$NQ possible dip & rip NQ 4.21 0.00 0.00 36,200 3.65 3.70 keep an eye on
NQ Mobile Inc. Reports Unaudited Financial Results For the Third Quarter of 2015
15 hours 32 minutes ago - DJNF
BEIJING and DALLAS, Nov. 30, 2015 /PRNewswire/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company"
(NYSE: NQ), a leading global provider of mobile internet services, today announced its unaudited financial results for the quarter ended September 30(th) , 2015.
Highlights for Third Quarter 2015
-- Quarterly Net Revenues were $87.9 million in the third quarter of 2015,
an 8.3% increase year-over-year from $81.2 million in the same period in
2014. The difference in net revenue performance relative to previously
issued guidance was primarily due to lower hardware sales in the
Company's enterprise mobility segment.
-- Income from Operations in the third quarter of 2015 was $0.2 million,
compared with an operating loss of $18.3 million in the same period in
2014.
-- Net Loss attributable to NQ Mobile was $2.5 million, or a loss of $0.03
per ADS, in the third quarter of 2015, an 85.4% improvement compared with
a net loss of $17.0 million, or a loss of $0.19 per ADS, in the same
period in 2014.
-- Non-GAAP Net Income attributable to NQ Mobile was $0.9 million, or $0.01
per ADS in the third quarter of 2015, compared with Non-GAAP net income
of $6.4 million, or $0.07 per ADS, in the same period in 2014.
Operating Metrics as of September 30, 2015
As a reminder, beginning in the third quarter of 2014, the Company began presenting the operating metrics of average monthly active user accounts ("MAUs" as redefined to include many emerging businesses previously not included in the Company's user account metrics. The MAUs presented herein include the user accounts in all the related business segments. As such, the MAUs presented herein should only be compared to operating metrics in the third quarter of 2014 and in subsequent periods and should not be compared to operating metrics in earlier historical periods due to divergent definitions. The MAUs for the period presented herein and going forward are expected to be better aligned with the key underlying trends of a mobile internet platform company focused on driving mobile consumer traffic and engagement that can be monetized. The MAU statistics do not include the users addressed by the installation of the Company's advertising SDK into third-party applications. These indirect users generate impressions and search traffic that the Company can monetize outside of the user accounts generated directly by the Company's own portfolio of products and applications.
Average Monthly Active User Accounts as of September 30, 2015: 198.8 million.
"Our strict focus on cost controls and budgets continue to pay off in our results," said Mr. Zemin Xu, Chief Executive Officer of NQ Mobile. "Although the hardware sales within our enterprise mobility segment performed below expectations, we are pleased to see progress in our entertainment and consumer businesses and see results from our efforts in the monetization of our traffic."
"The business divestitures we previously announced are moving forward and accordingly, we continue to work on unlocking the value in these businesses," said Mr. Roland Wu, Chief Financial Officer of NQ Mobile. "We look forward to unlocking value and focusing on our businesses going forward."
Third Quarter 2015 Results
Revenues
Net revenues in the third quarter of 2015 increased 8.3% year-over-year to $87.9 million from $81.2 million in the same period in 2014.
Mobile value added service revenues increased 25.4% year-over-year to $31.5 million from $25.1 million in the same period in 2014. The increase in mobile value added service revenues was primarily attributable to the growth in mobile gaming revenues and live mobile social video platform revenues. The increase in mobile gaming revenues was primarily the result of the continuing expansion of FL Mobile's business in both domestic and overseas markets, which grew over 40.0% compared with the same period in 2014. The significant increase in live mobile social video platform revenues was driven by the rapid growth of the business of Showself, which was up over 600% compared to the same period in 2014. The strong growth in NQ Mobile's live mobile social video platform and mobile gaming revenues was offset by a decrease in consumer mobile security revenues which was mainly due to the fact that the Company has been moving its focus away from premium mobile security services and focusing more on mobile applications and services.
Advertising revenues decreased 21.6% year-over-year to $16.0 million from $20.4 million in the same period in 2014. The decrease was primarily attributable to slower smartphone sales and shipments.
