omniture

KongZhong Corporation Reports Fourth Quarter 2015 Unaudited Financial Results

2016-03-25 06:00 1915

BEIJING, March 25, 2016 /PRNewswire/ -- KongZhong Corporation (NASDAQ: KZ), a leading online games publisher and developer in the PRC, today announced its unaudited financial results for the fourth quarter of 2015 and full year 2015.

Fourth Quarter 2015 Financial Highlights

  • Total revenues for the fourth quarter of 2015 were US$ 42.48mn, exceeding the guidance range of US$ 41mn to US$ 42mn.
  • Total gross profit was US$ 19.02mn, within the guidance range of US$ 19mn to US$ 20mn.
  • Net income was US$ 6.10mn, with diluted net income per American Depositary Shares ("ADS") of US$ 0.13, exceeding the guidance range of US$ 3mn to US$ 4mn.
  • Non-GAAP net income was US$ 6.99mn, with Non-GAAP diluted net income per ADS of US$ 0.15(Non-GAAP Financial Measures are described and reconciled to the corresponding GAAP measures in the section titled "Non-GAAP Financial Measures"), exceeding the guidance range of US$ 4mn to US$ 5mn.
  • As of December 31, 2015, the Company had US$ 163.43mn in cash and cash equivalents, term deposits, held-to-maturity securities, available-for-sale securities and restricted cash or US$ 3.49 per ADS in cash and cash equivalents, term deposits, held-to-maturity securities, available-for-sale securities and restricted cash, net of a US$ 49.96mn short-term bank loan. The mark to fair value of the Company's investments in Ourgame and Forgame were priced at HK$ 5.75 and HK$ 13.04 per ordinary share, respectively (or US$ 44.47mn and US$ 20.29mn, respectively) as of December 31,2015, compared to the mark to fair value of the Company's investments in Ourgame and Forgame which were priced at HK$ 3.94 and HK$ 14.20 per ordinary share, respectively (or US$ 30.47mn and US$ 22.09mn, respectively) as of September 30, 2015.

Full Year 2015 Financial Highlights

  • Total revenues were US$ 179.11mn for the full year of 2015 compared to US$ 227.60mn in 2014, of which, Internet games revenues were US$ 105.04mn in 2015 compared to US$ 118.10mn in 2014, Mobile games revenues were US$ 24.65mn in 2015 compared to US$ 45.04mn in 2014 and WVAS revenues were US$ 49.42mn in 2015 compared to US$ 64.46mn in 2014.
  • Full year gross margin was 41.9% compared to 43.2% in 2014 if excluding the effect of impairment on intangible assets related to the underperformance of Guild Wars 2,of which Internet games gross margin was 50.1%, Mobile games gross margin was 40.0% and WVAS gross margin was 25.1%.
  • Net loss in 2015 was US$16.23mn compared to US$ 22.59mn net income in 2014. Net loss in 2015 included a $35.21mn impairment loss on intangible assets.
  • Non-GAAP net income was US$22.31mn compared to 2014 full year Non-GAAP net income of US$ 29.90mn. (Non-GAAP Financial Measures are described and reconciled to the corresponding GAAP measures in the section titled "Non-GAAP Financial Measures").

Business Highlights

  • Moving forward, the Company intends to concentrate its efforts in Internet Games and Mobile games around its War Saga game platform, China's leading military genre online game platform.
  • The Company released World of Warships on November 27, 2015.
  • The Company released Heart of Thorns, the first expansion pack for Guild Wars 2 to the mainland China market on November 20, 2015.
  • The Company released mobile game, Rush Three Kingdoms, in Japan to Open Beta Test on March 10, 2016.
  • The Company released mobile game, Battle of Warship, on March 16, 2016 in China on the IOS platform.

Three Months Ended


December 31,


September 30,


December 31,


2014


2015


2015


US$ in thousands


US$ in thousands


US$ in thousands







Revenues

61,637


38,579


42,475

Internet Games

29,446


23,745


30,476

Mobile Games

15,178


2,679


1,983

WVAS

17,013


12,155


10,016







Cost of Revenues

34,962


21,676


23,454

Internet Games

15,892


11,038


14,366

Mobile Games

7,148


1,607


1,556

WVAS

11,922


9,031


7,532







Gross Profit

26,675


16,903


19,021

Internet Games

13,554


12,707


16,110

Mobile Games

8,030


1,072


427

WVAS

5,091


3,124


2,484







Gross Margin

43%


44%


45%

Internet Games

46%


54%


53%

Mobile Games

53%


40%


22%

WVAS

30%


26%


25%

Revenues

Total revenues for the fourth quarter of 2015 were US$ 42.48mn, a 10.1% increase from the third quarter of 2015 and a 31.1% decline from the same period last year.

