate the growth of its business.

Transaction Timeline
Under the terms of the Preliminary Agreements, ACG and its major shareholders, including its founder, will negotiate exclusively with ATA until June 30, 2019 for an acquisition of 100% of the share capital of ACG (the “Acquisition”), and in connection therewith, ATA will pay an aggregate deposit of RMB20 million to certain of ACG’s major shareholders. If the Acquisition is not completed by June 30, 2019 due to reasons contributable to ATA, then such major shareholders shall be entitled to retain the related deposit as damages. If the Acquisition is not completed by June 30, 2019 due to reasons contributable to ACG and/or such major shareholders, then the deposit shall be returned to ATA and ATA is entitled to damages in equivalent amount. The Company will provide additional detail on the Acquisition as it proceeds further in the due diligence process.


Friday, March 15, 2019

Comments & Business Outlook

Fourth Quarter 2018 Financial Results

  • ATA’s total net revenues for the three months ended December 31, 2018, were RMB0.2 million (US$0.03 million), compared to RMB2.1 million in the prior period. This decrease was primarily due to the reclassification of approximately RMB1.5 million in rental income from net revenues to other operating income, net, as a result of the adoption of new revenue guidance ASC 606, effective January 1, 2018. Related costs of approximately RMB0. 5 million were also reclassified from cost of revenues to other operating income, net.
  • Loss from continuing operations, net of income taxes, for the three months ended December 31, 2018, improved to RMB25.9 million (US$3.8 million), compared to RMB39.7 million in the prior period, primarily due to the consulting fees of RMB 10.8 million associated with investing and financing activities recorded in prior period.

For several years, ATA has noted in its traditional business a market need for ancillary services that provide students the opportunity to achieve their educational goals in a manner that is both specific to interests and global in nature.  Over the past year, the Company has dedicated its resources to creating a project-based learning educational experience complementary to classroom-based learning for students in China.

ATA has formally named the foregoing initiative as “ATA Project-Based Learning Business,” or PBL. ATA has appointed Ms. Nan Sun as Chief Executive Officer of PBL, utilizing her 18 years of experience in the international education space and US market. The Company expects to launch a fully integrated subject based program for students by the end of 2019, and will continue to update investors on its progress over the coming months.

This new program will be split into three stages, including:
1) a preparatory stage offering online learning courses designed to prepare students in necessary skills in an area of their choosing;
2) an overseas stage which integrates classroom-based learning, and out of school guided-learning tours that allow students to discover and be “hands on” within the specific subject area either as a group or individually; and
3) a final presentation stage designed to encourage students to showcase their learning and achievement in various forms.

Management Commentary

Mr. Jack Huang, ATA’s President, stated, “We are very excited to move forward with PBL, which we believe is an important step in offering students in China with a completely new method of integrated learning. This immersive experience is unique to ATA, and we anticipate continuing to build the infrastructure and foster the necessary academic connections in the coming months for anticipated enrollment growth beginning in 2019. Our goal has been to transform ATA into a leading international education service provider, leveraging our previous expertise in testing and services with an expanding breath of technology to provide students in China with new options to further their educational goals.”

Mr. Huang concluded, “We have sufficient capital to grow PBL while simultaneously exploring other opportunities within the education sector that can enhance our enrollment capabilities or strength of this project-based learning program. Our management team has a history of improving shareholder value and returning capital to our loyal international shareholder base, as evidenced by our completion of the special cash dividend following the closing of our sale of ATA Online.”


Friday, January 18, 2019

Comments & Business Outlook

BEIJING, Jan. 18, 2019 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a company focused on providing students with quality educational experiences and services in China and abroad, today announced that the Company entered into an extension agreement (the “Extension Agreement”) with respect to the previously announced definitive acquisition agreements (the “Acquisition Agreements”) entered into between ATA and its affiliates, Beijing Biztour International Travel Service Co., Ltd. and its affiliates (“Beijing Biztour”), the shareholders of Beijing Biztour (the “Sellers”) and certain other relevant parties. According to the Extension Agreement, the parties agreed to extend the closing deadline under the Acquisition Agreements from December 31, 2018 to February 28, 2019, provided that all the closing conditions under the Acquisition Agreements and the Extension Agreement shall be satisfied by Beijing Biztour and the Sellers by then. The Extension Agreement will be available as an exhibit to a Form 6-K that will be furnished on the SEC EDGAR filing system on the same date as the issuance of this release. ATA cautions investors that there are no assurances that the Acquisition will finally close or will close by the newly extended deadline as planned. The Company is also exploring other potential mergers and acquisitions targets in the international education sector.


Monday, August 27, 2018

Special Dividend

BEIJING, Aug. 24, 2018 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a company focused on providing students with quality educational experiences and services in China and abroad, today provided an update on its long-term strategy following the completion of the sale of its testing services business (the “Transaction”). Investors may access additional information regarding the Transaction on the SEC Filings page on ATA’s website or on the U.S. Securities and Exchange Commission website at www.sec.gov.

With the Transaction completed, ATA no longer conducts its testing development and delivery business and, following the payout of the previously announced US$6.00 per ADS special cash dividend to shareholders, expects to have approximately US$23.0 million to US$26.0 million in cash from proceeds received from the Transaction. The Company intends to use this capital to explore potential merger and acquisition targets in the education sector, such as the recently announced anticipated acquisition of Beijing Biztour International Travel Service Co., Ltd. (“Beijing Biztour”), a provider of international educational study tour and travel services for students in China who are interested in overseas study tours primarily in the U.S., United Kingdom, and Australia, while continuing to develop the Company’s remaining businesses, which include:

K-12 education assessment tools and content;
the Nanjing University Project Shuang Chuang;
the Research Project with the Education and Research Institute of Tsinghua University; and
minority strategic investments in certain education technology companies, including Beijing Empower Education Online, Co., Ltd., ApplySquare Education & Technology Co., Ltd., Beijing GlobalWisdom Information Technology Co., Ltd., Brilent, Inc., Beijing Satech Internet Educational Technology Ltd. and Master Mind Education Company.
ATA intends to maintain its listing on the Nasdaq Stock Market (the “Nasdaq”), and its reporting obligations as a SEC-registered public company are unaffected by the consummation of the Transaction.

Mr. Jack Huang, ATA’s President, stated, “We continue to work closely with the Beijing Biztour team and have already begun outlining plans to maximize the distribution network throughout China to increase our reach to the growing population of students seeking learning experiences through global travel. We also expect to recruit additional leadership personnel to help us move forward on our long-term goal of transforming ATA into a leading international education service provider. As we work on these growth initiatives, ATA fully expects to maintain its Nasdaq listing, working to maximize shareholder interests with a goal of returning value to our shareholders. With our expertise in assessment/learning technologies and reputation within the industry, we believe we are well positioned to execute on our growth strategy. We look forward to speaking with investors about our plans for the future in the coming weeks.”


Thursday, August 9, 2018

Special Dividend

BEIJING, Aug. 08, 2018 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that its Board of Directors has declared a special cash dividend of US$3.00 per common share, or US$6.00 per American Depositary Share (ADS) in connection with and conditioned upon the final closing of the sale of ATA Online (Beijing) Education Technology Co., Ltd. (“ATA Online”), the Company’s subsidiary that operates the testing services and delivery business.

The total amount of cash distributed in the dividend is expected to be approximately US$140 million. The dividend will be paid on or around August 24, 2018, to all shareholders of record as of the close of business on August 20, 2018, subject to and conditioned upon the final closing of the sale of ATA Online (the “Transaction”). The number of weighted average ADSs used to calculate both basic and diluted earnings per ADS for the quarter ended March 31, 2018, were 22.9 million. Each ADS represents two common shares.

Not including this special cash dividend, the Company has distributed approximately US$1.42 per ADS in dividends in aggregate as a measure of rewarding shareholders for their continued support since 2008.

Because the special cash dividend represents more than 25% of the closing trading price of ATA’s ADSs on August 8, 2018, the Nasdaq Stock Market (the “Nasdaq”) determined that ATA’s ADSs will trade with “due-bills” representing an assignment of the right to receive the cash dividend from the day prior to the record date through the payment date. The ADSs will not trade ex-dividend until the first business day after the payment date. Stockholders who sell their ADSs on or before the payment date will not be entitled to receive the cash dividend.

Due-bills obligate a seller of shares of stock to deliver the dividend payable on such shares to the buyer. The due-bill obligations are settled customarily between the brokers representing the buyers and sellers of the stock. ATA has no obligation for either the amount of the due-bill or the processing of the due-bill. Buyers and sellers of ATA’s ADSs should consult their brokers before trading to be sure they understand the effect of the Nasdaq’s due-bill procedures.

Mr. Kevin Ma, ATA’s Chairman and CEO, stated, “We are pleased to announce our Board’s approval of this special cash dividend, which is conditioned upon the successful completion of the third closing of the Transaction. We anticipate consummating the final closing of the Transaction earlier than our original deadline of late third quarter 2018. We appreciate the ongoing support of our shareholders as ATA continues to evolve with the ever-changing education industry in China and are pleased to be in a position to return capital to our loyal shareholders with this special dividend. Our Company completed its IPO in January 2008 at a price of $9.50 per ADS. With the addition of this special dividend, we will have paid out US$7.42 per ADS back to shareholders while pursuing acquisition opportunities within the education sector.”


Wednesday, June 27, 2018

Going Private News

BEIJING, June 27, 2018 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company", (ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that ATA, three of the four management buyers (the “Management Buyers”), holding companies controlled by certain management members of ATA’s subsidiary ATA Online (Beijing) Education Technology Co., Ltd. (“ATA Online”), and certain other parties have entered into a Deed of Assignment (the “Deed”) with Zhuhai Lihonghuaying Equity Investment Partnership (LP) (the “LHHY Buyer”), a China-based entity principally engaged in private equity investments, with respect to the assignment of certain rights and obligations of the Management Buyers under the previously announced share purchase agreement into which ATA, the Management Buyers, and certain other parties entered on February 6, 2018, with respect to the sale of ATA Online (the “Share Purchase Agreement”).

Under the terms of the Deed, the Management Buyers have agreed to assign all their rights and obligations to purchase a total of 15% of the equity interests in ATA Online (the “Assigned Shares”) to the LHHY Buyer, and the LHHY Buyer has agreed to accept the assignment and assumption of all of the terms, conditions, provisions and covenants on the part of the Management Buyers under the Share Purchase Agreement with respect to such Assigned Shares (except certain representations and warranties of the Management Buyers relating to the source of funds and debt financing which are not applicable to the LHHY Buyer), including the obligation to pay the amount of US$30 million as the purchase price for the Assigned Shares at the second closing outlined under the Share Purchase Agreement.

After the Deed takes effect, the LHHY Buyer shall have the right to purchase 15% of the equity interests in ATA Online under the Share Purchase Agreement, and the percentage of the equity interests in ATA Online that the Management Buyers have the right to purchase under the Share Purchase Agreement shall decrease from 22.1% to 7.1%.


Friday, May 11, 2018

Comments & Business Outlook

First Quarter 2018 Financial Results

  • ATA’s total net revenues for the three months ended March 31, 2018, were RMB218,499 (US$34,834), compared to RMB2.3 million in the prior-year period.
  • Net loss from discontinued operations, net of income tax, for the three months ended March 31, 2018, was RMB27.5 million (US$4.4 million), compared to RMB18.8 million in the prior-year period.

