Highlights of AsiaInfo Holdings’ (ASIA) second quarter results include strong revenue and earnings numbers.

AsiaInfo Holdings Inc. [[ASIA]] total revenues for the second quarter of 2009 were US$58.6 million, an increase of 39.3% year-over-year and 14.9% sequentially. The year-over-year and sequential increases were primarily driven by strong performance among all three major customers in the telecom business.

AsiaInfo recorded net income attributable to AsiaInfo Holdings, Inc. of US$7.2 million, or US$0.16 per basic share, compared to US$5.2 million, or US$0.12 per basic share, in the year-ago period and US$5.8 million, or US$0.13 per basic share in the previous quarter.

During the quarter, gross margin was 49.0%, compared to 45.0% in the year-ago period and 54.0% in the previous quarter. The year-over-year increase in gross margin was primarily due to a strong contribution from higher-margin software solutions and services and a decrease in lower-margin, third-party hardware sales, while the sequential decrease was largely due to increased share-based compensation expenses related to the performance stock unit awards granted to key employees on March 16, 2009.

AsiaInfo Holdings (ASIA) is expected to report strong quarterly results on Wednesday with EPS up 39% and revenue up 53% year-over-year.

Telecommunications software and service provider AsiaInfo Holdings, Inc. [[ASIA]] is set to report second quarter earnings at 12 pm EDT on July 29th. Here’s what to expect:

EPS: $0.18
Revenue: $52.8 million

With 6 analysts offering estimates, EPS expectations range from $0.16 to $0.20 with the average estimate being $0.18. Even the bottom range is well above year-ago second quarter earnings of $0.13.

Revenue estimates are tightly grouped around $52 million, and if on target will jump more than 53% from a year ago.

AsiaInfo has exceeded expectations in three of its last three quarters, each time by more than 14%. Also, the average EPS estimate has crept-up slightly from $0.17 to $0.18 over the last 90 days, a bullish sign for earnings.

AsiaInfo Holdings (ASIA) has been selected by China Unicom (CHU) to build the software system that will allow remote diagnosis and management of cellular phones.

AsiaInfo Holdings, Inc. [[ASIA]], a provider of telecom software security products in China, announced that it has signed a contract with China Unicom [[CHU]] to build out a the system that will allow China Unicom to remotely diagnose and manage mobile devices.

The size of the deal has not yet been disclosed.

From the press release:

‘‘As China’s telecom operators look for ways to compete more effectively in a 3G environment, improving the customer experience is a top priority,” said Mr. Steve Zhang, AsiaInfo’s president and chief executive officer. ”AsiaInfo’s device management system will improve China Unicom’s customer service efficiency by allowing the company’s support team to remotely carry out processes such as parameter resets, patch downloads and application installation. By enabling users to download firmware updates, software upgrades and applications over the air, the system will also help promote new services and applications. We are confident that our leading software will continue to reduce workload and the cost of customer service as well as play a leading role as carriers expand from 2G standard to 3G standard, which enables image, audio and video content.

The system can be used to configure mobile devices to match network parameters and settings, provide diagnostics and automated resolution and enable subscribers to install new applications over-the-air. By centralizing data pertaining to mobile device capabilities, the system can match mobile devices with appropriate content platforms such as WAP gateways, MMS centers, streaming media and others. China Unicom will also be able to gather, organize and analyze static and dynamic information from mobile devices, thus supporting the advanced decision-making and targeted marketing capabilities that are essential in a complicated and competitive 3G environment.”

AsiaInfo Holdings [[ASIA]] has seen its stock price rise by one-third in 2009 on the basis of an impressive first quarter, business developments and consistent positive press.

The Beijing-based company primarily provides software to Chinese cellphone companies, accounting for more than 80% of its revenue last year, though it also offers IT security services. For the first quarter of this year, AsiaInfo exceeded revenue estimates by posting a 45.6% increase in year-over-year revenue to $51 million with net income of $5.8 million, or 13 cents per share.

The potential for the continued growth of AsiaInfo’s business due to the continued expansion of the Chinese cellular market has not escaped the notice of American investors. River Oak Discovery Fund manager Robert Stimpson’s top stock pick at the end of June was AsiaInfo Holdings. Stimpson notes in a TheStreet.com interview:

“As 3G networks are rolled out in China, more telecommunications software and services will be needed to measure data usage, provide billing and additional services. Communication usage typically increases with economic development. This, combined with the rollout of 3G, consumer-directed economic stimulus and AsiaInfo’s home-field advantage present a good opportunity.”

AsiaInfo has also continued announcing new partnerships, such its winning bid to set up a new charge system for China Mobile Beijing’s pre-paid services.

AsiaInfo announces second-quarter results on July 29, and with analysts’ estimates already increasing from 16 cents per share to 18 cents per share for the quarter – which would be 38% growth from a year earlier – now could be the time to buy. AsiaInfo is an opportunity to get in on China’s continued economic development generally through its cellular market at a very reasonable forward price-to-earnings ratio of 15.