Internet Games Revenues

Internet Game ("Net Game") revenues were US$ 30.48mn in the fourth quarter of 2015, an increase of 28.3% from the third quarter of 2015 due to the release of World of Warships on November 27, 2015.

For the fourth quarter of 2015, mainland China online game operations achieved average monthly active users ("MAUs") of 2.7mn and aggregated monthly paying accounts ("APAs") of 448k with monthly average revenue per user ("ARPU") of RMB 144.


Three Months Ended

December 31,

2014

September 30,

2015

December 31,

2015

MAU

1,840k

1, 813k

2,690k

APA

327k

307k

448k

ARPU

185

160

144

Internet game revenues made up 71.8% of total revenues in the fourth quarter of 2015.

Mobile Games Revenues

Total mobile game revenues were US$ 1.98mn, a 26.0% decrease from the third quarter of 2015 and an 86.9% decrease from the same period last year. The continued reduction in mobile game revenues was due to the shorter life cycle and high churn of recently launched smartphone games and the Company's pivot to concentrate mobile game development and licensing towards primarily military genre mobile games to bolster the War Saga brand. We expect this transition to influence mobile game revenues for the foreseeable future.

Total mobile game revenues made up 4.7% of total revenues in the fourth quarter of 2015.

WVAS Revenues

WVAS revenues were US$ 10.02mn, a 17.6% decrease from the third quarter of 2015 and a 41.1% decrease from the same period of last year. WVAS revenues continue to be impacted by the shift of traditional WVAS service towards smartphone applications and mobile operator policies.

WVAS made up 23.5% of total revenues in the fourth quarter of 2015.

Gross Profit

Total gross profit for the fourth quarter of 2015 was US$19.02mn, a 12.5% increase from gross profit in the third quarter of 2015 and a 28.7% decrease from the same period last year.

Total gross margin was 44.8% in the fourth quarter of 2015 compared to gross margins of 43.8% in the third quarter of 2015.

Internet Game Gross Profit

Internet game gross profit was US$ 16.11mn, a 26.8% increase from gross profits in the third quarter of 2015 and an 18.9% increase from the same period last year. Internet game gross margin was 52.9% compared to 53.5% in the third quarter of 2015.

Mobile Game Gross Profit

Mobile games gross profit was US$ 0.43mn, a 60.2% decrease from the third quarter of 2015 and a 94.7% decrease from the same period last year. Mobile games gross margin was 21.5% compared to 40.0% in the third quarter of 2015.

WVAS Gross Profit

WVAS gross profit was US$2.48mn, a 20.5% decrease from the third quarter of 2015 and a 51.2% decrease from the same period last year. WVAS gross margin was 24.8% compared to 25.7% in the third quarter of 2015.

Operating Expenses

Total operating expenses in the fourth quarter of 2015 were US$16.80mn compared to US$13.17mn in the third quarter of 2015.

Product development expenses in the fourth quarter of 2015 were US$ 6.18mn compared to US$ 5.77mn in the third quarter of 2015.The product development expenses increased primarily due to the Company's pivot to concentrate mobile game development and licensing towards primarily military genre mobile games to bolster the War Saga brand.

Sales and marketing expenses in the fourth quarter of 2015 were US$ 6.35mn compared to US$5.20mn in the third quarter of 2015.Sales and marketing expenses increased primarily due to the increased promotion activities of World of Warships in 2015Q4.

General and administrative expenses in the fourth quarter of 2015 were US$4.27mn compared to US$2.20mn in the third quarter of 2015. General and administrative expenses increased primarily due to the increased consulting and travel related expenses relating to our corporate investment activities, and additions to bad debt provision relating to our WVAS business.

The Company's total headcount in the fourth quarter of 2015 was 793 staff compared to 913 staff at the end of the third quarter of 2015 as the Company has begun to optimize our cost structure for the lower amount of business in mobile games and WVAS.