Management Commentary
Mr. Jack Huang, ATA’s President, stated, “We are pleased to be making continued progress on the ATA Online transaction (the 'Transaction') and are now working to complete the second closing after having completed the first closing on April 4, 2018. In the meantime, we also continue to explore and evaluate acquisition opportunities within the education sector. One such opportunity we recently announced was ATA’s strategic investment in Beijing Biztour International Travel Service Co., Ltd. (‘Beijing Biztour’), one of China’s largest providers of B2B educational tour services. Beijing Biztour is well known for its international educational study tour services for students in China who are interested in overseas study tours primarily in the U.S., United Kingdom, and Australia. We continue working closely with the Beijing Biztour team and look forward to leveraging the many synergies between our two companies to better position Beijing Biztour for success and accelerated growth of its business.”

Mr. Huang continued, “Our strategy continues to focus on leveraging ATA’s existing competency-focused assessment and education service capabilities and the strategic opportunities that we have been working on to transform our company into a leading international education service provider. We continue to explore the possibility of using the proceeds from the Transaction to fund potential M&A opportunities within the education sector.”


Monday, March 26, 2018

Comments & Business Outlook

BEIJING, March 26, 2018 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company") (ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that the Company has entered into a framework agreement for a strategic investment in Beijing Biztour International Travel Service Co., Ltd. (“Beijing Biztour”), a provider of international educational study tour and travel services for students in China who are interested in overseas study tours primarily in the U.S., United Kingdom, and Australia.

ATA to Explore Potential Opportunities in International Education
As previously announced, the Company has embarked on an effort to explore merger and acquisition opportunities within the education sector in China. Driven by increased demand for more diverse international education opportunities by urban families in China, the international educational travel market is particularly attractive as a growing number of China-based students seek short- and long-term international education opportunities. China remains the world’s no. 1 source of international students and sends the largest number of students overseas for study. According to the Ministry of Education, 544,500 Chinese students pursued study abroad opportunities in 2016, more than triple the 179,800 students who sought overseas education in 2008.

Beijing Biztour – China’s Largest Provider of B2B Educational Tour Services
Beijing Biztour specializes in providing comprehensive affordable, high-end solutions for study tour products, which include overseas learning and tour service provisions. Through its B2B distribution network, Beijing Biztour serves more than 7,000 students each year and is one of the largest educational tour service providers in China. Beijing Biztour has an extensive global network of overseas partners including 1,100 host families, 300 part-time team members in the U.S. alone, and close relationships with many well-regarded school districts and top universities including Harvard, Columbia, Stanford and MIT. Beijing Biztour also partners with over 200 education camps focused on a variety of subjects and over 300 globally recognized companies. Beijing Biztour has over 15 product categories including language, sport, art, math, robotics, technology, leadership, and outdoor activities. Beijing Biztour has over 30 study tour destinations in the world and over 300 study tour products. Beijing Biztour has served students from all over China.

ATA believes that Beijing Biztour has built a solid foundation for its business’ long-term sustainable growth. By leveraging the synergies between ATA’s and Beijing Biztour’s respective products, operational capabilities, markets, resources and competencies, ATA believes the management team of Beijing Biztour will be in a better position to maintain its leadership position within the industry and accelerate the growth of its business.

Highlights of the Strategic Investment
Under the terms of the agreement, ATA will provide US$2.0 million in convertible bonds, valid for one year at an 8% interest rate, to Beijing Biztour in support of growing its operations. ATA will be granted a six-month exclusive negotiation period with Beijing Biztour during which ATA will conduct due diligence and determine whether ATA will work toward a definitive acquisition agreement with Beijing Biztour to acquire 100% of the shares of Beijing Biztour. Should ATA move forward with the acquisition before the convertible bonds mature, the US$2.0 million in convertible bonds will be capitalized and converted into shares of Beijing Biztour. If ATA does not move forward with the acquisition, Beijing Biztour shall return the principal of US$2.0 million plus interest accrued thereon upon maturity of the convertible bonds’ one-year term.

Management Commentary
Mr. Jack Huang, ATA’s president, stated, “We are pleased to have this opportunity to work with one of China’s largest international study tour service providers and look forward to working with the Beijing Biztour team on growing the business and pursuing prospects for expansion and diversification through our synergies. With its extensive network of education and service partners in the U.S., Beijing Biztour is well positioned to take advantage of the growing demand for study tours in China by leveraging its experience and knowledge in curating unique and enriching experiences for the Chinese students.”

Mr. Kevin Ma, ATA’s Chairman and CEO, stated, “As we previously mentioned in our earnings conference call on March 19, 2018, we plan to leverage our existing competency-focused assessment and education service capabilities and the strategic opportunities that we have been working on to transform our company into a leading international education service provider. We have been exploring the possibility of using the proceeds from the ATA Online transaction to fund potential M&A opportunities within the education sector. ATA’s collaboration with Beijing Biztour is one of such opportunities, and we will also continue to explore and validate other potential areas of expansion as the Company works toward closing the ATA Online sale.”


Tuesday, February 6, 2018

Comments & Business Outlook

BEIJING, Feb. 06, 2018 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company") (ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that it has entered into a share purchase agreement (the “Share Purchase Agreement”) with a group of investors including two entities affiliated with funds managed by CDH Investments, a major Chinese alternative asset management firm based in Beijing; New Beauty Holdings Limited, a company controlled by ATA’s Chairman and Chief Executive Officer Mr. Kevin Xiaofeng Ma; and four holding companies controlled by certain management members of ATA’s wholly-owned subsidiary ATA Online (Beijing) Education Technology Co., Ltd. (“ATA Online”) (collectively, the “Buyer Group”), with respect to the sale of ATA Online. For the fiscal year ended March 31, 2017, ATA Online contributed approximately 98% of ATA’s revenue and nearly 100% of positive bottom line contribution. The Company has also filed a Form 6-K containing additional information, which investors may access on the SEC Filings page on ATA’s website or on the U.S. Securities and Exchange Commission website at www.sec.gov. 

No vote of ATA’s shareholders is required or will be conducted to approve the transactions contemplated by the Share Purchase Agreement.

Terms of the Share Purchase Agreement/Expected Closing Date
Under the terms of the Share Purchase Agreement, the Buyer Group has agreed to acquire all of the outstanding equity interests of ATA Online, which is currently held directly or indirectly by ATA for a total consideration of US$200 million in cash (the “Transaction”). The US$200 million in cash consideration payable by the Buyer Group for ATA Online represents an 87.4% premium over ATA’s market capitalization (calculated based on the closing trading price of ATA’s ADSs on February 5, 2018).

Mr. Ma will pay a cash deposit in the amount of US$20 million to ATA as collateral and security for the payment obligations of the Buyer Group under the Share Purchase Agreement.

The closing of the Transaction is expected to take place in three stages subject to the satisfaction of various conditions precedent in the Share Purchase Agreement. The first of the three closings is expected to take place within 30 business days after the date of the Share Purchase Agreement, and the Company expects the Transaction to be completed in the third quarter of 2018. The Company will continue to provide updates throughout the process but cautions investors that there are no assurances that all of the conditions for the closing stated in the Share Purchase Agreement will be satisfied or that the Transaction will ultimately be completed.

Background on Share Purchase Agreement
As previously announced, in August 2017 ATA’s Board of Directors formed a special committee (the “Special Committee”) comprised of two independent directors, Alec Tsui and Hope Ni, to evaluate the Transaction. The Special Committee, with the assistance of its financial advisor Duff & Phelps Securities, LLC and Duff & Phelps, LLC, (collectively, “Duff & Phelps”), and its U.S. legal counsel Morgan, Lewis & Bockius LLP, exclusively reviewed and negotiated the terms of the Transaction with the Buyer Group. As part of this process, the Special Committee conducted a market check for the Transaction with other potential buyers, which included six potential strategic buyers and 10 potential financial buyers, with no competing proposal being submitted to the Special Committee as of the end of the two-month market check period and as of the date hereof. The Special Committee also successfully negotiated an increase in total price consideration to US$200 million from the originally proposed US$150 million.

On February 6, 2018, the Special Committee unanimously resolved to approve the Share Purchase Agreement and the Transaction, and recommended that the Board of Directors approve the proposed Share Purchase Agreement and the Transaction. On February 6, 2018, the Board of Directors, acting upon the unanimous recommendation of the Special Committee, approved the Transaction, the Share Purchase Agreement and related transaction documents.

The Board’s Plans for ATA Following the Transaction
If the Transaction is completed, ATA will no longer conduct its testing development and delivery business currently operated by ATA Online.

The remaining portion of ATA’s business includes the following: (i) the business in development of K-12 education assessment tools and content (ii) the Nanjing University Project Shuang Chuang, (iii) the Research Project with the Education and Research Institute of Tsinghua University, and (iv) minority investments in Beijing Empower Education Online, Co., Ltd., ApplySquare Education & Technology Co., Ltd., Beijing GlobalWisdom Information Technology Co., Ltd., Brilent, Inc., Beijing Satech Internet Educational Technology Ltd. and Master Mind Education Company.

Following the closing of the Transaction, ATA intends to focus on its assessment content and instrument development businesses in K-12 and higher education areas. The Company intends to use the proceeds received from the Transaction to fund one or more of the following items: (1) potential merger and acquisition targets in the education sector; (2) the development and expansion of its retained business in assessment content and instruments development in K-12 and higher education areas; (3) support of the Nanjing University and Tsinghua University projects; and/or (4) dividends to its shareholders.

ATA’s reporting obligations as a SEC-registered public company will not be affected as a result of the consummation of the Transaction. ATA will continue to work to maximize shareholder interests with a goal of returning value to its shareholders.

Shareholder Information Relating to the Transaction
To share value with ATA’s shareholders, ATA’s Board of Directors has preliminarily approved to use a portion of the proceeds received from the Transaction to pay a cash dividend to the shareholders, subject to compliance with Cayman Islands and PRC laws. However, the timing and amount of any cash dividend have not been decided, and may vary depending on several factors, including the progress of the Transaction, funding need for ATA’s remaining businesses and mergers and acquisitions plans, as well as any contingent liabilities or other unforeseen matters.

The sale of ATA Online will not alter the rights, privileges or nature of the issued and outstanding shares (“Shares”). A shareholder who owns ATA’s Shares or ADSs immediately prior to the closing of the Transaction will continue to hold the same number of Shares or ADSs immediately following the closing.


Wednesday, August 23, 2017

Notable Share Transactions
BEIJING, Aug. 23, 2017 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company") (ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that, on August 23, 2017,  shareholders of its wholly owned subsidiary ATA Online (Beijing) Education Technology Co., Ltd. (“ATA Online”), a company listed on the National Equities Exchange and Quotations (the “New Third Board”), the over-the-counter stock exchange in China, have unanimously approved the voluntary delisting of ATA Online’s shares from the New Third Board. With the results of this shareholder vote, ATA Online’s Board of Directors has been authorized to apply to the New Third Board to initiate the voluntary delisting process, which is expected to be completed by November 2017.

Wednesday, March 1, 2017

CFO Trail

BEIJING, March 01, 2017 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company") (ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that Ms. Shelly Jiang, the Company’s Interim CFO, has tendered her resignation effective April 1, 2017 to pursue other interests. Ms. Amy Tung, who has served in a variety of financial and operational positions within ATA over the past 11 years, including Acting CFO in 2010, will be appointed as Chief Financial Officer (“CFO”), as well as Financial and Principal Accounting Officer.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, said, “We would like to thank Shelly for her many contributions to ATA over the years and wish her all the best with her future endeavors. We are very pleased that Amy has agreed to lead our finance team as the Company’s new Chief Financial Officer, as she has served as an exceptional manager in different facets of our operations throughout her career at ATA. In every segment of ATA’s operations where Amy has worked, we have seen an immediate and lasting positive impact on our business. We believe Amy’s extensive financial and accounting background and intimate knowledge of our business will prove valuable as ATA works to increase its exposure in the capital markets.”

