Business, Telecom & Wireless

Wireless Revenue Slumps For Hurray In China

Chinese wireless value-added services company Hurray Holding Company Ltd. announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2009.

Total revenues for the quarter were USD6.2 million, representing a decrease of USD0.7 million quarter-over-quarter and a decrease of USD8.2 million year-over-year. Wireless value-added services revenues were USD2.3 million, representing a decrease of USD2.2 million quarter-over-quarter and a decrease of USD9.2 million year-over-year. Recorded music revenues were USD3.9 million, representing an increase of USD1.5 million quarter-over-quarter and an increase of USD0.9 million year-over-year.

Total revenues for the fiscal year 2009 were USD34.6 million, as compared with USD54.0 million for 2008. WVAS revenues were USD20.1 million, as compared with USD42.7 million for 2008. Net loss attributable to Hurray Holding was USD22.7 million, as compared with net loss of USD12.0 million for 2008.

Gross margin was 20.1% for the fourth quarter of 2009 as compared with 20.7% for the previous quarter and 5.0% for the same period of 2008. For fiscal year 2009, gross margin was 19.3% as compared with 26.7% for fiscal year 2008.

Total gross profit was USD1.2 million for the fourth quarter of 2009, as compared with USD1.4 million for the previous quarter, and USD0.7 million for the same period of 2008. For fiscal year 2009, total gross profit was USD6.7 million, a decline of 53.5% as compared with USD14.4 million for fiscal 2008.

Total operating expenses were USD6.3 million for the fourth quarter of 2009. This represents a decrease of 3.5% as compared with the total operating expenses of USD6.5 million for the previous quarter, and an increase of 5.0% as compared with the total operating expenses of USD6.0 million for the same period of 2008.

For fiscal year 2009, total operating expenses, which included provisions for account receivable and other current assets of USD3.8 million, professional service fees relating to the Shanda tender offer of USD2.5 million, impairment for goodwill of USD3.6 million and a write-down for intangible assets of USD 3.5 million for our music business due to the continued challenging business conditions, were USD33.4 million, representing an increase of 47.3% as compared with USD22.7 million for fiscal 2008 which included impairment for intangible assets of USD2.5 million and goodwill of USD2.7 million.

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