Beleaguered Chinese wireless value-added services firm KongZhong (KONG) has announced that Sam Sun, its chief financial officer, is leaving the company by the end of the week.
While it's never a good corporate omen for a CFO to flee so quickly from a company, while Sun will officially depart on February 1, 2009, he will stay with the company for a brief transitional phase. The company will appoint Jay Chang as CFO on February 1, 2009.
Chang, 37, brings over 10 years of experience in financial operations and management in the Internet and telecommunications industries in China, including over two years as the CFO of China-based Tom Online.
In KongZhong's last reported financial results, the company's unaudited third quarter 2008 financial results showed total revenues for the third quarter of 2008 increased 46% year-over-year and increased 7% quarter-over-quarter to USD25.05 million. During that quarter, KongZhong said that mainly because of the financial crisis, market conditions and the company's low market capitalization, in the third quarter the company recorded USD21.62 million of provision for impairment of goodwill associated with the wireless value-added services segment. WVAS revenues, excluding mobile game revenues, increased 38% from the third quarter of 2007 and increased 2% quarter-over-quarter to USD22.07 million. Mobile game revenues increased 179% from the third quarter of 2007 and increased 63% quarter-over-quarter to USD2.37 million. Mobile advertising revenues increased 104% from the third quarter of 2007 and increased 57% quarter-over-quarter to USD0.61 million.
Net loss during that last reported quarter was USD21.57 million, which includes the USD21.62 million provision for the impairment of goodwill.