Enterprise mobility revenues increased by 13.0% year-over-year to $39.1 million from $34.6 million in the same period in 2014. The increase was primarily due to improved software sales, which increased by over 100.0% when compared with the same quarter in 2014. On the other hand, hardware sales declined slightly when compared with the same quarter in 2014. The decline in hardware sales was the primary factor in the overall revenue shortfall relative to the Company's previously issued guidance for the third quarter.
Other revenues increased 25.8% year-over-year to $1.4 million from $1.1 million in the same period in 2014. Other revenues are generated primarily by providing technical contract services to third parties and fluctuate as such business is driven by individual projects.
Cost of Revenues
Cost of revenues in the third quarter of 2015 increased 14.6% year-over-year to $67.2 million from $58.7 million in the same period in 2014. The year-over-year increase was primarily due to higher revenue sharing cost, incurred mainly for the Company's mobile game business and live mobile social video platform business, which was in line with the increase in corresponding revenues from these businesses. Such an increase was also partly offset by the decrease in advertising related costs as well as cost of products sold.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2015 decreased 8.0% to $20.7 million from $22.5 million in the same period in 2014. Gross margin, or gross profit as a percentage of net revenues, was 23.6% in the third quarter of 2015, compared with 27.8% in the same period in 2014. Excluding the impact from hardware sales of the enterprise mobility business and associated costs, gross margin was 35.0% in the third quarter of 2015, down from 43.2% in the same period in 2014.
Operating Expenses
Total operating expenses in the third quarter of 2015 decreased 49.7% year-over-year to $20.5 million from $40.9 million in the same period in 2014. Non-GAAP operating expenses, which exclude share-based compensation, the expenses incurred for the handling of short seller allegations and the amortization of intangible assets arising from acquisitions, decreased by 2.6 % year-over-year to $21.2 million from $21.8 million in the same period in 2014.
Selling and marketing expenses in the third quarter of 2015 decreased 15.4% year-over-year to $6.6 million from $7.8 million in the same period in 2014. Non-GAAP selling and marketing expenses, which exclude share-based compensation, decreased 12.4% year-over-year to $6.4 million from $7.3 million in the same period in 2014. The year-over-year decrease in selling and marketing expenses mainly resulted from the decrease in spending on the promotional channels for mobile games in the third quarter, as well as reduced expenditures on mobile security.
General and administrative expenses in the third quarter of 2015 decreased 75.8% year-over-year to $6.5 million from $27.0 million in the same period in 2014. Non-GAAP general and administrative expenses, which exclude share-based compensation, the expenses incurred for the handling of short seller allegations and amortization of intangible assets arising from acquisitions, decreased 9.6% year-over-year to $7.7 million from $8.5 million in the same period in 2014. The year-over-year decrease in general and administrative expenses under GAAP was mainly from a significant $16.7 million decrease in compensation expenses, as well as a large decrease in legal and professional fees.
Research and development expenses in the third quarter of 2015 increased 21.2% year-over-year to $7.4 million from $6.1 million in the same period in 2014. Non-GAAP research and development expenses, which exclude share-based compensation and amortization of intangible assets arising from acquisitions, increased 19.6% to $7.1 million from $5.9 million in the same period in 2014. The year-over-year increase in research and development expenses was primarily due to the increase in the expenditures on software development, mainly including staff costs, as a result of business expansion.
Share-based compensation expenses
Share-based compensation expenses, which were allocated to related operating cost and expenses line items, declined to negative $1.5 million in the third quarter of 2015, a decrease of 109.4% from $15.7 million in the corresponding period in 2014. The significant decrease in share-based compensation expenses was primarily due to adjustments on performance-based share options related to employees and less equity incentives issued to the Company's acquirees.
Income/Loss from Operations and Operating Margin
Income from operations in the third quarter of 2015 was $0.2 million, compared with an operating loss of $18.3 million in the same period in 2014.
