Chinese wireless value-added services company KongZhong Corporation revealed its unaudited third quarter 2010 financial results and stated its total revenues increased 7% year-over-year to USD37.67 million.
However, the company says it expects total revenues for the fourth quarter to be within the range of USD35.5 million to 36.5 million.
KongZhong's total gross profit for the third quarter was USD15.6 million for the third quarter of 2010, and net income in the third quarter of 2010 was USD1.17 million.
WVAS revenues in the third quarter of 2010 were USD20.78 million, a 14% increase from the second quarter of 2010 but a 23% decrease from the same period last year. WVAS revenues declined over the same period last year due to the ongoing implementation of WVAS policy restrictions from KongZhong's mobile operator partners and the overall operating environment for the company's WVAS business continued to remain difficult.
In the third quarter of 2010, 2G revenues represented 84% of total newly reported WVAS revenues, while 2.5G services made up 16% of total WVAS revenues.
During the third quarter, KongZhong consolidated the majority of its wireless Internet services business line into its WVAS business line to reflect the ongoing changes in the wireless services industry which has negatively impacted its wireless Internet services business.
Total mobile game revenues in the third quarter of 2010 were USD13.93 million, a 70% increase from the same period last year and a 7% increase from the second quarter of 2010. Revenues from downloadable mobile games were USD13.06 million representing an 84% increase from the same period last year and an increase of 6% from the second quarter of 2010.
Total gross profit was USD15.61 million in the third quarter of 2010, a 9% decrease compared to the same period last year and a 7% decrease compared to the second quarter of 2010. Total gross margin was 41% in the third quarter of 2010 compared to 48% in the second quarter of 2010.
As of September 30, 2010, the company had USD138.54 million in cash and cash equivalents or USD3.74 per basic ADS in cash and cash equivalents.
