Chinese wireless value-added service company Hurray (HRAY) showed a quarter-over-quarter decline of 2.9% in total revenues in its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2005.
The company's total revenues were US$16.0 million, a decline of 2.9% quarter-over-quarter but growth of 13.9% year-over-year.
Total revenues for fiscal year 2005 were US$62.4 million, representing a 16.7% increase from US$53.4 million in fiscal year 2004.
2.5G services revenues were US$8.5 million for the fourth quarter of 2005, representing a decline of 8.0% as compared to US$9.2 million for the previous quarter and a decline of 5.8% as compared to US$9.0 million for the fourth quarter of 2004. 2.5G services comprise Wireless Application Protocol ("WAP") services, Multimedia Messaging Services ("MMS"), and Javaservices.
Total WAP revenues were US$7.4 million, a decline of 16.7% from the previous quarter and 18.6% from the fourth quarter of 2004. WAP revenues from China Unicom account declined 25.1% to US$4.5 million for the fourth quarter from US$6.0 million for the previous quarter. WAP revenues from China Mobile account were US$2.9 million, as compared with US$2.8 million for the third quarter of 2005.
Hurray says the decline of WAP revenues from China Unicom account was mainly due to slow growth of the China Unicom CDMA user base for WAP services; increased number of free services mandated by China Unicom on its WAP portal; and redesign by China Unicom of its WAP portal menu and service categories.
MMS, which was fully commercially launched in the second quarter of 2005 with China Mobile account, recorded revenues of US$1.1 million, an increase of 184.5% from the third quarter of 2005.
Total gross margin was 41.5% for the fourth quarter of 2005 as compared to 51.1% for the previous quarter and 62.4% for the fourth quarter of 2004.
Total gross profit was US$6.6 million for the fourth quarter of 2005, representing a decline of 21.2% as compared with US$8.4 million for the previous quarter and a decline of 24.3% as compared with US$8.8 million for the fourth quarter of 2004.
For fiscal year 2005, total gross profit was US$32.4 million, an increase of 11.4% as compared with US$29.1 million for fiscal 2004.
Total operating expenses were US$4.4 million for the fourth quarter of 2005, representing an increase of 7.6% as compared to US$4.1 million for the previous quarter and an increase of 26.7% as compared to US$3.4 million for the fourth quarter of 2004.
