6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

March 9, 2009

Commission File Number: 000-50975

China Finance Online Co. Limited

(Translation of registrant’s name into English)

Hong Kong

(Jurisdiction of incorporation or organization)

9th Floor of Tower C, Corporate Square
NO.35 Financial Street, Xicheng District
Beijing, China 100032

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
þ Form 20-F o Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: o Yes þ No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	China Finance Online Co. Limited
Date: March 9, 2009	By:	/s/ Jun Wang
		Name:	Jun Wang
		Title:	Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.		Description
	99.1	CHINA FINANCE ONLINE REPORTS UNAUDITED FOURTH QUARTER AND FULL YEAR 2008 RESULTS

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EX-99.1

Exhibit 99.1

CHINA FINANCE ONLINE REPORTS UNAUDITED FOURTH QUARTER AND FULL YEAR 2008 RESULTS

(Beijing, China, March 9, 2009) China Finance Online Co. Limited (NASDAQ: JRJC), a leading Chinese online financial information and listed company data provider, today announced its financial results for the fourth quarter and the full year ended December 31, 2008:

Q4 2008 Highlights

	Fourth Quarter
	2008		2007
1) Financial Data:	(in thousands of U.S. dollars, except per ADS data)
Net revenues	$	15,281	$	8,882
GAAP net income (loss)		6,192		(8,369	)
Non-GAAP net income		7,811		3,633
GAAP net income per ADS
Basic	$	0.31	$	(0.43	)
Diluted	$	0.28	$	(0.43	)
Non-GAAP net income per ADS
Basic	$	0.39	$	0.18
Diluted	$	0.36	$	0.16
2) Operating Data:
Registered users		11,320,000		9,000,000
Active paid individual subscribers		116,200		56,200

*	Net revenues reached $15.28 million for Q4 2008, up 72% year-over-year and flat from the third quarter of 2008, exceeding the high end of the Company’s prior guidance of $14.5 to 15.0 million.
*	GAAP net income was $6.19 million for Q4 2008, compared to net loss of $8.37 million for the fourth quarter of 2007. Both basic and diluted GAAP net income per share were $0.06 for Q4 2008, and basic and diluted GAAP net income per ADS were $0.31 and $0.28 for Q4 2008, respectively.
*	Non-GAAP net income, which is defined as net income excluding stock-based compensation expenses, was $7.81 million for Q4 2008. Non-GAAP basic and diluted net income per share were $0.08 and $0.07 for Q4 2008, respectively. And non-GAAP basic and diluted net income per ADS were $0.39 and $0.36 for Q4 2008, respectively.
*	Registered user accounts of jrj.com and stockstar.com grew to 11.32 million, an increase of 420,000 from the previous quarter. Active paid individual subscribers, which refer to individual investors who subscribe for a fee to our products through downloading, via web or by mobile phones, grew to 116,200. As of December 31, 2008, our Hong Kong brokerage operation Daily Growth, which was acquired in November, 2007, had approximately 1,250 customer accounts.

Explanation of the Company’s non-GAAP financial measures and the related reconciliations to GAAP financial measures are included in the accompanying “Non-GAAP Measures” and “ Reconciliations from net income to EBITDA and adjusted EBITDA”.

Full year 2008 Highlights

	Year ended Dec. 31
	2008		2007
	(in thousands of U.S. dollars, except per ADS data)
Net revenues	$	56,243	$	25,903
GAAP net income (loss)		19,034		(4,130	)
Non-GAAP net income		26,597		9,943
GAAP net income per ADS
Basic	$	0.96	$	(0.22	)
Diluted	$	0.84	$	(0.22	)
Non-GAAP net income per ADS
Basic	$	1.34	$	0.51
Diluted	$	1.18	$	0.45

*	Net revenues increased by 117% to $56.24 million in 2008 from $25.90 million in 2007.
*	Non-GAAP net income, excluding stock-based compensation expenses of $7.56 million, was $26.60 million for the full year 2008, up 167% year-on-year. Non-GAAP basic and diluted net income per share were $0.27 and $0.24, respectively, and non-GAAP basic and diluted net income per ADS were $1.34 and $1.18 for 2008, respectively.

