The Digital Source For China's Tech Innovation Since 2000

KongZhong Q3 Earnings Decline

KongZhong (KONG) has announced its unaudited third quarter 2005 financial results.

Total revenues in the third quarter of 2005 grew 64% year-over-year and 10% sequentially to a new record of $20.25 million.

KongZhong also made a one-time provision of $3.5 million related to the pending settlement of class action lawsuit during the quarter.

Diluted earnings per ADS were $0.10. KongZhong says if it had not incurred the one-time $3.5 million provision and $129,000 in legal expense related to the class action settlement, the diluted earnings per ADS would have been $0.10 greater.

2.5G revenue grew 36% year-over-year and 6% sequentially to $14.37 million. 2.5G revenue resumed growth from the second quarter of 2005 on the strength of JAVA and multimedia messaging service (MMS) platforms.

Java revenue grew more than 135% sequentially to reach a new record of $1.07 million during the third quarter, compared to $455,000 in the second quarter of 2005.

2G revenue grew 220% year-over-year and 22% sequentially to $5.87 million.

Other China Tech Buzz: