(Logo: January 20, 2010.

Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties. For more information, please visit http://www.chinadrtv.com .

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains certain "forward-looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements" including, among other things, Acorn's projected cash balance and its growth prospects across its product lines. The expectations reflected in these forward-looking statements involve significant assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, in addition to those results discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    Acorn International, Inc.
     Ms. Chen Fu, IR Director
     Phone: +86-21-5151-8888 x2228
     Email: fuchen@chinadrtv.com
     Web:   http://www.chinadrtv.com

    CCG Investor Relations
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

Under the agreement, Acorn will be Guthy-Renker's exclusive agent to market and distribute Sheer Cover in China. Acorn is authorized to distribute the Sheer Cover cosmetics through all its available distribution channels including both direct and non-direct TV sales. The agreement will last one year initially and open for extension pending the first year's sales performance.

Acorn and Guthy-Renker entered into the agreement due to the synergies between Acorn's developed infrastructure (in house call-center, in-house media buyers, in-house production) and Guthy-Renker's cutting edge continuity program.

"We are very excited to work with Acorn to market our Sheer Cover products in China," commented Mr. Alberto Bottene, Senior Vice President of Guthy-Renker. "Acorn has a long history of marketing innovative and valuable products and is the market leader in the TV direct sales business. We intend to use Acorn's mature platform in China to expand Guthy-Renker's global footprint."

"We are glad to have the opportunity to work with one of the world's largest direct response television companies and introduce an excellent line of cosmetic products," said Mr. James Hu, Chairman and Chief Executive Officer of Acorn. "The introduction of Sheer Cover to our product portfolio fits perfectly with our strategy of expanding the cosmetics business, which has been an important revenue contributor in the past quarter. We will leverage Guthy-Renker's global brand awareness and years of experience to market and promote Sheer Cover and look forward to a successful partnership in 2010."

About Sheer Cover

Sheer Cover is one of Guthy-Renker's most popular lines of cosmetics. The success of Sheer Cover in the United States can be largely attributed to the exclusive formula of light reflecting minerals, which are 100% natural, infused with skin soothing botanicals, natural sun protection, and anti-oxidant green tea to help protect skin from the visible signs of premature aging. Sheer Cover is sold around the world. For more information visit: http://www.sheercover.co... .

About Guthy-Renker

Established in 1988, Guthy-Renker is one of the world's largest direct response television companies with annual sales in excess of $1.5 billion. It is known as the leading producer of high-quality infomercials and products designed for direct response television sales, with offices in Palm Desert, CA; Santa Monica, CA; London; Beijing; Tokyo; New Zealand; and Sydney, Australia. Guthy-Renker has a superior track record of customer satisfaction for 18 years. Originally launched as a television direct marketer by Co-CEOs Bill Guthy and Greg Renker, the independently-owned, vertically-integrated company has since broadened its focus into every area of electronic retailing, making quality products available to U.S. and international consumers through broadcast television, cable and satellite, as well as internet, telemarketing, direct mail and retail channels. For more information visit http://www.guthy-renker.... .

About Acorn International, Inc.

Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties. For more information, please visit http://www.chinadrtv.com .

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains certain statements that may include "forward-looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements", including, among other things, benefits of Acorn's expansion strategy in its cosmetic sales line with the addition of the Sheer Cover products and Acorn's anticipated continuing partnership with Guthy-Renker. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements due to a variety of factors discussed in our periodic reports filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. In particular, our operating results for any period are impacted significantly by the mix of products and services sold by us in the period and the platforms through which they are sold, causing our operating results to fluctuate and making them difficult to predict. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update these forward- looking statements.

    For more information, please contact:

    Acorn International, Inc.
     Ms. Chen Fu, IR Director
     Phone: +86-21-5151-8888 x2228
     Email: fuchen@chinadrtv.com
     Web:   http://www.chinadrtv.com

    CCG Investor Relations
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com

  Highlights for the Third Quarter 2009:

    -- Net revenues were $91.8 million, an increase of 28.0% compared to $71.7
       million in the third quarter of 2008.
    -- Gross profit was $40.1 million, an increase of 15.5% compared to $34.7
       million in the third quarter of 2008.
    -- Gross margin was 43.7%, compared to 48.4% in the same period of 2008.
    -- Operating income was $3.6 million, compared to an operating loss of
       $8.6 million in the third quarter of 2008.
    -- Net income from continuing operations was $2.5 million compared to an
       $11.9 million net loss for the third quarter of 2008.  Adjusted net
       income from continuing operations, after eliminating the effects of
       share-based compensation expenses and a non-cash charge for the
       impairment of goodwill and intangible assets in the third quarter of
       2008 (non-GAAP), was $2.7 million in the third quarter of 2009 compared
       to a $2.3 million net loss in the same period last year.
    -- Net income attributable to Acorn International, Inc. was $2.7 million
       compared to a $10.8 million net loss for the third quarter of 2008.
    -- Share-based compensation expenses were $0.2 million for the third
       quarter of 2009, compared to $0.9 million for the same period last year.
    -- Diluted income per ADS from continuing operations was $0.09.  Excluding
       share-based compensation expenses (non-GAAP), diluted income per ADS
       from continuing operations was $0.10.

The third quarter came in lower than expected though we still finished
the season with double-digit growth in our top line sales and returned to
profitability in both operating and net income," said Mr. James Hu, Chairman
and CEO of Acorn.  "The rapid increase in the cost of flash memory, a key
component of our electronic learning product, combined with the high marketing
cost associated with our branded Uking mobile phone launch resulted in a lower
than expected third quarter profitability.  Nonetheless, we continue to see
positive development in our third party bank channel and cosmetics sales.  And
on new business initiatives, we are also working hard on building strategic
alliances to strengthen our non-TV direct sales channels and source new
products from the U.S., Japan and Taiwan markets.  Looking ahead, we will
continue to be prudent in media purchasing while pursuing a strategy that
focuses on building proprietary branded products.  We remain positive for our
business's continued recovery."

Business Highlights for the Third Quarter of 2009: -- Ozing, the Company's electronic learning product, and Meijin, the Company's electronic dictionary, continued to recover, benefiting from the Company's focus on building proprietary branded products. In the third quarter 2009, sales of Ozing reached $36.6 million, growing 92.3% from $19.0 million in the same period in 2008. Sales of Meijin grew 37.8% to reach $7.8 million from $5.6 million in the third quarter 2008. Growth in sales of Ozing and Meijin products continues to benefit from increased advertising time, sales promotions, improved technology, competitive pricing and the consolidation of our distribution channels. -- Cosmetics sales continue to make up a larger percentage of total sales revenues in the third quarter. Cosmetics sales reached $9.6 million, accounting for 10.4% of total sales, compared to $4.4 million, accounting for 6.2% of total sales in the same period one year ago. During the third quarter, Acorn began a new business alliance with Softto, an established domestic cosmetic manufacturer, to promote its branded hair treatment shampoo. Sales of Softto branded hair treatment shampoo have been growing at an average rate of 100.1% per month since the initial cooperation agreement in July 2009. -- The Company's third party bank sales as an area of non-TV direct sales revenues continued to expand from the second quarter of 2009. With a total of 25 bank partners, revenue from third-party bank channel sales was $7.3 million in the third quarter of 2009, an increase of 40.4% from $5.2 million in the same period last year as a result of additional banking partners and increased sales volume. The Company will continue to expand its non-TV direct sales revenues including its third party bank channel sales, outbound calls and catalog business.

Financial Results Highlights for the Third Quarter of 2009:

For the third quarter of 2009, total net revenues grew 28.0% to $91.8 million from $71.7 million for the third quarter of 2008.

Direct sales contributed 45.8%, or $42.0 million, to total net revenue, and decreased 7.5% from $45.4 million for the third quarter of 2008 due to lower sales from the mobile phones sector.

Distribution sales net revenue increased 89.5% year-over-year to $49.8 million from $26.3 million in the third quarter of 2008 as a result of the strong sales performance of the Company's Ozing electronic learning products and the consolidation of Yiyang Yukang's mobile handset sales into the Company's financial results.

The table below summarizes the gross revenues from the three best selling product categories for the direct sales platform, distribution network and total direct and distribution sales, respectively:

Three Months Ended September 30, 2009 (in US dollars) Direct sales Cosmetics 9,196,800 Mobile handsets 8,952,278 Electronic learning product (Ozing) 7,286,108 Distribution sales Electronic learning product (Ozing) 29,271,115 Mobile handsets (Yiyang Yukang) 8,361,759 Electronic dictionary (Meijin) 7,755,098 Total direct and distribution sales Electronic learning product (Ozing) 36,557,223 Mobile handsets 17,314,037 Cosmetics 9,563,943

Cost of sales for the third quarter 2009 was $51.8 million, an increase of 39.8% from $37.0 million for the third quarter of 2008, primarily due to increased costs for distribution sales. Increase in distribution costs was due to larger percentage of sales from mobile phones, which generally have higher product costs.

Gross profit for the third quarter of 2009 was $40.1 million, up 15.5% compared to $34.7 million for the third quarter of 2008. Gross margin was 43.7% in the third quarter of 2009, down from 48.4% in the same period in 2008.

Gross profit from direct sales for the third quarter 2009 increased 6.5% to $24.1 million from $22.6 million for the third quarter of 2008. Gross margin for direct sales for the third quarter of 2009 was 57.3%, up from 49.8% in the same period last year. The increase in gross margin was largely due to greater contributions from sales of higher margin cosmetics and successful marketing of higher margin Ozing's V1 model compared with same period last year.

Gross profit from distribution sales for the third quarter of 2009 was $16.0 million, an increase of 32.3% from $12.1 million for the third quarter of 2008. Gross margin for distribution sales for the third quarter of 2009 was 32.1%, down from 46.0% for the same period last year. The decrease in gross margin was due to the margin compression of Ozing and Meijin products as a result of higher price discounts to Acorn's distributors as well as addition of lower margin mobile handset sales from the consolidation of Yiyang Yukang into the Company's financial statements.

Advertising expenses were $16.7 million for the third quarter of 2009, compared to $17.7 million for the third quarter of 2008 due to the continued reduction in the fixed portion of advertising spending in 2009. Gross profit over advertising expenses, a benchmark Acorn uses to measure return on multiple sales platforms, was 2.40 in the third quarter of 2009, up from 1.96 in the third quarter of 2008.

Other selling and marketing expenses increased 6.9% to $11.9 million from $11.1 million for the third quarter of 2008. The increase was mainly due to increased delivery costs associated with increased sales, as well as increased amortization of acquired intangible assets as a result of acquiring Yiyang Yukang.

General and administrative expenses were $8.4 million for the third quarter of 2009, a 25.4% increase from $6.7 million in the third quarter of 2008. The increase was largely due to increase in employee payroll in the third quarter 2009.

During the third quarter 2008, intangible assets impairment loss and goodwill impairment loss totaled $8.7 million. No such losses occurred in the third quarter 2009.

Other operating income, net, was $0.5 million for the third quarter of 2009, down from $0.9 million in the third quarter of 2008.

As a result, income from operations for the third quarter of 2009 was $3.6 million, compared to an operating loss of $8.6 million for the corresponding period last year.

Share-based compensation expenses for the third quarter 2009 were $0.2 million, compared to $0.9 million for the third quarter of 2008.

Excluding share-based compensation expenses and impairment of goodwill and intangible assets in the third quarter of 2008 (non-GAAP), income from operations for the third quarter of 2009 was $3.8 million compared to $1.0 million for the same period last year.

Other expenses for the three months ended September 30, 2009 was $0.1 million, compared to $2.5 million for the same period last year.

Net income from continuing operations was $2.5 million compared to an $11.9 million net loss for the third quarter of 2008.

Adjusted net income from continuing operations, after eliminating the effects of share-based compensation expenses and a non-cash charge for the impairment of goodwill and intangible assets in the third quarter of 2008 (non-GAAP), was $2.7 million in the third quarter of 2009 compared to a $2.3 million net loss for the same period last year.

Diluted income per ADS from continuing operations was $0.09, compared to a diluted loss per ADS from continuing operations of $0.42 in the same period last year. Non-GAAP diluted income per ADS from continuing operations was $0.10, compared to a diluted loss per ADS from continuing operations of $0.08 in the same period last year.

As of September 30, 2009, Acorn's cash and cash equivalents totaled $150.4 million, an increase of $21.5 million from June 30, 2009.

Other Updates:

In September 2009, China's State Administration of Radio, Film and Television (SARFT) issued a circular to be implemented on January 1, 2010 to standardize regulation of TV direct sales programs in China. The SARFT circular describes their policies as aiming to monitor product selection, ensure product quality, and maximize customer satisfaction. The new regulations impacting the TV direct sales and home shopping industry include the rules that may have a material impact on Acorn's business.

In March 2009, Acorn received a complaint from the Advertising Broadcasting Center of Liaoning TV Station, or Liaoning TV, which filed a suit against Shanghai Acorn Advertising Broadcasting Co., Ltd., or Shanghai Acorn Advertising, claiming that Shanghai Acorn Advertising breached its advertisement broadcasting contract with Liaoning TV by not fully performing its payment obligation under the 2007 contract and asserted damages of approximately RMB19 million (approximately $2.8 million). Liaoning TV further applied for provisional seizure of Shanghai Acorn Advertising's bank account in the same amount of its claim. In June 2009, the Intermediate Court ruled in favor of Liaoning TV in the suit and awarded Liaoning TV total compensation of RMB10.9 million (approximately $1.6 million). In July 2009, Acorn appealed to the High Court, which affirmed the decision of the Intermediate Court in September 2009. Acorn is preparing to submit the case to the Supreme Court for retrial.

