Sohu.com (SOHU)

Net Income

Before deducting the share of net income pertaining to the Non-Controlling Interest in Changyou, GAAP net income for the third quarter of 2009 was US$47.1 million, up 11% quarter-on-quarter and 17% year-on-year. Non-GAAP net income for the third quarter of 2009 was US$51.6 million, up 5% quarter-on-quarter and 21% year-on-year, in line with the Company’s guidance.

After deducting the share of net income pertaining to the Non-Controlling Interest in Changyou, GAAP net income for the third quarter of 2009 was US$34.4 million, or US 88 cents per fully diluted share. Non-GAAP net income for the third quarter of 2009 was US$37.4 million, or US 96 cents per fully diluted share, an increase of 6% quarter-on-quarter, in line with the Company’s guidance.

Net Income

Before deducting the share of net income pertaining to the Non-Controlling Interest in Changyou, GAAP net income for the second quarter of 2009 was $42.3 million, a decrease of 5% quarter-on-quarter and an increase of 5% year-on-year. Non-GAAP net income for the second quarter of 2009 was $49.0 million, exceeding the high end of company guidance of $46.0 million, up 4% quarter-on-quarter and 16% year-on-year.

After deducting the share of net income pertaining to the Non-Controlling Interest in Changyou, GAAP net income attributable to Sohu.com Inc. for the second quarter of 2009 was $30.9 million, or US 79 cents per fully diluted share. Non-GAAP net income attributable to Sohu.com Inc. for the second quarter of 2009 was $35.2 million, or US 90 cents per fully diluted share, exceeding the high end of company guidance of $33.0 million or US 85 cents per fully diluted share, by US 5 cents.

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Net Income

As a result of the foregoing, we had net income of $44.6 million for the three months ended March 31, 2009, as compared to net income of $21.6 million for the three months ended March 31, 2008. The net income for the three months ended March 31, 2009 and 2008 included $2.3 million and $3.5 million of share-based compensation expense under SFAS 123(R).

Net Income

GAAP net income for the first quarter of 2009 was US$44.6 million or US$1.15 per fully diluted share. Non-GAAP net income for the first quarter of 2009 was US$46.9 million or US$1.20 per fully diluted share.

GAAP net income contributed by online game business for the first quarter of 2009 was US$33.5 million, a 15% increase quarter-on-quarter and 120% year-on-year. Non-GAAP net income contributed by online game business was US$34.4 million, a 13% increase quarter-on-quarter and 100% year-on-year.

Net Income

As a result of the foregoing, we had net income of $158.6 million for the year ended December 31, 2008, as compared to net income of $34.9 million for the year ended December 31, 2007. The net income for the years ended December 31, 2008 and 2007 included $10.6 million and $8.8 million of share-based compensation expense recorded under SFAS 123(R).

Net Income

As a result of the foregoing, we had net income of $34.9 million for the year ended December 31, 2007, as compared to net income of $25.9 million for the year ended December 31, 2006. The net income for the years ended December 31, 2007 and 2006 included $8.8 million and $6.9 million of share-based compensation expense recorded under SFAS 123(R).

Net Income

As a result of the foregoing, we had net income of $40.3 million and $102.0 million for the three and nine months ended September 30, 2008, as compared with net income of $9.7 million and $19.9 million for the three and nine months ended September 30, 2007. The net profit for the three and nine months ended September 30, 2008 included $2.6 million and $8.2 million of share-based compensation expense under SFAS 123(R), as compared with $2.0 million and $6.9 million of share-based compensation expense for the three and nine months ended September 30, 2007.

Net Income

As a result of the foregoing, we had net income of $40.2 million and $61.8 million for the three and six months ended June 30, 2008, as compared to net income of $5.7million and $10.2 million for the three and six months ended June 30, 2007. The net profit for the three and six months ended June 30, 2008 included $2.2 million and $5.7 million of share-based compensation expense under SFAS 123(R), as compared to $2.4 million and $4.9 million of share-based compensation expense for the three and six months ended June 30, 2007.

Net Income

As a result of the foregoing, we had net income of $21.6 million for the three months ended March 31, 2008, as compared to net income of $4.5 million for the three months ended March 31, 2007. The net profit for the three months ended March 31, 2008 included $3.5 million of share-based compensation expense under SFAS 123(R), as compared to $2.5 million of share-based compensation expense for the three months ended March 31, 2007.