Q4 2008 Financial Results

Net Revenues:

For the fourth quarter of 2008, China Finance Online reported net revenues of $15.28 million, compared to $8.88 million for the same period in 2007, and $15.23 million for the third quarter of 2008, up 72% year-over-year and almost flat quarter-over-quarter. Revenues from subscription service fees paid by individual customers were $12.27 million in the fourth quarter of 2008, representing 80% of net revenues for the quarter. Revenues from mobile value added services were $197,000, representing 1% of net revenues for the quarter. Revenues from subscription service fees paid by institutional customers were $248,000 in the fourth quarter of 2008, representing 2% of net revenues for the quarter. Revenues from advertising-related business for the quarter contributed $839,000, representing 6% of net revenues for the quarter. Revenues from brokerage-related services, provided by Daily Growth, the Hong Kong securities brokerage firm which was acquired in November 2007, were $187,000 in the fourth quarter of 2008, representing 1% of net revenue for the quarter. Other revenues were $1.54 million, which mainly came from IT project outsourcing, representing 10% of net revenues for the quarter.

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Revenues breakdown is summarized in the following table:

	Three months ended
	December 31, 2008				September 30, 2008				December 31, 2007
	(In thousands of U.S. dollars)
1) Subscription service fees paid by individual customers		12,272	80	%		13,377	88	%		7,759	87	%
2) Revenues from mobile value added services		197	1	%		170	1	%		384	4	%
3) Subscription service fees paid by institutional customers		248	2	%		407	3	%		229	3	%
4) Revenues from advertising-related business		839	6	%		764	5	%		408	5	%
5) Revenues from brokerage-related services		187	1	%		496	3	%		81	1	%
6) Revenues from others		1,538	10	%		14	<1	%		21	<1	%
Total net revenues		15,281	100	%		15,228	100	%		8,882	100	%

Gross Profit:

Gross profit for the quarter was $12.50 million, compared to $7.56 million for the same period in 2007 and $12.46 million for the third quarter of 2008. Gross margin was 82% in the fourth quarter, compared to 85% in the same period of 2007 and 82% in the third quarter of 2008.

A large portion of costs of revenue are website maintenance expenses, which consist of bandwidth costs, personnel-related expenses, server depreciation expenses, and content expenses for our jrj.com and stockstar.com websites. Website maintenance expenses for the fourth quarter of 2008 was $1.08 million in the quarter, compared to $903,000 for the fourth quarter of 2007 and $1.33 million for the previous quarter. As a percentage of net revenue, website maintenance expenses for the fourth quarter of 2008 was 7%, compared to 10% for the fourth quarter of 2007 and 9% for the previous quarter.

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Operating Expenses:

Operating expenses for the fourth quarter of 2008 totalled $9.13 million compared to $5.93 million for the same period in 2007 and $8.56 million for the previous quarter. Excluding stock-based compensation of $1.62 million, operating expenses was $7.51 million for the fourth quarter of 2008, compared to $5.05 million for the fourth quarter of 2007 and $6.95 million for the third quarter of 2008. As a percentage of net revenue for the quarter, operating expenses excluding stock-based compensation were 49%, compared to 57% for the fourth quarter of 2007 and 46% for the third quarter of 2008.

• General and administrative expenses for the quarter were $3.43 million, compared to $2.63 million for the same period in 2007 and $3.42 million from the previous quarter. Excluding stock-based compensation of $1.59 million, general and administrative expenses were $1.85 million for the fourth quarter, compared to $1.83 million in the fourth quarter of 2007 and $1.88 million in the previous quarter. As a percentage of net revenue, general and administrative expenses excluding stock-based compensation for the fourth quarter was 12%, and compared to 21% for the fourth quarter of 2007 and 12% for the third quarter of 2008.

• Sales and marketing expenses for the fourth quarter were $3.79 million, compared to $2.43 million for the same period in 2007 and $3.64 million for the previous quarter. Excluding stock-based compensation of $19,000, sales and marketing expenses was $3.77 million for the fourth quarter, compared to $2.39 million in the fourth quarter of 2007 and $3.58 million in the previous quarter. As a percentage of net revenue, sales and marketing expenses excluding stock-based compensation for the fourth quarter was 25%, and decreased from 27% for the same quarter in 2007, and increase from 24% for the third quarter of 2008.

• Product development expenses for the fourth quarter were $1.91 million, compared to $865,000 for the same period in 2007 and $1.49 million for the previous quarter. Excluding stock-based compensation of $12,000, product development expenses were $1.89 million, compared to $832,000 in the fourth quarter of 2007 and $1.48 million in the previous quarter. As a percentage of net revenue, product development expenses excluding stock-based compensation for the fourth quarter was 12%, increased from 9% for the fourth quarter of 2007, and 10% for the previous quarter.