Full Year 2009 Business Outlook:

"We are generally pleased with the progress made in the first nine months of 2009. However, we recognize several challenges and unfavorable factors in our business. First, due to the partial divestiture of Yimeng in the second quarter of 2009, we could no longer consolidate the revenues and profitability from Yimeng. Second, Yukang's overall underperformance and the higher marketing cost associated with the September launch of our proprietary branded Uking mobile handset series resulted in lower than expected mobile handset sales and profitability in the third quarter. Third, starting in the third quarter, the rising cost in flash memory, a key component of our electronic learning products, exerted incremental pressure on our cost structure. Finally, we failed to secure the preferential tax treatment for our Ozing business in 2009. Due to these challenges and unfavorable conditions, we will lower our financial outlook for 2009. We now expect to achieve net revenues in the range of $280 million to $290 million and net income from continuing operations excluding share-based compensation expenses and non-recurring impairment charges to be $10 million to $11 million," said Mr. James Hu. "Despite changes in our financial guidance, we remain confident of the direction of our corporate strategy and abilities to execute against that. With SARFT's recent regulation promoting a healthier TV direct sales industry, we remain confident in the prospects of our business to continue to grow with the industry."

These estimates are subject to change. Also, Acorn reminds investors that its operating results in each period are impacted significantly by the mix of products and services sold in the period and the platforms through which they are sold. Consequently, in evaluating the overall performance of Acorn's multiple sales platforms in any period, management also considers metrics such as operating margin and gross profit return on advertising expenses.

Conference Call Information

The Company will host a conference call at 8:00 a.m. EST on November 17, 2009 (9:00 p.m. Beijing Time) to review the Company's financial results and answer questions. You may access the live interactive call via:

-- +1 888 339 2688 (U.S. Toll Free) -- +1 617 847 3007 (International) -- Passcode: 726 710 87

Please dial-in approximately 10 minutes in advance to facilitate an on-time start.

A replay will be available for 14 days after the call and may be accessed via:

-- +1 888 286 8010 (U.S. Toll Free) -- +1 617 801 6888 (International) -- Passcode: 360 699 64

A live and archived webcast of the call will be available on the Company's website at http://www.ccgirasia.com

The date, time and location of Acorn International's presentation at the Brean Murray, Carret & Co. 2009 China Growth Conference are as follows:

    Date:       Thursday, November 19, 2009
    Time:       5:00 p.m. to 5:35 p.m. Eastern Time in Track III
    Presenter:  Gordon Wang, Chief Financial Officer
    Venue:      The Millennium Broadway Hotel
                145 West 44th Street
                New York, New York 10036

The Brean Murray, Carret & Co. 2009 China Growth Conference is a two-day conference that consists of 25-minute presentation slots followed by 10-minutes of open floor Q&A sessions with institutional clients. The gathering of presenting companies, senior management and industry experts as well as institutional investors will enjoy a unique and comprehensive look at China on a global scale. In addition to each company presentation, one-on-one meetings will also be offered throughout the day. Interested parties and investors who wish to meet with Acorn International's management may contact Vivian Chen (vivian.chen@ccgir.com, +1.646.701.7445), or Brean Murray, Carret & Co. institutional sales directly.

About Acorn International, Inc.

Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties. For more information, please visit http://www.chinadrtv.com .

    For more information, please contact:

    Acorn International, Inc.
     Ms. Chen Fu, IR Director
     Phone: +86-21-5151-8888 x2228
     Email: fuchen@chinadrtv.com
     Web:   http://www.chinadrtv.com

    CCG Investor Relations
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

(Logo:

    1. All infomercials will be classified and regulated under the same
       manners as TV commercials.  Advertising airtime is limited to 12
       minutes per hour, and 18 minutes total between 7:00 p.m. and 9:00 p.m.
       Satellite channels are not allowed to broadcast infomercials programs
       between 6:00 p.m. and midnight.  Infomercials are banned on news
       channels, international channels and home shopping channels;

    2. All infomercials shall clearly identify the advertisers and guarantee
       "unconditional return" after certain days of sales and "payment upon
       product inspection";

    3. The qualified infomercials companies must have (i) registered capital
       above CNY10 million; (ii) regular operation offices; (iii) call center
       with more than 100 seats, an established logistic and payment
       settlement system; (iv) well-established after market, claims systems;
       (v) no fraudulent records in the past 3 years; and

    4. Encourage industry association or third-party mediators to establish
       "Quality Assurance Fund" to protect consumer interests.

Acorn International is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn International's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn International also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn International has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties. For more information, please visit http://www.chinadrtv.com .

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains certain statements that may include "forward- looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements", including the benefits to the Company from the new SARFT regulations, if any, and the means in which such regulations will be implemented, if at all. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve significant assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to adapt to the SARFT regulations, consumer response to such regulations, and the implementation of such regulations, in addition to those results discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    Acorn International, Inc.
     Ms. Chen Fu, IR Director
     Phone: +86-21-5151-8888 x2228
     Email: fuchen@chinadrtv.com
     Web:   http://www.chinadrtv.com

    CCG Investor Relations
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

    (Logo: vivian.chen@ccgir.com, phone +1-(646) 701-7445.

RedChip investor conferences are a nationally known forum for emerging small-cap companies to present their stories before hundreds of retail brokers, institutional brokers, fund managers, portfolio managers, accredited investors, and research analysts whose disciplined focus towards the small-cap markets represents their core investment strategies. Company presentations will be webcast live via http://www.RedChip.com , where they will be archived for 90 days.
The Brean Murray Carret & Co. Consumer Conference gives investors the chance to meet with company management in a one-on-one format; there will be no formal presentations. Each company will also host one group meeting during the day. The conference will cover many aspects of consumer retailing, including apparel, luxury goods, accessories, beauty products, gaming and entertainment.
The ROTH China Conference will feature presentations from a select group of US-listed Chinese companies with attractive growth potential. Over 60 companies will be presenting at the conference, including US-listed Chinese companies and US-based companies with growth prospects in China. Most of the presenting companies are covered by ROTH's research team, which will be onsite for discussions with investors.
About Acorn International, Inc.
Acorn International is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn International's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn International also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn International has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties. For more information, please visit http://www.chinadrtv.com .
    For more information, please contact:

    Acorn International, Inc.
     Ms. Chen Fu, IR Director
     Tel:   +86-21-51518888 Ext. 2228
     Email: fuchen@chinadrtv.com
     Web:   http://www.chinadrtv.com

    CCG Investor Relations
     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com
]]>
      
    
    
      
      message_3272
      08 Sep 2009 13:51:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/3272
      
        SHANGHAI, Sept. 8 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services through extensive distribution network, today announced that the Company's management team will attend the upcoming Susquehanna International Group of Companies ("SIG") 3rd Annual Beijing Management Summit.


(Logo: 

    Date:      September 16 - 17, 2009
    Location:  The Grand Hyatt Beijing Hotel
               1 East Chang An Avenue
               Beijing 100738

Acorn will be available for one-on-one meetings with analysts and portfolio managers during the summit.  Interested parties and investors who wish to meet with Acorn's management may contact vivian.chen@ccgir.com, phone +1-(646) 701-7445, or contact SIG institutional sales directly.  Participation in the SIG 3rd Annual Beijing Management Summit is by invitation only.
About Acorn International, Inc.
Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels.  In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an e-commerce website.  Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties. For more information, please visit http://www.chinadrtv.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include "forward-looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements".  Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect.  Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission.  All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors.  Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
    For more information, please contact:

    Acorn International, Inc.
     Ms. Chen Fu, IR Director
     Phone: +86-21-5151-8888 x2228
     Email: fuchen@chinadrtv.com
     Web:   http://www.chinadrtv.com

    CCG Investor Relations
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com
]]>
      
    
    
      
      message_3056
      20 Aug 2009 10:00:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/3056
      
        SHANGHAI, Aug. 20 /PRNewswire-Asia/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services through an extensive distribution network, today announced its financial results for the quarter ended June 30, 2009.


(Logo: 

    -- Net revenues were $49.0 million, an increase of 15.9% compared to $42.3
       million in the second quarter of 2008.
    -- Gross margin was 52.1%, compared to 48.5% in the same period of 2008.
    -- Operating loss was $4.6 million, compared to a loss of $9.3 million in
       the second quarter of 2008.
    -- Net income attributable to holders of ordinary shares was $11.4 million
       compared to a $7.8 million loss for the second quarter of 2008.
    -- Net loss from continuing operations was $2.9 million compared to a $9.2
       million loss for the second quarter of 2008.  Adjusted net loss from
       continuing operations, after eliminating the effects of share-base
       compensation expenses (non-GAAP), was $2.2 million compared to $8.1
       million for the same period last year.
    -- Share-based compensation expenses were $0.8 million for the second
       quarter of 2009, compared to $1.2 million for the same period last year.
    -- Net income from discontinued operations was $14.4 million (including a
       one-time gain of $14.4 million from the sale of a 33% equity interest
       in Shanghai Yimeng Software Technology Co., Ltd. ("Yimeng")), compared
       to a $1.4 million income for the second quarter of 2008.
    -- Diluted income per ADS was $0.39.  Diluted loss per ADS from
       continuing operations was $0.10.  Excluding share-based compensation
       expenses (non-GAAP), diluted loss per ADS from continuing operations
       was $0.07.


"We continued our path to recovery in the second quarter of 2009, with double-digit growth in our top line sales and significantly reduced the net loss from the same period one year ago," said Mr. James Hu, Chairman and CEO of Acorn.  "The continued performance of our Ozing electronic learning products and Meijin electronic dictionaries were our primary growth drivers for the second quarter.  Our cosmetics and third party bank channel sales, both aimed at developing continuity business and expanding repeat purchases, are also on track to deliver strong results in the second quarter 2009.  With the positive momentum we have, we are confident that we will continue to execute against our strategy of growing proprietary branded products in the second half of 2009."
    Business Highlights for the Second Quarter of 2009:

    -- Ozing, the Company's electronic learning product and Meijin, the
       Company's electronic dictionary, continued their recovery, benefiting
       from the Company's returned focus to building propriety branded
       products.  In the second quarter 2009, sales in Ozing reached $8.1
       million from $2.8 million in the same period in 2008.  The increase in
       sales for Ozing also included the addition and growth from the
       Company's touch reader product series, which was introduced in the
       third quarter 2008.  Sales for Meijin in the second quarter grew 12.4%
       to reach $1.8 million from $1.6 million from the second quarter 2008.
       Growth in sales of our Ozing and Meijin products was driven by
       increased advertising time, improved technology, competitive pricing
       and consolidated distribution channels.
    -- Cosmetics sales in the second quarter of 2009 reached $11.5 million
       from $7.3 million in the same period in 2008, accounting for 23.5% of
       the total sales revenue.  The continued increase in revenue
       contribution was due to the increased volume in direct sales for the
       Cobor branded cosmetic line.  The cosmetic business remains an
       important business development initiative in expanding the Company's
       continuity business.
    -- Mobile handsets, in particular the proprietary branded Uking A300
       series, grew sales 28.5% to reach $12.6 million from $9.8 million in
       the same period last year, benefiting from the greater allocation of
       media resources in TV marketing for proprietary branded products.
    -- The Company's third-party bank channel sales continued its expansion
       from the first quarter of 2009.  With a total of 24 bank partners,
       revenue from third-party bank channel sales was $3.4 million in the
       second quarter of 2009, an increase of 69.1% from $2.0 million in the
       same period one year ago as a result of additional banking partners and
       increased sales volume.  The Company will continue to establish
       relationships with banking partners to further expand its customer base.
    -- In June 2009, the Company disposed of a 33% equity interest in Yimeng,
       a company engaged in the development and marketing of CPS stock
       tracking software, to focus on core competency and enhance operating
       efficiency.  Consideration for the disposal was $15.3 million in cash
       dividends and $10.5 million in cash on an original investment of
       $160,000 in December 2005.

