Just two weeks after dumping its CEO, Chinese wireless value-added services company Linktone Ltd. says its mobile revenue and overall profit have fallen as it announced its unaudited financial results for the first quarter ended March 31, 2009.
Linktone recorded wireless value-added services and other revenues of USD14.8 million, compared with USD19.4 million in the fourth quarter of 2008 and USD16.5 million in the first quarter of 2008. GAAP net income from continuing operations was USD0.1 million, compared with a net income from continuing operations of USD1.1 million in the fourth quarter of 2008 and a net income from continuing operations of USD1.1 million in the first quarter of 2008. GAAP overall net income was a weak USD0.3 million, compared with a net income of USD0.6 million in the fourth quarter of 2008 and a net loss of USD4.2 million in the first quarter of 2008.
Linktone reported two weeks ago the resignations of Michael Guangxin Li, the chief executive officer; Jimmy Lai, the company's chief financial officer, and Anthony Chia, chief operating officer. All departures were effective May 31, 2009. Hary Tanoesoedibjo, currently chairman at Linktone, was appointed CEO and Colin Sung has been appointed as both the company's deputy CEO and CFO.
CEO Hary Tanoesoedibjo trumpeted the company's ability to magically massage USD300,000 in profit for the quarter and stated, "We are pleased to report another profitable quarter in keeping with our number one priority to return Linktone to sustainable profitability. The gross revenues for the quarter met our guidance range for the period and reflected traditional seasonality patterns in WVAS. We remain cautiously optimistic with regard to our long-term prospects given the increasing stability in our operating environment and the large-scale rollout of 3G in China. We believe strong execution in operations and prudent cost control efforts will enable us to achieve healthy, profitable growth in the future."
For the second quarter ending June 30, 2009, Linktone expects gross revenues to be approximately USD17 million to USD18 million.