Income from Operations:

Income from operations for the fourth quarter of 2008 was $3.81 million, compared to $1.77 million for the same quarter in 2007 and $3.90 million for the third quarter of 2008. Adjusted income from operations (non-GAAP), which is defined as income from operations excluding stock-based compensation expenses of $1.62 million, was $5.43 million for the quarter, compared to $2.64 million for the same quarter in 2007 and $5.52 million for the third quarter of 2008.

Net Income and Non-GAAP Net Income:

Net income for the fourth quarter was $6.19 million, compared to net loss of $8.37 million for the fourth quarter of 2007 and net income of $4.77 million for the third quarter of 2008. Net income margin was 41% for Q4 2008, compared to -94% for the same period in 2007 and 31% for the third quarter of 2008.

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Total income tax benefit for the quarter was $2.18 million, compared to $398,000 for the same period in 2007 and $248,000 for the previous quarter.

Non-GAAP net income, which is defined as net income excluding stock-based compensation expenses, was $7.81 million for the fourth quarter of 2008, compared to $3.63 million for the fourth quarter of 2007, and $6.38 million for the third quarter of 2008. Excluding stock-based compensation expenses, non-GAAP net income margin for the fourth quarter of 2008 was 51%, compared to non-GAAP net income margin of 41% for the same period in 2007 and 42% for the third quarter of 2008.

As part of the net income for the fourth quarter, the Company recorded a foreign exchange loss of $123,000, compared with net foreign exchange gain of $220,000 from the fourth quarter of 2007 and $184,000 from the previous quarter.

Deferred Revenue:

Deferred revenue at the end of the fourth quarter of 2008, which represents prepaid service fees made by customers for subscription services that have not been rendered as of December 31, 2008, was $36.99 million, with current deferred revenue of $28.20 million and non-current deferred revenue of $8.79 million.

Cash and Cash Equivalents:

Balance of cash and cash equivalents was approximately $97.54 million at the end of the fourth quarter of 2008, including cash denominated in RMB with an equivalent to $80.31 million and cash denominated in other foreign currencies with an equivalent to $17.23 million.

Cash Flow:

Cash inflow from subscription services provided to individual customers was $13.92 million, compared to $13.73 million for the fourth quarter of 2007 and $14.53 million for the previous quarter.

Adjusted EBITDA (Non-GAAP):

Adjusted EBITDA (non-GAAP), which is defined as earnings before interest, taxes, depreciation, amortization, other non-operating income, loss from impairment of cost method investment and stock-based compensation expenses, was $6.11 million for the fourth quarter of 2008, compared to $2.96 million in the fourth quarter of 2007 and $6.10 million in the previous quarter.

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Full year 2008 Financial Results

For the full year ended December 31, 2008 net revenues increased by 117% to $56.24 million from $25.90 million in 2007.

Gross profit in 2008 increased by 118% to $46.88 million from $21.47 million in 2007. Gross margin in 2008 was 83% compared with 83% in 2007.

Total operating expenses in 2008 were $34.05 million, compared to $16.98 million in 2007.

Income from operations in 2008 was $13.26 million, compared to $4.64 million in 2007.

Non-GAAP net income in 2008, excluding stock-based compensation expenses of $7.56 million, was $26.60 million, up 167% from $9.94 million, excluding stock-based compensation expenses of $2.95 million and the investment impairment of $11.13 million in Moloon in 2007.

Non-GAAP net income margin in 2008 was 47%, compared to non-GAAP net income margin of 38% in 2007.

Net income in 2008 was $19.03 million, compared to net loss in 2007 was $4.13 million. Net income margin was 34% in 2008, and -16% for full year 2007.

Other Operating Metrics

As of December 31, 2008, the Company has 11.32 million registered user accounts on its two websites jrj.com and stockstar.com, compared to 10.90 million in the previous quarter, an increase of 420,000 quarter-on-quarter.

Active paid individual subscribers grew to 116,200 at the end of the fourth quarter 2008.

As of December 31, 2008, our Hong Kong based brokerage service Daily Growth, which was acquired in November 2007, had approximately 1,250 customer accounts.

Outlook for First Quarter 2009 and Full Year 2009

The Company currently expects to generate net revenues in an amount ranging from $10.5 million to $11.5 million for the first quarter of 2009, compared to $11.05 million in the corresponding period in 2008, and $15.28 million in the prior quarter.

