China Distance Education Holdings Limited reported unaudited consolidated earnings results for the second quarter and six months ended March 31, 2018. For the second quarter, the company's total net revenue increased by 36.1% to $29.7 million in the second quarter of fiscal 2018 from $21.9 million in the second quarter of fiscal 2017. Net revenue from online education services, books and reference materials, and other sources contributed 78.6%, 4.7% and 16.7%, respectively, of total net revenues for the second quarter of fiscal 2018. As a result of the foregoing, net loss was $3.3 million in the second quarter of fiscal 2018 compared with net loss of $2.4 million in the prior year period. Non-GAAP net loss was $2.7 million in the second quarter of fiscal 2018 compared with non-GAAP net loss of $1.9 million in the prior year period. Net operating cash inflow decreased by 36.1% to $7.2 million in the second quarter of fiscal 2018 from $11.3 million in the prior year period. The operating cash inflow was mainly attributable to the decrease in accounts receivable and inventories, and the increase in deferred revenue. The operating cash inflow was partially offset by the net loss before non-cash items incurred in the second quarter of fiscal 2018. Operating loss was $2,911,000 compared to $2,069,000 a year ago. Loss before income taxes was $6,222,000 compared to $2,862,000 a year ago. Basic and diluted net loss per ADS was $0.098 compared to $0.073 a year ago. Non-GAAP operating loss was $2,357,000 compared to $1,585,000 a year ago. Basic and diluted Non-GAAP net loss per ADS attributable to China Distance Education Holdings Limited shareholders was $0.082 compared to $0.059 a year ago. Net loss attributable to China Distance Education Holdings Limited shareholders was $0.025 per diluted share against $0.018 per diluted share a year ago.

For the six months ended March 31, 2018, the company's total net revenue increased by 21.9% to $65.6 million in the first six months of fiscal 2018 from $53.8 million in the first six months of fiscal 2017. Net revenue from online education services, books and reference materials, and other sources contributed 69.9%, 5.7% and 24.4%, respectively, of total net revenues for the first six months of fiscal 2018. As a result of the foregoing, net loss was $3.2 million compared with net income of $6.1 million in the prior year period. Non-GAAP net loss was $2.1 million compared with net income of $7.1 million in the prior year period. Net operating cash inflow decreased by 25.5% to $21.6 million in the first six months of fiscal 2018 from $29.0 million in the prior year period. Operating income was $2,198,000 compared to $5,889,000 a year ago.  Loss before income taxes was $3,303,000 compared to income before income taxes of $9,113,000 a year ago. Basic and diluted net loss per ADS was $0.096 compared to diluted earnings per share of $0.185 a year ago. Non-GAAP operating income was $3,254,000 compared to $6,871,000 a year ago. Basic and diluted Non-GAAP net loss per ADS attributable to China Distance Education Holdings Limited shareholders was $0.064 compared to diluted earnings per share of $0.215 a year ago. Net loss attributable to China Distance Education Holdings Limited shareholders was $0.024 per diluted share against net income of $0.046 per diluted share a year ago.

For the third quarter of fiscal 2018, the company expects to generate total net revenue in the range of $42.5 million to $44.3 million, representing year-over-year growth of approximately 20% to 25%.

For fiscal year 2018, the company expects to generate total net revenues in the range of $155.8 million to $162.4 million, representing year-over-year growth of approximately 19% to 24%.