VisionChina's Net Income Drops 22%

VisionChina Media (Nasdaq: VISN), one of China's largest out-of-home digital television advertising networks on mass transportation systems, said total revenues in the fourth quarter of 2009 increased 3.4% quarter-over-quarter to $31.8 million.

Net income in the fourth quarter of 2009 was $5.6 million, a decrease of 21.6% from $7.2 million in the third quarter of 2009. The company said that In the near-term, it expects a number of factors will negatively impact its revenue including industry competition, restructuring of its sales force and integrating the acquisition of Digital Media Group.

As a result of these factors, it anticipates that sales visibility for the first quarter of 2010 will be limited. In addition, a late Chinese New Year holiday this year, has hindered its ability to build sales momentum at the start of the quarter for its new platform.

During the fourth quarter of 2009, 354 advertisers purchased advertising time on the Company's advertising network either directly or through advertising agents compared to 334 advertisers in the third quarter of 2009. The Company had 89,299 digital television displays in its network, compared to 84,560 as of September 30, 2009. VisionChina has 553 employees.