KongZhong Corporation Reports Unaudited Second Quarter 2009 Financial Results
BEIJING, -- KongZhong Corporation (Nasdaq: KONG), a leading mobile Internet company in China, announced its unaudited second quarter 2009 financial results.
Second Quarter 2009 Financial Highlights:
(Note: Unless otherwise indicated, all financial statement amounts used in this press release are based on United States Generally Accepted Accounting Principles (GAAP) and denominated in US dollars)
-- Revenues exceeded guidance - Total revenues for the Second Quarter of
2009 ("2Q09") increased 37% year-over-year and increased 9%
quarter-over-quarter to $32.3 million ("mn"), exceeding the Company's
2Q09 revenue guidance of $30.5 mn to $31.5 mn.
-- Gross margin increased - Total gross margin improved to 51% in the 2Q09
from 49% in the 1Q09.
-- Net income increased - Net income in 2Q09 was $3.55 mn, a 41% increase
compared with 1Q09 net income of $2.52 mn. Basic net income per ADS
was $0.10 based on 34.71 mn ADS while diluted net income per ADS was
$0.09 based on 38.53 mn ADS outstanding as of June 30, 2009.
-- Non-GAAP net income increased - Non-GAAP net income was $4.71 mn and
Non-GAAP diluted net income per ADS was $0.12 (Non-GAAP Financial
Measures are described and reconciled to the corresponding GAAP
measures in the section titled "Non-GAAP Financial Measures.")
-- Cash and cash equivalents - As of June 30, 2009, the Company had $132
mn in cash and cash equivalents.
Commenting on the results, the Company's Chairman and Chief Executive Officer, Leilei Wang, said, "I'm pleased to report that in the second quarter of 2009, KongZhong continued to grow overall profits driven by strong growth in our mobile games business, while at the same time, we were still able to maintain our long-term investment in Kong.net.
"In 2Q09, KongZhong maintained our leading position in the Chinese mobile game market and further strengthened our internal R&D game development capabilities through the acquisition of Simlife. We believe that Simlife's strong development capabilities, combined with our existing Tianjin Mammoth game development team, will extend our leadership in the Chinese mobile games market.
"We continued to make long-term investments in Kong.net, as we evolved Kong.net into a next-generation 3G mobile portal and social networking service. Although we believe we are still in the early development phase of the 3G market in China, during the quarter we attracted over 500,000 registered users to our first self-developed mobile social game, 'Nong Chang Da Heng" and have plans to launch additional social gaming and other community services over the next year.
"Once again, I'm very pleased with our results for 2Q09. More importantly, I believe KongZhong remains well positioned in the Chinese 3G market for future growth opportunities."
Click to read full press release
Second Quarter 2009 Financial Highlights:
(Note: Unless otherwise indicated, all financial statement amounts used in this press release are based on United States Generally Accepted Accounting Principles (GAAP) and denominated in US dollars)
-- Revenues exceeded guidance - Total revenues for the Second Quarter of
2009 ("2Q09") increased 37% year-over-year and increased 9%
quarter-over-quarter to $32.3 million ("mn"), exceeding the Company's
2Q09 revenue guidance of $30.5 mn to $31.5 mn.
-- Gross margin increased - Total gross margin improved to 51% in the 2Q09
from 49% in the 1Q09.
-- Net income increased - Net income in 2Q09 was $3.55 mn, a 41% increase
compared with 1Q09 net income of $2.52 mn. Basic net income per ADS
was $0.10 based on 34.71 mn ADS while diluted net income per ADS was
$0.09 based on 38.53 mn ADS outstanding as of June 30, 2009.
-- Non-GAAP net income increased - Non-GAAP net income was $4.71 mn and
Non-GAAP diluted net income per ADS was $0.12 (Non-GAAP Financial
Measures are described and reconciled to the corresponding GAAP
measures in the section titled "Non-GAAP Financial Measures.")
-- Cash and cash equivalents - As of June 30, 2009, the Company had $132
mn in cash and cash equivalents.
Commenting on the results, the Company's Chairman and Chief Executive Officer, Leilei Wang, said, "I'm pleased to report that in the second quarter of 2009, KongZhong continued to grow overall profits driven by strong growth in our mobile games business, while at the same time, we were still able to maintain our long-term investment in Kong.net.
"In 2Q09, KongZhong maintained our leading position in the Chinese mobile game market and further strengthened our internal R&D game development capabilities through the acquisition of Simlife. We believe that Simlife's strong development capabilities, combined with our existing Tianjin Mammoth game development team, will extend our leadership in the Chinese mobile games market.
"We continued to make long-term investments in Kong.net, as we evolved Kong.net into a next-generation 3G mobile portal and social networking service. Although we believe we are still in the early development phase of the 3G market in China, during the quarter we attracted over 500,000 registered users to our first self-developed mobile social game, 'Nong Chang Da Heng" and have plans to launch additional social gaming and other community services over the next year.
"Once again, I'm very pleased with our results for 2Q09. More importantly, I believe KongZhong remains well positioned in the Chinese 3G market for future growth opportunities."
Click to read full press release
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