Ms. Tung has been with the Company since 2006, most recently serving as the Assistant to the CEO, a role in which she assisted the CEO in HR, strategic projects and board meeting activities. She previously served as ATA’s vice president/financial controller from 2006 to 2014, playing a crucial role in the Company’s finance department. This included serving as a conduit between shareholders and the Company since ATA’s initial public offering in January 2008.

Prior to her service with ATA, Ms. Tung has held various financial and accounting positions with Bayer Healthcare Limited in Hong Kong, BEA Systems (Hong Kong) Limited, Bureau Veritas Consumer Products Services (Hong Kong) Limited, Agilent Technologies Hong Kong Limited, and Compaq Computer Limited.

Ms. Tung received her master’s degree in financial engineering from Columbia University in 2002 and her MBA from the Chinese University of Hong Kong in 2001. She received a diploma in accounting in 1996 and a bachelor’s degree in computer science in 1994. She is a fellow member of the Association of Chartered Certified Accountants and the Hong Kong Institute of Certified Public Accountants.

Ms. Tung stated, “I am grateful for this opportunity to continue working with our team to build upon the Company’s successes in education and, more specifically, the testing services business. I believe this Company has the potential to achieve significant growth for many years to come, and I feel privileged to have been given a position where I can continue to serve ATA’s customers and shareholders.”


Thursday, February 23, 2017

Comments & Business Outlook

BEIJING, Feb. 23, 2017 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company") (ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that the Company’s assessment business subsidiary, ATA Learning Data & Technology (Beijing) Limited (“ATA Learning Data & Technology”), had entered into an Investment Agreement (“Agreement”) with MOOC-CN Investment.

Pursuant to the Agreement, MOOC-CN Investment, together with the founder of MOOC-CN Investment as strategic investors, will invest RMB34.0 million (approximately US$4.9 million at current foreign exchange rate) into ATA Learning Data & Technology, which accounts for 20% of ATA Learning Data & Technology’s total shareholdings upon the closing of the investment, of which MOOC-CN Investment and its founder will each hold 18% and 2%, respectively. Upon the closing of the investment, ATA will own 56% of the shareholdings of ATA Learning Data & Technology, and the remaining 24% has been reserved as employee option pool for future incentive issuance to ATA Learning Data & Technology’s employees, directors, officers and consultants. The Company intends to use the proceeds from this strategic investment for, and work together with the strategic investors to continue to focus on, the development of education assessment instruments and contents.

ATA continues to explore growth opportunities in the K-12 education assessment market by leveraging the Company’s core competencies in psychometric expertise and testing technologies.

Mr. Kevin Ma, ATA’s Chairman and Chief Executive Officer, stated, “We are pleased and welcome MOOC-CN Investment as our strategic partner for ATA Learning Data & Technology. It reflects the recognition of our dedication and technological edge in the education assessment sector. We are confident that partnering with MOOC-CN Investment and leveraging its resources and influence will greatly accelerate the expansion of ATA Learning Data & Technology into public schools across China in the future. We strongly believe that this strategic investment can fulfill ATA Learning Data & Technology’s business development and brand building needs at this stage.”


Tuesday, February 21, 2017

Comments & Business Outlook

Third Quarter 2017 Financial Results

  • Net revenues increased 23.5% to RMB273.5 million (US$39.4 million), compared to RMB221.4 million, which was driven by increased volumes from both new and existing exams in both public and private sector, as well as revenue contributions from the National Tax Adviser Occupational Qualification Exam (“CTA exam”) held in Third Quarter 2017 (held during the fiscal fourth quarter ended March 31, 2016 (“Fourth Quarter 2016”), in the previous year).
  • Basic and diluted earnings per ADS attributable to ATA Inc. were both RMB3.30 (US$0.48). Basic and diluted earnings per ADS attributable to ATA Inc. excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Third Quarter 2017 were both RMB3.34 (US$0.48).

Fiscal Year 2017 Outlook

  • For the fiscal year ending March 31, 2017 (“Fiscal Year 2017”), ATA expects net revenues of between RMB455.0 million and RMB475.0 million and non-GAAP net income attributable to ATA Inc. (adjusted net income, which excludes share-based compensation expense and foreign currency exchange gain/loss) of between nil and RMB10.0 million.
  • The Company is exploring growth opportunities and plans to invest around RMB20.0 million in the K-12 education assessment and recruitment sectors during Fiscal Year 2017. By the end of Third Quarter 2017, this investment mainly included developing the K-12 education assessment item pool, specifically focus on the subject areas of mathematics, Chinese and English for students from Grades 7-12 in China. In the first week of January 2017, the Company successfully delivered the first formal education assessment exam authorized by the Tianjin Nankai Education Bureau.
  • For the quarter ending March 31, 2017 (“Fourth Quarter 2017”), ATA expects net revenues of between RMB26.0 million and RMB31.0 million.

Mr. Kevin Ma, ATA’s Chairman and Chief Executive Officer, stated, “We were pleased to continue delivering strong operating results in the Third Quarter 2017, as exam volumes from our traditional testing services business continued to grow with substantial growth in the Fund Practitioner Certification Exam, the National Unified Certified Public Accountants (“CPA”) exam, and the National Tour Guide Qualification Examination, among others. On October 15-16, 2016, we successfully delivered the CPA exam to about 2.2 million test takers. This marks the fifth consecutive year ATA has administered the CPA exam through its nationwide test delivery platform. On November 5, 2016, we also successfully delivered the National Tour Guide Qualification Examination, which was the first exam administered by the China National Tourism Administration nationwide, across 32 provinces, municipalities and autonomous regions in China. With these recent positive developments, we remain confident in our superior ability to administer large-scale computer-based tests across China. During the quarter, revenue from the Fund Practitioner Certification Exam doubled from the prior-year quarter, and we continued to see steady growth in our private sector due to our strengthening partnerships with large enterprises that have come to rely on ATA’s quality service and excellent reputation to better serve our customers during their external/internal recruiting and selection process.”


Friday, February 19, 2016

Comments & Business Outlook

Third Quarter 2016 Financial Results

  • Net revenues of RMB221.4 million (US$34.2 million), up 80.0%
  • Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Third Quarter 2016 were both RMB2.24 (US$0.34), compared to RMB0.94 in Third Quarter 2015.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "During Third Quarter 2016, ATA successfully delivered the CPA exam for the fourth consecutive year, with over 1.9 million exams taken across China, and the Hong Kong and Macau Special Administrative Regions. The Company achieved significant exam volume growth during the period, delivering 5.1 million billable exams, primarily as a result of the CPA exam taking place in Third Quarter 2016, versus Second Quarter 2015 in the prior year, and increased volumes from the new Fund Practitioners Certification Exam and National Patent Agent Qualification Exam. Excluding the CPA exam, the Company's Third Quarter 2016 net revenues increased 18.7% to RMB146.1 million from the prior-year period. We delivered campus recruitment exams for several major banks and well-known corporations, such as Sinopec, Lenovo, and China Mobile, and also established new client relationships in the private sector during Third Quarter 2016. We successfully delivered new computer-based campus recruitment exams for China Merchants Bank, as well as new computer-based HR Select exams for the Industrial Bank of China. We were pleased to announce ATA's engagement as the service provider for the first computer-based National Tax Adviser Occupational Qualification Exam, which is scheduled to be delivered in February 2016. ATA has successfully transitioned a number of exams from a traditional paper-and-pen format to a technology-based platform, and we are actively working with the China Certified Tax Agents Association on ensuring a smooth exam process on February 27-28, 2016."

Fiscal Year 2016 Outlook
For the fiscal year ending March 31, 2016 ("Fiscal Year 2016"), ATA is raising its net revenue guidance to between RMB410.0 million and RMB420.0 million, from the previously provided range of RMB360.0 million and RMB380.0 million, and narrowing its non-GAAP net income (adjusted net income, which excludes share-based compensation expense and foreign currency exchange gain/loss) guidance to between RMB29.0 million and RMB34.0 million, from the previously provided range of between RMB28.0 million and RMB38.0 million, which takes into account the operating results of ATA's joint venture and associated companies focused on the consumer market, all of which are at an early stage of business development, as well as unbudgeted expenses related to the listing of ATA Online's shares on the New Third Board.
For the quarter ending March 31, 2016 ("Fourth Quarter 2016"), ATA expects net revenues of between RMB43.0 million and RMB48.0 million.

Mr. Ma concluded, "ATA has made significant progress on its ongoing goal of growing its core testing services business during Fiscal Year 2016. With the successful listing of our subsidiary ATA Online to the New Third Board, we are increasingly optimistic about this business' long-term growth potential, which has been validated by the various new client relationships we have established over the course of this year. We recently announced that during the recently completed bidding process, ATA was not selected to be the service provider for the computer-based SAC exam during calendar years 2016-2017. While disappointed in this result, we remain confident in the superiority of our service offerings and our ability to secure new business. We do not expect the loss of the SAC exam to impact our Fiscal Year 2016 results, and given our strong performance in Third Quarter 2016, ATA is raising its net revenue guidance for Fiscal Year 2016. ATA is focused on leveraging its core competency in advanced testing technologies in the education and recruitment industries, which it believes will benefit prospective job seekers and employers alike. This Company was founded upon the idea of providing individuals with fair and objective access to life's opportunities. We remain committed to this mission and serving individuals, corporations, and government institutions in pursuit of these ideals."


Wednesday, February 3, 2016

Notable Share Transactions
BEIJING, CHINA--(Marketwired - Feb 3, 2016) - ATA Inc. ("ATA" or the "Company") (NASDAQ: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that its wholly owned subsidiary ATA Online (Beijing) Technology Limited ("ATA Online") has publicized a private placement plan in connection with no more than 16,760,000 common shares of ATA Online stock, representing approximately 30.0% of ATA Online's current shares outstanding prior to the private placement, priced at RMB22.55 per common share. Total funds raised for the private placement are expected to amount to no more than RMB377.9 million, or approximately US$57.5 million at current exchange rates. The proceeds from this private placement are expected to be allocated toward increasing ATA Online's operating efficiencies, business development and other plans approved by the Board of Directors to support ATA Online's future growth.
ATA Online listed its shares on the National Equities Exchange and Quotations (("NEEQ"), or New Third Board) in December 2015 to accelerate the growth of ATA's core testing services and other businesses, which are primarily conducted in China. In addition, the listing on the New Third Board allowed for flexibility to raise capital from the Chinese capital markets to fund ATA Online's future growth.

Monday, January 11, 2016

Comments & Business Outlook

BEIJING, CHINA--(Marketwired - Jan 11, 2016) - ATA Inc. ("ATA" or the "Company") (NASDAQ: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that the China Certified Tax Agents Association has engaged ATA to be its service provider for the computer-based National Tax Adviser Occupational Qualification Exam.

The National Tax Adviser Occupational Qualification Exam, previously known as the National Chartered Tax Adviser Qualification Exam, has been administered for 20 years in China and has become increasingly regarded as a prominent national exam in China. It is typically offered once a year. This exam is transitioning from a traditional paper-based format to ATA's technology-based platform, and ATA expects to deliver the first computer-based version of this exam in February 2016.

ATA also announced that during the recently completed bidding process, it was not selected to deliver computer-based exams for the Securities Association of China ("SAC") in calendar years 2016-2017. SAC has historically been one of ATA's top clients. ATA remains committed to growing its core testing services businesses and is confident in the superiority of its offerings and ability to attract new clients in various industries in the future. 

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We are pleased to have had sustained a fruitful and gratifying relationship with the SAC over the years and while we are, of course, disappointed in this outcome, we felt it was important for ATA to maintain the model that has sustained its overall business since its founding in 1999. We recently closed out a strong FY 2016 third quarter and do not expect the loss of the SAC exam to impact our Fiscal Year 2016 results. We are optimistic about our prospects for the future and look forward to taking advantage of the positive momentum generated by ATA's selection as the service provider for the National Tax Adviser Occupational Qualification Exam. ATA has spent years building relationships with many reputable organizations in China, and we are working in earnest to continue building upon this foundation."