Net Income

As a result of the foregoing, we had net income of $25.9 million for the year ended December 31, 2006, as compared to net income of $29.8 million for the year ended December 31, 2005. The net income for the year ended December 31, 2006 included $6.9 million of share-based compensation expense recorded under SFAS 123(R). The net income for the year ended December 31, 2005 included $2,000 of share-based compensation expense recorded under APB 25.

Net Income

Net Income

As a result of the foregoing, we had net income of $9.7 million and $19.9 million for the three and nine months ended September 30, 2007, as compared to net income of $6.6 million and $19.8 million for the three and nine months ended September 30, 2006. The net income for the three and nine months ended September 30, 2007 included $2.0 million and $6.9 million of share-based compensation expense recorded under SFAS 123(R), as compared to $1.9 million and $4.9 million for the three and nine months ended September 30, 2006.

Net Income

As a result of the foregoing, we had net income of $5.7 million and $10.2 million for the three and six months ended June 30, 2007, as compared to net income of $7.2 million and $13.2 million for the three and six months ended June 30, 2006. The net income for the three and six months ended June 30, 2007 included $2.4 million and $4.9 million of share-based compensation expense recorded under SFAS 123(R), as compared to $1.3 million and $3.0 million for the three and six months ended June 30, 2006.

Net Income

As a result of the foregoing, we had net income of $4.5 million for the three months ended March 31, 2007, as compared to net income of $6.0 million for the three months ended March 31, 2006. The net profit for the three months ended March 31, 2007 included $2.5 million of share-based compensation expense under SFAS 123(R), as compared to $1.7 million of share-based compensation expense for the three months ended March 31, 2006.

Net Income

As a result of the foregoing, we had net income of $29.8 million for the year ended December 31, 2005, as compared to net income of $35.6 million for the year ended December 31, 2004.

Net Income

As a result of the foregoing, we had net income of $6.6 million and $19.8 million for the three and nine months ended September 30, 2006, as compared to net income of $8.0 million and $20.8 million for the three and nine months ended September 30, 2005. The net income for the three and nine months ended September 30, 2006 included $1.9 million and $4.9 million of share-based compensation expense recorded under SFAS 123(R). The net income for the three and nine months ended September 30, 2005 included $0 and $2,000 of share-based compensation expense recorded under APB 25.

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Net Income

As a result of the foregoing, we had net income of $7.2 million and $13.2 million for the three and six months ended June 30, 2006, as compared to net income of $7.1 million and $12.8 million for the three and six months ended June 30, 2005. The net income for the three and six months ended June 30, 2006 included $1.3 million and $3.0 million of share-based compensation expense recorded under SFAS 123(R). The net income for the three and six months ended June 30, 2005 included $0 and $2,000 of share-based compensation expense recorded under APB 25.

Net Income

As a result of the foregoing, we had net income of $6.0 million for the three months ended March 31, 2006, as compared to net income of $5.7 million for the three months ended March 31, 2005. The net income for the three months ended March 31, 2006 included $1.7 million of share-based compensation expense recorded under SFAS 123(R). The net income for the three months ended March 31, 2005 included $2,000 of share-based compensation expense recorded under APB 25.

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Net Income

As a result of the foregoing, we had net income of $35.6 million for the year ended December 31, 2004, as compared to net income of $26.4 million for the year ended December 31, 2003.

Net Income

As a result of the foregoing, we had net income of $8.0 million and $20.8 million for the three and nine months ended September 30, 2005, as compared to net income of $8.3 million and $29.1 million for the three and nine months ended September 30, 2004.

Net Income

As a result of the foregoing, we had net income of $7.1 million and $12.8 million for the three and six months ended June 30, 2005, as compared to net income of $9.9 million and $20.8 million for the three and six months ended June 30, 2004.

Net Income

As a result of the foregoing, we had net income of $5.7 million for the three months ended March 31, 2005, as compared to a net income of $10.9 million for the three months ended March 31, 2004.

Net Income

As a result of the foregoing, we had net income of $35.6 million for the year ended December 31, 2004, as compared to net income of $26.4 million for the year ended December 31, 2003.