The projected sequential decline in net revenues in the first quarter of 2009 primarily reflects the termination of TopView product starting January 1^st, 2009 and continued challenging market environment. While we started to offer alternative products to TopView customers during the fourth quarter of 2008, the negative impact from the termination of TopView may still be material to our business in 2009. We also expect a broader and deeper global recession in the coming quarters that may meaningfully impact our operations through 2009 as Chinese investors turning more cautious.

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For 2009, the Company will focus effort and invest resources to upgrade key areas of its operations, such as people, data, products, customers, technologies and execution, thus build a solid foundation to sustain healthy long-term growth. At the same time, management understand challenges ahead and will be extremely prudent to manage balance sheet while deploying necessary resources in core areas. The Company intends to achieve free cash flow positive in 2009 on a full year basis, excluding potential M&A activities.

The above forecast reflects the Company’s current and preliminary view, which is subject to change. A number of important factors including, but not limited to, fluctuation in the Chinese stock market, could cause the actual results to differ materially from those contained in the above guidance.

Conference Call

China Finance Online’s management team will host a conference call at 8:00PM Eastern Standard Time on March 9, 2009 (or 8:00AM March 10, 2009 in the Beijing/HK time zone) following the announcement to discuss detailed operating results

The conference call will be available on webcast live and replay at: http://tinyurl.com/bsb3rz. The call will be archived for 12 months at this website.

The dial-in details for the live conference call: U.S Toll Free Number +1-877-847-0047, Hong Kong Dial In Number +852-3006-8101, and France Toll Free Number 0800-910-584, Password for all regions: 1133.

A replay of the conference call will be available from approximately 12:00PM Eastern Standard Time on March 9, 2009 (or 12:00AM March 10, 2009, in the Beijing/HK time zone) to 12:00PM Eastern Standard Time on March 16, 2009 (or 12:00AM March 17, 2009 in the Beijing/HK time zone). The dial-in details for the replay: U.S. Toll Free Number +1-866-572-7808, Hong Kong Dial-in Number +852-3012-8000, and access code: 021525.

About China Finance Online Co. Limited

China Finance Online Co. Limited is the market leader in providing online financial and listed company data, information and analytics in China. Through its websites, www.jrj.com and www.stockstar.com, the company provides individual users with subscription-based service packages that integrate financial and listed company data, information and analytics from multiple sources with features and functions such as data and information search, retrieval, delivery, storage and analysis. These features and functions are delivered through proprietary software available by download, through internet or through mobile handsets. Through its subsidiary, Shenzhen Genius Information Technology Co. Ltd, the company provides financial information database and analytics to institutional customers including domestic securities and investment firms. Through its subsidiary, Daily Growth Investment Company Limited, the company provides securities brokerage services for stocks listed on Hong Kong Stock Exchange.

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Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but not limited to the impact of the global economic crisis, our historical and possible future losses, limited operating history, uncertain regulatory landscape in the People’s Republic of China, fluctuations in quarterly operating results, our ability to successfully compete against new and existing competitors, our reliance on relationships with Chinese stock exchanges and raw data providers, changes in accounting policies, our ability to successful acquire and integrate businesses and the impact of our investments on our financial results. Further information regarding these and other risks is included in China Finance Online’s annual report on Form 20-F for the year ended December 31, 2007, and other filings with the Securities and Exchange Commission. China Finance Online does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Non-GAAP Measures

To supplement the unaudited condensed consolidated financial information presented in accordance with Accounting Principles Generally Accepted in the United States of America (“GAAP”), the Company uses non-GAAP measures of income from operations, net income, net income per share and net income per ADS, which are adjusted from results based on GAAP to exclude the stock-based compensation expenses due to the adoption of SFAS 123R, which became effective on January 1, 2006. Adjusted EBITDA (non-GAAP) is defined as earnings before interest, taxes, depreciation, amortization, other non-operating income, loss from impairment of cost method investment and stock-based compensation expenses. The non-GAAP financial measures are provided to enhance the investors’ overall understanding of the Company’s current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared and presented in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and therefore deems it important to provide all of this information to investors.