(MORE TO FOLLOW) Dow Jones Newswires
November 30, 2015 17:00 ET (22:00 GMT)
NQ Mobile Inc. Reports Unaudited Financial Results For the Third Quarter of 2015
15 hours 32 minutes ago - DJNF
BEIJING and DALLAS, Nov. 30, 2015 /PRNewswire/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company"
(NYSE: NQ), a leading global provider of mobile internet services, today announced its unaudited financial results for the quarter ended September 30(th) , 2015. Highlights for Third Quarter 2015
-- Quarterly Net Revenues were $87.9 million in the third quarter of 2015,
an 8.3% increase year-over-year from $81.2 million in the same period in
2014. The difference in net revenue performance relative to previously
issued guidance was primarily due to lower hardware sales in the
Company's enterprise mobility segment.
-- Income from Operations in the third quarter of 2015 was $0.2 million,
compared with an operating loss of $18.3 million in the same period in
2014.
-- Net Loss attributable to NQ Mobile was $2.5 million, or a loss of $0.03
per ADS, in the third quarter of 2015, an 85.4% improvement compared with
a net loss of $17.0 million, or a loss of $0.19 per ADS, in the same
period in 2014.
-- Non-GAAP Net Income attributable to NQ Mobile was $0.9 million, or $0.01
per ADS in the third quarter of 2015, compared with Non-GAAP net income
of $6.4 million, or $0.07 per ADS, in the same period in 2014.
Operating Metrics as of September 30, 2015
As a reminder, beginning in the third quarter of 2014, the Company began presenting the operating metrics of average monthly active user accounts ("MAUs"
as redefined to include many emerging businesses previously not included in the Company's user account metrics. The MAUs presented herein include the user accounts in all the related business segments. As such, the MAUs presented herein should only be compared to operating metrics in the third quarter of 2014 and in subsequent periods and should not be compared to operating metrics in earlier historical periods due to divergent definitions. The MAUs for the period presented herein and going forward are expected to be better aligned with the key underlying trends of a mobile internet platform company focused on driving mobile consumer traffic and engagement that can be monetized. The MAU statistics do not include the users addressed by the installation of the Company's advertising SDK into third-party applications. These indirect users generate impressions and search traffic that the Company can monetize outside of the user accounts generated directly by the Company's own portfolio of products and applications. Average Monthly Active User Accounts as of September 30, 2015: 198.8 million.
"Our strict focus on cost controls and budgets continue to pay off in our results," said Mr. Zemin Xu, Chief Executive Officer of NQ Mobile. "Although the hardware sales within our enterprise mobility segment performed below expectations, we are pleased to see progress in our entertainment and consumer businesses and see results from our efforts in the monetization of our traffic."
"The business divestitures we previously announced are moving forward and accordingly, we continue to work on unlocking the value in these businesses," said Mr. Roland Wu, Chief Financial Officer of NQ Mobile. "We look forward to unlocking value and focusing on our businesses going forward."
Third Quarter 2015 Results
Revenues
Net revenues in the third quarter of 2015 increased 8.3% year-over-year to $87.9 million from $81.2 million in the same period in 2014.
Mobile value added service revenues increased 25.4% year-over-year to $31.5 million from $25.1 million in the same period in 2014. The increase in mobile value added service revenues was primarily attributable to the growth in mobile gaming revenues and live mobile social video platform revenues. The increase in mobile gaming revenues was primarily the result of the continuing expansion of FL Mobile's business in both domestic and overseas markets, which grew over 40.0% compared with the same period in 2014. The significant increase in live mobile social video platform revenues was driven by the rapid growth of the business of Showself, which was up over 600% compared to the same period in 2014. The strong growth in NQ Mobile's live mobile social video platform and mobile gaming revenues was offset by a decrease in consumer mobile security revenues which was mainly due to the fact that the Company has been moving its focus away from premium mobile security services and focusing more on mobile applications and services.
Advertising revenues decreased 21.6% year-over-year to $16.0 million from $20.4 million in the same period in 2014. The decrease was primarily attributable to slower smartphone sales and shipments.
