Sohu.com (SOHU)

Income from Continuing Operations

For the three months ended March 31, 2009, income from continuing operations was $44.6 million, as compared to $21.6 million for the three months ended March 31, 2008.

Loss from Discontinued E-commerce Operations

On June 20, 2006, we discontinued our e-commerce business. For the three months ended March 31, 2009, no loss was generated from discontinued e-commerce operations as compared to $1,000 loss for the three months ended March 31, 2008.

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Income from Continuing Operations

For the three and nine months ended September 30, 2006, income from continuing operations was $6.6 million and $20.6 million, as compared to $8.5 million and $21.8 million for the three and nine months ended September 30, 2005.

Loss from Discontinued E-commerce Operations

In June 2006, we discontinued our e-commerce business. For the three and nine months ended September 30, 2006, loss from discontinued e-commerce operations was $27,000 and $784,000, as compared to $432,000 and $928,000 for the three and nine months ended September 30, 2005. As of the date we discontinued our e-commerce operation, we had performed a specific review on all the assets related to e-commerce segment. During the nine months ended September 30, 2006, we provided an additional allowance for doubtful receivables amounting to $84,000, and allowance on all inventory balances amounting to $21,000. All these provisions were made when we discontinued the business in June 2006. As the fixed assets previously used by the e-commerce operation could generally be used by other segments, we did not dispose significant fixed assets nor provide impairment on the fixed assets.

Income from Continuing Operations

For the three and six months ended June 30, 2006, income from continuing operations was $7.8 million and $14.0 million, as compared to $7.3 million and $13.3 million for the three and six months ended June 30, 2005.

Loss from Discontinued E-commerce Operations

In June 2006, we discontinued our e-commerce business. For the three and six months ended June 30, 2006, loss from discontinued e-commerce operations was $592,000 and $757,000, as compared to $210,000 and $496,000 for the three and six months ended June 30, 2005. The increase of loss from discontinued e-commerce operations is due to additional provisions made for receivables and inventories for e-commerce business when we discontinued the business in June 2006. At the discontinuance of e-commerce operation, we had performed a specific review on all the assets related to e-commerce segment. During the three months ended June 30, 2006, we provided an additional allowance for doubtful receivables amounting to $154,000, and allowance on all inventory balances amounting to $134,000. As the fixed assets previously used by the e-commerce operation could generally be used by other segments, we did not dispose significant fixed assets nor provide impairment on the fixed assets.