For further information please contact:

Investor Relations
China Finance Online Co. Limited
Tel: (86-10) 5832-5288
Email: ir@jrj.com

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China Finance Online Co. Limited
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)

	Dec. 2008		Dec. 2007
Assets
Current assets:
RMB account		80,308		51,129
Foreign currency account		17,236		23,600
Cash and cash equivalents		97,544		74,729
Trust bank balances held on behalf of customers		2,010		2,850
Advance to employees		161		1,673
Accounts receivable, net		2,876		1,491
Prepaid expenses and other current assets		8,464		2,947
Deferred tax assets, current		2,069		1,130
Total current assets		113,124		84,820
Cost method investment		1,480		1,480
Property and equipment, net		8,589		5,455
Acquired intangible assets, net		3,473		1,938
Rental deposits		592		500
Goodwill		12,019		9,652
Deferred tax assets, non-current		1,747		14
Other deposits		218		25
Total assets		141,242		103,884
Liabilities and shareholders’ equity
Current liabilities:
Deferred revenue, current		28,202		20,457
Accrued expenses and other current liabilities		4,779		6,951
Amount due to customers for trust bank balances held on behalf of customers		2,010		2,850
Accounts payable		222		764
Income taxes payable		142		12
Total current liabilities		35,355		31,034
Deferred tax liability, non-current		623		352
Deferred revenue, non-current		8,786		4,665
Total liabilities		44,764		36,051
Minority interests		—		471
Total shareholders’ equity		96,478		67,362
Total liabilities and shareholders’ equity		141,242		103,884

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China Finance Online Co. Limited
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of U.S. dollars, except per share data)

	Three months ended									Year ended Dec. 31
	Dec. 31, 2008			Dec. 31, 2007			Sep. 30, 2008			2008			2007
Net revenues		15,281			8,882			15,228			56,243			25,903
Cost of revenues (includes share-based compensation expenses of $0, $0, $0, $0 and $16 respectively)		(2,781	)		(1,323	)		(2,768	)		(9,367	)		(4,427	)
Gross profit		12,500			7,559			12,460			46,876			21,476
Operating expenses
General and administrative (includes share-based compensation expenses of $1,588, $797, $1,539, $7,291 and $2,668 respectively)		(3,434	)		(2,631	)		(3,422	)		(14,894	)		(7,784	)
Sales and marketing (includes share-based compensation expenses of $19, $45, $61, $213 and $139 respectively)		(3,789	)		(2,430	)		(3,641	)		(13,521	)		(6,924	)
Product development (includes share-based compensation expenses of $12, $33, $11, $59 and $123 respectively)		(1,906	)		(865	)		(1,493	)		(5,635	)		(2,269	)
Total operating expenses		(9,129	)		(5,926	)		(8,556	)		(34,050	)		(16,977	)
Subsidy income		437			136			—			437			136
Income from operations		3,808			1,769			3,904			13,263			4,635
Interest income		404			355			515			1,608			1,105
Investment loss		(59	)		—			(76	)		(135	)		—
Other income (loss), net		(22	)		1			(3	)		(34	)		9
Exchange gain (loss), net		(123	)		220			184			1,490			424
Income before income tax benefit		4,008			2,345			4,524			16,192			6,173
Income tax benefit		2,184			398			248			2,584			809
Purchased pre-acquisition earning		—			—			—			227			—
Minority interests in net income of consolidated subsidiary		—			15			—			31			15
Loss from impairment of cost method investment		—			(11,127	)		—			—			(11,127	)
Net income (loss)		6,192			(8,369	)		4,772			19,034			(4,130	)
Income (loss) attributable to ordinary shareholders		6,192			(8,369	)		4,772			19,034			(4,130	)
Income (loss) per share Basic		0.06			(0.09	)		0.05			0.19			(0.04	)
Diluted		0.06			(0.09	)		0.04			0.17			(0.04	)
Income (loss) per ADS
Basic		0.31			(0.43	)		0.24			0.96			(0.22	)
Diluted		0.28			(0.43	)		0.21			0.84			(0.22	)
Weighted average ordinary shares
Basic		99,287,039			98,191,578			99,059,916			98,957,993			94,500,529
Diluted		109,617,128			98,191,578			113,911,176			113,020,865			94,500,529
Weighted average ADSs
Basic		19,857,408			19,638,316			19,811,983			19,791,599			18,900,106
Diluted		21,923,426			19,638,316			22,782,235			22,604,173			18,900,106

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China Finance Online Co. Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)

