China Distance Education Holdings Limited announced unaudited consolidated earnings results for the second quarter and six months ended March 31, 2017. For the quarter, the company reported total net revenues of $21,858,000 compared to $24,147,000 a year ago, primarily due to Xiamen NetinNet's revenue contribution of $0.9 million, partially offset by a decline in revenue from business start-up training services. Operating loss was $2,069,000 compared to income of $4,631,000 a year ago. Loss before income taxes was $2,862,000 compared to profit of $3,573,000 a year ago. Net loss attributable to the company was $2,413,000 compared to profit of $2,544,000 a year ago. Basic and diluted loss per share was $0.018 compared to earnings per share of $0.018 a year ago. Net loss per basic and diluted ADS was $0.073 compared to earnings per share of $0.073 a year ago. Non-GAAP operating loss was $2,069,000 compared to income of $4,631,000 a year ago. Non-GAAP net loss was $1,929,000 compared to income of $3,045,000 a year ago. Non-GAAP net loss per basic and diluted share was $0.015 compared to income per share of $0.022 a year ago. Non-GAAP net loss diluted per ADS attributable to the company was $0.059 compared to diluted income per share of $0.087 a year ago. Net operating cash inflow decreased by 6.2% to $11.3 million in the second quarter of fiscal 2017 from $12.0 million in the prior year period

For the six months, the company reported total net revenues of $53,841,000 compared to $48,515,000 a year ago. Operating income was $5,889,000 compared to $8,158,000 a year ago. Income before income taxes was $9,113,000 compared to $8,693,000 a year ago. Net income attributable to the company was $6,143,000 compared to $6,651,000 a year ago. Diluted income per share was $0.046 compared to $0.047 a year ago. Net income per basic and diluted ADS was $0.185 compared to $0.188 a year ago. Non-GAAP operating income was $6,871,000 compared to $9,170,000 a year ago. Non-GAAP net income was $7,125,000 compared to $7,663,000 a year ago. Non-GAAP net income per basic and diluted share was $0.054 compared to $0.054 a year ago. Non-GAAP net income diluted per ADS attributable to the company was $0.215 compared to $0.216 a year ago. Net operating cash inflow increased by 19.2% to $29.0 million in the first six months of fiscal 2017 from $24.3 million in the prior year period.

For the third quarter of fiscal 2017, the company expects to generate total net revenue in the range of $30.8 million to $32.3 million, representing a year-over-year increase of approximately 0% to 5%.