NQ Mobile Lifts Q2 Outlook; Shares Soar - Update

(RTTNews) - Shares of NQ Mobile Inc. (NQ) on Thursday surged 17 percent after the mobile security software maker lifted its first-quarter revenue outlook, driven by continued strength in its enterprise business.

Beijing, China-based NQ Mobile now expects first-quarter revenues to exceed its prior outlook of $75 million to $76 million. Analysts polled by Thomson Reuters currently expect revenues of $75.27 million for the first-quarter.

NQ Mobile said it saw continued strength in its businesses, in particular in the enterprise segment.

For the second quarter, the company expect revenues between $83 million and $84 million. Analysts currently see revenues of $78.88 million for the second quarter.

Dr. Henry Lin, co-Founder and co-CEO of NQ Mobile, said, "With our preliminary Q1 expectations exceeding our previously issued guidance and the continued strength of our businesses demonstrated by our strong second quarter guidance, we remain excited about our trajectory and opportunities to continue to grow our business in 2014."

Separately, NQ Mobile has agreed to sell up to 5.88 percent stake in its subsidiary FL Mobile for a total of $25 million, consisting of $15 million to Bison Mobile Ltd. and $10 million to other investors.

NQ Mobile pans to use the funds to further expand and enhance the FL Mobile business, brand and content.

NQ is currently trading at $8.05, up $1.26 or 18.56%, on a volume of 14.7 million shares, above the three-month average volume.