	Three months ended
	Dec. 31, 2008			Dec. 31, 2007			Sep. 30, 2008
Cash flows from operating activities:
Net income (loss)		6,192			(8,369	)		4,772
Minority interests		—			(15	)		—
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation		1,619			875			1,611
Depreciation and amortization		681			316			580
Deferred taxes		(2,320	)		(349	)		(249	)
Income from disposal of cost method investment		—			11,127			—
Loss on disposal of property and equipment		5			23			16
Loss from short term investments		59			—			76
Changes in assets and liabilities:
Accounts receivable		1,535			667			56
Prepaid expenses and other current assets		2,749			(420	)		(4,446	)
Advance to employees		2,555			(233	)		(500	)
Trust bank balances held on behalf of customers		214			(465	)		2,567
Rental deposits		1			(380	)		(2	)
Deferred revenue		1,870			5,660			54
Accounts payable		(13	)		(98	)		38
Amount due to customers for trust bank balances held on behalf of customers		(214	)		465			(2,567	)
Accrued expenses and other current liabilities		(705	)		2,114			(1,312	)
Income taxes payable		142			(43	)		(6	)
Net cash provided by operating activities		14,370			10,875			688
Cash flows from investing activities:
Acquisition of businesses		1,520			(994	)		(3,583	)
Purchase of property and equipment		(633	)		(1,567	)		(1,325	)
Proceeds from disposal of fixed assets		—			2			—
Net cash provided (used) in investing activities		887			(2,559	)		(4,908	)
Cash flows from financing activities:
Proceeds from stock options exercised by employees		12			876			194
Proceeds from exercise of options granted to non-employee		8			261			42
Net cash provided by financing activities		20			1,137			236
Effect of exchange rate changes		(128	)		1,194			451
Net increase (decrease) in cash and cash equivalents		15,149			10,647			(3,533	)
Cash and cash equivalents, beginning of quarter		82,395			64,082			85,928
Cash and cash equivalents, end of quarter		97,544			74,729			82,395

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Non-GAAP Measures

Three months ended

Three months ended

Three months ended

Dec. 31, 2008

Dec. 31, 2007

Sep. 30, 2008

(U.S. Dollar in thousands)

(U.S. Dollar in thousands)

(U.S. Dollar in thousands)

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Non-GAAP

Result

Adjustment

Results

Result

Adjustment

Results

Result

Adjustment

Results

(a)

(a)

(a)

Income from operations

3,808

1,619

5,427

1,769

875

2,644

3,904

1,611

5,515

Year ended Dec. 31, 2008

Year ended Dec. 31, 2007

(U.S. Dollar in thousands)

(U.S. Dollar in thousands)

GAAP

Non-GAAP

GAAP

Non-GAAP

Result

Adjustment

Results

Result

Adjustment

Results

(a)

(a)

Income from operations

13,263

7,563

20,826

4,635

2,946

7,581

Three months ended

Three months ended

Three months ended

Dec. 31, 2008

Dec. 31, 2007

Sep. 30, 2008

(U.S. Dollar in thousands)

(U.S. Dollar in thousands)

(U.S. Dollar in thousands)

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Non-GAAP

Result

Adjustment

Results

Result

Adjustment

Results

Result

Adjustment

Results

(a)

(a)

(b)

(a)

Net income (loss)

6,192

1,619

7,811

(8,369

)

875

11,127

3,633

4,772

1,611

6,383

Year ended Dec. 31, 2008

Year ended Dec. 31, 2007

(U.S. Dollar in thousands)

(U.S. Dollar in thousands)

GAAP

Non-GAAP

GAAP

Non-GAAP

Result

Adjustment

Results

Result

Adjustment

Results

(a)

(a)

(b)

Net income (loss)

19,034

7,563

26,597

(4,130

)

2,946

11,127

9,943

(a)	The adjustment is for share-based compensation expenses.
(b)	The adjustment is for investment impairment.

12

Reconciliations from net income to EBITDA and adjusted EBITDA

	Three months ended			Three months ended			Three months ended
	Dec. 31, 2008			Dec. 31, 2007			Sep. 30, 2008
	(U.S. Dollar in thousands)
Net income (loss)		6,192			(8,369	)		4,772
Adjustment
Interest income		(404	)		(355	)		(515	)
Income tax benefit		(2,184	)		(398	)		(248	)
Loss from impairment of cost method investment		—			11,127			—
Other income and expenses		204			(236	)		(105	)
Depreciation		576			241			498
Amortization of intangibles and others		105			75			82
Share-based compensation		1,619			875			1,611
Adjusted EBITDA		6,108			2,960			6,095

13