Earnings

US GAAP net income and diluted income per ADS were US$ 6.10mn and US$ 0.13, respectively. Non-GAAP net income and diluted income per ADS were US$ 6.99mn and US$ 0.15, respectively.

Total ADS on a diluted basis outstanding during the fourth quarter of 2015 were 47.30mn, compared to 47.21mn outstanding during the third quarter of 2015.

For the purpose of earnings
per share calculation

Number during three
months ended

September 30, 2015

Number during three
months ended

December 31, 2015

ADS (in mns)

46.78

46.87

Add: Dilution impact from
options and nonvested shares

0.30

0.27

Warrants issued to business
partners

0.13

0.16

ADS on diluted basis

47.21

47.30

Balance Sheet

As of December 31, 2015, the Company had US$ 163.43mn in cash and cash equivalents, term deposits, held-to-maturity securities, available-for-sale securities and restricted cash or US$ 3.49 per ADS in cash and cash equivalents, term deposits, held-to-maturity securities, available-for-sale securities and restricted cash, net of a US$ 49.96mn short-term bank loan. The mark to fair value of the Company's investments in Ourgame and Forgame were priced at HK$ 5.75 and HK$ 13.04 per ordinary share, respectively (or US$ 44.47mn and US$ 20.29mn, respectively) as of December 31,2015, compared to the mark to fair value of the Company's investments in Ourgame and Forgame which were priced at HK$ 3.94 and HK$ 14.20 per ordinary share, respectively (or US$ 30.47mn and US$ 22.09mn, respectively) as of September 30, 2015.

Recent Developments

On June 29, 2015, the Company announced that its board of directors (the "Board") had received a preliminary non-binding proposal letter from Leilei Wang, chairman and chief executive officer of the Company, and IDG-Accel China Growth Fund II L.P. to acquire all of the outstanding ordinary shares of the Company not owned by them or their affiliates for US$8.56 in cash per American depositary share (the "ADS", each representing forty ordinary shares) (the "Going Private Proposal").

On July 8, 2015, the Company announced that the Board has formed a special committee (the "Special Committee") consisting of two independent directors, Hope Ni and Xiaolong Li, and delegated to the Special Committee the exclusive power and authority of the Board to, among other things, evaluate and respond to the Going Private Proposal. Ms. Ni is serving as the chair of the Special Committee.

On November 3, 2015, the Company announced that the Special Committee has retained Duff & Phelps, LLC and Duff & Phelps Securities LLC as its financial advisors and Skadden, Arps, Slate, Meagher &Flom as its legal counsel in connection with its review and evaluation of the Going Private Proposal.

The Board cautions the Company's shareholders and others considering trading in the Company's securities that no decisions have been made by the Special Committee or the Company with respect to the Company's response to the Going Private Proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other proposed transaction involving the Company, its securities and/or its assets will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other proposed transaction, except as required under applicable law.

Conference Call

KongZhong's management will hold a conference call and live webcast to discuss the results at 7:30 PM Eastern Standard Time (EST) on Thursday, March 24, 2016 (7:30 AM Beijing/Hong Kong time, Friday, March 25, 2016)

The Company welcomes all interested parties to participate in the live conference call. An Operator will greet you and ask for the Conference ID shown as following.

Conference ID: 69631432

The dial-in details are as below:

- U.S. Toll Free Dial-in Number:

+1 866 519 4004

- U.S. Dial-in Number:

+1 845 675 0437

- Hong Kong Toll Free Dial-in Number:

800 906 601

- Hong Kong Dial-in Number:

+852 3018 6771

- Mainland China Dial-in Number:

800 819 0121, 400 620 8038

- International Dial-in Number:

+65 6713 5090

The live conference call via webcast and archive replay will be available on the Investor Relations section of KongZhong's website at http://ir.kongzhong.com. The archive replay will be available on the website shortly after the call.