Enterprise mobility revenues increased by 13.0% year-over-year to $39.1 million from $34.6 million in the same period in 2014. The increase was primarily due to improved software sales, which increased by over 100.0% when compared with the same quarter in 2014. On the other hand, hardware sales declined slightly when compared with the same quarter in 2014. The decline in hardware sales was the primary factor in the overall revenue shortfall relative to the Company's previously issued guidance for the third quarter.
Other revenues increased 25.8% year-over-year to $1.4 million from $1.1 million in the same period in 2014. Other revenues are generated primarily by providing technical contract services to third parties and fluctuate as such business is driven by individual projects.
Cost of Revenues
Cost of revenues in the third quarter of 2015 increased 14.6% year-over-year to $67.2 million from $58.7 million in the same period in 2014. The year-over-year increase was primarily due to higher revenue sharing cost, incurred mainly for the Company's mobile game business and live mobile social video platform business, which was in line with the increase in corresponding revenues from these businesses. Such an increase was also partly offset by the decrease in advertising related costs as well as cost of products sold.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2015 decreased 8.0% to $20.7 million from $22.5 million in the same period in 2014. Gross margin, or gross profit as a percentage of net revenues, was 23.6% in the third quarter of 2015, compared with 27.8% in the same period in 2014. Excluding the impact from hardware sales of the enterprise mobility business and associated costs, gross margin was 35.0% in the third quarter of 2015, down from 43.2% in the same period in 2014.
Operating Expenses
Total operating expenses in the third quarter of 2015 decreased 49.7% year-over-year to $20.5 million from $40.9 million in the same period in 2014. Non-GAAP operating expenses, which exclude share-based compensation, the expenses incurred for the handling of short seller allegations and the amortization of intangible assets arising from acquisitions, decreased by 2.6 % year-over-year to $21.2 million from $21.8 million in the same period in 2014.
Selling and marketing expenses in the third quarter of 2015 decreased 15.4% year-over-year to $6.6 million from $7.8 million in the same period in 2014. Non-GAAP selling and marketing expenses, which exclude share-based compensation, decreased 12.4% year-over-year to $6.4 million from $7.3 million in the same period in 2014. The year-over-year decrease in selling and marketing expenses mainly resulted from the decrease in spending on the promotional channels for mobile games in the third quarter, as well as reduced expenditures on mobile security.
General and administrative expenses in the third quarter of 2015 decreased 75.8% year-over-year to $6.5 million from $27.0 million in the same period in 2014. Non-GAAP general and administrative expenses, which exclude share-based compensation, the expenses incurred for the handling of short seller allegations and amortization of intangible assets arising from acquisitions, decreased 9.6% year-over-year to $7.7 million from $8.5 million in the same period in 2014. The year-over-year decrease in general and administrative expenses under GAAP was mainly from a significant $16.7 million decrease in compensation expenses, as well as a large decrease in legal and professional fees.
Research and development expenses in the third quarter of 2015 increased 21.2% year-over-year to $7.4 million from $6.1 million in the same period in 2014. Non-GAAP research and development expenses, which exclude share-based compensation and amortization of intangible assets arising from acquisitions, increased 19.6% to $7.1 million from $5.9 million in the same period in 2014. The year-over-year increase in research and development expenses was primarily due to the increase in the expenditures on software development, mainly including staff costs, as a result of business expansion.
Share-based compensation expenses
Share-based compensation expenses, which were allocated to related operating cost and expenses line items, declined to negative $1.5 million in the third quarter of 2015, a decrease of 109.4% from $15.7 million in the corresponding period in 2014. The significant decrease in share-based compensation expenses was primarily due to adjustments on performance-based share options related to employees and less equity incentives issued to the Company's acquirees.
Income/Loss from Operations and Operating Margin
Income from operations in the third quarter of 2015 was $0.2 million, compared with an operating loss of $18.3 million in the same period in 2014.
(MORE TO FOLLOW) Dow Jones Newswires
November 30, 2015 17:00 ET (22:00 GMT)
I'm in it to win it!
NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
