Air network Q1 Total revenue of 47.94 million U.S. dollars year-on-year increase of 9.3%

Net profit in the first quarter of 6.81 million U.S. dollars (Tencent Science and Technology map) Tencent Science and Technology (Mingxuan) Beijing time May 22 news, according to foreign media reports, the Air Network (NASDAQ Securities Code: KONG) Tuesday released the company as of March 31, 2013, the first quarter of unaudited earnings. The net profit of the net was $47.94 million trillion in the first quarter, exceeding the company's forecast of $45 million to $46 million trillion and a $6.81 million trillion, down 0.8% from a year earlier. Major results in the first quarter: the first quarter of the air network's total revenue of 47.94 million U.S. dollars, more than the company's previous 45 million to 46 million U.S. dollars in the forecast, a year earlier growth of 9.3%, compared to the last quarter growth of 12.4%. --The air network's gross profit for the first quarter was $18.59 million trillion, exceeding the company's forecast of $17 million to $18 million, down 0.8% from a year earlier and 3.3% per cent in the previous quarter. -Net profit in the first quarter of the net was $6.81 million, exceeding the company's forecast of $3 million to $4 million, down 0.8% from a year earlier and 42.6% per cent in the previous quarter. --not in accordance with U.S. general accounting standards, the first quarter net profit of the air network is 8.9 million U.S. dollars, the United States depository receipts in the U.S. receipts and diluted earnings of 0.21 U.S. dollars, up from a year earlier, growth of 2.8%, compared with the last quarter growth of 14.9%. The network had previously predicted that the company's first-quarter net profit would be $5.5 million to $6.5 million, not in accordance with U.S. general accounting standards. -As at March 31, 2013, the amount of cash, cash equivalents, maturing securities and restricted uses in the air network amounted to USD 185.23 million, with USD 4.55 per share of US depository receipts. "Our online gaming business continued to grow strongly in the first quarter of 2013, which now accounts for nearly 60% of total revenue and nearly 70% per cent of gross profit," said Lei, chairman and chief executive officer of the Air Network board. Since 2012, through our cooperation with overseas and domestic game developers, as well as the reorganization of internal game development resources, we have established a strong future online game product line. To harness the opportunities of the smartphone gaming market, we are developing more innovative gaming products using our own game engines and research and development teams. We believe we will continue to introduce new online games and mobile games to the market in the second quarter. "First-quarter results:" The first quarter of the net's total revenue of 47.94 million U.S. dollars, more than the company's previous 45 million U.S. dollars to 46 million U.S. dollars in the forecast, a year-on-year growth of 9.3%, compared to the last quarter growth of 12.4%. In the first quarter of the air network, wireless value-added services received $15.85 million trillion, down 17.1% from a year earlier, up 8.4% from the previous quarter, which accounted for 33.1% of the company's total revenue. The net's first-quarter mobile gaming revenue was $3.71 million, down 33.3% from a year earlier, down 11.1% from the previous quarter, which accounts for the company's total revenue7.7%. In the first quarter, the net revenue from functional mobile gaming was $2.37 million trillion, up 11.2% from 2.13 million dollars in the previous quarter, with revenue from smartphone games at $1.34 million, down 34.3% from the previous quarter, and 36.2% of total mobile gaming revenues. In the first quarter, internet gaming revenues were 28.38 million dollars, up 48.1% from a year earlier. Domestic net games revenue of 27.81 million U.S. dollars, than the previous quarter growth of 21.7%, compared with a year earlier growth of 53.6%. Net income for overseas games is 570,000 dollars, down 42.5% from the previous quarter. In the first quarter, the average online user (ACU) was 364,000, up from 228,000 a year earlier, up from 300,000 in the previous quarter. The first-quarter active pay account (APA) was 950,000, up from 744,000 a year earlier, above 832,000 in the previous quarter. Air network in the first quarter per user average revenue of 184 yuan, higher than the same period last year 153 yuan, higher than the previous quarter of the yuan 173 yuan. The net's gross profit in the first quarter was $18.59 million, down 0.8% from a year earlier, 3.3% per cent higher than the previous quarter. In the first quarter, the net gross profit margin was 38.8%. Air network wireless value-added services in the first quarter gross profit was $3.62 million, down 13% from the previous quarter. Air Network wireless value-added services the first quarter gross profit margin was 22.8%, lower than the previous quarter of 28.4%. NET mobile gaming's first-quarter gross profit was $1.86 million trillion, down 22.5% from the previous quarter. Mobile gaming's first-quarter gross profit margin was 50.3%, up from 42.1% in the previous quarter, down from 57.6% a year earlier. The first quarter of the net game was 13.12 million trillion, up 27.7% from a year earlier. The first quarter of the online game was 46.2%, down from 53.6% in the previous year and less than 48% in the last quarter. The air network's total operating expenses for the first quarter were $13.13 million trillion, below the last quarter's $14.43 million trillion. Air network first-quarter product development expenditure of 6.14 million U.S. dollars, higher than the last quarter of 5.33 million U.S. dollars. In the first quarter, the air network spent 4.57 million dollars on sales and marketing, lower than the 5.93 million dollars in the previous quarter. Air Network first quarter general and administrative expenditure for 2.43 million U.S. dollars, lower than the last quarter of 3.18 million U.S. dollars. As of March 31, 2013, the total number of air network staff was 1132, higher than the 1100 as at December 31, 2012. The network's first-quarter operating profit was $5.62 million, down from its operating profit of $6.09 million a year earlier, better than its operating profit of $3.71 million in the previous quarter. The net operating profit margin for the first quarter was 11.7%, up from 8.7% in the previous quarter. Net profit in the first quarter was $6.81 million trillion, exceeding the company's forecast of $3 million to $4 million, down 0.8% from a year earlier.Grew 42.6% in the first quarter. Not in accordance with U.S. general accounting standards, the first quarter net profit of the air network of 8.9 million U.S. dollars, the United States depository receipts for each share of the thin income of 0.21 U.S. dollars, year-on-year growth of 2.8%, compared to the last quarter growth of 14.9%. The network had previously predicted that the company's first-quarter net profit would be $5.5 million to $6.5 million, not in accordance with U.S. general accounting standards. Stock repurchase: In October 2012, the Air Network Board authorized the company to repurchase additional US depository receipts worth 20 million of dollars. The air network will, as required, repurchase in the open market based on market conditions, the price of the company's American Depository receipts, and the company's management's assessment of the company's current assets and cash flow requirements. The repurchase plan aims to increase shareholder value and reduce the impact of diluted earnings per share generated by the company's equity incentive plan. As of April 9, 2013, the air network had bought back 1.955 million U.S. depository receipts (equivalent to 78.21 million common shares), the average repurchase price of US depository receipts per share of USD 6.14, which involved a total amount of USD 12 million. Performance Outlook: The company expects its total revenue in the second quarter of 2013 to be $43.5 million trillion to $44.5 million trillion, with wireless value-added services revenue of $15 million, mobile gaming revenues of 3.5 million dollars and online gaming revenues of 25.5 million dollars. The company expects gross profit in the second quarter to be at $17 million to $18 million, operating at $5.5 million to $6.5 million, net profit at $5.5 million to $6.5 million, and not under U.S. GAAP, with net profit of $6.5 million to $7.5 million. Conference call: After the earnings release, the air network will be in the U.S. Eastern Time May 21 19:30 (Beijing time May 22 7:30) conference call. Air network management will attend a conference call to interpret earnings points and answer questions from analysts and investors. Investors can visit the Air Network website ir.kongzhong.com/to listen to the teleconference webcast and recording.