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China Education Alliance (combined links) released two press releases recently.

CEDA acquires Harbin Compass Vocational Training School

...reached an agreement to acquire all of the physical and intangible assets of Harbin Compass Vocational Training School (CVTS). CVTS focuses on vocational IT training and offers leading programs for Network Engineering and ACCP Software Engineering. With this acquisition, Zhong He becomes the exclusive educational training partner of Beida Qingniao APTECH IT Co., Ltd. (APTECH) within the Heilongjiang Province of China. This partnership demonstrates CEDA's commitment to promoting IT training across mainland China. Zhong He acquired the assets, which include classrooms, computer rooms and patented course materials, for US $1,000,000 in cash and stock. The deal closed on December 10, 2006. CEDA estimates that the acquisition of CVTS and subsequent partnership with APTECH will generate US $1 million per year. CEDA CEO Yu Xi-qun stated, "This acquisition will increase CEDA's presence in the vocational education market, as well as provide on-site training space and resources in addition to our Heilongjiang Zhong He Education Training Center. We are also very pleased to be the new exclusive partner of Beida Qingniao APTECH IT Co. in Heilongjiang.'' [emphasis added]

So the estimated $1 million generated per year would be revenue, not earnings. In the Q3 report, they noted they generated $7.5 million in revenue for the trailing 12 months (only $3.1 million in the prior year). For the entire CEDA business, net margins are over 50%. It seems unrealistic to expect the same for this voc/tech school. In any case, the deal is probably not too bad.

CEDA launches a new 'Employment Crossroads for College Graduates' program

The Crossroads program is designed to connect college undergraduates and graduates with relevant career opportunities, leveraging support from related government agencies. Planned future initiatives include the launch of a comprehensive training campaign for career education, career guidance, and career planning. The Crossroads program's kickoff in Beijing has already been well received by both government agencies and businesses. It is estimated that Hua Yu Hui Zhong will help over 1 million graduates secure jobs in the coming 5 years.

They seem to be stuck on that "one million" number a lot lately. This program probably won't add much to the bottom line, but could help the company in unexpected ways.

I continue to own the stock.