BEIJING, Nov. 15 (InfoChina) -- CDC Corporation (Nasdaq: CHINA) posted an operating margin of 7.3 percent in 3Q as compared with 5.6 percent in 2Q and negative 2.8 percent for the 3Q last year.

In the three-month period ended on September 30, the company achieved a total revenue of 78.20 million US dollars, up 26.3 percent year on year and 1.56 percent quarter on quarter.

According to the company’s 3Q financial report, the better performance is driven by faster growth in the company’s profitable business units and efforts the company put on cost control and leveraging offshore resources.

In a breakdown, CDC Software contributed 61.40 million dollars or 78.52 percent of the company’s total revenue, up 22.5 percent year on year. The strong results of the software business were driven primarily by 35.4 percent year-on-year growth of software license revenue, of which 46 percent are from new customers.

In 3Q, CDC Software signed contracts with 553 customers, of which 237 customers including 29 from China are new customers.

China.com Inc. (HK: 8006), a 77 percent owned subsidiary of CDC Corp. and a mobile value added services, Internet services and online game provider, generated 16.90 million dollars worth of total revenue in the period, up 42.3 percent year on year. Under the country’s tightened policy on SPs, the revenue slightly declined from last year’s 19.2 million dollars. However, with some small SPs quitting the market and China.com expanding service offerings and market channels, the company is expected to get more chances to conduct cooperation with telecom operators and win profits in future.

Due to CDC Corp’s successful performance, the company twice raised guidance for 2006. It predicted a total revenue of 303-307 million dollars for 2006, up 24 percent year on year, with an adjusted net income to be around 32 million to 33.3 million dollars, up 100 percent year on year.