Shares of 21Vianet Group Inc (NASDAQ:VNET) ended Wednesday session in red amid volatile trading. The shares closed down -0.16 points or -1.74% at $9.03 with 1.11 million shares getting traded. Post opening the session at $9.11, the shares hit an intraday low of $8.95 and an intraday high of $9.16 and the price vacillated in this range throughout the day. The company has a market cap of $773.78 million and the numbers of outstanding shares have been calculated to be 458.92 million shares.
21Vianet Group Inc (VNET) on Aug. 16, 2016 announced its unaudited financial results for the second quarter of 2016.
Second Quarter 2016 Financial Results
REVENUES: Net revenues for the second quarter of 2016 increased by 5.1% to RMB910.8 million (US$137.1 million) from RMB866.8 million in the comparative period in 2015, primarily driven by a year-over-year increase in IDC, Cloud and VPN revenues, partially offset by the decline in MNS revenues.
Net revenues from hosting and related services increased by 19.3% to RMB767.9 million (US$115.5 million) in the second quarter of 2016 from RMB643.7 million in the comparative period in 2015, primarily due to the year-over-year increase in total number of billable cabinets and improved utilization rate, partially offset by lower MRR, or monthly recurring revenue, per cabinet. Net revenues from MNS were RMB142.9 million (US$21.5 million) in the second quarter of 2016, compared with RMB223.1 million in the comparative period in 2015. The decrease is primarily due to the continued industry-wide decline in bandwidth prices and lower revenue contribution from Aipu, which is undergoing a business optimization process.
GROSS PROFIT: Gross profit for the second quarter of 2016 was RMB172.9 million (US$26.0 million), compared with RMB204.0 million in the comparative period in 2015. Gross margin for the second quarter of 2016 was 19.0%, compared with 23.5% in the comparative period in 2015. The decrease in gross margin was primarily due to continued weakness in the MNS business.
Adjusted gross profit, which excludes share-based compensation expenses and amortization of intangible assets derived from acquisitions, was RMB200.8 million (US$30.2 million) in the second quarter of 2016, compared with RMB245.7 million in the comparative period in 2015. Adjusted gross margin was 22.0% in the second quarter of 2016, compared with 28.3% in the comparative period in 2015.
Shares of Fitbit Inc (NYSE:FIT) ended Wednesday session in red amid volatile trading. The shares closed down -0.31 points or -2.05% at $14.80 with 11.75 million shares getting traded. Post opening the session at $15.00, the shares hit an intraday low of $14.69 and an intraday high of $15.38 and the price vacillated in this range throughout the day. The company has a market cap of $3.32 billion and the numbers of outstanding shares have been calculated to be 222.15 million shares.
Fitbit Inc (FIT) on August 31, 2016 announced the opening of its Europe, Middle East and Africa (EMEA) headquarters in Dublin, Ireland and appointed a new Managing Director, Des Power. Ireland’s reputation for being a centre of innovation and providing top technology talent were important factors for Fitbit and will enable the company to further expand in the region as part of its global growth strategy.
The new Dublin office will serve as Fitbit’s EMEA headquarters and will house the strategic business functions for the region, including senior management roles, sales, marketing, operations, finance and customer support staff, which will provide targeted support to the millions of Fitbit users across the region. The company hopes to grow to approximately 50 people by the end of the year and has room for up to 100 by the end of 2017. With 150% year-over-year revenue growth in the European region in Q2 2016 compared to Q2 2015 and the ability to support five European languages across the Fitbit platform, the company’s new Dublin office comes at an ideal time to support Fitbit’s rapid growth and expansion while taking advantage of the highly skilled labour market in Dublin.
“We’ve seen Dublin become a strategic hub for the technology industry as a centre for innovation and sourcing top talent in the region, and we look forward to building a strong team here to complement our offices around the world,” said Fitbit CEO and Co-Founder, James Park. “I’m excited to welcome Des to the team and back to his native Ireland. I have great confidence in our ability to further expand our business and help people across EMEA lead healthier, more active lives.”