Net profit in the third quarter of the air network 1.17 million U.S. dollars fell 74%

Beijing time November 23 6:00 News, the Air Network (Nasdaq:kong) released today as of September 30, the third quarter of fiscal year 2010 unaudited results.　　The report showed that the net's total revenue in the third quarter was $37.67 million trillion, up 7% from a year earlier, with a net profit of $1.17 million, down 74% from 4.5 million a year earlier. Main results: Air network in the third quarter of the total revenue of 37.67 million U.S. dollars, an increase of 7%, exceeding the company's previous expectations of 35 million U.S. dollars to 36 million U.S. dollars; The net's third-quarter gross profit was 15.6 million dollars, which exceeded the company's previous forecast of 14.5 million dollars to 15.5 million dollars; according to US GAAP , the net profit of the air network in the third quarter was 1.17 million U.S. dollars, in line with the company's previous expected 1 million dollars to 1.5 million U.S. dollars.　　In accordance with the United States General accounting standards, based on 37.05 million shares of the United States depository receipts, the air network in the third quarter of the United States depository receipts of the basic income of 0.03 U.S. dollars; Based on 38.28 million shares of U.S. depository receipts, air network in the third quarter of the United States depository receipts of the same income of the Not in accordance with the United States General accounting standards, the air network in the third quarter net profit of 4.13 million U.S. dollars, in line with the company's expected 3.5 million U.S. dollars to 4.5 million U.S. dollars; not in accordance with the United States General accounting standards, the air network in the third quarter per share of the United States depository vouchers diluted earnings of 0.10　　The total cash and cash equivalents held by the network amounted to USD 138.54 million, i.e. the cash and cash equivalents of the United States Depository Receipts (based on 37.05 million US depository receipts) for USD 3.74.　　Financial Analysis: The third quarter of the net total revenue of 37.67 million U.S. dollars, an increase of 7%, more than the company previously expected 35 million U.S. dollars to 36 million U.S. dollars. Air network total wireless value-added services in the third quarter of 20.78 million U.S. dollars, the year-on-year decline of 23%, compared to the previous quarter growth of 14%. 2.5G service in the third quarter the total wireless value-added service revenue accounted for about 16%,2G services in the third quarter accounted for about 84% of total wireless value-added services revenue.　　Air network total wireless value-added services revenue decline year-on-year, mainly because of mobile operator partners on wireless value-added services implemented policy restrictions, as well as wireless value-added services business overall operating environment is still very difficult.　　In the third quarter, the net revenue of mobile gaming services was $13.93 million, an increase of 70% per cent, up 7% from the previous quarter. In the third quarter, the net revenue from stand-alone mobile gaming services was $13.06 million, an increase of 84% per cent, up 6% from the previous quarter. In the third quarter, the revenue from stand-alone mobile gaming services grew less than in the previous quarter, largely due to a decrease in promotional activities from mobile operators ' partners.　In the third quarter, the monthly average number of subscribers to the mobile gaming service was about 2 million, roughly unchanged from the previous quarter.　In the third quarter, the net revenue from mobile gaming was 870,000 dollars, down 22% per cent, up 34% from the previous quarter. Air network in the third quarter released a round of 2D mobile phone network game "Dream Day Rob Ol", the game accounted for about 26% of the net gaming revenue of the Internet in the third quarter, with a 18% per cent revenue from day robbery online and a 56 per cent revenue from "God online".　　%, above 51% in the last quarter.　　In the third quarter, the net revenue from stand-alone mobile gaming services accounted for 94% of mobile gaming service revenue. Less than 95% of the previous quarter; in the third quarter, the revenue from mobile-phone gaming services accounted for about 6% of mobile game service revenue, up from 5% in the previous quarter. In the third quarter, net gaming revenues were 2.96 million dollars, down 26% from the previous quarter. The reason for the low revenue of the online gaming network is that the August "Knight's Act" did not perform as expected, and the time for the commercial release of the Dragon in the Korean market was postponed to the quarter. However, with the launch of Dragon in the third quarter in South Korea and other overseas markets, and the latest online game, "Holy Demon Blood", which was listed in mainland China in October, we expect online gaming revenues to rebound in the fourth quarter.　　In the third quarter, total overseas revenues accounted for 18% of total net game revenue, down from 37% per cent in the previous quarter. The net's gross profit in the third quarter was $15.61 million trillion, down 9% from a year earlier, down 7% from the previous quarter.　　In the third quarter, the total gross profit margin was 41%, below 48% of the previous quarter. Air network total wireless value-added services the gross profit for the third quarter was $8.43 million trillion, down 32% from a year earlier, and 8% per cent from the previous quarter. Air Network wireless value-added services third-quarter gross profit margin of 41%, lower than the last quarter of 43%, mainly because although wireless value-added services overall in the last quarter than a slight increase, but the color ring and mobile literature business gross margin is lower.　　