Tuesday, December 8, 2015

Comments & Business Outlook

BEIJING, CHINA--(Marketwired - Dec 8, 2015) - ATA Inc. ("ATA" or the "Company") (NASDAQ:ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that its wholly owned subsidiary ATA Online (Beijing) Education Technology Limited ("ATA Online") has received approval from the National Equities Exchange and Quotations ("NEEQ") in China to list its shares on the New Third Board, the over-the-counter stock exchange in China. The shares of ATA Online will be listed around December 18, 2015.

The Company expects the New Third Board listing of ATA Online to accelerate the growth of ATA's core testing services and other businesses, which are primarily conducted in China, as well as to allow for some flexibility to raise capital from the Chinese capital markets if needed to fund its future growth.

Established by the State Council in late 2012, the New Third Board is a national over-the-counter stock exchange that supplements trading activities on the Shanghai and Shenzhen stock exchanges, including the related Growth Equity Market (GEM) exchanges. The New Third Board allows for trading of stock of growth-stage companies that do not otherwise satisfy the requirements for listing on the main Shanghai and Shenzhen stock exchanges, allowing small- to medium-sized enterprises in China access to the capital markets and greater exposure to the investment community. Policies are currently expected to be introduced in the near future to enable NEEQ-registered companies to transfer to the GEM exchanges.


Thursday, November 12, 2015

Comments & Business Outlook

Second Quarter 2016 Financial Results

  • Net revenues of RMB53.4 million (US$8.4 million), compared to RMB102.5 million, primarily due to the National Unified Certified Public Accountants ("CPA") exam being held in Second Quarter 2015, while this year's exam was held in Third Quarter 2016. Excluding the CPA exam, net revenues increased by 39.5% to RMB52.3 million in Second Quarter 2016 from RMB37.5 million in Second Quarter 2015. ATA successfully administered the CPA exam in October 2015.
  • Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Second Quarter 2016 were both RMB0.46 (US$0.08).

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We were pleased to have delivered new exams for government and corporate clients during the period, which helped to offset a lumpy quarter as a result of the CPA exam taking place in Third Quarter 2016. The Company delivered 1.7 million billable exams in Second Quarter 2016, compared to 3.0 million exams in Second Quarter 2015. Excluding the CPA exam, the Company's Second Quarter 2016 revenues and billable exams delivered increased from the prior-year period mainly due to the delivery of the new Fund Practitioners Certification Exam, which we announced in August. We successfully delivered this year's CPA exam in October 2015, our fourth consecutive year of administering this exam, and we are pleased to report that this year's exam saw record volumes, surpassing last year's 1.6 million exams delivered across China. During Second Quarter 2016, we continued working to build and expand our client relationships in both the government and private sectors, and I am pleased to announce that we recently entered into a new contract with China Merchants Bank to administer its campus recruitment exams. As we work to take advantage of this positive momentum, we remain confident in our ability to secure additional contracts to grow our core testing services business in Fiscal Year 2016. As testing delivery continues to move away from the traditional pen-and-paper method, we believe ATA is the best-positioned company in the market to capitalize on this trend. During Second Quarter 2016, we invested in Brilent Inc., a Silicon Valley-based provider of an easy-to-use software tool that utilizes advances in machine learning, analytics and data science to revolutionize the way recruiters screen job candidates. With this strategic investment, we continued our strategy of collaborating with innovative education and HR services companies, which serves to expand upon ATA's existing core competencies while building a portfolio of low-risk investments with the potential for considerable upside."

Fiscal Year 2016 Outlook

  • For the fiscal year ending March 31, 2016 ("Fiscal Year 2016"), ATA expects net revenues of between RMB360.0 million and RMB380.0 million and non-GAAP net income (adjusted net income, which excludes share-based compensation expense and foreign currency exchange gain/loss) of between RMB28.0 million and RMB38.0 million, which takes into account the operating results of ATA's joint venture and associated companies focused on the consumer market, all of which are at an early stage of business development.
  • For the quarter ending December 31, 2015 ("Third Quarter 2016"), ATA expects net revenues of between RMB195.0 million and RMB205.0 million.

Guidance for Fiscal Year 2016 and for Third Quarter 2016


For Third Quarter 2016, ATA expects net revenues of between RMB195.0 million and RMB205.0 million.

For Fiscal Year 2016, ATA expects net revenues of between RMB360.0 million and RMB380.0 million and non-GAAP net income of between RMB28.0 million and RMB38.0 million, which takes into account the operating results of ATA's joint venture and associated companies focused on the consumer market, all of which are at an early stage of business development.


Friday, September 25, 2015

Notable Share Transactions

BEIJING, CHINA--(Marketwired - Sep 24, 2015) - ATA Inc. ("ATA" or the "Company") (NASDAQATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced its Board of Directors has approved a share repurchase plan effective September 25, 2015. Under the plan, ATA is authorized to repurchase up to US$3 million of its issued and outstanding American Depositary Shares ("ADSs") during the period from September 25, 2015 to March 31, 2016. The repurchases will be made from time to time on the open market at prevailing market prices, in negotiated off-market transactions, in block trades, or otherwise.

The timing and extent of any purchases will depend upon market conditions, the trading price of ATA's ADSs, and other factors, and subject to restrictions relating to price, volume, and timing under applicable law, including the anti-manipulation provisions of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. ATA expects to use cash to finance repurchases.

ATA expects to implement this share repurchase plan in a manner consistent with market conditions and the interest of the shareholders. ATA's Board of Directors will periodically review the share repurchase plan and may authorize adjustments to the plan's terms and size. The Board may also suspend or discontinue the repurchase program at any time. The repurchase plan does not obligate ATA to make additional repurchases at any specific time or situation.

Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "The establishment of this share repurchase plan reflects our confidence in ATA's business and our ability to successfully execute our growth strategy. We believe ATA is in a strong financial position, enabling the Company to implement this plan while moving forward on our business initiatives and supporting our commitment to delivering increased shareholder value in the long term."


Wednesday, August 12, 2015

Auditor trail

BEIJING, CHINA--(Marketwired - Aug 11, 2015) - ATA Inc. ("ATA" or the "Company") (NASDAQATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that the audit committee of the Board of Directors has appointed KPMG Huazhen LLP (the "Successor Auditor") to replace KPMG (the "Former Auditor") as the independent auditors for the Company effective immediately. KPMG, a Hong Kong partnership, and KPMG Huazhen LLP, a People's Republic of China partnership, are both independent member firms of the KPMG network affiliated with KPMG International Cooperative, a Swiss entity. The Company is working closely with the Former Auditor and the Successor Auditor to ensure a seamless transition.

During the two most recent fiscal years ended March 31, 2015 and through the date of this announcement:

(i) there were no disagreements between the Company and the Former Auditor on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of the Former Auditor, would have caused the Former Auditor to make reference to the subject matter of the disagreement in its report on the consolidated financial statements of the Company and subsidiaries; and

(ii) there were no "reportable events" as that term is defined in Item 16F(a)(1)(v) of Form 20-F.

The audit reports of the Former Auditor on the consolidated financial statements of the Company and subsidiaries as of and for the years ended March 31, 2015 and March 31, 2014 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles.


Friday, May 29, 2015

Comments & Business Outlook

Fourth Quarter 2015 Financial Results

  • Net revenues from the testing services business were RMB319.1 million (US$51.5 million) in Fiscal Year 2015, compared to RMB358.8 million in Fiscal Year 2014.
  • Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Fourth Quarter 2015 were both RMB0.46 (US$0.08).

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "During Fiscal Year 2015, we launched a number of new consumer initiatives that we believe will be the primary drivers of the Company's future growth. This includes Zhi Shang, the joint venture with New Oriental Education & Technology Group ('New Oriental'), which launched its online education and training management platform for working professionals in China's financial securities industry in April 2015. We are also excited about the positive reception of Exam Inventory Navigator, our self-developed mobile application that provides current and potential test takers with access to tools and information on various test-taking needs, including registration, checking scores, and study aids. Since its launch in June 2014, the application has grown its activated user base to 650,000, up from approximately 550,000 at the end of the fiscal third quarter ended December 31, 2014 ('Third Quarter 2015'). On April 1, 2015, we signed a contract with Zhi Shang to continue the development of Exam Inventory Navigator. We believe partnering with Zhi Shang will accelerate the expansion of Exam Inventory Navigator's capabilities and user base. During Fiscal Year 2015, we also expanded into and continue to actively work on consumer initiatives in the online continuing education, K-12, language study, and study abroad markets. ATA recently announced that it is exploring the potential of restructuring its testing services business into a wholly-owned subsidiary of ATA and listing it separately on the New Third Board, an emerging over-the-counter market in China. We believe doing so could be an opportunity to accelerate the growth of our core testing services business, while enhancing our business prospects, given ATA's greater brand recognition in China."

Mr. Ma continued, "We made significant strides on our new consumer-focused efforts. We delivered approximately 8.8 million billable tests during Fiscal Year 2015, which included increased exam volumes for the National Unified Certified Public Accountants ('CPA') exam and the Securities Association of China ('SAC') exam. However, this represents a decrease from 9.4 million billable tests delivered in Fiscal Year 2014. During Fiscal Year 2015, ATA continued building its relationship with Cambridge English Learning Assessment ('Cambridge English'), one of the premier global providers of language instruction for students and teachers of English, and were pleased that Cambridge English believes our mobile testing system ('MTS') to be the most viable and effective solution for launching their computer-based Young Learners Exam across its global markets. With MTS, Cambridge English has implemented the Young Learners Exam in 18 markets, and we look forward to continue working with them on expanding this program to additional markets/countries."

Mr. Ma concluded, "With the initiation of our various consumer initiatives in Fiscal Year 2015, ATA entered into a number of new markets that we believe are natural extensions of our core competency in assessment technologies. We are confident that ATA is in a strong position to take advantage of the shift toward technology in the greater education space, and we were pleased with the launch and continued progress of these initiatives, all of which are still in their early stages but we expect will be key factors in helping to diversify ATA's revenue mix from government-sponsored exams. The Company is also evaluating ways in which it can expedite the growth of its testing services business. Restructuring the business and listing it on China's New Third Board is one option we are carefully considering, and we will keep investors apprised of our progress here. Throughout these efforts, we have remained committed to operating on the strict cost structure that has allowed the Company to successfully scale its operations and generate positive cash flow to finance its long-term growth, and this will not change in Fiscal Year 2016. After a major transitional year for ATA, we look forward to continuing the Company's growth and expansion in Fiscal Year 2016."

Guidance for Fiscal Year 2016 and for First Quarter 2016
For First Quarter 2016, ATA expects net revenues of between RMB84.0 million and RMB94.0 million.

For Fiscal Year 2016, ATA expects net revenues of between RMB360.0 million and RMB380.0 million and non-GAAP net income of between RMB28.0 million and RMB38.0 million, which takes into account the operating results of ATA's joint venture and associated companies focused on the consumer market, all of which are at a stage of early business development.


Friday, May 22, 2015

Comments & Business Outlook

BEIJING, CHINA--(Marketwired - May 22, 2015) -ATA Inc. ("ATA" or the "Company") (NASDAQ:ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that it is exploring the idea of restructuring its testing services business into a subsidiary to be wholly owned by ATA and listing it separately on the National Equities Exchange and Quotations, an emerging over-the-counter market in China (the "New Third Board").