Financial Results Highlights for the Second Quarter of 2009:
For the second quarter of 2009, total net revenues grew 15.9% to $49.0 million from $42.3 million for the second quarter of 2008.
Direct sales contributed 74.4%, or $36.4 million, to total net revenue, and remained approximately at level with the second quarter of 2008.
Distribution sales net revenue increased 112.9% year-over-year to $12.5 million for the three months ended June 30, 2009 from $5.9 million in the second quarter of 2008 as a result of the recovery in sales of our Ozing electronic learning products and the consolidation of Yiyang Yukang's mobile handset sales into the Company's financial results.
The table below summarizes the gross revenues from the three best selling product categories for the direct sales platform, distribution network and total direct and distribution sales, respectively:

                                            Three Months Ended June 30, 2009
                                                     (in US dollars)
    Direct sales
      Cosmetics                                                   11,233,790
      Mobile handsets                                             10,859,338
      Ornament                                                     2,213,540

    Distribution sales
      Electronic learning product (Ozing)                          6,517,220
      Electronic dictionary (Meijin)                               1,819,062
      Mobile handsets (Yiyang Yukang)                              1,736,195

    Total direct and distribution sales
      Mobile handsets                                             12,595,533
      Cosmetics                                                   11,513,466
      Electronic learning product (Ozing)                          8,083,172


Cost of sales for the second quarter 2009 was $23.5 million, an increase of 8.0% from $21.8 million for the second quarter of 2008, primarily due to increased costs for distribution sales.  Increase in distribution sales costs was due to larger percentage of sales from mobile handsets, which generally have higher product costs.
Gross profit for the second quarter of 2009 was $25.5 million, up 24.3% compared to $20.5 million for the second quarter of 2008.  Gross margin was 52.1% in the second quarter of 2009, up from 48.5% in the same period in 2008.
Gross profit from direct sales for the second quarter 2009 increased 16.9% to $21.8 million from $18.6 million for the second quarter of 2008.  Gross margin for direct sales for the second quarter of 2009 was 59.7%, up from 51.1% in the same period last year.  The increase in gross margin was largely due to the increase in sales of products with higher gross margins such as cosmetics and the Uking A300 series.
Gross profit from distribution sales for the second quarter of 2009 was $3.7 million, an increase of 96.6% from $1.9 million for the second quarter of 2008.  Gross margin for distribution sales for the second quarter of 2009 was 29.9%, down from 32.3% for the same period last year.  The decrease in gross margin was due to the addition of lower margin mobile handset sales from the consolidation of Yiyang Yukang into our financial statements.
Advertising expenses were $14.5 million for the second quarter of 2009, compared to $18.1 million for the second quarter of 2008 due to the continued reduction in the fixed portion of advertising spending in 2009.  Gross profit over advertising expenses, a benchmark Acorn uses to measure return on multiple sales platforms, was 1.76 in the second quarter of 2009, up from 1.13 in the second quarter of 2008.
Other selling and marketing expenses increased 12.9% to $8.4 million from $7.4 million for the second quarter of 2008.  The increase was mainly due to the amortization of intangible assets related to the acquisition of Yiyang Yukang and the increase in shipping cost.
General and administrative expenses were $8.6 million for the second quarter of 2009, a 37.3% increase from $6.3 million in the second quarter of 2008.  The increase was largely due to an accrued one-time litigation cost of $1.6 million related to the Liaoning TV lawsuit, and, to a lesser extent, increases in salaries and benefits.
Other operating income, net, was $1.4 million for the second quarter of 2009, down from $2.0 million in the second quarter of 2008.
As a result, loss from operations for the second quarter of 2009 was $4.6 million, compared to a loss of $9.3 million for the corresponding period last year.
Excluding share-based compensation expenses (non-GAAP), loss from operations for the second quarter of 2009 was $3.8 million compared to a loss from operations of $8.2 million for the same period last year.
Share-based compensation expenses for the second quarter 2009 were $0.8 million, compared to $1.2 million for the second quarter of 2008. Other income for the three months ended June 30, 2009 was $0.3 million, compared to other expense of $0.3 million for the same period last year.
Net loss from continuing operations was $2.9 million compared to a $9.2 million loss for the second quarter of 2008.
Adjusted net loss from continuing operations, after eliminating the effects of share-based compensation expenses (non-GAAP), was $2.2 million compared to $8.1 million for the same period last year.
Net income from discontinued operations was $14.4 million (including a one-time gain of $14.4 million from the sale of a 33% equity interest in Yimeng), compared to a $1.4 million income for the second quarter of 2008.
Diluted loss per ADS from continuing operations was $0.10, compared to a diluted loss of $0.32 in the same period last year.  Non-GAAP diluted loss per ADS from continuing operations was $0.07, compared to a diluted loss of $0.28 in the same period last year.
As of June 30, 2009, Acorn's cash and cash equivalents totaled $128.9 million, a decrease of $36.4 million from March 31, 2009.  The change was mainly due to the performance-based earn-out payment to Yiyang Yukang of $6.7 million and the deconsolidation of Yimeng.
Other Updates:
In March 2009, Acorn received a complaint from Advertising Broadcasting Center of Liaoning TV Station, or Liaoning TV, which filed a suit against Shanghai Acorn Advertising Broadcasting Co., Ltd., or Shanghai Advertising, claiming that Shanghai Advertising breached its advertisement broadcasting contract with Liaoning TV by not fully performing its payment obligation under the 2007 contract and asserted damages of approximately RMB19 million (approximately $2.8 million). Liaoning TV further applied for provisional seizure of Shanghai Advertising's bank account in the same amount of its claim. In June 2009, the court ruled in favor of Liaoning TV in the suit and awarded Liaoning TV total compensation of RMB10.9 million (approximately $1.6 million). Acorn has appealed the court's decision and the appeal is currently pending.
Full Year 2009 Business Outlook:
"Despite the second quarter being a slow season, we continued our path to growth, in particular for our Ozing product line.  Our Yimeng divestiture reflects our continued focus on our core competencies and improving our operating efficiency," said Mr. Hu.  "While we are losing the profit contribution from Yimeng, we are still confident of our ability to execute and deliver results by continuing to grow our proprietary branded products, such as our Ozing and Meijin product lines and developing continuity businesses such as cosmetics."
Given the Company's strong financial results for the first half of 2009 and positive outlook for the remainder of the year, Acorn reaffirms its guidance for 2009 of net revenue in the range of $310.0 million to $350.0 million, and net income attributable to holders of ordinary shares, excluding share-based compensation expenses and investment income, to between $14.0 and $16.0 million, in line with the Company's statements in May 2009.
These estimates are subject to change. Also, Acorn reminds investors that its operating results in each period are impacted significantly by the mix of products and services sold in the period and the platforms through which they are sold. Consequently, in evaluating the overall performance of Acorn's multiple sales platforms in any period, management also considers metrics such as operating margin and gross profit return on advertising expenses.
Conference Call Information
The Company will host a conference call at 8:00 a.m. EDT on August 20, 2009 (8:00 p.m. Beijing Time) to review the Company's financial results and answer questions. You may access the live interactive call via:
    -- +1 888 419 5570 (U.S. Toll Free)
    -- +1 617 896 9871 (International)
    -- Passcode: 421 739 04

Please dial-in approximately 10 minutes in advance to facilitate an on-time start.
A replay will be available for approximately two weeks after the call and may be accessed via:
    -- +1 888 286 8010 (U.S. Toll Free)
    -- +1 617 801 6888 (International)
    -- Passcode: 874 767 44

A live and archived webcast of the call will be available on the Company's website at http://eng.chinadrtv.com .
About Acorn International, Inc.
Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties. For more information, please visit http://www.chinadrtv.com .
Use of Non-GAAP Financial Measures
Acorn has reported the second quarter 2009 and 2008 income from operations, operating margin, net income from continuing operations and income per ADS from continuing operations on a non-GAAP basis, all excluding share-based compensation expenses. Acorn believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Acorn's financial performance and liquidity and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing Acorn's underlying business performance and operating trends and Acorn expects to report income from operations, operating margin, net income from continuing operations and income per ADS from continuing operations on a non-GAAP basis using a consistent method on a quarterly basis going forward.
Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the following reconciliation of GAAP results with non-GAAP results for the three months ended June 30, 2009 and 2008, respectively.
The table below sets forth the reconciliation of non-GAAP measures to GAAP measures for the indicated periods:

                            ACORN INTERNATIONAL, INC.
                       RECONCILIATION OF NON-GAAP TO GAAP
                                 (in US dollars)

                                                   Three Months Ended June 30,
                                                       2008           2009
     GAAP net revenues                             42,269,396     48,993,196
     GAAP loss from operations                     (9,336,385)    (4,592,862)
     GAAP operating margin                             (22.1%)         (9.4%)
     Share-based compensation expenses              1,173,296        774,751
     Non-GAAP loss from operations                 (8,163,089)    (3,818,111)
     Non-GAAP operating margin                         (19.3%)         (7.8%)

     GAAP net loss from continuing operations      (9,249,675)    (2,940,627)
     GAAP loss per ADS from continuing
      operations - basic                                (0.32)         (0.10)
     GAAP loss per ADS from continuing
      operations - diluted                              (0.32)         (0.10)
     Share-based compensation expenses              1,173,296        774,751
     Non-GAAP net loss from continuing
      operations                                   (8,076,379)    (2,165,876)
     Non-GAAP loss per ADS from continuing
      operations - basic                                (0.28)         (0.07)
     Non-GAAP loss per ADS from continuing
      operations - diluted                              (0.28)         (0.07)



                            ACORN INTERNATIONAL, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In US dollars, except share data)

                          Three Months Ended June 30, Six Months Ended June 30,
                               2008         2009         2008        2009
     Revenues:
      Direct sales, net     36,376,303   36,447,152   75,059,421  75,727,233
      Distribution sales,
       net                   5,893,093   12,546,044   29,158,976   60,314,352
     Total revenues, net
                            42,269,396   48,993,196  104,218,397  136,041,585
     Cost of revenues:
      Direct sales          17,770,213   14,692,485   34,296,759   30,918,987
      Distribution sales     3,986,856    8,799,278   15,036,551   37,119,441
     Total cost of revenues 21,757,069   23,491,763   49,333,310   68,038,428
     Gross profit           20,512,327   25,501,433   54,885,087   68,003,157
     Operating income
      (expenses):
      Advertising
       Expenses            (18,093,784) (14,463,988) (36,697,666) (30,397,466)
      Other selling and
       marketing expenses   (7,449,958)  (8,409,129) (16,644,334) (20,539,076)
      General and
       administrative
       expenses             (6,262,150)  (8,597,399) (12,934,863) (17,001,668)
      Other operating
       income, net           1,957,180    1,376,221    2,693,861    3,486,116
     Total operating
      income (expenses)    (29,848,712) (30,094,295) (63,583,002) (64,452,094)
     Income (Loss) from
      operations            (9,336,385)  (4,592,862)  (8,697,915)   3,551,063
     Other income
      (expenses), net         (302,263)     307,362    1,181,115    1,275,702
     Income (Loss) before
      income taxes          (9,638,648)  (4,285,500)  (7,516,800)   4,826,765
     Income tax (expenses)
      benefits                 412,753    1,221,335     (438,881)    (77,654)
     Net income (loss)      (9,225,895)  (3,064,165)  (7,955,681)   4,749,111
     Net (income) loss
      attributable to
      noncontrolling
      interests                (23,780)     123,538       35,166      263,190
     Net income (loss) from
      continuing operations
      attributable to
      holders of ordinary
      shares                (9,249,675)  (2,940,627)  (7,920,515)   5,012,301
     Net income from
      discontinued
      operations             1,438,483   14,383,952    2,515,849   14,883,108
     Net income (loss)
      attributable to
      holders of ordinary
      shares                (7,811,192)  11,443,325   (5,404,666)  19,895,409
     Income (loss) per ADS
      - Continuing
        operations               (0.32)       (0.10)       (0.27)        0.17
      - Discontinued
        operations                0.05         0.49         0.08         0.51
      Basic                      (0.27)        0.39        (0.19)        0.68
      - Continuing
        operations               (0.32)       (0.10)       (0.27)        0.17
      - Discontinued
        operations                0.05         0.49         0.08         0.50
      Diluted                    (0.27)        0.39        (0.19)        0.67
     Weighted average number
      of shares used in
      calculating income
      (loss) per ADS
      - Basic               86,651,394   87,429,056   87,587,902   87,482,327
      - Diluted             86,651,394   89,147,851   87,587,902   89,621,441



                            ACORN INTERNATIONAL, INC.
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In US dollars)

                                            December 31, 2008   June 30, 2009
    Assets
    Current assets:
      Cash and cash equivalents                147,648,774       128,892,996
      Restricted cash                            1,425,102         4,949,351
      Short-term investments                    19,745,444        10,689,630
      Accounts receivable, net                  27,708,460        18,578,403
      Notes receivable                             150,607           857,218
      Inventory                                 29,521,680        24,548,466
      Prepaid advertising expenses              16,756,954        10,231,308
      Other prepaid expenses and current
       assets, net                              13,362,528        26,590,135
      Deferred tax assets, net                   3,355,151         3,748,598
      Total current assets                     259,674,700       229,086,105
    Property and equipment, net                 15,641,434        13,578,022
    Acquired intangible assets, net             21,313,949        27,243,593
    Long-term investments                        5,275,000         5,404,000
    Investment in affiliates                     1,159,134         6,469,152
    Other long-term assets                       1,121,100         1,164,025
    Total assets                               304,185,317       282,944,897

    Liabilities and equity
    Current liabilities:
      Accounts payable                          20,734,493        16,368,452
      Accrued expenses and other current
       liabilities                              19,652,820        14,684,273
      Notes payable                              3,657,859         1,767,307
      Income taxes payable                       3,327,869         5,229,258
      Deferred revenue                          12,797,716                --
      Total current liabilities                 60,170,757        38,049,290
    Deferred tax liability                       3,581,569         4,295,389
    Business combination liability              11,107,375         1,103,015
    Total liabilities                           74,859,701        43,447,694

    Acorn International Inc. shareholders'
     equity:
      Ordinary shares                              935,435           935,435
      Additional paid-in capital               205,651,072       207,270,883
      Retained earnings                          9,737,468        29,860,441
      Accumulated other comprehensive
       income                                   15,113,507        12,398,734
      Treasury stock, at cost                  -15,676,206       -11,612,546
    Total Acorn International Inc.
     shareholders' equity                      215,761,276       238,852,947
    Noncontrolling interests                    13,564,340           644,256
    Total equity                               229,325,616       239,497,203
    Total liabilities and equity               304,185,317       282,944,897


Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains "forward-looking statements," including, among other things, Acorn's anticipated operating results for 2009; benefits of continuing focus on Acorn's proprietary branded product, ability of Acorn's profits to continue to recover from previous quarters; continued success of Acorn's Ozing electronic learning products and Meijin electronic dictionary; continued benefits from the consolidation of Acorn's distribution channels; benefits of Acorn's sale of a 33% equity interest in Yimeng, expectations regarding development of the cosmetics products line and third-party bank channel sales into continuity business lines; and growth prospects of its touch-reader learning product series, Cobor cosmetic products, Uking A300 series and third-party bank channel sales business. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. In particular, our operating results for any period are impacted significantly by the mix of products and services sold by us in the period and the platforms through which they are sold, causing our operating results to fluctuate and making them difficult to predict.
Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: our ability to effectively consolidate our distribution channels, our ability to successfully introduce new products and services, including to offset declines in sales of existing products and services; our ability to stay abreast of consumer market trends and maintain our reputation and consumer confidence; continued access to and effective usage of TV advertising time and pricing related risks; relevant government policies and regulations relating to TV media time and TV direct sales programs, including actions that may make TV media time unavailable to us or require we suspend or terminate a particular TV direct sales program; our reliance on and ability to effectively manage our nationwide distribution network (including Yiyang Yukang's network); potential unauthorized use of our intellectual property; potential disruption of our manufacturing process; increasing competition in China's consumer market; our U.S. tax status as a passive foreign investment company; and general economic and business conditions in China. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in our 2008 annual report on Form 20-F filed with Securities and Exchange Commission on April 24, 2009. For a discussion of other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 6 of our Form 20-F for the fiscal year ended December 31, 2008. Our actual results of operations for the second quarter of 2009 are not necessarily indicative of our operating results for any future periods. Any projections in this release are based on limited information currently available to us, which is subject to change. Although such projections and the factors influencing them will likely change, we will not necessarily update the information. Such information speaks only as of the date of this release.
   For more information, please contact:

   Acorn International, Inc.
    Ms. Chen Fu, IR Director
    Phone: +86-21-5151-8888 x2228
    Email: fuchen@chinadrtv.com
    Web:   http://www.chinadrtv.com

    CCG Investor Relations
    Mr. Crocker Coulson, President
    Phone: +1-646-213-1915 (New York)
    Email: crocker.coulson@ccgir.com
    Web:   http://www.ccgirasia.com

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      message_2939
      12 Aug 2009 12:00:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/2939
      
        SHANGHAI, Aug. 12 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services through extensive distribution network, will release its financial results for the second quarter ended June 30, 2009 before the market opens on Thursday, August 20, 2009. A copy of the earnings release will be available on the company's website at http://eng.chinadrtv.com .


(Logo: 

     -- +1 888 419 5570 (U.S. Toll Free)
     -- +1 617 896 9871 (International)
     -- Passcode: 421 739 04

Please dial-in approximately 10 minutes in advance to facilitate an on- time start.
A replay will be available for 14 days after the call and may be accessed via:
     -- +1 888 286 8010 (U.S. Toll Free)
     -- +1 617 801 6888 (International)
     -- Passcode: 874 767 44

A live and archived webcast of the call will be available on the Company's website at http://eng.chinadrtv.com .  To listen to the live webcast, please go to the Company's website at least fifteen minutes prior to the start of the call to register, download and install any necessary audio software.
About Acorn International, Inc.
Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties. For more information, please visit http://www.chinadrtv.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain statements that may include "forward- looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements". Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company's ability to successfully expand its market presence and those discussed detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
    For more information, please contact:

    Acorn International
     Chen Fu, Director of Investor Relations
     Tel:   +86-21-5151-8888 x2228
     Email: fuchen@chinadrtv.com
     Web:   http://www.chinadrtv.com

    CCG Investor Relations
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com
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      message_2510
      24 Jun 2009 06:00:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/2510
      
        SHANGHAI, June 24 -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services, announced today that it has reached an agreement to sell 33% equity interests of Shanghai Yimeng Software Technology Co., Ltd. ("Yimeng"), a company engaged in the development and marketing of CPS stock tracking software, to Mr. Zeng Shan, the CEO of Yimeng. In accordance with the terms of a share purchase agreement approved by Acorn's board of directors, Acorn will receive approximately $7.5 million in dividends and $15.5 million for sale of 33% equity interests of Yimeng, which is valued, post-dividend, at approximately $47.0 million. The Company will continue to hold 18% equity interests of Yimeng after the sale as part of Acorn's long- term investments. The CPS stock tracking software provides stock trading analysis to retail investors in China. The Company originally acquired 51% equity interests of Yimeng for a cash consideration of approximately $160,000 in December 2005.

"Divesting part of our CPS investment represents an important step towards focusing on our core competency in the online and offline marketing and distributional synergy. The banning of TV advertisements for stock tracking software products significantly impaired CPS' ability to fully capitalize on Acorn's dual platform marketing and distribution benefit," said James Hu, Chairman and CEO of Acorn. "We believe that the partial divestiture of CPS on favorable financial terms will further strengthen our balance sheet and provide the capital to fund our future strategic business objectives and operations. Furthermore, we believe that a sharper strategic focus can further improve operating efficiency and accelerate our timeline for a faster and stronger recovery in 2009."
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an ecommerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
For more information, please visit http://www.chinadrtv.com .
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements," including, among other things, the benefits of Acorn's sale of its 33% equity interests in Yimeng, the ability of Acorn to strengthen its balance sheet and fund future strategic business objectives following its sale of 33% equity interests of Yimeng and Acorn's ability to improve operating efficiency and recover from the effects of the global economic crisis during fiscal year 2009. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. In particular, our operating results for any period are impacted significantly by the mix of products and services sold by us in the period and the platforms through which they are sold, causing our operating results to fluctuate and making them difficult to predict.
Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: our ability to effectively sell our 33% equity interests in Yimeng on time or at all; our ability to successfully capitalize on our sale of 33% equity interests of Yimeng, our ability to offset declines in sales of existing products and services; our ability to stay abreast of consumer market trends and maintain our reputation and consumer confidence; continued access to and effective usage of TV advertising time and pricing related risks; relevant government policies and regulations relating to TV media time and TV direct sales programs, including actions that may make TV media time unavailable to us or require we suspend or terminate a particular TV direct sales program; our reliance on and ability to effectively manage our nationwide distribution network; potential unauthorized use of our intellectual property; potential disruption of our manufacturing process; increasing competition in China's consumer market; our U.S. tax status as a passive foreign investment company; and general economic and business conditions in China. Any financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in our 2008 annual report on Form 20-F filed with Securities and Exchange Commission on April 24, 2009. For a discussion of other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 6 of our Form 20-F for the fiscal year ended December 31, 2008. Any projections in this release are based on limited information currently available to us, which is subject to change. Although such projections and the factors influencing them will likely change, we will not necessarily update the information. Such information speaks only as of the date of this release.
    For more information, please contact:

    Acorn International
     Chen Fu, Director of Investor Relations
     Tel:   +86-21-5151-8888 x2228
     Email: ir@chinadrtv.com

    PRChina
     Jane Liu
     Tel:   +852-2522-1838
     Email: jliu@prchina.com.hk

     Henry Chik
     Tel:   +852-2522-1368
     Email: hchik@prchina.com.hk
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      photo_578
      25 May 2009 15:07:29 GMT
      http://chinasecurities.com/ir/Acorn/photos
      
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      weblink_292
      25 May 2009 15:06:30 GMT
      http://eng.chinadrtv.com/html/ir/investor_events.php
      
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      message_2021
      13 May 2009 04:00:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/2021
      
        SHANGHAI, May 13 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services, announced its first quarter financial results for the quarter ended March 31, 2009.

    Highlights for First Quarter 2009:

    -- Net revenues were $90.7 million, an increase of 37.3% compared to $66.1
       million in the first quarter 2008.
    -- Gross margin was 50.7%, compared to 58.1% in the same period of 2008.
    -- Operating income was $9.2 million, compared to a $3.0 million in the
       first quarter 2008.
    -- Net income attributable to holders of ordinary shares was $8.5 million
       (including investment gain of $0.8 million), an increase of 251.2% as
       compared to $2.4 million (including investment gain of $0.8 million) in
       the first quarter 2008.
    -- Adjusted net income attributable to holders of ordinary shares, after
       eliminating the effects of share-based compensation expenses (non-GAAP),
       was $9.3 million compared to a $3.9 million for the same period last
       year.
    -- Share-based compensation expenses were $0.8 million in the first
       quarter 2009, compared to $1.5 million in the same period last year.
    -- Diluted income per ordinary share and per ADS were $0.09 and $0.28,
       respectively. Excluding share-based compensation expenses (non-GAAP),
       diluted income per ordinary share and per ADS were $0.10 and $0.31,
       respectively.


"The first three-months of 2009 has been an exciting start where we achieved a healthy 37.3% year-over-year growth in our top line sales and more than doubled our non-GAAP net income attributable to holders of ordinary shares from the same period one year ago," said Mr. James Hu, Chairman and CEO of Acorn. "The strong financial results speak highly of our team's ability to execute in an increasingly challenging environment and demonstrate the viability of the Company's strategies refined over the course of last year. We are happy to see double digit growth across several of our important product lines such as Ozing, Meijin and cosmetics. More importantly, we believe that positive momentum seen in the first quarter will continue for future periods as we remain focused on growing our proprietary branded products as a guiding principle for our long term success."
    Business Highlights for the First Quarter of 2009:
    -- Ozing, the Company's electronic learning product and Meijin, the
       Company's electronic dictionary, continued to benefit from the
       consolidation of their distribution channels from the previous quarter
       as well as the Company's low-price strategy adopted since the second
       half of 2008. Sales in Ozing for the first quarter 2009 more than
       doubled to reach $33.1 million from $15.5 million in the same period in
       2008.  Meijin's first quarter 2009 sales also increased by 55.0% to
       $5.8 million from $3.8 million in the first quarter 2008. Growth in
       Ozing product sales for the first quarter 2009 also reflects the
       successful marketing of Ozing's lower-priced V1 model on the Company's
       TV direct sales platform as well as the sales addition of the Company's
       touch-reader learning product series which was launched in the third
       quarter 2008. The Company expects strong sales coming from its
       electronic learning product line with growing contribution from its
       touch-reader learning product series in 2009.
    -- Cosmetics sales accounted for an increasingly larger percentage of
       total TV direct sales in the first quarter 2009. TV direct sales in
       cosmetics grew 33.8% to reach $9.6 million in the first quarter 2009
       from the same period last year. The Cobor branded cosmetic line, in
       particular, remained a popular item on TV and showed the largest sales
       increase of 72.6% in the first quarter 2009 compared to the same period
       in 2008. The Company will continue to develop its cosmetics business
       into a continuity business line.
    -- The Company's third-party bank channel sales continued to expand in
       scale in the first quarter 2009. With the addition of four new banking
       partners in the first quarter 2009, the Company has established
       relationships with a total of 16 banking partners over five fiscal
       quarters and significantly improved its revenue from $0.9 million in
       first quarter 2008 to $3.6 million in first quarter 2009, representing
       a 309.7% year-over-year growth. The third-party bank channel sales
       business remains an important growth area as it helps to broaden the
       Company's customer base and helps diversify payment options.

Financial Results Highlights for the First Quarter 2009:
For the first quarter 2009, total net revenues grew 37.3% to $90.7 million (including $15.5 million added as a result of consolidating Yiyang Yukang) from $66.1 million in the first quarter 2008.
Direct sales net revenues were $41.3 million, up 3.7% from $39.8 million in the first quarter 2008, primarily because of an 850.2% year-over-year increase in sales of Ozing electronic learning products and a 33.8% increase in sales of cosmetics, offsetting a 45.8% year-over-year decrease in the TV direct sales of mobile handsets due to lower average selling prices and lower sales volume as a result of increased competition and a decrease in consumers' preference for higher average-selling-price products, and a 90.7% year-over-year decrease in collectibles due to an end of the 2008 Beijing Olympics.
Distribution sales net revenues increased 88.4% year-over-year in the first quarter of 2008 to $49.4 million, primarily because of the consolidation of Yiyang Yukang's mobile handsets sales into the Company's financial results. Distribution sales net revenues excluding sales from Yiyang Yukang were $33.9 million, up 29.2% from $26.2 million in the first quarter 2008. Distribution sales of Ozing electronic learning products and Meijin electronic dictionary grew 50.6% year-over-year and 54.8% year-over-year to $21.5 million and $5.8 million, respectively.
The table below summarizes the gross revenues from the three best-selling product categories for the direct sales platform, distribution network and total direct and distribution sales, respectively:

                                          Three Months Ended March 31, 2009
                                                   (in US dollars)
    Direct sales
      Electronic learning product (Ozing)                  11,582,099
      Cosmetics                                             9,610,544
      Mobile handsets                                       6,106,282

    Distribution sales
      Electronic learning product (Ozing)                  21,476,754
      Mobile handsets (Yiyang Yukang)                      15,514,967
      Electronic dictionary (Meijin)                        5,825,206

    Total direct and distribution sales
      Electronic learning product (Ozing)                  33,058,853
      Mobile handsets                                      21,621,249
      Cosmetics                                             9,619,112


