Embattled Chinese wireless services firm Linktone Ltd. announced its unaudited financial results for the second quarter ended June 30, 2010, and showed a drop in both revenue and profit.
Linktone's gross revenues for the second quarter were USD16.9 million, compared with USD19.0 million in the first quarter of 2010 and USD18.3 million in the second quarter of 2009. Linktone's second quarter revenue mix includes telecom value-added services; data-related services such as SMS, MMS, WAP, and Java; IVR; and sales of licensed edutainment and entertainment products.
GAAP net income for the second quarter was USD100,000, flat compared with the first quarter of 2010 and down from USD900,000 in the second quarter of 2009. GAAP net income from continuing operations was USD100,000, flat compared with the first quarter of 2010 and down from USD700,000 in the second quarter of 2009.
CEO Hary Tanoesoedibjo tried to sound upbeat in the face of a burdensome business environment when he stated: "Gross revenues for our telecom value added and other services for the second quarter were in line with our previous guidance. While we remain cautious on the timing of an improved regulatory landscape in China, we achieved modest profitability again during the second quarter, and maintained our strong cash position that enables us to execute from a position of strength in forming strategic partnerships and evaluating expansion opportunities abroad. Both of our recent acquisitions, Letang Game and InnoForm Group, reflect Linktone's efforts to identify opportunities that enhance our product offerings and expand our footprint in both China and Southeast Asian markets. Our management efforts remain focused on reinforcing Linktone's competitive standing and delivering sustainable profitability for 2010."
For the third quarter ending September 30, 2010, Linktone anticipates gross revenues to be in the range of USD18.0 million to USD19.0 million including revenue from its VAS services, distribution of licensed products and other services.