In the event that ATA is able to effect the proposed New Third Board listing of its testing services business, its current intention is that, immediately after such listing, it will own a substantial majority of the outstanding equity interest of the testing services business (and continue to consolidate the financial results of the testing business). The Company expects that, after the proposed New Third Board listing of its testing services business, the Company's American depositary shares ("ADSs", each representing two common shares) will continue to be traded on Nasdaq, and its common shares will continue to be registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company does not have any current plan or intention to pursue any "going-private" transaction or any other transactions having the purpose or effect of causing its ADSs to no longer be traded on Nasdaq or its common shares to no longer be registered under the Exchange Act.

Mr. Kevin Ma, ATA's Chairman and CEO, stated, "Over the years, ATA's business has evolved and expanded to serve a growing test-taker and client base. As we continue our efforts in the consumer market, we are exploring ways in which ATA can accelerate the growth of its core testing services business. We believe ATA has greater brand recognition in China and are evaluating the potential of a New Third Board listing as a new opportunity to enhance ATA's business prospects. We look forward to keeping investors apprised in the weeks and months ahead."

Established by the State Council in late 2012, the New Third Board is a national over-the-counter stock exchange that supplements trading activities on the Shanghai and Shenzhen stock exchanges, including the related Growth Equity Market (GEM) exchanges. The New Third Board allows for trading of stock of growth companies that do not otherwise satisfy the requirements for listing on the main Shanghai and Shenzhen stock exchanges, allowing small- to medium-sized enterprises in China access to the capital markets and greater exposure to the investment community.


Tuesday, November 11, 2014

Comments & Business Outlook

Second Quarter 2015 Financial Results 

  • Net revenues of RMB102.5 million (US$16.7 million), up 127.3%, primarily as a result of the National Unified Certified Public Accountants ("CPA") exam taking place during Second Quarter 2015, while the prior year's CPA exam took place in the fiscal third quarter ended December 31, 2013 ("Third Quarter 2014")
  • Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Second Quarter 2015 were both RMB0.48 (US$0.08) vs. 0.02 in the prior year.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We were pleased to have successfully delivered the CPA exam using ATA's advanced testing technologies for the third consecutive year, with over 1.6 million exams taken across China, and the Hong Kong and Macau Special Administrative Regions. As a result of the CPA exam taking place in Second Quarter 2015, a quarter earlier than in fiscal 2014, the number of billable exams delivered and corresponding revenues increased significantly from those in Second Quarter 2014. ATA delivered 3.0 million billable exams during Second Quarter 2015, including exams for the Securities Association of China ('SAC')."

Mr. Ma continued, "As our testing services business continues to see stable growth, we are focusing our efforts on how we can better serve consumers. For test takers, we launched our new mobile application, Exam Inventory Navigator ('Kao Shi Dao Hang') in June and issued an update to the application in August. The updated version includes enhanced content, such as test preparation information for various exam subjects, and increases the functionality of the original version by allowing users to visualize each exam with an exam timeline from exam preparation to exam delivery to results being issued, as well as enabling users to customize their subscriptions for receiving exam information. The new version also supports one-click logins by using registered information from third-party platforms, including QQ, Weibo and Renren. We continue to work closely with New Oriental Education & Technology Group on the joint venture we previously announced in July, which aims to be a leading educational tool and resource for working professionals in China, and we are excited to have recently announced a new partnership and strategic investment with Master Mind Education ('Master Mind'), which marks ATA's expansion into China's K-12 education market. We will be working closely with the team at Master Mind on integrating our MTS technology into their network of K-12 after-school institutions, and by joining our respective strengths and resources together, we aim to better serve students, teachers and families within a continuously expanding network of K-12 after-school institutions throughout China. These new projects are still at an early stage of their development, but as we continue to make progress on these initiatives and explore additional opportunities for mutually beneficial business partnerships, we are confident that ATA's entry into the consumer market will be a driver of long-term growth for the Company."

Fiscal Year 2015 Outlook

  • For the fiscal year ending March 31, 2015 ("Fiscal Year 2015"), ATA expects net revenues of between RMB385.0 million and RMB405.0 million and non-GAAP net income (adjusted net income, which excludes share-based compensation expense and foreign currency exchange gain/loss) of between RMB28.0 million and RMB38.0 million, which includes planned investments of up to RMB30.0 million to maintain and expand ATA's business.
  • For the quarter ending December 31, 2014 ("Third Quarter 2015"), ATA expects net revenues of between RMB110.0 million and RMB120.0 million.

Friday, October 31, 2014

Acquisitions

BEIJING, CHINA--(Marketwired - Oct 31, 2014) - ATA Inc. ("ATA" or the "Company") (NASDAQ: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced the Company has entered into an agreement to make a strategic investment in Master Mind Education ("Master Mind"), a provider of digitized services to K-12 after-school tutoring institutions in China. This follows ATA's engagement by Master Mind to be the provider of equipment, service and support for its MTS technology to Master Mind, thus enabling instructors within its member network of tutoring institutions to use ATA's latest technologies to disseminate educational content.

Pursuant to the terms of the agreement, ATA will invest a total of US$5.0 million, representing a 33% stake in Master Mind. The funds are expected to be used toward Master Mind's integration of ATA's technologies into its digitized service offerings, enhancing the functionality of its product offerings, as well as expanding its network of K-12 after-school tutoring institutions.

Mr. Steven Ge, Master Mind's founder and CEO, said, "The strategic cooperation between Master Mind Education and ATA is highly complementary to both parties' market expertise and use of resources when it comes to the K-12 after-school tutoring market in China. Master Mind's existing knowledge of the overall China K-12 after-school tutoring market and its development of an extensive network of after-school tutoring institutions will be combined with ATA's expertise in assessment and training. Both Master Mind and ATA believe that our strategic partnership will enable us to achieve a leading position in the mobile digital wave spreading through the education market, particularly the K-12 after-school tutoring market in China. Our team at Master Mind has always felt that collaborating with the right company and management team was more important than gaining capital resources, which is the reason we chose ATA as our partner."

Mr. Kevin Ma, ATA's Chairman and CEO, stated, "We are very pleased to have established this relationship with Master Mind Education. While we aim to better serve working professionals in China with our joint venture with New Oriental Education & Technology Group that will offer mobile and online education and training, we are excited to extend our core competence of testing services and assessment technologies to this promising K-12 after-school tutoring market. Our investment in Master Mind allows the company to enhance the effectiveness of its digitized training services to K-12 after-school tutoring institutions and their students throughout China by using ATA's MTS technologies and services. We look forward to working closely with the Master Mind team on transforming the teaching-learning process into a seamless digital experience for its students and teachers. By bringing our tools to the K-12 after-school tutoring classroom, ATA's goal is to not only improve communication between teacher and student but to also help families better understand their students' needs and progress. "


Thursday, May 29, 2014

Comments & Business Outlook

Fourth Quarter 2014 Financial Results:

Net revenues for fourth quarter 2014 was $9.4 million, up 12.3% from $8.4 million in the same period last year.

Diluted non-GAAP net income per ADS was -$0.06 vs -$0.02.

Mr. Cheng-Yaw Sun, ATA's Chief Executive Officer, stated, "Fiscal Year 2014 was a year marked by success, as well as some challenges. We delivered over 1.5 million National Unified Certified Public Accountants ('CPA') exams across China and the Hong Kong and Macau Special Administrative Regions using ATA's advanced testing technologies for the second consecutive year in October, versus 1.4 million exams in the prior fiscal year. During Fiscal Year 2014, ATA also delivered increased volumes of exams for the China Banking Association, the security guard exam, as well as exams for our HR Select clients. As a result of these efforts, ATA delivered 9.4 million billable exams during Fiscal Year 2014, a 7.6% increase over the prior fiscal year. The Company also faced some challenges during the fiscal year, including decreased demand for the Securities Association of China ('SAC') exam and the termination of ATA's exclusive distributor contract with ETS for TOEIC and its related products. In spite of these hurdles, our gross margin for Fiscal Year 2014 increased to 51.1%, from 48.5% in the prior fiscal year, mainly due to the year-over-year decrease in our average monitoring costs."

Mr. Sun continued, "We were very pleased with the growth we achieved in our HR Select business during Fiscal Year 2014 and will continue our efforts to grow this business into the future. We have also made progress on our mobile testing system ('MTS') project this fiscal year and are very pleased to have secured a contract with the Chancellor, Masters and Scholars of the University of Cambridge ('Cambridge'), an affiliate of the University of Cambridge, and a leading global provider of language instruction for learners and teachers of English. Under the terms of this contract, ATA has been appointed the global exclusive technology provider for Cambridge English Junior Exam, which includes services such as test hosting, authoring, and marking through our delivery technologies and platform. Out of all the Young Learners Exams' English markets, Cambridge and ATA have already launched the Cambridge English Junior Exam in six markets across Europe, Asia and South America. We are excited to be continuing our partnership with Cambridge, which we believe validates MTS as a strong addition to ATA's portfolio of products."

Business Outlook

Guidance for Fiscal Year 2015 and for First Quarter 2015
For First Quarter 2015, ATA expects net revenues of between RMB74.0 million and RMB84.0 million.

For Fiscal Year 2015, ATA expects net revenues of between RMB385.0 million and RMB405.0 million and non-GAAP net income of between RMB28.0 million and RMB38.0 million.


Tuesday, February 25, 2014

Comments & Business Outlook
Third Quarter 2014 Financial Results
  • Net revenues of RMB188.9 million (US$31.2 million), up 5.3%
  • Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Third Quarter 2014 were both RMB1.70 (US$0.28), compared to RMB1.56 in the same period last fiscal year.

Mr. Cheng-Yaw Sun, ATA's Chief Executive Officer, stated, "During Third Quarter 2014, we successfully administered the annual National Unified Certified Public Accountants ('CPA') exam via ATA's computer-based platform for the second consecutive year, with over 1.5 million exams taken across China and the Hong Kong and Macau Special Administrative Regions. We delivered a total of 4.2 million billable exams during Third Quarter 2014, including exams for the China Banking Association and Securities Association of China ('SAC'). ATA also administered large-scale exams as part of campus recruitment efforts for various companies, such as the Postal Savings Bank of China, Schneider Electric China, and Sinopec Group. We continue to make progress on our mobile testing system ('MTS') and successfully administered the Cambridge English Junior Exam in Spain, Argentina, and Mexico in November 2013. We are optimistic that our efforts here will result in a positive, long-term relationship with Cambridge English Learning Assessment as they have been pleased with the performance of our MTS technology and ATA's administration of the Cambridge English Junior Exam thus far."

Mr. Sun continued, "We continued to grow our HR Select base of corporate clients during Third Quarter 2014 and grew exam volumes under this category by over 70% from the prior-year period. The majority of these exams were for the Agricultural Bank of China, China Construction Bank, Bank of China, and new clients Shanghai Rural Commercial Bank and JiangSu Rural Credit Union. We continue to believe that diversifying ATA's revenue streams is critical to the Company's long-term success and remain focused on this goal as we look toward the future."

Guidance for Fiscal Year 2014 and for Fourth Quarter 2014
For Fourth Quarter 2014, ATA expects net revenues of between RMB44.0 million and RMB54.0 million.

For Fiscal Year 2014, ATA expects net revenues of between RMB370.0 million and RMB380.0 million and non-GAAP net income of between RMB37.0 million and RMB42.0 million.


Friday, November 8, 2013

Comments & Business Outlook

Second Quarter 2014 Financial Results

  • Net revenues of RMB45.1 million (US$7.4 million), compared to RMB46.8 million
  • Net loss for Second Quarter 2014 was RMB4.3 million (US$0.7 million), compared to RMB9.1 million in the prior-year period. For Second Quarter 2014, basic and diluted losses per common share were both RMB0.10 (US$0.02), compared to RMB0.21in the same period last fiscal year. Basic and diluted losses per ADS were both RMB0.19 (US$0.03) in Second Quarter 2014, compared to RMB0.42 in the prior-year period.