Cost of sales in the first quarter 2009 was $44.7 million, an increase of 61.6% from $27.7 million in the first quarter 2008, primarily due to the increase of distribution sales in the first quarter 2009.
Gross profit in the first quarter 2009 was $46.0 million, up 19.8% compared to $38.4 million in the first quarter 2008. Gross margin was 50.7% in the first quarter 2009, down from 58.1% in the first quarter 2008.
Gross profit from direct sales for the first quarter 2009 increased 7.4% to $25.0 million from $23.3 million in the first quarter 2008. Gross margin for direct sales for the first quarter 2009 was 60.6%, up from 58.5% in the same period last year. The increase in gross margin was largely due to a shift in product mix in the first quarter 2009 to include more proprietary branded products such as Ozing, Babaka and cosmetics, which generally have higher gross margin.
Gross profit from distribution sales in the first quarter 2009 was $21.0 million, an increase of 38.9% from $15.1 million in the first quarter 2008. Gross margin for distribution sales for the first quarter 2009 was 42.4%, down from 57.5% in the same period last year. The decrease in gross margin was due to margin compression of Ozing and Meijin products as a result of higher price discounts to Acorn's distributors as well as contribution of lower margin mobile handsets sales from Yiyang Yukang.
Advertising expenses were $16.3 million for the first quarter 2009 compared to $18.8 million in the first quarter 2008 due to a reduction in the fixed portion of advertising spending for 2009 as part of the Company's renewed focus on growing proprietary branded products. Gross profit over advertising expenses, a benchmark Acorn uses to measure return on multiple sales platforms, was 2.82 in the first quarter 2009, up from 2.04 in the first quarter 2008 and 1.41 in the fourth quarter 2008.  The increase in the gross profit over advertising expenses ratio for the first quarter 2009 was primarily due to higher product sales and the success of the Company's targeted airtime allocation scheme.
Other selling and marketing expenses increased 34.7% to $13.5 million from $10.0 million in the first quarter 2008. The increase was mainly due to increased delivery costs and employee incentives associated with increased sales, as well as increased amortization of acquired intangible assets as a result of acquiring Yiyang Yukang.
General and administrative expenses were $9.6 million in the first quarter 2009, a 28.0% increase from $7.5 million in the first quarter 2008. The increase was primarily due to increase in employee payroll in the first quarter 2009 and R&D expenses.
Other operating income, net, was $2.5 million for the first quarter 2009, up 177.0% from $0.9 million in the first quarter 2008. Other operating income, net, included $2.3 million and $0.5 million in government subsidies for the first quarter 2009 and 2008, respectively. The increase in government subsidies in the first quarter 2009 was primarily due to the additional subsidies received by Yiyang Yukang.
Income from operations for the first quarter 2009 was $9.2 million, an increase of 206.3% from $3.0 million in the first quarter 2008.
Share-based compensation expenses for the first quarter 2009 were $0.8 million, compared to $1.5 million for the first quarter 2008.
Excluding share-based compensation expenses (non-GAAP), income from operations for the first quarter 2009 was $10.0 million, compared to a $4.5 million in the same period of 2008.
Net income attributable to holders of ordinary shares for the first quarter 2009 was $8.5 million (including a $0.8 million investment gain), compared to $2.4 million (including a $0.8 million investment gain) in the first quarter 2008. Net income attributable to holders of ordinary shares excluding share-based compensation expenses (non-GAAP) for the first quarter of 2009 reached $9.3 million, compared to $3.9 million in the same period last year. Diluted income per ordinary share was $0.09 for the first quarter 2009. Excluding share-based compensation expenses (non-GAAP), diluted income per ordinary share was $0.10 for the first quarter 2009.
Acorn's cash and cash equivalents totaled $165.3 million at the end of the first quarter 2009, an increase of $17.6 million from that at the end of the fourth quarter 2008.  $10.2 million of the increase came from settlement through the exercise of the issuer's call option of one of the Company's available-for-sale securities in the first quarter 2009.
Other Updates:
Share Repurchase Program:
Under the Company's share repurchase plan, the Company repurchased a total of 0.3 million of its ADSs at a combined cost of approximately $1.3 million in the first quarter of 2009, with a balance of approximately $5.5 million available for future repurchases under the share repurchase plan. The share repurchase program is expected to continue until the end of May 2009 unless further extended or shortened by the Board of Directors.
Financial Reporting under FAS160:
The Company's prior period financial information has been recast to the current period presentation under FAS 160, which the Company adopted on January 1, 2009.
Full Year 2009 Business Outlook:
Given the strong financial results for the first quarter 2009 and positive outlook the Company has for the remainder of the year, Acorn expects net revenues for full year 2009 to be in the range of $310.0 to $350.0 million, the same as in the fourth quarter and full year 2008 earnings release, and net income attributable to holders of ordinary shares, excluding share-based compensation expenses and investment income, to be between $14.0 and $16.0 million compared to $12.0 and $14.0 million in the fourth quarter and full year 2008 earnings release.
These estimates are subject to change. Also, Acorn reminds investors that its operating results in each period are impacted significantly by the mix of products and services sold in the period and the platforms through which they are sold. Consequently, in evaluating the overall performance of Acorn's multiple sales platforms in any period, management also considers metrics such as operating margin and gross profit return on advertising expenses.
Conference Call Information
Acorn's management will host an earnings announcement conference call at 8:00 a.m. EDT on May 13, 2009 (8:00 p.m. Beijing Time) to review the Company's financial results and answer questions.
    You may access the live interactive call via:

    +1 866 549 1292 (U.S. Toll Free)
    +400 681 6949 (China Toll Free)
    +852 3005 2050 (International)
    Passcode: 288#

Please dial-in 10-15 minutes in advance to facilitate an on-time start. A replay will be available for approximately two weeks after the call and may be accessed via:
+852 3005 2020 (International)
Passcode: 136511#
A live and archived webcast of the call will be available on the Company's website at http://eng.chinadrtv.com .
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV airtime and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, third-party bank channels, outbound telemarketing center and an ecommerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
For more information, please visit http://www.chinadrtv.com .
Use of Non-GAAP Financial Measures
Acorn has reported the first quarter 2009 and 2008 income from operations, operating margin, net income attributable to holders of ordinary shares and income per ordinary share on a non-GAAP basis, all excluding share-based compensation expenses. Acorn believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Acorn's financial performance and liquidity and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing Acorn's underlying business performance and operating trends and Acorn expects to report income from operations, operating margin, net income attributable to holders of ordinary shares and income per ordinary share on a non-GAAP basis using a consistent method on a quarterly basis going forward.
Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the following reconciliation of GAAP results with non-GAAP results for the three months ended March 31, 2009 and 2008, respectively.
The table below sets forth the reconciliation of non-GAAP measures to GAAP measures for the indicated periods:

                            ACORN INTERNATIONAL, INC.
                       RECONCILIATION OF NON-GAAP TO GAAP
                                 (in US dollars)

                                                 Three Months Ended March 31,
                                                      2008           2009
    GAAP net revenues                              66,061,092     90,695,079
    GAAP income from operations                     2,988,285      9,152,655
    GAAP operating margin                                4.5%          10.1%
    Share-based compensation expenses               1,481,938        845,060
    Non-GAAP income from operations                 4,470,223      9,997,715
    Non-GAAP operating margin                            6.8%          11.0%

    GAAP net income attributable to holders of
     ordinary shares                                2,406,526      8,452,084
    GAAP income per ordinary share - basic               0.03           0.10
    GAAP income per ordinary share - diluted             0.03           0.09
    Share-based compensation expenses               1,481,938        845,060
    Non-GAAP net income attributable to holders
     of ordinary shares                             3,888,464      9,297,144
    Non-GAAP income per ordinary share - basic           0.04           0.11
    Non-GAAP income per ordinary share - diluted         0.04           0.10


Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements," including, among other things, Acorn's anticipated operating results for 2009; benefits of continuing focus on Acorn's ability to develop new proprietary brands, ability of Acorn to continue to maximize its media efficiency; continued success of Acorn's strategy for selling low-price and low-cost mobile handsets, Ozing electronic learning products and Meijin electronic dictionary; continued benefits from the consolidation of Acorn's distribution channels; expectations regarding development of the cosmetics products line into a continuity business line; and growth prospects of its Ozing's lower-priced V1 model, touch-reader learning product series, cosmetic products and third-party bank channel sales business.  These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.  In particular, our operating results for any period are impacted significantly by the mix of products and services sold by us in the period and the platforms through which they are sold, causing our operating results to fluctuate and making them difficult to predict.
Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: our ability to effectively consolidate our distribution channels and integrate the Yiyang Yukang acquisition, our ability to successfully introduce new products and services, including to offset declines in sales of existing products and services; our ability to stay abreast of consumer market trends and maintain our reputation and consumer confidence; continued access to and effective usage of TV advertising time and pricing related risks; relevant government policies and regulations relating to TV media time and TV direct sales programs, including actions that may make TV media time unavailable to us or require we suspend or terminate a particular TV direct sales program; our reliance on and ability to effectively manage our nationwide distribution network (including Yiyang Yukang's network); potential unauthorized use of our intellectual property; potential disruption of our manufacturing process; increasing competition in China's consumer market; our U.S. tax status as a passive foreign investment company; and general economic and business conditions in China.  The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in our 2008 annual report on Form 20-F filed with Securities and Exchange Commission on April 24, 2009. For a discussion of other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 6 of our Form 20-F for the fiscal year ended December 31, 2008.  Our actual results of operations for the first quarter of 2009 are not necessarily indicative of our operating results for any future periods.  Any projections in this release are based on limited information currently available to us, which is subject to change. Although such projections and the factors influencing them will likely change, we will not necessarily update the information.  Such information speaks only as of the date of this release.

                            ACORN INTERNATIONAL, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In US dollars, except share data)

                                                 Three Months Ended March 31,
                                                     2008            2009
     Revenues:
      Direct sales, net                           39,847,711      41,315,884
      Distribution sales, net                     26,213,381      49,379,195
     Total revenues, net                          66,061,092      90,695,079
     Cost of revenues:
      Direct sales                                16,530,256      16,272,287
      Distribution sales                          11,129,325      28,428,175
     Total cost of revenues                       27,659,581      44,700,462
     Gross profit                                 38,401,511      45,994,617
     Operating income (expenses):
      Advertising expenses                       (18,823,517)    (16,304,692)
      Other selling and marketing expenses        (9,988,165)    (13,450,570)
      General and administrative expenses         (7,518,273)     (9,625,636)
      Other operating income, net                    916,729       2,538,936
     Total operating income (expenses)           (35,413,226)    (36,841,962)
     Income from operations                        2,988,285       9,152,655
     Other income (expenses), net                  1,547,828       1,083,348
     Income before income taxes                    4,536,113      10,236,003
     Income tax expenses (benefits):
      Current                                      1,178,444       1,293,640
      Deferred                                       (25,027)        150,350
     Total income tax expenses (benefits)          1,153,417       1,443,990
     Net income                                    3,382,696       8,792,013
     Net income attributable to
      noncontrolling interests                      (976,170)       (339,929)
     Net income attributable to holders of
      ordinary shares                              2,406,526       8,452,084
     Income per ordinary share
      - Basic                                           0.03            0.10
      - Diluted                                         0.03            0.09
     Income per ADS
      - Basic                                           0.08            0.29
      - Diluted                                         0.08            0.28
     Weighted average number of shares used
      in calculating income per ordinary share
      - Basic                                     88,524,410      87,536,189
      - Diluted                                   91,941,482      90,100,292



                            ACORN INTERNATIONAL, INC.
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In US dollars)

                                          December 31, 2008   March 31, 2009
    Assets
    Current assets:
     Cash and cash equivalents                147,648,774        165,270,747
     Restricted cash                            1,425,102          3,465,441
     Short-term investments                    19,745,444         11,479,945
     Accounts receivable, net                  27,708,460         32,478,155
     Notes receivable                             150,607            234,058
     Inventory                                 29,521,680         20,096,240
     Prepaid advertising expenses              16,756,954         10,890,560
     Other prepaid expenses and current
      assets, net                              13,362,528          9,734,588
     Deferred tax assets, net                   3,355,151          3,405,164
     Total current assets                     259,674,700        257,054,898
    Property and equipment, net                15,641,434         15,338,389
    Acquired intangible assets, net            21,313,949         27,901,185
    Long-term investments                       5,275,000          5,459,000
    Investment in affiliates                    1,159,134          1,188,950
    Other long-term assets                      1,121,100            947,687
    Total assets                              304,185,317        307,890,109

    Liabilities and equity
    Current liabilities:
     Accounts payable                          20,734,493         18,796,455
     Accrued expenses and other current
      liabilities                              19,652,820         16,629,706
     Notes payable                              3,657,859            292,573
     Income taxes payable                       3,327,869          4,440,667
     Deferred revenue                          12,797,716         14,877,659
     Business combination liability                    --         10,004,360
     Total current liabilities                 60,170,757         65,041,420
    Deferred tax liability                      3,581,569          3,512,692
    Business combination liability             11,107,375          1,103,015
    Total liabilities                          74,859,701         69,657,127

    Acorn International Inc.
     shareholders' equity:
     Ordinary shares                              935,435            935,435
     Additional paid-in capital               205,651,072        206,496,132
     Retained earnings                          9,737,468         18,189,552
     Accumulated other comprehensive
      income                                   15,113,507         15,654,571
     Treasury stock, at cost                  (15,676,206)       (16,944,466)
    Total Acorn International Inc.
     shareholders' equity                     215,761,276        224,331,224
    Noncontrolling interests                   13,564,340         13,901,758
    Total equity                              229,325,616        238,232,982
    Total liabilities and equity              304,185,317        307,890,109


    For further information, please contact:

    Acorn International
     Chen Fu, Director of Investor Relations
     Tel:   +86-21-5151-8888 x2228
     Email: ir@chinadrtv.com

    PRChina
     Jane Liu
     Tel:   +852-2522-1838
     Email: jliu@prchina.com.hk

     Henry Chik
     Tel:   +852-2522-1368
     Email: hchik@prchina.com.hk
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      message_1937
      08 May 2009 04:26:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/1937
      
        Acorn to Present at CCG China Rising Investment Conference and Oppenheimer 3rd Annual China Dragon Call Conference

SHANGHAI, May 8 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services, announced today that its senior management will attend two major investor conferences to be held in New York, including:
    May 18, 2009        CCG China Rising Investment Conference
    15:30-16:00PM EDT   Venue:
                        Yale Club
                        50 Vanderbilt Ave, New York, NY 10017

    May 19, 2009        Oppenheimer 3rd Annual China Dragon Call Conference
    13:10-13:40PM EDT   Venue:
                        Oppenheimer New York Office
                        300 Madison Avenue, 3rd Floor, New York, NY 10017


Mr. Gordon Wang, Chief Financial Officer and Ms. Chen Fu, Director of Investor Relations, will represent the management to share their views on corporate strategy, current operations and growth potential of the Company with institutional investors. Through participating in these major investor events, senior management of Acorn International expects to continuously enhance communications with global investors.
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, outbound telemarketing center and an ecommerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
    For more information, please visit http://www.chinadrtv.com .

