China Distance Education Holdings Limited reported unaudited consolidated earnings results for the third quarter and nine months ended June 30, 2018. For the quarter, the company reported total net revenues of $47,416,000 against $35,439,000 a year ago. Operating income was $1,571,000 against $4,684,000 a year ago. Income before income taxes was $5,858,000 against $3,737,000 a year ago. Net income attributable to the company was $5,131,000 against $2,927,000 a year ago. Net income attributable to the company diluted shareholders was $0.038 against $0.022 a year ago. Non-GAAP operating income was $2,195,000 against $5,167,000 a year ago. Non-GAAP net income was $5,755,000 against $3,410,000 a year ago. Non-GAAP net income per diluted share was $0.043 against $0.026 a year ago. Net operating cash inflow increased by 59.6% to $12.4 million in the third quarter of fiscal 2018 from $7.8 million in the prior year period. The operating cash inflow was mainly attributable to net income before non-cash items generated in the third quarter of fiscal 2018. The decrease in accounts receivable and the increase in accrued expenses and other liabilities, income tax payable and refundable fees also contributed to the operating cash inflow. The operating cash inflow was partially offset by the increase in inventories and deferred cost, and the decrease in deferred revenue.  

For the nine months, the company reported total net Revenue was $113,042,000 against $89,280,000 a year ago. Operating income was $3,768,000 against $10,573,000 a year ago. Income before income taxes was $2,555,000 against $12,851,000 a year ago. Net income attributable to the company was $1,960,000 against $9,069,000 a year ago. Net income attributable to the company diluted share was $0.015 against $0.068 a year ago. Non-GAAP operating income was $5,449,000 against $12,038,000 a year ago. Non-GAAP net income was $3,641,000 against $10,534,000 a year ago. Non-GAAP net income per diluted share was $0.027 against $0.079 a year ago. Net operating cash inflow increased by 1.7% to $35.1 million in the first nine months of fiscal 2018 from $34.5 million in the prior year period. Capital expenditures were $4.5 million.

For the fourth quarter of fiscal 2018, the company expects to generate total net revenue in the range of $54.2 million to $56.3 million, representing year-over-year growth of approximately 30% to 35%. Non-GAAP operating margins will be down year-over-year as a result of the increased rental expenses.

For fiscal year 2018, the company expects to generate total net revenues in the range of $167.3 million to $169.3 million, representing year-over-year growth of approximately 27.7% to 29.3%.