Chinese wireless value-added services company Hurray (HRAY) just announced its unaudited financial results for the second quarter ended June 30, 2008 and said unsurprisingly that total revenues were only USD12.8 million, a decline of 3.7% quarter-over-quarter and 12.4% year-over-year.
QD Wang, chairman and CEO of Hurray, commented on the poor results, "We narrowly missed our guidance primarily due to the performance of our WVAS business which was impacted by temporary suspensions of certain WVAS marketing campaigns since May due to the Sichuan earthquake. Our music business has also been impacted in Q2 as many charity activities and donations to the relief efforts were organized. Overall, we have further stabilized our WVAS business and continue to generate positive operating cash flow."
Specifically, wireless value-added services revenues plunged 16.5% quarter-over-quarter and 27.9% year-over-year to USD9.2 million. A ray of sunshine came from the company's recorded music revenues of USD3.6 million, showing growth of 59.3% quarter-over-quarter and 95.4% year-over-year.
Total gross margin was 36.4% for the second quarter of 2008 as compared to 36.5% for the previous quarter and 32.8% for the second quarter of 2007. Gross margin for wireless value-added services was 29.8% for the second quarter of 2008, as compared to 35.0% in the previous quarter and 30.1% for the second quarter of 2007. Recorded music gross margin was 53.4% for the second quarter of 2008 as compared to 43.8% in the previous quarter and 51.7% for the second quarter of 2007. Total gross profit was USD4.6 million for the second quarter of 2008, representing declines of 4.0% as compared to USD4.8 million for the previous quarter and 3.0% as compared to USD4.8 million for the second quarter of 2007.
Total operating expenses were USD3.3 million for the second quarter of 2008, net of reversal of China Unicom liability amount to USD1.56 million, representing a decline of 30.2% as compared to USD4.7 million for the previous quarter and 30.5% as compared to USD4.7 million for the second quarter of 2007. Net income was USD1.6 million for the second quarter of 2008.
As of June 30, 2008, Hurray had USD72.9 million in cash and cash equivalents.