    Acorn International
     Chen Fu, Director of Investor Relations
     Tel:   +86-21-5151-8888 x2228
     Email: ir@chinadrtv.com

    PRChina
     Jane Liu
     Tel:   +852-2522-1838
     Email: jliu@prchina.com.hk

     Henry Chik
     Tel:   +852-2522-1368
     Email: hchik@prchina.com.hk
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      message_1823
      30 Apr 2009 04:00:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/1823
      
        Acorn International to Announce First Quarter 2009 Financial Results on May 13, 2009

SHANGHAI, China, April 30 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services, will release its financial results for the first quarter ended March 31, 2009 before the market opens on Wednesday, May 13, 2009. A copy of the earnings release will be available on the company's website at http://eng.chinadrtv.com .
The Company will host a conference call at 8:00 a.m. EDT on May 13, 2009 (8:00 p.m. Beijing Time) to review the Company's financial results and answer questions. You may access the live interactive call via:
     -- +1 866 549 1292 (U.S. Toll Free)
     -- + 400 681 6949 (China Toll Free)
     -- +852 3005 2050 (International)
     -- Pass Code: 288#

Please dial-in approximately 10 minutes in advance to facilitate an on-time start.
A replay will be available for approximately two weeks after the call and may be accessed via:
-- +852 3005 2020 (International)
-- Passcode: 136511#
A live and archived webcast of the call will be available on the Company's website at http://eng.chinadrtv.com .
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating China's largest TV direct sales business in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, outbound telemarketing center and an ecommerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
    For more information, please visit http://www.chinadrtv.com .

    Acorn International
     Chen Fu, Director of Investor Relations
     Tel:   +86-21-5151-8888 x2228
     Email: ir@chinadrtv.com

    PRChina
     Jane Liu
     Tel:   +852-2522-1838
     Email: jliu@prchina.com.hk

     Henry Chik
     Tel:   +852-2522-1368
     Email: hchik@prchina.com.hk
]]>
      
    
    
      
      message_628
      09 Mar 2009 12:45:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/628
      
        SHANGHAI March 9 /PRNewswire-Asia/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services, announced its fourth quarter and full year financial results for the period ended December 31, 2008.

    Highlights for Fourth Quarter 2008:
    -- Net revenues were $61.7 million, an increase of 7.1% compared to $57.6
       million in the fourth quarter 2007.
    -- Gross margin was 43.9%, compared to 53.2% in the same period of 2007.
    -- Loss from operations was $11.1 million, compared to a loss of $2.6
       million in the fourth quarter 2007. Excluding share-based compensation
       expenses (non-GAAP), loss from operations was $11.4 million, compared
       to a loss of $1.1 million in the fourth quarter 2007.
    -- Net loss was $9.4 million (including investment gain of $0.3 million),
       compared to net income of $0.7 million (including investment gain of
       $3.8 million) in the fourth quarter 2007. Excluding share-based
       compensation expenses (non-GAAP), net loss was $9.7 million, compared
       to net income of $2.3 million in the same period of 2007.
    -- Diluted loss per ordinary share and diluted loss per ADS were $0.11 and
       $0.33, respectively. Excluding share-based compensation expenses
       (non-GAAP), diluted loss per ordinary share and diluted loss per ADS
       were $0.11 and $0.34, respectively.
    -- In the fourth quarter 2008, the Company had a net negative $0.3 million
       share-based compensation expenses as a result of the adjustments for
       the forfeited share options and share appreciation rights, compared to
       a $1.6 million share-based compensation expenses in the fourth quarter
       2007.

    Highlights for Full Year 2008:
    -- Net revenues were $250.7 million, a decrease of 4.4% compared to $262.1
       million for full year 2007.
    -- Gross margin was 51.7%, compared to 52.7% for full year 2007.
    -- Loss from operations was $21.1 million, compared to income from
       operations of $7.9 million for full year 2007. Excluding share-based
       compensation expenses and impairment losses on goodwill and intangible
       assets (non-GAAP), loss from operations was $9.2 million, compared to
       income from operations of $14.4 million for full year 2007.
    -- Impairment losses for the full year 2008 totaled $12.0 million. Of this
       total, $8.7 million consisted of $1.1 million of impairment loss on
       intangible assets and $7.6 million of impairment loss on goodwill. The
       remaining $3.3 million reflects an other-than-temporary impairment of
       investment on one of two available-for-sale securities. The original
       cost of Acorn's investment on these two available-for-sale securities
       was $10.0 million each.
    -- Net loss was $25.6 million (including investment loss of $1.9 million),
       compared to net income of $18.7 million (including investment gain of
       $11.6 million) for full year 2007. Excluding share-based compensation
       expenses and impairment losses on goodwill and intangible assets
       (non-GAAP), net loss was $13.6 million, compared to net income of $25.2
       million for full year 2007.
    -- Diluted loss per ordinary share and diluted loss per ADS were $0.29 and
       $0.88, respectively. Excluding share-based compensation expenses and
       impairment losses on goodwill and intangible assets (non-GAAP), diluted
       loss per ordinary share and diluted loss per ADS were $0.16 and $0.47,
       respectively.
    -- Share-based compensation expenses were $3.3 million, compared to $6.5
       million for full year 2007.

"2008 was a turbulent year. With the snowstorm in the beginning of the year, the Wenchuan Earthquake in May and the worsening of the global financial crisis, our business came under tremendous pressure during the twelve-month period. Furthermore, the combined effects of the intensifying industry competition resulted in our first net loss since Acorn's founding nearly ten years ago," said Mr. James Hu, Chairman and CEO of Acorn. "With challenges come experiences gained. Going forward, we will return to our historic emphasis on growing our proprietary branded products such as Ozing and Babaka while developing joint sales and marketing services arrangements as sources of complementary revenue streams. Furthermore, we will continue to seek ways to monetize our large customer database through efforts in customer data-mining. Finally, we will seek to maximize media efficiency by adopting a more flexible media buying plan and a more targeted airtime allocation scheme with channels that offer higher media returns. Though the economic environment remains uncertain, we believe the future of our business is promising with the plan we have laid out ahead."
    Business Highlights for the Fourth Quarter 2008:
    -- During the fourth quarter 2008, the Company's third-party bank channel
       sales continued to expand in scale by adding four additional partners.
       At the end of December 2008, the Company had a total of 12 banking
       partners, generating sales of $66,000 per day compared to $64,000 per
       day in the previous quarter. We believe the third-party bank channel
       sales represent an important area of business development and growth
       for the Company in future quarters.
    -- Mobile handsets sales performed well on the Company's direct sales
       platform in the fourth quarter. This improvement continues to be driven
       largely by the success of the Company's low-price and low-cost strategy.
       Sales from mobile handsets reached $20.4 million in the fourth quarter
       2008 compared to $13.5 million in the fourth quarter 2007, a 50.5%
       increase.
    -- Ozing electronic learning products also performed well, benefiting from
       sales of the low-price and low-cost product series and in part from the
       success of the Company's strategy to consolidate Ozing and Meijin's
       distribution channels. Sales from Ozing electronic learning products
       reached $9.6 million in the fourth quarter 2008 compared to $5.0
       million from the same period last year.
    -- Benefiting from the same consolidated distribution channels with Ozing,
       sales of Meijin electronic dictionaries also improved significantly as
       their sales reached $3.2 million in the fourth quarter 2008 from $1.6
       million from the same period last year, representing a 100.0% year over
       year increase.

Financial Results Highlights for the Fourth Quarter 2008:
For the fourth quarter 2008, total net revenues increased 7.1% to $61.7 million from $57.6 million in the fourth quarter 2007.
Direct sales net revenues reached $47.7 million, up 12.6% from $42.3 million in the fourth quarter 2007. Strong sales growth in mobile handsets and Ozing electronic learning products contributed significantly to the year-over-year increase in the direct sales net revenues for the quarter, offsetting the year-over-year decline in the sales of collectibles following the 2008 Beijing Olympics and a reduced consumer demand for products with higher average selling prices due to the current economic slowdown.
Distribution net revenues were $14.0 million, down 8.2% from $15.2 million in the fourth quarter 2007, primarily because of a $1.8 million decline in the sales of CPS stock tracking software from the negative effect of the stock market and a $1.4 million decline in sales of Babaka posture correction products from the discontinuation of certain product lines more than offsetting the $1.6 million increase in Meijin electronic dictionaries in the quarter.
The table below summarizes the gross revenues from the three best-selling product categories for the direct sales platform, distribution network and total direct and distribution sales, respectively:

                     Three Months Ended December 31, 2008
                               (in US dollars)

    Direct sales
     Mobile handsets                                               20,394,726
     Electronic learning product (Ozing)                            5,254,391
     Posture correction product (Babaka)                            4,751,070

    Distribution sales
     Electronic learning product (Ozing)                            4,379,562
     Electronic dictionary (Meijin)                                 3,180,299
     Stock tracking software (CPS)                                  2,284,770

    Total direct and distribution sales
     Mobile handsets                                               20,434,560
     Electronic learning product (Ozing)                            9,633,953
     Posture correction product (Babaka)                            6,450,391



Cost of sales in the fourth quarter 2008 was $34.6 million, an increase of 28.4% from $26.9 million in the fourth quarter 2007. The increase in cost of sales was primarily driven by increased sales of lower margin products, such as mobile handsets.
Gross profit in the fourth quarter 2008 was $27.1 million, down 11.6% compared to $30.6 million in the fourth quarter 2007. Gross margin was 43.9% in the fourth quarter 2008, down from 53.2% in the fourth quarter 2007.
Gross profit from direct sales for the fourth quarter 2008 decreased 1.9% to $21.4 million from $21.8 million in the same period last year. Gross margin for direct sales for the fourth quarter 2008 was 44.9%, compared to 51.5% in the fourth quarter 2007. The decline in gross margin was largely due to a shift in product mix to include more lower margin products as well as a decline in gross margins of our Babaka posture correction and cosmetic products.
Gross profit from distribution sales in the fourth quarter 2008 was $5.7 million, a decrease of 35.5% from $8.8 million in the fourth quarter 2007. Gross margin for distribution sales for the fourth quarter 2008 was 40.8%, down from 58.0% in the same period last year. The decrease in gross margin was largely due to the margin compression of our Ozing electronic learning products as part of the Company's low price strategy to stimulate sales.
Advertising expenses were $19.2 million for the fourth quarter 2008 compared to $19.7 million in the fourth quarter 2007. Gross profit over advertising expenses, a benchmark Acorn uses to measure return on multiple sales platforms, was 1.41 in the fourth quarter 2008, a decrease compared to 1.55 in the fourth quarter 2007 and 2.16 in the third quarter 2008. The decline in the gross profit over advertising expenses ratio for the fourth quarter 2008 was primarily due to the decline in gross profit for the period.
Other selling and marketing expenses increased 35.9% to $11.7 million from $8.6 million in the fourth quarter 2007. The increase was mainly due to increased business development and promotion expenses to the distributors and a higher delivery and packaging costs.
General and administrative expenses were $9.4 million in the fourth quarter 2008, a 32.5% increase from $7.1 million in the fourth quarter 2007. The increase was primarily due to the increase in bad debt provisions in respect to the shared advertising expenses receivable from one of the Company's joint sales partners.
Other operating income, net, was $2.1 million for the fourth quarter 2008, down 5.3% from $2.2 million in the fourth quarter 2007. Other operating income, net, included $1.9 million and $2.1 million in government subsidies for the fourth quarter 2008 and 2007, respectively.
Loss from operations for the fourth quarter 2008 was $11.1 million, compared to a $2.6 million loss in the fourth quarter 2007.
In the fourth quarter 2008, the Company had a net negative $0.3 million share-based compensation expenses as a result of the adjustments for the forfeited share options and share appreciation rights, compared to $1.6 million share-based compensation expenses for the fourth quarter 2007.
Excluding share-based compensation expenses (non-GAAP), operating loss for the fourth quarter 2008 was $11.4 million, compared to a $1.1 million loss in the same period of 2007.
Net loss for the fourth quarter 2008 was $9.4 million (including a $0.3 million investment gain), compared to a net income of $0.7 million (including a $3.8 million investment gain) in the fourth quarter 2007. Diluted loss per ordinary share was $0.11 for the fourth quarter 2008. Excluding share-based compensation expenses (non-GAAP), diluted loss per ordinary share was $0.11 for the fourth quarter 2008.
Acorn's cash and cash equivalents totaled $147.6 million at the end of the fourth quarter 2008, a decrease of $9.5 million from that at the end of the third quarter 2008.
Other Updates:
In December 2008, Acorn's Board of Directors approved the extension, until May 31, 2009, of its share repurchase program. The share repurchase program, which expired in September 2008, originally allowed for the repurchase of up to $30 million of Acorn's ADSs. During the fourth quarter of 2008, the Company had repurchased a total of 0.2 million of its ADSs at a combined cost of approximately $0.7 million, with a balance of approximately $6.8 million available for further repurchases under the repurchase plan. The repurchase program is expected to continue to May 2009 unless further extended or shortened by the Board of Directors.
On December 24, 2008, Acorn completed its acquisition of Yiyang Yukang Communication Equipment Co. Limited ("Yiyang Yukang"), a domestic communication equipment producer and distributor in China. At closing, Acorn paid the previous shareholders of Yiyang Yukang consideration of $6.7 million in cash and 2,564,103 of its ordinary shares ("Ordinary Shares"). In addition, Acorn may pay, in three potential earn-out payments, additional considerations totaling 3,846,153 of Acorn's Ordinary Shares and US$32.1 million in cash, or 5,128,203 of Acorn's Ordinary Shares and US$28.1 million in cash, contingent on Yiyang Yukang meeting certain earnings targets in 2008, 2009 and 2010 for each of the earn-out payments.
In January 2009, the Company moved its Shanghai corporate office to the following location: 18/F, 20th Building, No. 487 Tianlin Road, Shanghai, 200233. The Company's main telephone number remained the same.
Fiscal Year 2008 Financial Results:
Total net revenues for 2008 were $250.7 million, down 4.4% from $262.1 million in 2007.
Direct sales net revenues in 2008 were $171.6 million, down 6.9% from $184.3 million in 2007. The decrease was mainly due to a $48.5 million decline in mobile handset business as a result of reduced average selling prices and volume of mobile handsets, more than offsetting the growth in the Company's cosmetics, Babaka posture correction and eRoda GPS product lines.
Distribution net revenues in 2008 reached $79.0 million, up 1.6% from $77.8 million in 2007, primarily because of improvements in the Meijin electronic dictionary and Babaka posture correction businesses, despite a decline in the Ozing electronic learning products.
The table below summarizes gross revenues from the three best-selling product categories for the direct sales platform, distribution network and total direct and distribution sales, respectively:

                      Full Year Ended December 31, 2008
                               (in US dollars)

    Direct sales
     Mobile handsets                                               56,202,027
     Cosmetics                                                     23,399,046
     Posture correction product (Babaka)                           19,224,514

    Distribution sales
     Electronic learning product (Ozing)                           35,727,214
     Electronic dictionary (Meijin)                                13,897,369
     Stock tracking software (CPS)                                 12,009,245

    Total direct and distribution sales
     Mobile handsets                                               56,262,252
     Electronic learning product (Ozing)                           46,938,706
     Posture correction product (Babaka)                           28,598,035



Cost of sales for 2008 was $121.1 million, a decrease of 2.2% from $123.9 million for 2007. The decrease in cost of sales was primarily driven by lower sales of mobile handset products which in general have higher product costs.
Gross profit for 2008 was $129.5 million, a decrease of 6.3% compared to $138.2 million for 2007. Gross margin was 51.7% for 2008, down from 52.7% for 2007.
Gross profit from direct sales for 2008 decreased 10.4% to $88.2 million from $98.4 million for 2007. Gross margin for direct sales for 2008 was 51.4%, a decrease from 53.4% for 2007. The decline in gross margin was largely due to a decline in gross margin of our mobile handsets due to the Company's strategy to stimulate sales through offering of handset units with lower average selling prices.
Gross profit from distribution sales for 2008 was $41.3 million, up 3.8% from $39.8 million for 2007. Gross margin for distribution sales for 2008 was 52.3%, up from 51.2% for 2007. The increase in gross margin was in part due to the Company's decision in the fourth quarter 2007 to terminate its prior distribution incentive plan, which offered distributors higher discounts as well as slight improvement in gross margins of the Company's Ozing electronic learning products and Meijin electronic dictionary in 2008.
Advertising expenses were $74.4 million for 2008 compared to $76.0 million for 2007. The lower advertising expenses were mainly due to the increase in direct sales advertising costs shared by joint sales partners and a decrease in advertising activities during the Beijing Olympics. Gross profit over advertising expenses was 1.74 for 2008, down from 1.82 in 2007.
Other selling and marketing expenses increased 33.3% to $42.2 million for 2008 from $31.7 million for 2007. The increase was mainly due to the increased business development and promotion expenses paid to distributors (following termination of the Company's prior distribution incentive plan in the fourth quarter 2007) and higher delivery and packaging costs associated with the Beijing Olympics and increase in the mailing of catalogs associated with third-party bank channel sales.
General and administrative expenses were $31.7 million for 2008, which is an 11.3% increased from $28.5 million for 2007 and primarily reflects the increase in research and development expenses, depreciation and amortization expenses of fixed assets and intangible assets, consulting fees and bad debt provisions.
Intangible assets impairment loss and goodwill impairment loss totaled $8.7 million for 2008.
Other operating income, net, was $6.3 million for 2008, up 8.6% from $5.8 million for 2007. Other operating income, net, included $4.8 million and $4.4 million in government subsidies that we received for 2008 and 2007, respectively.
Operating loss for 2008 was $21.1 million (including $8.7 million impairment losses on goodwill and intangible assets), compared to operating income of $7.9 million for 2007.
Share-based compensation expenses for 2008 were $3.3 million, compared to $6.5 million for 2007.
Excluding share-based compensation expenses and impairment losses on goodwill and intangible assets (non-GAAP), operating loss for 2008 was $9.2 million, compared to operating income of $14.4 million for 2007.
Net loss for 2008 was $25.6 million (including $1.9 million investment loss and $8.7 million impairment losses on goodwill and intangible assets), compared to a net profit of $18.7 million (including $11.6 million investment gain) for 2007. Net loss excluding share-based compensation expenses and impairment losses on goodwill and intangible assets (non-GAAP) for 2008 was $13.6 million, compared to net income of $25.2 million for 2007. Diluted loss per ordinary share for 2008 was $0.29. Excluding share-based compensation expenses and impairment losses on goodwill and intangible assets (non-GAAP), diluted loss per ordinary share was $0.16 for 2008.
Full Year 2009 Business Outlook:
"2008 afforded us with an important opportunity to re-examine our various business lines and retool our strategies to better compete in the market," said Mr. James Hu, Chairman and CEO of Acorn International. "Through changes we have implemented beginning in the second half of last year, we have begun to see a recovery in two of our important business lines, namely mobile handsets and Ozing in the fourth quarter 2008. We expect continued strong recovery in our business with our renewed focus on building proprietary branded products and expanding efforts in customer data-mining going forward."
In light of the current business outlook, Acorn expects to generate net revenues in 2009 in the range of $310 million to $350 million. Acorn expects net income in 2009, excluding share-based compensation expenses and investment income, to be between $12 million and $14 million.
For the first quarter 2009, we expect significant growth in operating and net profit on sequential and year on year basis.
These estimates are subject to change. Also, Acorn reminds investors that its operating results in each period are impacted significantly by the mix of products and services sold in the period and the platforms through which they are sold. Consequently, in evaluating the overall performance of Acorn's multiple sales platforms in any period, management also considers metrics such as operating margin and gross profit return on advertising expenses.
Conference Call Information
Acorn's management will host an earnings announcement conference call at 8:00 am Eastern Time on March 9, 2008 (8:00 pm Beijing Time) to discuss its fourth quarter and full year 2008 financial results.
    You may access the live interactive call via:

    +1-866-549-1292 (U.S. Toll Free)
    +800-701-1223 (China Toll Free)
    +852-3005-2050 (International)
    Passcode: ATV

Please dial-in 10-15 minutes in advance to facilitate an on-time start. A replay will be available for approximately two weeks after the call and may be accessed via:
+852-3005-2020 (International)
Passcode: 136511#
A live and archived webcast of the call will be available on the Company's website at http://www.chinadrtv.com .
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating China's largest TV direct sales business in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, outbound telemarketing center and an ecommerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
For more information, please visit http://www.chinadrtv.com .
Use of Non-GAAP Financial Measures
Acorn has reported the fourth quarter and full year 2007 and 2008 income from operations, operating margin, net income and income per ordinary share on a non-GAAP basis, all excluding share-based compensation expenses and goodwill and intangible asset impairment losses. Acorn believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Acorn's financial performance and liquidity and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing Acorn's underlying business performance and operating trends and Acorn expects to report income from operations, operating margin, net income and income per ordinary share on a non-GAAP basis using a consistent method on a quarterly basis going forward.
Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the following reconciliation of GAAP results with non-GAAP results for the three months and years ended December 31, 2007 and 2008, respectively.
The table below sets forth the reconciliation of non-GAAP measures to GAAP measures for the indicated periods:

                          ACORN INTERNATIONAL, INC.
                      RECONCILIATION OF NON-GAAP TO GAAP
                               (in US dollars)

                                     Three Months          Years Ended
                                   Ended December 31       December 31,
                                    2007        2008         2007        2008
     GAAP net revenues        57,560,450   61,656,820 262,096,672  250,651,530
     GAAP income (loss) from
      Operations              (2,603,631) (11,127,145)  7,871,017  (21,124,744)
     GAAP operating margin         (4.5%)      (18.0%)       3.0%        (8.4%)
     Share-based compensation
      expenses                 1,551,698     (273,173)  6,519,078    3,289,232
     Goodwill and intangible
      asset impairment losses         --           --          --    8,667,961
     Non-GAAP income (loss)
      from operations         (1,051,933) (11,400,318)  14,390,095  (9,167,551)
     Non-GAAP operating margin     (1.8%)      (18.5%)        5.5%       (3.7%)

     GAAP net income (loss)      745,402   (9,408,384)  18,651,906 (25,591,369)
     GAAP income (loss) per
      ordinary share -- basic       0.01        (0.11)        0.20       (0.29)
     GAAP income (loss) per
      ordinary share -- diluted     0.01        (0.11)        0.19       (0.29)
     Share-based compensation
      expenses                 1,551,698     (273,173)   6,519,078   3,289,232
     Goodwill and intangible
      asset impairment losses         --           --           --   8,667,961
     Non-GAAP net income
      (loss)                   2,297,100   (9,681,557)  25,170,984 (13,634,176)
     Non-GAAP income (loss)
      per ordinary
      share -- basic                0.02        (0.11)        0.28       (0.16)
     Non-GAAP income (loss)
      per ordinary
      share -- diluted              0.02        (0.11)        0.26       (0.16)



Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements," including, among other things, Acorn's anticipated operating results for 2009; expectations regarding Acorn's ability to develop new proprietary brands, effectively monetize its large customer database, maximize its media efficiency and execute against its plans and revised strategy; continued success of Acorn's strategy for selling low-price and low-cost mobile handsets and Ozing electronic learning products; continued benefits from the consolidation of Acorn's distribution channels; and growth prospects of its third-party bank channel sales business and the Babaka posture correction products. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. In particular, our operating results for any period are impacted significantly by the mix of products and services sold by us in the period and the platforms through which they are sold, causing our operating results to fluctuate and making them difficult to predict.
Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: our ability to effectively consolidate our distribution channels and integrate the Yiyang Yukang acquisition, our ability to successfully introduce new products and services, including to offset declines in sales of existing products and services; our ability to stay abreast of consumer market trends and maintain our reputation and consumer confidence; continued access to and effective usage of TV advertising time and pricing related risks; relevant government policies and regulations relating to TV media time and TV direct sales programs, including actions that may make TV media time unavailable to us or require we suspend or terminate a particular TV direct sales program; our reliance on and ability to effectively manage our nationwide distribution network (including Yiyang Yukang's network); potential unauthorized use of our intellectual property; potential disruption of our manufacturing process; increasing competition in China's consumer market; our U.S. tax status as a passive foreign investment company; and general economic and business conditions in China. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in our 2007 annual report on Form 20-F filed with Securities and Exchange Commission on May 30, 2008. For a discussion of other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 6 of our Form 20-F for the fiscal year ended December 31, 2007. Our actual results of operations for the fourth quarter of 2008 and the full year 2008 are not necessarily indicative of our operating results for any future periods. Any projections in this release are based on limited information currently available to us, which is subject to change. Although such projections and the factors influencing them will likely change, we will not necessarily update the information. Such information speaks only as of the date of this release.

