Ambow Education Reports "Soft" Quarter, Plans for International Expansion
Ambow Education Holding Ltd. (NYSE American: AMBO) sent its shares 2 percent higher on Monday after it reported second quarter results.
The Beijing-based education provider said in a statement today that its revenue in the three months through June reached $24.1 million, up 6 percent from the corresponding period of 2018. Its net income hit $1.3 million, or 12 cents per American depositary share, during the reporting period.
The company said in the six months through June its revenue increased 8 percent year-over-year to $41.4 million. Net losses were $2.2 million for the half-year.
Ambow Education said that the first quarter has traditionally been "soft," which led to higher losses in its statement in June. It emphasized its two-digit increase in the deferred revenue balance as of June, which soared 27 percent to $23 million from $18.1 million six months ago.
The cross-border education provider said it plans to bridge the Sino-U.S. market. "In building synergistic opportunities across the underserved cross-border education market, we are developing a platform that addresses deficiencies in the cross-border career oriented higher education landscape across the U.S. and China," Jin Huang, the chief executive officer of Ambow Education, said in the statement.
Huang also said the company intends to acquire the NewSchool of Architecture and Design LLC., a California-based institution that offers undergraduate and graduate degrees, as well as non-degree certificates in architecture, design and construction management.
Shares in Ambow Education closed at $2.51 per American depositary share, up 2 percent Monday.
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