A dial-in replay of the conference call will be available until April 1, 2016(EST):

- U.S. Toll Free Dial-in Number:

+1 855 452 5696

- U.S. Dial-in Number:

+1 646 254 3697

- Hong Kong Toll Free Dial-in Number:

800 963 117

- Hong Kong Dial-in Number:

+852 3051 2780

- Mainland China Toll Free Dial-in Number:

800 870 0205, 400 602 2065

- International Dial-in Number:

+61 2 8199 0299

About KongZhong

KongZhong Corporation (NASDAQ: KZ), listed on Nasdaq in 2004, is a leading online game developer and operator in China. KongZhong operates three main business units, namely Internet Games, Mobile Games and WVAS. Under Internet Games, KongZhong operates the largest Chinese military gaming platform under the "WAR SAGA" brand, which includes games such as World of Tanks, World of Warplanes and World of Warships. On May 15, 2014, KongZhong officially launched the most-anticipated 3D fantasy MMORPG Guild Wars 2 in China. KongZhong has the exclusive publishing rights for World of Tanks, World of Warplanes and World of Warships, Guild Wars 2, Auto Club Revolution, Blitzkrieg 3 and other titles in Mainland China.

KongZhong entered the smartphone game industry in 2011 through an acquisition of smartphone game engine and has expanded its mobile game development team across 4 cities across Mainland China. KongZhong offers popular mobile games in China and overseas with over 10 smartphone games across various genres being under development, including RPG, RTS, military, fantasy and etc. For more information, please visit http://ir.kongzhong.com.

Safe Harbor Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding trends in the wireless value-added services, wireless media, mobile games and online games industries and our future results of operations, financial condition and business prospects. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends and our results may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, continued competitive pressure in China's wireless value-added services, wireless media, mobile games and online games industries and the effect of such pressure on revenues; our ability to develop new products that are commercially successful; unpredictable changes in technology, consumer demand and usage preferences in the markets we operate; our ability to protect our intellectual property rights; the short operating history of certain of our business segments, in particular the online games segment; the state of and any change in our relationship with China's telecommunications operators; our dependence on the billing systems of telecommunications operators for our performance; the outcome of our investment of operating income generated from the WVAS segment into the development of our wireless Internet, mobile games and online games segments; changes in the regulations or policies of the Ministry of Industry and Information Technology and other government authorities relevant to our businesses; and changes in political, economic, legal and social conditions in China, including the Chinese government's policies with respect to economic growth, foreign exchange, foreign investment and entry by foreign companies into China's telecommunications and online games markets. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.


KongZhong Corporation


Condensed Consolidated Statements of Comprehensive Income


(Unaudited, US$ in thousands, except per share and share data)






Three Months Ended




December 31,


September 30,


December 31,




2014


2015


2015










Revenues


61,637


38,579


42,475


Cost of revenues


34,962


21,676


23,454










Gross profit


26,675


16,903


19,021










Operating expenses








Product development


6,083


5,772


6,176


Sales and marketing


9,076


5,198


6,353


General and administrative


4,236


2,202


4,267


Total operating expenses


19,395


13,172


16,796










Government subsidy


480


265


769










Income from operations


7,760


3,996


2,994










Interest income


1,891


1,158


3,879


Interest expense


(176)


(281)


(88)


Imputed interest on long-term liabilities


(150)


-


-


Exchange gain (loss)


385


(557)


(141)


Income before income tax expense, loss on
equity method investments


9,710


4,316


6,644


Income tax expense


(641)


(142)


(321)


Loss on equity method investments


-


(273)


(223)


Net income


9,069


3,901


6,100










Earnings per ADS, basic


0.20


0.08


0.13


Earnings per ADS, diluted


0.19


0.08


0.13


Weighted average ADS outstanding (million)


46.34


46.78


46.87


Weighted average ADS used in diluted EPS
calculation (million)


46.59


47.21


47.30


Net income


9,069


3,901


6,100


Other comprehensive income


(7,873)


(40,333)


4,759


Total comprehensive income


1,196


(36,432)


10,859










KongZhong Corporation

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, US$ in thousands, except per share and share data)






Twelve Months Ended



December 31,



December 31,



2014



2015







Revenues


227,596



179,113

Cost of revenues(including impairment on






intangible assets of $nil and $35,210 for 2014






and 2015, respectively)


129,279



139,363







Gross profit


98,317



39,750







Operating expenses






Product development


25,107



24,190

Sales and marketing


42,523



25,890

General and administrative


12,565



13,484

Impairment loss on intangible assets


1,323



-

Total operating expenses


81,518



63,564







Government subsidy


1,139



1,574







Income from operations


17,938



(22,240)







Interest income


8,865



7,975

Interest expense


(295)



(744)

Impairment loss on cost method investment


(2,000)



-

Imputed interest on long-term liabilities


(600)



(140)

Exchange loss


(272)