                            ACORN INTERNATIONAL, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In US dollars, except share data)

                                    Three Months               Years Ended
                                  Ended December 31            December 31,
                                  2007         2008        2007           2008
    Revenues:
     Direct sales, net      42,316,015   47,666,534  184,291,093   171,618,902
     Distribution sales,
      net                   15,244,435   13,990,286   77,804,769    79,032,628
     Total revenues, net    57,560,450   61,656,820  262,096,672   250,651,530
    Cost of revenues:
     Direct sales           20,522,398   26,277,833   85,894,931    83,414,125
     Distribution sales      6,396,203    8,282,238   38,004,165    37,714,446
     Total cost of
      revenues              26,918,601   34,560,071  123,899,096   121,128,571
     Gross profit           30,641,849   27,096,749  138,197,576   129,522,959
    Operating income
     (expenses):
     Advertising expenses  (19,729,045) (19,199,115) (75,980,630)  (74,371,352)
     Other selling and
      marketing expenses    (8,639,049) (11,736,688) (31,673,029)  (42,215,897)
     General and
      administrative
      expenses              (7,060,131)  (9,356,152) (28,455,472)  (31,673,865)
     Impairment of
      goodwill and
      intangible assets            --            --           --    (8,667,961)
     Other operating
      income, net           2,182,745     2,068,061    5,782,572     6,281,372
    Total operating
     income
     (expenses)           (33,245,480) (38,223,894) (130,326,559) (150,647,703)
    Income (Loss) from
     Operations            (2,603,631) (11,127,145)    7,871,017   (21,124,744)
    Other income
     (expenses):
     Interest expenses             --           --          (320)           --
     Other income
      (expenses), net       5,060,181      794,598    16,513,639       (69,292)
     Total other income
      (expenses)            5,060,181      794,598    16,513,319       (69,292)
     Income (Loss)
      before income
      taxes and
      minority interest     2,456,550  (10,332,547)   24,384,336   (21,194,036)
     Income tax expenses
      (benefits):
       Current                119,607     (216,775)    1,453,133     1,148,900
       Deferred            (1,940,517)    (875,597)   (2,783,136)     (380,698)
     Total income tax
      Expenses (benefits)  (1,820,910)  (1,092,372)   (1,330,003)      768,202
     Net income (loss)
      After income taxes
      and before minority
      interest              4,277,460    (9,240,175)  25,714,339   (21,962,238)
     Minority interest     (3,532,058)     (168,209)  (7,062,433)   (3,629,131)
     Net income (loss)        745,402    (9,408,384)  18,651,906   (25,591,369)
     Deemed dividend on
      Series A convertible
      Redeemable
      preference shares            --            --      (53,800)           --

    Income (Loss)
     attributable to
     holders of
     ordinary shares          745,402    (9,408,384)  18,598,106   (25,591,369)
    Income (Loss) per
     ordinary share
      - Basic                    0.01         (0.11)       0.20          (0.29)
      - Diluted                  0.01         (0.11)       0.19          (0.29)
    Income (Loss) per ADS
     - Basic                     0.02         (0.33)       0.61          (0.88)
     - Diluted                   0.02         (0.33)       0.57          (0.88)
    Weighted average
     number of shares used
     in calculating
     income (loss) per
     ordinary share
      - Basic              93,002,352    86,211,991  77,738,701     86,856,467
      - Diluted            98,890,239    86,211,991  84,472,947     86,856,467



                          ACORN INTERNATIONAL, INC.
               UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In US dollars)

                                           December 31,          December 31,
                                               2007                  2008
    Assets
    Current assets:
      Cash and cash equivalents             148,743,159          147,648,774
      Restricted cash                           674,260            1,425,102
      Short-term investments                 36,643,577           19,745,444
      Accounts receivable, net               23,076,064           27,708,460
      Notes receivable                        1,592,295              150,607
      Inventory                              16,382,773           29,521,680
      Prepaid advertising expenses           23,150,816           16,756,954
      Other prepaid expenses and current
       assets, net                            8,068,556           13,362,528
      Deferred tax assets, net                2,946,855            3,355,151
      Total current assets                  261,278,355          259,674,700
    Property and equipment, net              13,322,488           15,641,434
    Acquired intangible assets, net           4,775,805           21,313,949
    Long-term investments                            --            5,275,000
    Investment in affiliates                         --            1,159,134
    Goodwill                                  7,571,865                   --
    Other long-term assets                      827,377            1,121,100
    Total assets                            287,775,890          304,185,317

    Liabilities and shareholders' equity
    Current liabilities:
      Accounts payable                        8,171,725           20,734,493
      Accrued expenses and other
       current liabilities                   12,477,690           19,652,820
      Notes payable                             997,180            3,657,859
      Income taxes payable                      160,922            3,327,869
      Deferred revenue                       13,352,371           12,797,716
      Total current liabilities              35,159,888           60,170,757
    Deferred tax liability                           --            3,581,569
    Business combination liability                   --           11,107,375
    Total liabilities                        35,159,888           74,859,701

    Minority interest                         9,241,277           13,564,340

    Shareholders' equity:
      Ordinary shares                           932,554              935,435
      Additional paid-in capital            201,901,611          205,651,072
      Retained earnings                      39,682,699            9,737,468
      Accumulated other comprehensive
       income                                 7,690,985           15,113,507
      Treasury stock, at cost                -6,833,124          -15,676,206
    Total shareholders' equity              243,374,725          215,761,276
    Total liabilities and
     shareholders' equity                   287,775,890          304,185,317



    For further information, please contact:

    Acorn International
     Chen Fu, Director of Investor Relations
     Tel:   +86-21-5151-8888 (ext.2228)
     Email: ir@chinadrtv.com

    PRChina
     Jane Liu
     Tel:   +852-2522-1838
     Email: jliu@prchina.com.hk

     Henry Chik
     Tel:   +852-2522-1368
     Email: hchik@prchina.com.hk
]]>
      
    
    
      
      broadcast_18
      09 Mar 2009 19:35:28 GMT
      http://chinasecurities.com/ir/Acorn/webcasts/18
      
      
    
    
      
      weblink_89
      27 Feb 2009 18:15:21 GMT
      http://eng.chinadrtv.com/html/ir/analyst_coverage.php
      
        http://eng.chinadrtv.com/html/ir/analyst_coverage.php]]>
      
    
    
      
      message_426
      27 Feb 2009 04:00:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/426
      
        

Shanghai, China (February 27, 2009) – Acorn International, Inc. (“Acorn”) (NYSE: ATV), a leading integrated multi-platform marketing company in China, will release itsfinancial results for the fourth quarter and fiscal year ended December 31, 2008 before the market opens on Monday, March 9, 2009. A copy of the earnings releasewill be available on the company’s website at http://www.chinadrtv.com.
Acorn’s management has scheduled a conference call at 8:00 a.m. ET on March 9, 2009 (8:00 p.m. Beijing Time) to discuss the Company’s perspective on the resultsand answer questions. You may access the live interactive call via:
_ +1 866 549 1292 (U.S. Toll Free)
_ + 800 701 1223 (China Toll Free)
_ +852 3005 2050 (International)
_ Passcode: ATV
Please dial-in approximately 10 minutes in advance to facilitate an on-time start.
A replay will be available for approximately two weeks after the call and may be accessed via:
_ +852 3005 2020 (International)
_ Passcode: 136511#
A live and archived webcast of the call will be available on the Company’s website at http://www.chinadrtv.com.
About Acorn
Acorn International (NYSE: 'ATV') is a leading integrated multi-platform marketing company in China, operating China's largest TV direct sales business in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products
and services through catalogs, an outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
For further information, please contact:
Acorn International
Chen Fu, Director of Investor Relations
Tel: (86) 21 5151 8888 (ext.2228)
Email: ir@chinadrtv.com
PRChina
Jane Liu
Tel: (852) 2522 1838
Email: jliu@prchina.com.hk
Henry Chik
Tel: (852) 2522 1368
Email: hchik@prchina.com.hk


]]>
      
    
    
      
      message_427
      29 Dec 2008 06:00:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/427
      
        SHANGHAI, China, Dec. 29 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn" or the "Company"), a leading integrated multi-platform marketing company in China engaged in developing, promoting and selling consumer products and services, announced today the completion of its acquisition of Yiyang Yukang Communication Equipment Co. Limited ("Yiyang Yukang"), a domestic communication equipment producer and distributor in China, on December 24, 2008, pursuant to the terms of the definitive agreement entered into on December 18, 2008.

Acorn believes the acquisition will provide it a strong pipeline of mid- to-high end, differentiated and branded mobile handset products as well as strengthen Acorn's existing distribution capability in China.
Under the agreement, Acorn has acquired Yiyang Yukang for consideration of $6.7 million in cash and 2,564,103 of its ordinary shares ("Ordinary Shares") valued at a price of $3.12 per share (or $9.36 per each of Acorn's American Depositary Shares), and shall pay up to an additional three earn-out payments equivalent to the maximum amount of US$44.1 million in a combination of cash and Ordinary Shares (valued at a price of $3.12 per share), contingent on Yiyang Yukang meeting certain earnings targets in 2008, 2009 and 2010 for each earn-out payment.  Additionally, Yiyang Yukang shall cause its board of directors to resign, and Acorn shall have the right to appoint a majority of new board members, with the remaining to be appointed by Yiyang Yukang.  The Ordinary Shares issued and to be issued in the acquisition are issued outside of the United States to non-U.S. persons and have not been registered under the Securities Act of 1933, as amended ("Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act.
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating China's largest TV direct sales business in terms of revenues and TV air time and a nationwide off-TV distribution network.  Acorn's TV direct sales platform consists of airtime purchased from both national and local channels.  In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, outbound telemarketing center and an ecommerce website.  Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
For more information, please visit http://www.chinadrtv.com .
Safe Harbor Statement
Statements in this release contain "forward-looking" statements. These statements are made under the "safe harbor" provisions of the U.S Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements about Acorn's beliefs and expectations, are forward-looking. These statements include, among others, statements regarding the benefits of the proposed transaction, such as our ability to successfully continue to grow our business through our investment in Yiyang Yukang, strengthen our mobile handset business, improve our leadership position in marketing and distribution of mobile handsets and build long-term shareholder value. Actual results may vary considerably; the transaction may not close when expected or at all, and may not generate the anticipated benefits, including increasing our ability to market mobile handsets, broadening our distribution capabilities in mobile handsets and generating shareholder value. In addition, Acorn's industry is highly competitive and it faces a number of risks and uncertainties, including those outlined under "Risk Factors" beginning on page 6 of Acorn's annual report on Form 20-F filed with the Securities and Exchange Commission on May 30, 2008. All information included in this press release is as of the date of this press release, and Acorn undertakes no duty to update such information, except as required under applicable law.
    For more information, please contact:

    Acorn International
     Chen Fu, Director of Investor Relations
     Tel:   +86-21-5151-8888 x2228
     Email: ir@chinadrtv.com

    PRChina
     Jane Liu
     Tel:   +852-2522-1838
     Email: jliu@prchina.com.hk

     Henry Chik
     Tel:   +852-2522-1838
     Email: hchik@prchina.com.hk
]]>
      
    
    
      
      message_428
      05 Dec 2008 06:00:00 GMT
      http://chinasecurities.com/ir/Acorn/messages/428
      
        SHANGHAI, China, Dec. 5 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc. (NYSE: ATV - News; "Acorn", or the "Company"), a leading integrated multi- platform marketing company in China engaged in developing, promoting and selling consumer products and services, today announced that its board of directors (the "Board"), has approved the extension, until May 31, 2009, of its share repurchase program previously authorized in December 2007.  The share repurchase program, which expired in September 2008, originally allowed for the repurchase of up to US$30 million of Acorn's American Depositary Shares, or ADSs.  To date, the Company has repurchased a total of 2.5 million of its ADSs at a combined cost of approximately US$22.5 million, with a balance of approximately US$7.5 million available for further repurchases under the repurchase plan.

"The Board's decision to resume the share repurchase program emphasizes its confidence in the future of our company," said James Hu, Chairman and Chief Executive Officer of Acorn.  "We remain committed to improving shareholder value and we believe we have sufficient cash to complete this share repurchase program while continuing to invest in our future."
The additional repurchases will be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades, pursuant to a 10b5-1 plan (which if adopted, will allow Acorn to repurchase its ADSs during periods in which it may be in possession of material non-public information) or otherwise.  The purchases will be made subject to restrictions relating to volume, price and timing.  The timing and extent of any purchases will depend upon market conditions, the trading price of our ADSs and other factors.  The repurchase program is expected to continue over the next six months unless further extended or shortened by the Board.
About Acorn
Acorn is a leading integrated multi-platform marketing company in China, operating China's largest TV direct sales business in terms of revenues and TV air time and a nationwide off-TV distribution network.  Acorn's TV direct sales platform consists of airtime purchased from both national and local channels.  In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, outbound telemarketing center and an ecommerce website.  Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.
For more information, please visit http://www.chinadrtv.com .
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements," including, among other things, Acorn's anticipated repurchase of its ADSs and the expected duration of the repurchase program.  Acorn may repurchase all remaining $7.5 million of its ADSs, or no ADSs, or any amount in between, and lengthen or shorten the repurchase period, depending on the trading price of its ADSs, which may be positively or negatively impacted by the repurchase program, market conditions, determinations following the date of this announcement to use such funds for other purposes, or for other reasons.  These forward- looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control.
Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: our ability to successfully introduce new products and services, including to offset declines in sales of existing products and services; our ability to stay abreast of consumer market trends and maintain our reputation and consumer confidence; continued access to and effective usage of TV advertising time and pricing related risks; relevant government policies and regulations relating to TV media time and TV direct sales programs, including actions that may make TV media time unavailable to us or require we suspend or terminate a particular TV direct sales program; our reliance on and ability to effectively manage our nationwide distribution network; potential unauthorized use of our intellectual property; potential disruption of our manufacturing process; increasing competition in China's consumer market; and general economic and business conditions in China.
Acorn believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Acorn undertakes no obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this release.
    For further information, please contact:

    Acorn International, Inc.
     Chen Fu, Director of Investor Relations
     Tel:   +86-21-5151-8888 x2228
     Email: ir@chinadrtv.com

    PRChina
     Jane Liu
     Tel:   +852-2522-1838
     Email: jliu@prchina.com.hk

     Henry Chik
     Tel:   +852-2522-1838
]]>