Hurray (HRAY) announced its financial results for the second quarter ended June 30, 2005. Total revenues were $15 million, a growth of only 0.5% quarter-over-quarter.
However these revenues do represent a 25.1% increase from $12.0 million for the second quarter in
2.5G services revenues were $8.8 million for the second quarter of 2005, representing a decrease of 6.5% as compared to $9.4 million for the previous quarter and an increase of 21.7% as compared to $7.2 million for the second quarter of 2004.
Almost all of the company's 2.5G service revenues were derived from Wireless Access Protocol (WAP) services, with a relatively limited contribution from existing Java services and Multimedia Messaging Services (MMS) which were first introduced during the first quarter of 2005.
The company says the decline in 2.5G services revenues was mainly due to three factors. First, slow growth of the China Unicom CDMA user base for WAP services. Second, increased number of free services mandated by China Unicom on its WAP portal. And finally, new policies implemented by China Mobile during the quarter to eliminate inactive WAP users from subscription billing, partially offset by growth in number of active users.
Total gross margin was 59.7% for the second quarter of 2005 as compared with 57.3% for the previous quarter and 60.0% for the second quarter of 2004.
Total gross profit was $8.9 million for the second quarter of 2005, representing an increase of 4.7% as compared with $8.5 million for the previous quarter and an increase of 24.4% as compared with $7.2 million for the second quarter of 2004.
As of June 30, 2005, the company had $77.3 million in cash and cash equivalents.