Mr. Ma concluded, "We continue to be on track with our budget and are working hard during our busiest quarter of the year�the fiscal third quarter. In late October, we completed the successful delivery of the 2013 National Unified Certified Public Accountants ('CPA') exam on behalf of the Chinese Institute of Certified Public Accountants. This was the second CPA exam to be delivered via ATA's advanced computer-based platform, and I am pleased to report that ATA administered a record 1.52 million exams, approximately 13% more than the 2012 CPA exam. We anticipate increased volumes of the exam for the China Banking Association during the third quarter of fiscal 2014 and continue to promote and market MTS globally. We expect to launch the Cambridge English Junior Exam in additional cities in the coming months. We also continue working to develop new corporate client partnerships and to deepen existing ones, an effort that we believe will be supported by the additional service offerings from the recent Xing Wei acquisition. I have been working closely with ATA's new CEO Mr. Sun and the rest of the management team on this integration, and anticipate a smooth transition in the coming months. We share a belief in the importance of diversifying ATA's business to achieve greater balance in our revenue streams between the public and private sectors and believe we have a solid foundation upon which to further grow the Company over the long term."

These are ATA's current projections, which are subject to change. You are cautioned that operating results in Second Quarter 2014 are not necessarily indicative of operating results for any future periods.

Fiscal Year 2014 Outlook

  • For the fiscal year ending March 31, 2014 ("Fiscal Year 2014"), ATA reiterates its expectation of net revenues of betweenRMB403.0 million and RMB423.0 million and non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) of between RMB37.0 million and RMB47.0 million.
  • For the quarter ending December 31, 2013 ("Third Quarter 2014"), ATA expects net revenues of between RMB180.0 million and RMB200.0 million.

Mr. Kevin Ma, ATA's Chairman of the Board, stated, "The Company recently announced the acquisition of Xing Wei, a private education technology company that provides training solutions as well as online and mobile training platforms for corporations inChina. I am very pleased that Xing Wei's founder and Chairman Mr. Cheng-Yaw Sun has joined ATA as its new CEO and look forward to working with him to build upon the synergies created by combining the service offerings of our two companies. During Second Quarter 2014, we successfully delivered 1.7 million billable exams, including the exam for the Securities Association of China ('SAC'). ATA continued to experience challenges related to decreasing volumes of the SAC exam during the period, which we expect may continue into the remainder of Fiscal Year 2014. During the period, we saw growth in volumes for and revenues from the China Futures Association exam and security guard exams, which took place in Shanghai and a few other provinces. Using our new mobile testing system ('MTS'), ATA successfully administered the Cambridge English Junior Exam in Hong Kong in July and August, transitioning this exam from a paper-and-pencil format to ATA's new technology-based platform. Thus far, we have conducted successful trials of this exam in Beijing, Shanghai, Hong Kong, Mexico and Spain. We expect ATA's continued efforts to diversify its revenue streams will, over time, mitigate the impact of changes in scheduling or demand with regards to any one exam."


Thursday, November 7, 2013

Acquisitions

BEIJING, Nov. 6, 2013 /PRNewswire-FirstCall/ -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that, on October 31, 2013, it closed on the previously announced acquisition of Xing Wei Institute (HK) Limited ("Xing Wei"), a private education technology company that provides training solutions as well as online and mobile training platforms for corporations in China, for US$3.19 million. ATA reported net revenues of RMB366.7 million (US$59.0 million) for the fiscal year ended March 31, 2013.


Thursday, September 26, 2013

Acquisitions

BEIJING, September 26, 2013 /PRNewswire-FirstCall/ -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that it has signed an agreement to acquire Xing Wei Institute (HK) Limited ("Xing Wei"), a private education technology company that provides training solutions as well as online and mobile training platforms for corporations in China, for US$3.19 million.

By leveraging Xing Wei's expertise in improving employee performance, ATA believes this acquisition will provide the Company with a more comprehensive set of service offerings, which will enable it to deepen its existing client relationships in China. Xing Wei's services have been utilized by reputable corporations in China.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "This transaction will provide long-term benefits to our Company and is consistent with our strategic plan to expand ATA's testing platform for corporate clientele. Xing Wei's online and mobile training platforms for enterprise clients and ATA's technologically advanced testing platform will result in an improved and expanded product offering and enhance overall client satisfaction."


Friday, August 9, 2013

Comments & Business Outlook

First Quarter 2014 Financial Results

  • Net revenues of RMB92.1 million (US$15.0 million), up 4.3%
  • Gross profit of RMB48.1 million (US$7.8 million), up 2.8%
  • Net income of RMB9.4 million (US$1.5 million), up 78.7%
  • Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for First Quarter 2014 were both RMB0.48 (US$0.08)

Fiscal Year 2014 Outlook

  • For the fiscal year ending March 31, 2014 ("Fiscal Year 2014"), ATA reiterates its expectation of net revenues of between RMB403.0 million and RMB423.0 million and non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) of between RMB37.0 million and RMB47.0 million.
  • For the quarter ending September 30, 2013 ("Second Quarter 2014"), ATA expects net revenues of betweenRMB36.0 million and RMB46.0 million.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We are pleased to report strong First Quarter 2014 financial results that exceeded market consensus estimates. During the period, we successfully delivered 2.1 million billable exams, the majority of which were for the China Banking Association ('CBA') and Securities Association of China ('SAC'). Our Company faced challenges relating to a decrease in the volume of the SAC exam in the later part of the fiscal year ended March 31, 2013, which continued into First Quarter 2014 but was in line with our expectations. We achieved progress with the security guard exam, having renewed our contract inShanghai, and signing new contracts and beginning the administration of pilot exams in several other provinces. ATA also continued to work toward diversifying our revenue streams throughout the quarter and entered strategic partnerships with different educational institutions and companies to promote TOEIC as the English exam of choice for professionals entering the workforce."

Guidance for Fiscal Year 2014 and for Second Quarter 2014

For Second Quarter 2014, ATA expects net revenues of between RMB36.0 million and RMB46.0 million.

For Fiscal Year 2014, ATA expects net revenues of between RMB403.0 million and RMB423.0 million and non-GAAP net income of between RMB37.0 million and RMB47.0 million.


Thursday, May 30, 2013

Comments & Business Outlook
Fourth Quarter 2013 Financial Results 
  • Net revenues of RMB52.2 million (US$8.4 million), compared to RMB60.5 million
  • Gross profit of RMB29.8 million (US$4.8 million), compared to RMB32.8 million
  • Net loss of RMB6.1 million (US$1.0 million), compared to net income of RMB3.3 million
  • Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Fourth Quarter 2013 were both RMB0.12 (US$0.02)

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "In Fiscal Year 2013, we successfully delivered the first computer-based National Unified Certified Public Accountants ('CPA') exam on behalf of the highly respected Chinese Institute of Certified Public Accountants ('CICPA'). We administered approximately 1.4 million CPA exams across China and the Hong Kong and Macau Special Administrative Regions in October. During the year, ATA also delivered many exams for a number of large corporations recruiting new employees as part of our HR Select service. As a result of these efforts, ATA delivered 8.7 million billable exams during Fiscal Year 2013, an 8.9% increase over the prior fiscal year. During this fiscal year, we also experienced some challenges, including decreased demand for the Securities Association of China ('SAC') exam due to a downturn in China's financial industry related to the poor performance of the PRC stock market, which reduced the demand for qualified securities professionals, and lower-than-expected results from our TOEIC and HR Select businesses. Our gross margin for Fiscal Year 2013 was adversely affected by the year-over-year decrease in SAC exam volumes, lower revenue contributions from ATA's test preparation and training solutions business, and implementation expenses incurred to ensure client satisfaction and the smooth delivery of the CPA exam."

Mr. Ma continued, "Despite the challenges we faced with TOEIC and HR Select in Fiscal Year 2013, we intend to continue our efforts to grow these businesses in Fiscal Year 2014, through a strategic and methodical approach focusing on potential client leads generated in Fiscal Year 2013 and further developing our university and college recruitment channel. The goal continues to be to increase ATA's visibility and flexibility through a more diversified revenue stream of government-sponsored exams and corporate assessment exams, which we believe is vital to the Company's long-term growth potential. Over the past few months, we have streamlined our operations and expect the solid foundation we now have in place will not only allow ATA to operate more efficiently going forward but will also enable us to achieve greater results in the initiatives we are working on in Fiscal Year 2014."

Fiscal Year 2014 Outlook

  • For the fiscal year ending March 31, 2014 ("Fiscal Year 2014"), ATA expects net revenues of between RMB403.0 million and RMB423.0 million and non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) of between RMB37.0 million and RMB47.0 million.
  • For the quarter ending June 30, 2013 ("First Quarter 2014"), ATA expects net revenues of between RMB78.0 million and RMB88.0 million.

Guidance for Fiscal Year 2014 and for First Quarter 2014

For First Quarter 2014, ATA expects net revenues of between RMB78.0 million and RMB88.0 million.

For Fiscal Year 2014, ATA expects net revenues of between RMB403.0 million and RMB423.0 million and non-GAAP net income of between RMB37.0 million and RMB47.0 million.


Tuesday, November 6, 2012

Comments & Business Outlook

Second Quarter 2013 Financial and Operating Highlights

  • Net revenues of RMB46.8 million (US$7.4 million), compared to RMB70.4 million
  • Gross profit of RMB21.6 million (US$3.4 million), compared to RMB40.1 million
  • Loss from operations of RMB11.0 million (US$1.8 million), compared to income from operations of RMB2.2 million
  • Net loss of RMB9.1 million (US$1.4 million), compared to net income of RMB1.4 million
  • Adjusted net loss excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB6.6 million (US$1.1 million), compared to adjusted net income excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB4.6 million
  • Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Second Quarter 2013 were both RMB0.30 (US$0.04)
  • Delivered approximately 1.4 million billable tests, compared to 1.8 million billable tests

Fiscal Year 2013 Outlook

  • For the fiscal year ending March 31, 2013 ("Fiscal Year 2013"), the Company is revising its net revenue guidance to between RMB390.0 million and RMB410.0 million, from between RMB420.0 million and RMB440.0 million, and its non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) guidance to between RMB40.0 million and RMB50.0 million, from betweenRMB70.0 million and RMB80.0 million. The revisions to the Company's guidance primarily result from fewer billable exams for the Securities Association of China ("SAC") andimplementation costs associated with the new computer-based National Unified Certified Public Accountants ("CPA") exam, as well as prolonged contract negotiation and delayed delivery of services for certain clients and investments in the TOEIC and HR Select businesses.
  • For the quarter ending December 31, 2012 ("Third Quarter 2013"), ATA expects net revenues will be betweenRMB170.0 million and RMB200.0 million.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We successfully delivered 1.4 million billable exams in Second Quarter 2013, the majority of which were for the SAC. We also administered a large-scale internal assessment exam for the Bank of China ("BOC") in 74 cities across 31 provinces to help the BOC determine which of its employees would be most suitable for overseas placement. Our net revenues for the period, however, came in below the guidance we provided due to lower exam volumes for the SAC exam caused by a slowdown in the financial industry, as well as delayed delivery of services for contracted projects. Our gross margin was affected by a year-over-year decrease in SAC exam volumes and anticipated lower contributions from the Company's test preparation and training solutions business.

"We were very pleased to sign the official contract with the Chinese Institute of Certified Public Accountants in September that names ATA the service provider for the computer-based CPA exam in 2012. We continue to work to diversify our sources of revenue from government-sponsored exams," Mr. Ma commented. "During Second Quarter 2013, ATA worked to ensure client satisfaction and the smooth delivery of the CPA exam that took place in October, and we expect to begin seeing contributions from the CPA exam to our top line in Third Quarter 2013."