The reason for the lower gross margin of these two businesses is that we share more revenue with content owners, provincial mobile operators and mobile phone literature platforms in China. NET mobile gaming's third-quarter gross profit was $5.05 million, up 8% from a year earlier, down 9% from the previous quarter. Online mobile gaming services in the third quarter gross profit margin of 36%, lower than the previous quarter of 43%. The quarterly ratio of gross profit and gross margin of mobile gaming is falling, mainly because the company has found new non-carrier distribution channels to offset the decrease in the marketing activities of mobile operators ' partners in our monthly mobile gaming business.　　However, the effectiveness of these new distribution channels is significantly lower than the existing mobile operator channels, leading to the decline of our mobile gaming business gross profit margin. Online gaming in the third quarter, gross profit was 2.14 million dollars, down 39% from the previous quarter.　　NET net game in the third quarter gross profit margin is 72%, lower than the last quarter of 87%. Air Network third quarter total shipmentThe cost of the battalion was $14.37 million, which grew by 3% from 13.98 million US dollars in the previous quarter, because of the restrictive policy environment of total wireless value-added services, which we continued to implement in the quarter.　　The air network's third-quarter product development cost was $6.21 million trillion, up 1% from 6.14 million dollars in the previous quarter. Air network sales and marketing costs for the third quarter of 5.3 million U.S. dollars, the previous quarter of 5.14 million U.S. dollars, the same period last year, 4.34 million U.S. dollars.　　The increase in the cost of sales and marketing in the air network is mainly due to the promotional activities we have taken with the August launch of the autonomous development of the cyber Game "Knight's line".　　The air network's third-quarter management cost was $2.86 million trillion, up about 6% per cent from the previous quarter's 2.69 million dollars. As of September 30, 2010, the total number of air network staff was 1065, as at June 30, 2010, 1209.　　As total wireless value-added services continue to be in a restrictive regulatory environment, we have implemented cost-saving measures that have resulted in the streamlining of the wireless internet and total wireless value-added services teams. The network's third-quarter operating profit was $1.24 million trillion, up from $2.88 million in the previous quarter.　　The air network's third-quarter operating profit margin was 3%, below 8% in the previous quarter. In accordance with U.S. general accounting standards, the net profit of the third quarter of the air network is 1.17 million U.S. dollars, in line with the company's previous expectations of 1 million U.S. dollars to 1.5 million U.S. dollars.　　According to the United States General accounting standards, based on 37.05 million shares of the United States depository receipts, the air network in the third quarter of the United States depository receipts of the basic income of 0.03 U.S. dollars; Based on 38.28 million shares of U.S. depository receipts, air network in the third quarter per share of the United States depository receipts in the same income of　　Not in accordance with the United States General accounting standards, the air network in the third quarter net profit of 4.13 million U.S. dollars, in line with the company's expected 3.5 million U.S. dollars to 4.5 million U.S. dollars; not in accordance with U.S. general accounting standards, the air network in the third quarter of the United States depository receipts of the U.S. voucher diluted income of 0.10　　As at September 30, 2010, the net's cash and cash equivalents amounted to USD 138.54 million, that is, the cash and cash equivalents of the United States Depository Receipts (based on 37.05 million per cent of US depository receipts) for USD 3.74. Business outlook: Air networks are expected to have a total revenue of USD 35.5 million to $36.5 million in the fourth quarter of 2010.　　Among them (calculated as expected), the total wireless value-added services sector revenue is expected to be about 18.5 million U.S. dollars, mobile gaming department revenue of 13 million U.S. dollars, online gaming sector revenue of 4.5 million U.S. dollars. The air network expects gross profit of $15.5 million to $16.5 million in the fourth quarter of 2010, with a total operating profit of 3 million to 4 million dollars.　　In accordance with U.S. GAAP, the network expects net profit of about $5.5 million to $6.5 million in the fourth quarter of 2010. Conference call: After the earnings release, the air network management will be in the U.S. Eastern Time November 22 19:30(Beijing time November 23 8:30) a conference call was held to discuss third-quarter earnings. Listen to the conference call, China Telecom users can call toll-free 10 800 152 1490, 10 800 130 0399, Chinese unicom users can call toll-free 10 800 852 1490, Hong Kong can call toll-free +852.800.963.844, the United States can call free telephone +　　1.866.730.5767, or pay phone +1.857.350.1591, passwords are 24803631. Within two weeks of the conference call, investors can listen to the teleconference. The United States can call toll-free 1-888-286-8010, or pay phone 1-617-801-6888, the password is 90368401. Investors can also use the following Web site:http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventdetails& c=180513&eventid= 3487221 Listen to the teleconference webcast and recording. (Digging the shell net)