(803)

Investment income

from available-for-sale securities


-



1,164

Net income (loss) before income tax

expense and loss in equity method investments


23,636



(14,788)

Income tax expense


(1,048)



(797)

Loss in equity method investments


-



(642)

Net income(loss)


22,588



(16,227)







Earnings(loss) per ADS, basic


0.49



(0.35)

Earnings(loss) per ADS, diluted


0.48



(0.35)

Weighted average ADS outstanding (million)


45.70



46.73

Weighted average ADS used in diluted EPS
calculation (million)


46.89



46.73

Net income


22,588



(16,227)

Other comprehensive income


1,968



4,072

Total comprehensive income


24,556



(12,155)








KongZhong Corporation

Condensed Consolidated Balance Sheets

(Unaudited, US$ in thousands)










As of


As of


As of


December 31,

September 30,

December 31,


2014


2015

2015

Assets







Current assets







Cash and cash equivalents


105,093


33,139


38,304

Term deposits


16,907


26,047


25,121

Available-for-sale securities


20,014


52,563


64,756

Held-to-maturity securities


24,359


17,083


26,747

Accounts receivable (net)


30,244


24,235


24,485

Restricted cash


53,376


18,230


58,467

Other current assets


19,070


71,209


72,717

Total current assets


269,063


242,506


310,597








Non-current assets







Rental deposits


1,445


1,385


1,397

Intangible assets (net)

55,510


13,392


12,516

Property and equipment (net)


5,659


5,078


4,654

Long-term investments


-


3,844


4,773

Goodwill


90,019


86,553


84,770

Restricted cash


10,885


40,872


-

Total non-current assets


163,518


151,124


108,110

Total assets


432,581


393,630


418,707








Liabilities and Shareholders' Equity







Current Liabilities







Accounts payable


31,600


23,590


28,075

(including accounts payable of the
consolidated variable interest entities
("VIE") without recourse to KongZhong
Corporation of $31,546,$23,579 and
$28,063 as of December 31, 2014,
September 30, 2015 and December 31,
2015, respectively)

Short-term bank loan


42,429


7,534


49,963

(including short-term bank loan of the
consolidated VIE without recourse to
KongZhong Corporation of $nil, $nil and
$nil as of December 31, 2014, September
30, 2015 and December 31, 2015,
respectively)

Deferred revenue


4,652


2,860


7,917

(including deferred revenue of the
consolidated VIE without recourse to
KongZhong Corporation of $4,622, $2,831
and $7,888 as of December 31, 2014,
September 30, 2015 and December 31,
2015, respectively)

Other current liabilities


22,110


16,673


20,991

(including other current liabilities of the
consolidated VIE without recourse to
KongZhong Corporation of $14,693,$8,636
and $15,142 as of December 31, 2014,
September 30, 2015 and December 31,
2015, respectively)

Total current liabilities


100,791


50,657


106,946








Non-current Liabilities







Other long-term liabilities


9,860


-


-

(including other long-term liabilities of the
consolidated VIE without recourse to
KongZhong Corporation of $9,860, $nil
and $nil as of December 31, 2014,
September 30, 2015 and December 31,
2015, respectively)



-


42,429


-

Long-term bank loan

(including long-term bank loan of the
consolidated VIE without recourse to
KongZhong Corporation of $nil, $nil and
$nil as of December 31, 2014, September
30, 2015 and December 31, 2015,
respectively)

Total non-current liabilities


9,860


42,429


-



321,930


300,544


311,761

Shareholders' equity

Total liabilities and shareholders' equity


432,581


393,630


418,707











KongZhong Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited, US$ in thousands)


Twelve Months Ended


December 31,


December 31,


2014


2015

Cash Flows From Operating Activities




Net income (loss)

22,588


(16,227)

Adjustments to reconcile net income to net cash




provided by operating activities

Depreciation and amortization

21,523


10,143

Loss(gain) on disposal of property and equipment

(7)


138

Investment income from available-for-sale securities

-


(1,164)

Dividend received

-


628

Provision for bad debt

317


685

Imputed interest on long-term liabilities

600


140

Impairment loss on cost method investment

2,000


-

Loss on equity method investments

-


642

Share-based compensation

1,548


1,045

Impairment loss on intangible assets

1,323


35,210

Changes in operating assets and liabilities

(18,823)