Mr. Ma continued, "During Second Quarter 2013, we also continued moving forward with our plans to grow ATA's TOEIC and HR Select businesses. Despite the unexpected decrease in volumes for the SAC exam, which we anticipate will carry into the remainder of Fiscal Year 2013, we will continue to push forward with our sales and marketing efforts for our TOEIC and HR Select businesses in Third Quarter 2013, which is typically our strongest quarter due to the timing of campus recruitment projects. ATA expects to begin realizing a return on these new business efforts in TOEIC and HR Select in the coming quarters. The Company considers diversifying its revenue streams from the government-sponsored exams a crucial component of its long-term strategy. Increasing our TOEIC and HR Select businesses will provide ATA with greater visibility and flexibility, while helping to offset the seasonal nature of our core testing business over time."


Tuesday, August 7, 2012

Special Dividend

BEIJING, Aug.6, 2012 /PRNewswire-Asia-FirstCall/ -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI)

The Board of Directors approved and declared a special cash dividend of US$0.087 per common share, orUS$0.174 per ADS, on its outstanding shares to shareholders of record as of the close of trading on August 20, 2012. The total amount of cash to be distributed as part of the special dividend is expected to be approximatelyUS$4.0 million. The dividend will be paid on or around September 20, 2012. The depository, Citibank, N.A., will charge a fee of US$0.02 per ADS to ADS holders upon payment of the dividend.


Comments & Business Outlook

First Quarter 2013 Financial and Operating Highlights

  • Net revenues of RMB88.3 million (US$13.9 million), up 13.7%
  • Gross profit of RMB46.7 million (US$7.4 million), up 3.9%
  • Income from operations of RMB5.8 million (US$0.9 million), compared to RMB14.2 million
  • Net income of RMB5.3 million (US$0.8 million), compared to RMB13.0 million
  • Adjusted net income excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) of RMB9.7 million (US$1.5 million), compared to RMB13.2 million
  • Basic and diluted earnings per ADS for First Quarter 2013 were both RMB0.22 (US$0.04)
  • Delivered approximately 2.1 million billable tests, up 14.8%

Fiscal Year 2013 Outlook

  • For the fiscal year ending March 31, 2013 ("Fiscal Year 2013"), ATA expects net revenues will be between RMB420.0 million and RMB440.0 million and non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) between RMB70.0 million and RMB80.0million.
  • For the quarter ending September 30, 2012 ("Second Quarter 2013"), ATA expects net revenues will be between RMB50.0 million and RMB60.0 million.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "During First Quarter 2013, we successfully delivered 2.1 million billable exams, the majority of which were for the China Banking Association ("CBA") and Securities Association of China ("SAC"). We also administered recruitment exams and clerk qualification tests for various banking clients during the period. However, our gross margin was affected by a year-over-year decrease in SAC exam volumes and the absence of a one-time price increase that was put in place in the prior-year period, both of which impacted SAC exam contributions as a percentage of total revenues. We also incurred higher costs of services for hiring additional staff for our TOEIC operations team."

Mr. Ma continued, "During the period, we moved forward with our plans to expand sales and marketing efforts for HR Select and TOEIC, hiring over 40 individuals in multiple cities acrossChina, primarily in Guangzhou, Shenzhen, Nanjing, Chengdu, Xi'an, and Wuhan. While these investments will impact our bottom line in the near term, we expect to begin realizing a return on our efforts in the coming quarters, which will help to offset the seasonal nature of our core testing business in the future. We remain confident in the value we bring to our private corporate clients and are working hard to take advantage of these growth opportunities."


Thursday, May 24, 2012

Comments & Business Outlook

Fourth Quarter 2012 Results

  • Net revenues of RMB60.5 million (US$9.6 million), up 21.6%
  • Gross profit of RMB32.8 million (US$5.2 million), up 46.6%
  • Income from operations of RMB4.1 million (US$0.7 million), compared to loss from operations of RMB8.1 million 
  • Net income of RMB3.3 million (US$0.5 million), compared to net loss of RMB5.6 million 
  • Adjusted net income excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) of RMB5.9 million (US$0.9 million), compared to adjusted net loss of RMB5.8 million 
  • Basic and diluted earnings per ADS for Fourth Quarter 2012 were both RMB0.14 (US$0.02).
  • Delivered approximately 1.3 million billable tests, up 26.2%

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "During Fiscal Year 2012, we not only successfully expanded upon a number of our close, long-term relationships with clients, particularly for HR Select, but we also successfully delivered new exams, such as those for China Customs and security guards. We are excited to have begun this relationship with China's General Administration of Customs and are pleased that the agency was satisfied with the transition of their paper-based customs declarer certification exam to our computer-based platform. Largely due to these new efforts and continued growing demand for ATA's HR Select and TOEIC, we delivered 8.0 million billable tests during the year, an increase of 16.2% compared to fiscal 2011. We reported a gross margin of 54.9% for Fiscal Year 2012, which we believe validates the scalability of our computer-based testing business model.

"We are very pleased with our results for both Fourth Quarter 2012 and Fiscal Year 2012. Despite the fiscal fourth quarter's being a seasonally weaker period and the rescheduling of a banking exam from Fourth Quarter 2012 to First Quarter 2013, ATA achieved year-over-year growth in net revenues, gross profit, and net income."

Fiscal Year 2013 Outlook

  • For the fiscal year ending March 31, 2013 ("Fiscal Year 2013"), ATA expects net revenues will be between RMB420.0 million and RMB440.0 million (US$66.7 million and US$69.9 million) and non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) between RMB70.0 million and RMB80.0 million (US$11.1 million and US$12.7 million).
  • For the quarter ending June 30, 2012 ("First Quarter 2013"), ATA expects net revenues will be between RMB80.0 million and RMB90.0 million.

Mr. Ma concluded, "We remain confident in the long-term prospects of China's computer-based testing market, and continue focusing on growing each of our existing business segments while exploring new test titles and attracting new test takers. We anticipate continued growth in our core testing services business in Fiscal Year 2013 as we continue our efforts to increase awareness of our exam offerings and work with different government agencies that are interested in the possibility of converting a number of their paper-based exams to our cost-effective and efficient computer-based platform. We also expect continued momentum in HR Select and TOEIC growth as we expand upon our existing client relationships and develop new relationships. As computer-based testing gains traction in China, we believe that the nation's population will increasingly realize the importance of benchmarking and certifying their skills for potential employers. ATA continues to follow a strict cost structure that makes our business inherently scalable and continues to generate excess cash flow that will help finance the Company's ongoing healthy, organic growth."


Tuesday, February 21, 2012

Comments & Business Outlook

Third Quarter 2012 Financial and Operating Highlights (percentage comparisons are year over year)

  • Net revenues of RMB143.6 million (US$22.8 million), up 5.7%
  • Gross profit of RMB75.4 million (US$12.0 million), up 2.9%
  • Income from operations of RMB44.0 million (US$7.0 million), up 27.0%
  • Net income of RMB38.1 million (US$6.0 million), up 22.0%
  • Adjusted net income excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB40.8 million (US$6.5 million), up 26.9%
  • Basic and diluted earnings per ADS for Third Quarter 2012 were RMB1.66 (US$0.26) and RMB1.62(US$0.26), respectively.
  • Delivered 3.1 million billable tests in Third Quarter 2012, up 4.9%
  • RMB253.3 million (US$40.2 million) in cash and no long-term debt as of December 31, 2011


Company Revises Net Revenue Guidance for Fiscal 2012 / Provides Fiscal 2012 Fourth Quarter Outlook

  • For the fiscal year ending March 31, 2012 ("Fiscal Year 2012"), the Company is revising its net revenue guidance to between RMB345.0 million and RMB350.0 million, from between RMB395.0 million and RMB415.0 million, as a result of longer-than-anticipated negotiations relating to the Security Guard exams and the rescheduling of a banking exam from Fourth Quarter 2012 to First Quarter 2013.
  • For Fiscal Year 2012, the Company is reiterating its net income guidance of between RMB55.0 million and RMB60.0 million.


Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "ATA continued to make progress in its operations throughout the quarter with year-over-year growth in net revenues, gross profit, and net income. During the past quarter, we delivered 3.1 million billable tests, with the total number of tests delivered year-to-date up 14.4% compared to the first nine months of fiscal 2011. The growth in the number of tests delivered is largely due to increased demand for ATA's HR Select and TOEIC. We believe that we will continue to realize certain economies of scale as more individuals in China seek to improve where they rank in the eyes of potential employers."


Monday, November 7, 2011

Comments & Business Outlook

Second Quarter 2012 Results

  • Net revenues of RMB70.4 million (US$11.0 million), up 111.7% year over year
  • Gross profit of RMB40.1 million (US$6.3 million), up 163.4% year over year
  • Income from operations of RMB2.2 million (US$0.3 million)
  • Net income of RMB1.4 million (US$0.2 million), compared to a net loss of RMB14.8 million in the prior-year period. Basic and diluted earnings per ADS for Second Quarter 2012 were both RMB0.00 (US$0.00).
  • Delivered 1.8 million billable tests in Second Quarter 2012, up 62.5% year over year
  • RMB203.1 million in cash and no long-term debt as of September 30, 2011


 

Company Raises Net Income Guidance for Fiscal Year 2012 / Provides Fiscal 2012 Third Quarter Outlook

  • For the fiscal year ending March 31, 2012 ("Fiscal Year 2012"), the Company is reiterating its net revenue guidance of between RMB395.0 million and RMB415.0 million and is raising its net income guidance to between RMB55.0 million and RMB60.0 million, up from between RMB40.0 million and RMB45.0 million.
  • For the quarter ending December 31, 2011 ("Third Quarter 2012"), ATA believes that net revenues will be between RMB136.0 million and RMB141.0 million.


 

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We were pleased to deliver strong revenue and income growth in the second quarter, which came in ahead of our internal projections. We benefitted from an increasing test taker base as more individuals in China are seeking certification, particularly in the financial services industries. By progressively expanding our testing services platform through a balanced number of test titles and partnerships with internationally known content providers, ATA is hopeful that it can continue to build on its leading position in the computer-based testing market in China. We also are achieving steady margin improvement as a result of economies of scale being realized. Growth in our HR Select and TOEIC testing businesses has been accelerating, and we remain confident in our belief that fiscal 2012 will be a strong year."

Guidance for Fiscal Year 2012 and for Third Quarter 2012

For Third Quarter 2012 ending December 31, 2011, ATA expects net revenues will be between RMB136.0 million and RMB141.0 million.

For Fiscal Year 2012, ATA is reiterating its net revenue guidance of between RMB395.0 million and RMB415.0 million and is raising its net income guidance to between RMB55.0 million and RMB60.0 million, up from previous estimates of between RMB40.0 million and RMB45.0 million.

Estimated Financial Results

(RMB in millions)


 

Estimated for the year ending
March 31, 2012

Actual for the year ended
March 31, 2011


Percent Increase

 

Net Revenue

395.0 - 415.0

303.9

30.0% - 36.6%

 

Net Income

55.0 - 60.0

19.8

177.8% - 203.0%

 
 
Mr. Ma concluded, "We continue to expect fiscal 2012 to be a strong year for ATA, with annual revenue growth of approximately 30% and a record total number of billable tests delivered. As a result of our first half financial results being stronger than anticipated, we are raising our annual net income guidance. We believe that we have a cost structure in place that is inherently scalable, which will allow us to provide our efficient and highly reliable services in response to China's growing demand for standardized test assessment services. We expect to report higher profitability as our top line grows. We are very proud of the way that our team has continued to leverage our status as an industry leader in this market, and continually seek new and cost-efficient means of marketing our tests to a wide variety of individuals in China. We feel that there will continue to be stable organic growth within the testing industry and look forward to the future with confidence."

