Chinese wireless value-added services firm Hurray (HRAY) has reported a net loss of USD9.2 million for the third quarter ended September 30, 2008.
The company announced its unaudited financial results and stated its total revenues were USD13.5 million, representing an increase of 6.0% quarter-over-quarter and a decrease of 0.7% year-over-year. WVAS revenues were USD11.0 million, representing an increase of 20.1% quarter-over-quarter and a decrease of 3.0% year-over-year.
Net loss included impairment charges totaling USD6.1 million in respect of the company's music business representing a goodwill impairment charge of USD1.7 million, an impairment loss for the investment in music equity affiliate of USD1.9 million for its recorded music business as well as a write-down of USD2.5 million on other acquired intangible assets from this business and a foreign exchange loss of USD4.5 million on currency holdings.
Total gross margin was 30.9% for the third quarter of 2008 as compared to 36.4% for the previous quarter and 23.5% for the same period of 2007. Gross margin for wireless value-added services was 26.4% for the third quarter of 2008, as compared to 29.8% in the previous quarter and 19.6% for the same period of 2007. Recorded music gross margin was 51.2% for the third quarter of 2008 as compared to 53.4% in the previous quarter and 43.1% for the same period of 2007.
Total gross profit was USD4.2 million for the third quarter of 2008, representing a decline of 9.9% compared to USD4.6 million for the previous quarter, and growth of 30.9% as compared to USD3.2 million for the same period of 2007.
As of September 30, 2008, the Company had USD65.9 million in cash and cash equivalents.