552

Net Cash Provided by Operating Activities

31,069


31,792





Cash Flows From Investing Activities




Purchase of intangible assets

(98)


-

Purchase of term deposits

(18,521)


(9,989)

Proceeds from disposal of term deposits

6,078


1,736

Investments

(16,380)


(8,277)

Purchase of held-to-maturity securities

(191,038)


(61,703)

Purchase of available-for-sale securities

-


(24,695)

Proceeds from disposal of available-for-sale securities

-


1,501

Proceeds from disposal of held-to-maturity securities

218,358


58,174

Proceeds from disposal of property and equipment

7


34

Purchase of property and equipment

(3,122)


(2,273)

Addition of restricted cash

(42,402)


(9,241)

Release of restricted cash

15,000


9,989

Loans to equity method investee

-


(34,352)

Loans to third parties

-


(26,443)

Loan repayment from third parties

-


11,595

Net Cash Used in Investing Activities

(32,118)


(93,944)





Cash Flows From Financing Activities

Proceeds from exercise of employee stock options

437


940

Deferred payments for acquisition of business

(2,881)


-

Deferred payments for intangible assets

(21,828)


(10,396)

Repurchase of ordinary shares

(12)


-

Proceeds from bank borrowing

42,429


7,534

Dividends paid to shareholders

(40,999)


-

Proceeds from exercise of warrants

5,940


-

Net Cash Used in Financing Activities

(16,914)


(1,922)





Effect of foreign exchange rate changes

(372)


(2,715)





Net decrease in Cash and Cash Equivalents

(18,335)


(66,789)

Cash and Cash Equivalents, Beginning of Period

123,428


105,093

Cash and Cash Equivalents, End of Period

105,093


38,304






Non-GAAP Financial Measures

To supplement the unaudited condensed statements of comprehensive income presented in accordance with US GAAP, the Company uses non-GAAP financial measures (Non-GAAP Financial Measures) of net income and net income per diluted ADS, which are adjusted from results based on GAAP to exclude certain infrequent or unusual or non-cash based expenses, gains and losses. The Non-GAAP Financial Measures are provided as additional information to help both management and investors compare business trends among different reporting periods on a consistent and more meaningful basis and enhance investors' overall understanding of the Company's current financial performance and prospects for the future.

The Non-GAAP Financial Measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. In addition, the Company's calculation of the Non-GAAP Financial Measures may be different from the calculation used by other companies, and therefore comparability may be limited.

For the periods presented, the Company's non-GAAP gross profit excludes, as applicable, impairment loss on intangible assets. In addition, the Company's non-GAAP net income and non-GAAP net income per diluted ADS exclude, as applicable, the amortization of intangibles, share-based compensation expense, imputed interest on long-term liabilities, impairment loss on intangible assets, as well as impairment loss on cost method investment and are adjusted for the dilution impact on ADS numbers from stock options, non-vested shares and warrants.

Reconciliation of the Company's Non-GAAP financial measures to the GAAP financial measures is set forth below.

(US$ in thousands, except per share and share data)


Three Months Ended

December 31,


September 30,


December 31,


2014


2015


2015







GAAP net income

9,069


3,901


6,100

Share-based compensation

230


234


344

Imputed interest on long-term liabilities

150


-


-

Amortization of intangibles

600


403


541

Non-GAAP net income

10,049


4,538


6,985







Weighted average ADS used in diluted EPS
calculation (million)

46.59


47.21


47.30







Non-GAAP diluted net income per ADS

0.22


0.10


0.15


Twelve Months Ended

December 31,


December 31,


2014


2015

GAAP net income(loss)

22,588


(16,227)

Share-based compensation

1,548


1,045

Impairment loss on cost method investment

2,000


-

Impairment loss on intangible assets

1,323


35,210

Imputed interest on long-term liabilities

600


140

Amortization of intangibles

1,841


2,143

Non-GAAP net income

29,900


22,311





Weighted average ADS used in diluted EPS
calculation (million) (Note)

46.89


47.11

Non-GAAP diluted net income per ADS

0.64


0.47





Note: There is no diluted effect for the US GAAP loss per ADS. There is a diluted effect on Non-GAAP earnings per share as it was net income on Non-GAAP measures.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kongzhong-corporation-reports-fourth-quarter-2015-unaudited-financial-results-300241002.html

Source: KongZhong Corporation
collection