NQ Mobile Q2 Net Loss Narrows Sharply

(RTTNews) - NQ Mobile Inc. (NQ) reported a net loss for the second quarter of $1.6 million or $0.02 per ADS, compared to a net loss of $16.8 million or $0.22 per ADS for the year-ago quarter.

Excluding items, adjusted net income for the second quarter was $7.0 million or $0.08 per ADS, compared to $14.8 million or $0.20 per ADS in the prior year quarter.

Net revenues for the second quarter rose 25% to $102.1 million from $81.6 million in the same quarter last year.

Analysts polled by Thomson Reuters expected the company to earn $0.05 per share on revenue of $102.00 million for the second quarter. Analysts' estimates typically exclude special items.

The company also said that it has entered into legally binding share purchase agreements, which provide for the sale of all of NQ Mobile's interests in the NationSky business, including the entire interest in Beijing NationSky Network Technology Co., Ltd. to Hou Shuli, a founder and senior management member of Beijing NationSky, for an aggregate consideration of US$80 million cash.

NQ Mobile further said that it has entered into a legally binding framework agreement with Beijing Jinxing Rongda Investment Management Co. Ltd., a subsidiary of Tsinghua Holdings Co., Ltd and an independent third party, to sell the company's entire stake in FL Mobile Inc., NQ Mobile's majority owned Cayman Islands subsidiary.

Pursuant to the deal, NQ Mobile, along with the other existing shareholders of FL Mobile Inc., have agreed to sell to Beijing Jinxing the entire stake in FL Mobile Inc. that they currently hold for no less than RMB 4 billion, or about no less than US $626 million, with the final price being subject to the valuation of an independent third party valuer.

Looking forward, the company forecast third quarter net revenue of $110.0 million to $112.0 million, and reiterated its full year 2015 net revenues outlook of $455.0 million to $460.0 million.

Analysts currently expect the company to post revenue of $118.50 million for the third quarter and $449.70 million for the full year 2015.