Tuesday, September 27, 2011

Joint Venture

BEIJING, September 27, 2011 /PRNewswire-Asia-FirstCall/ -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a leading provider of computer-based testing and testing-related services in China, today announced that it has signed an exclusive long-term partnership agreement with Saville Consulting ("Saville"), a global human resources assessment firm based in the United Kingdom.

The partnership allows ATA to deliver Saville's unique and proprietary psychometric measurement instruments and highly specialized aptitude tests to China's testing market utilizing the Company's own testing platforms.


Friday, August 5, 2011

Comments & Business Outlook

First Quarter 2012 Financial and Operating Highlights

  • Net revenues of RMB77.6 million (US$12.0 million), compared to RMB85.0 million in the prior-year period, primarily due to the rescheduling of the China Banking Association's ("CBA") banking exam from the first quarter to the third quarter of fiscal 2012
  • Gross profit of RMB45.0 million (US$7.0 million), compared to RMB43.8 million in the prior-year period; gross margin of 58.0%, up from 51.6% in the prior-year period
  • Income from operations of RMB14.2 million (US$2.2 million), compared to RMB11.2 million in the prior-year period
  • Net income of RMB13.0 million (US$2.0 million), compared to RMB9.0 million in the prior-year period
  • Basic and diluted earnings per ADS were RMB0.58 (US$0.08) and RMB0.56 (US$0.08). Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) were RMB0.59 (US$0.08) and RMB0.57 (US$0.08). Each ADS represents two common shares of ATA.
  • Delivered 1.8 million billable tests in First Quarter 2012
  • Administered approximately 788,000 billable tests in a single weekend in June 2011 for the Securities Association of China ("SAC"), breaking its previous record of approximately 655,000 exams in March 2011.
  • Completed payout of special cash dividend of $0.43 per ADS on August 1, 2011
  • Cash and cash equivalents of RMB284.8 million (US$44.1 million) as of June 30, 2011, and no long-term debt

Guidance for Fiscal Year 2012 / Fiscal 2012 Second Quarter

  • The Company is maintaining its guidance of net revenues in the range of RMB395.0 million and RMB415.0 million and net income in the range of RMB40.0 million and RMB45.0 million for the fiscal year ending March 31, 2012 ("Fiscal Year 2012").
  • For the second quarter ending September 30, 2011 ("Second Quarter 2012"), ATA believes that net revenues will be in the range of RMB57.0 million and RMB62.0 million.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We are pleased to achieve gross margin improvement in First Quarter 2012 due to improved economies of scale with our test center partners, greater inroads with banking and financial institutions, and more streamlined operations. While the rescheduling of the banking exam to third quarter of Fiscal 2012 affected revenues from our traditional testing services business during First Quarter 2012, we are confident that ATA will continue to see accelerated growth from our platform testing business while achieving greater profitability from our HR Select and TOEIC businesses. We expect steady contributions from HR Select, despite currently being a relatively small portion of our revenue, to help offset the inherent lumpiness of our core business from quarter to quarter. We remain very optimistic about the growth opportunities in each of our business lines."


Saturday, June 4, 2011

Liquidity Requirements
We believe that our current cash and expected future cash flows from operating activities, particularly from testing services and test preparation and training solutions, is sufficient to meet our present working capital requirements. Our current expansion plans do not require significant capital commitments. We do not expect our short-term and long-term cash requirements to be materially different.

Thursday, June 2, 2011

Comments & Business Outlook

Fourth Quarter Results:

  • Net revenues of RMB49.7 million (US$7.6 million), representing an increase of 5.3% year over year during a seasonally weaker quarter
  • Gross profit of RMB22.4 million (US$3.4 million), representing an increase over RMB17.3 million in the prior-year period; gross margin of 45.0%, representing an increase over 36.6% in the prior-year period
  • Loss from operations of RMB8.1 million (US$1.2 million), compared to RMB38.0 million in the prior-year period
  • Net loss of RMB5.6 million (US$0.9 million), or RMB0.13 per common share (US$0.02), compared to net loss of RMB38.1 million, or RMB0.86 per common share, in the prior-year period
  • Adjusted net loss excluding share-based compensation expense and foreign currency exchange gain (Non-GAAP) of RMB5.8 million (US$0.9 million), compared to net loss of RMB35.3 million in the prior-year period
  • Basic and diluted losses per ADS were RMB0.26 (US$0.04). Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) were RMB0.26 (US$0.04). Each ADS represents two common shares of ATA

The Company believes revenue will be between RMB395.0 million and RMB415.0 million (US$60.3 million and US$63.4 million) and net income between RMB40.0 million and RMB45.0million (US$6.1 million and US$6.9 million) for the fiscal year ending March 31, 2012 ("Fiscal Year 2012")

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We are very pleased with our return to profitability in Fiscal Year 2011 and with our fourth quarter financial results, despite the period's being our seasonally weaker quarter. We have continued to benefit from our existing long-term customer relationships and increased the total number of delivered billable tests by 19.9% to 6.9 million during the fiscal year. We reported over 50% gross margin for Fiscal Year 2011, which we feel supports our highly scalable method of delivering computerized testing services.

BEIJING, June 2, 2011 /PRNewswire-Asia/ -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI), a leading provider of computer-based testing and testing-related services in China, today announced that its Board of Directors has declared a special cash dividend of US$0.215 per common share, or US$0.43 per American Depositary Share (ADS).

The total amount of cash distributed in the dividend is expected to be approximately $10.0 million.  The dividend will be paid on or around August 1, 2011 to all shareholders of record as of the close of business on June 30, 2011.

The number of weighted average ADSs used to calculate basic and diluted earnings per ADS for the quarter ended March 31, 2011 were both 22.3 million and for the fiscal year ended March 31, 2011 were both 22.2 million. Each ADS represents two common shares. ATA had 44.6 million common shares outstanding on March 31, 2011 and 44.4 million common shares outstanding on March 31, 2010.

Mr. Kevin Ma, Chairman and CEO, stated, "We feel that this special dividend is a strong indicator of our ability to produce free cash flow and allows us to return capital to our loyal shareholders."

As of March 31, 2011, the Company had $40.9 million in cash and cash equivalents on a consolidated basis.


Monday, February 21, 2011

Comments & Business Outlook

Third Quarter 2011 Highlights  

  • Net revenues increased by 77.8% year-over-year to RMB135.9 million (US$20.6 million). Revenues exceeded ATA's guidance for Third Quarter 2011 of RMB111 million to 115 million.
  • Gross profit increased by 93.2% year-over-year to RMB73.3 million (US$11.1 million), mainly due to higher total net revenues.
  • Income from operations increased by 257.7% year-over-year to RMB34.7 million (US$5.3 million).
  • Net income increased by 384.2% year-over-year to RMB31.2 million (US$4.7 million).
  • Net income excluding share-based compensation expense and foreign currency exchange gain or loss (non-GAAP) increased by 268.9% year-over-year to RMB32.2 million (US$4.9 million).
  • Basic and diluted income per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) were RMB1.44 (US$0.22). Each ADS represents two common shares of ATA.
  • Guidance is maintained for net revenues in the range of RMB280 million to RMB300 million for the fiscal year ending March 31, 2011.
  • ATA delivered 3.0 million tests during Third Quarter 2011, an increase of 100.5% from the third quarter of fiscal year 2010.
Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, said "As we expected, the shifts in the timing of tests into our fiscal third quarter from our fiscal second quarter this year by some of our major test sponsors resulted in very strong third-quarter to third-quarter comparisons for us.

"Most of our businesses did quite well in the quarter, meeting or exceeding expectations. Considering the performance of our traditional and new businesses and further advances in new possible contracts, including potential testing of security guards, we are very pleased with our results this quarter."

"For example, on November 2, 2011, we held a seminar for representatives from Public Security Bureaus nationwide to provide training on the preparation, execution, and marking of the examination for security guards.  We were introduced at the seminar by the Ministry of Public Security as the provider of the examination, and we have recently commenced commercial contract discussions regarding the examination with several provinces.

"As a result of our strong third quarter, we are maintaining our previous revenue guidance for the full fiscal year 2011.

"We continue to believe that our strategy is sound, our actions effective, and our progress aligned for good long-term growth. We look forward to delivering attractive results in the years ahead, which we expect will create substantial value for our shareholders."

Guidance for Fiscal Year 2011

For its fiscal year ending March 31, 2011, ATA continues to expect net revenues to be in the range of RMB280 million to RMB300 million, which would be up 14.3% to 22.4% from its net revenues in fiscal year 2010 of RMB245.0 million.

These are ATA's current projections, which are subject to change. You are cautioned that operating results in ATA's Third Quarter 2011 are not necessarily indicative of operating results for any future periods.


Sunday, August 22, 2010

Comments & Business Outlook

First Quarter 2011 Highlights:

  • Total net revenues increased by 6.6% year-over-year to RMB 85.0 million (US$ 12.5 million).
  • Gross profit decreased by 1.7% year-over-year to RMB 43.8 million (US$ 6.5 million), mainly due to a decrease in the average price of exams delivered for the China Banking Association.
  • Income from operations decreased by 27.9% year-over-year to RMB 11.2 million (US$ 1.6 million), primarily due to investments in developing our Test of English for International Communication ("TOEIC") and HR Select businesses.
  • Net income decreased by 29.5% year-over-year to RMB 9.0 million (US$ 1.3 million).
  • Net income excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) decreased by 26.1 % year-over-year to RMB 10.4 million (US$ 1.5 million).
  • Basic and diluted earnings per ADS were RMB 0.40 (US$ 0.06) 2011 compared to RMB0.56 (US$0.08) and RMB0.56 (US$0.08).
  • Basic and diluted earnings per ADS excluding share- based compensation expense and foreign currency exchange loss (non-GAAP) were RMB 0.46 (US$ 0.06) compared to RMB0.62 (US$0.09) and RMB0.62 (US$0.09).

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, said "Our first quarter performance shows the positive aspects of our solid testing services business and also our prudent investments to expand our two major emerging businesses, our TOEIC and HR Select businesses, which we believe have strong growth potential.

"We believe our business prospects, both for our traditional testing services as well as newer business lines, are gradually gaining momentum. For example, we have seen positive progress toward implementation of the program for testing security guards in China, which is required by a new law and sponsored by the Ministry of Public Security. We have completed the trial testing by giving the exam to about 3,000 participants in 10 cities in China in June 2010 and the feedback on the trial test was positive. The Ministry of Public Security is currently carrying out internal procedures for approval of the testing program.

"We are maintaining our previous revenue guidance range for the full fiscal year 2011, but we see a shift of testing revenues from the second quarter to the third quarter, primarily due to changes in scheduling for the securities industry tests. Therefore, compared with our normal seasonal pattern, we expect second quarter revenues to be lower and third quarter revenues to be higher than previously expected.

"Overall, we remain confident that our strategy is sound, our actions effective, and our progress aligned for a good long-term growth trend for our business. We believe our attractive results in the years ahead should create substantial value for our shareholders."

Guidance for Fiscal Second Quarter 2011 and Fiscal Year 2011

For the fiscal second quarter 2011, ending September 30, 2010, ATA expects:

  • Net revenues to be in the range of RMB 24 million to RMB 28 million.  This would  represent a decrease in the range of 32.7% to 42.3%.

For its fiscal year ending March 31, 2011, ATA continues to expect:

  • Net revenues to be in the range of RMB 280 million to RMB 300 million, which would be up 14.3% to 22.4% from its net revenues in fiscal year 2010 of RMB 245.0 million.

These are ATA's current projections, which are subject to change. You are cautioned that operating results in ATA's fiscal first quarter 2011 ended June 30, 2010 and for its fiscal year 2010 ended March 31, 2010 are not necessarily indicative of operating results for any future periods.

Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures. The GeoTeam® non-GAAP figures apply a 25% and 36% tax rate for Chinese and United States companies respectively.