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Beginning with this period for the reported results for the first, second, and third quarters of 2017,
In addition, beginning with these reported results for the first, second, and third quarters of 2017 and going forward, the Company will report its revenue streams in the following two categories: Consumer and Enterprise. Revenues from consumers will consist of revenues from advertising services and revenues from other services (including mobile security revenues, excluding mobile gaming and mobile social network revenues which are part of the FL Mobile and Showself group which has been classified as discontinued operations). Revenues from enterprises will be broken down into product and service revenues. Revenues from products will come from hardware sales to enterprise users. Revenues from services will come from technology and software development services to enterprise users.
Highlights For The Nine Months Period From
- Net Revenues of
$44.2 million for the nine months endedSeptember 30, 2017 , up slightly from$43.2 million in the same period a year ago. GAAP Net Loss attributable toNQ Mobile for the nine months endedSeptember 30, 2017 was$116.7 million or$1.16 per fully diluted ADS. This included the one-time, non-cash impairment of goodwill and intangible assets of$97.9 million during the period. - Non-GAAP Net Income attributable to
NQ Mobile for the nine months endedSeptember 30, 2017 was$15.1 million or$0.15 per fully diluted ADS.
"We look forward to moving forward with our future plans in the smart car businesses," said Mr.
"With the Divestments closed, we can now move ahead focused on the future business opportunities and growth," said Mr.
First Quarter 2017 Results
Revenues
Net revenues in the first quarter of 2017 decreased 26.3% year-over-year to
Consumer Services revenues consist of advertising and other consumer services. Advertising revenues decreased 34.1% year-over-year to
Enterprise Product revenues decreased 15.9% year-over-year to
Cost of Revenues
Cost of revenues in the first quarter of 2017 decreased 26.1% year-over-year to
Gross Loss and Gross Margin
Gross loss in the first quarter of 2017 narrowed 23.0% to
Operating Expenses
Selling and marketing expenses in the first quarter of 2017 decreased 25.7% year-over-year to
General and administrative expenses in the first quarter of 2017 decreased 48.2% year-over-year to
Research and development expenses in the first quarter of 2017 increased 34.3% year-over-year to
Impairment of goodwill and intangible assets in the first quarter of 2017 was
Total operating expenses in the first quarter of 2017 increased 348.3% year-over-year to
Non-GAAP operating expenses, which exclude share-based compensation, the amortization of intangible assets arising from acquisitions, and impairment of goodwill and intangible assets in the first quarter of 2017 increased 9.8% year-over-year to
Share-based compensation expenses
Share-based compensation expenses, which were allocated to related operating cost and expenses line items, amounted to
Loss from Operations
Loss from operations in the first quarter of 2017 was
Non-GAAP loss from operations, which excludes share-based compensation, amortization of intangible assets arising from acquisitions, and impairment of goodwill and intangible assets, was
Foreign Exchange gain/ (loss), and Interest Expenses
Foreign exchange gain was
Realized gain on Disposal of a Subsidiary
In the first quarter of 2017, we recorded a gain from the disposal of a subsidiary of
Income Tax
Income tax benefit was
Discontinued Operations
The Company presents FL Mobile and Showself's live social mobile video business as assets/liabilities held for sale on the balance sheets and as discontinued operation on the statements of operations for the quarter ended
Net Loss
Net loss attributable to
Cash and Cash Equivalents and Term Deposits
Cash and cash equivalents and term deposits amounted to
Cash Flow
Net cash flow used in operations for the first quarter of 2017 was
Second Quarter 2017 Results
Revenues
Net revenues in the second quarter of 2017 increased 15.3% year-over-year to
Consumer Services revenues consist of advertising and other consumer services. Advertising revenues decreased 48.6% year-over-year to
Enterprise Product revenues increased 96.4% year-over-year to
Cost of Revenues
Cost of revenues in the second quarter of 2017 increased 31.6% year-over-year to
Gross Loss and Gross Margin
Gross loss in the second quarter of 2017 was
Operating Expenses
Selling and marketing expenses in the second quarter of 2017 decreased 45.2% year-over-year to
General and administrative expenses in the second quarter of 2017 increased 90.8% year-over-year to
Research and development expenses in the second quarter of 2017 increased 3.1% year-over-year to
Total operating expenses in the second quarter of 2017 increased 43.1% year-over-year to
Non-GAAP operating expenses, which exclude share-based compensation, the amortization of intangible assets arising from acquisitions, and impairment of goodwill and intangible assets in the second quarter of 2017 increased 20.4% year-over-year to
Share-based compensation expenses
Share-based compensation expenses, which were allocated to related operating cost and expenses line items, amounted to
Loss from Operations
Loss from operations in the second quarter of 2017 was
Non-GAAP loss from operations, which excludes share-based compensation, amortization of intangible assets arising from acquisitions, and impairment of goodwill and intangible assets, was
Foreign Exchange gain/ (loss), and Interest Expenses
Foreign exchange gain was
Income Tax
Income tax benefit was
Discontinued Operations
The Company presents FL Mobile and Showself's live social mobile video business as assets/liabilities held for sale on the balance sheets and as discontinued operation on the statements of operations for the quarter ended
Net (Loss)/Income
Net Loss attributable to
Cash and Cash Equivalents and Term Deposits
Cash and cash equivalents and term deposits amounted to
Cash Flow
Net cash used in operations for the second quarter of 2017 was 27.1million.
Third Quarter 2017 Results
Revenues
Net revenues in the third quarter of 2017 increased 23.7% year-over-year to
Consumer Services revenues consist of advertising and other consumer services. Advertising revenues decreased 45.2% year-over-year to
Enterprise Product revenues increased 71.4% year-over-year to
Cost of Revenues
Cost of revenues in the third quarter of 2017 increased 17.5% year-over-year to
Gross Profit/Loss and Gross Margin
Gross Profit in the third quarter of 2017 was
Operating Expenses
Selling and marketing expenses in the third quarter of 2017 decreased 32.7% year-over-year to
General and administrative expenses in the third quarter of 2017 decreased 46.6% year-over-year to
Research and development expenses in the third quarter of 2017 decreased 19.4% year-over-year to
Impairment of goodwill and intangible assets in the third quarter of 2017 was
Total operating expenses in the third quarter of 2017 increased 58.1% year-over-year to
Non-GAAP operating expenses, which exclude share-based compensation, the amortization of intangible assets arising from acquisitions, and impairment of goodwill and intangible assets in the third quarter of 2017 decreased 24.4% year-over-year to
Share-based Compensation Expenses
Share-based compensation expenses, which were allocated to related operating cost and expense line times, amounted to
Loss from Operations
Loss from operations in the third quarter of 2017 was
Non-GAAP loss from operations, which excludes share-based compensation, amortization of intangible assets arising from acquisitions, and impairment of goodwill and intangible assets, was
Foreign Exchange gain/(loss), and Interest Expenses
Foreign exchange gain was
Income Tax
Income tax benefit was
Discontinued Operations
The Company presents FL Mobile and Showself's live social mobile video business as assets/liabilities held for sale on the balance sheets and as discontinued operation on the statements of operations for the quarter ended
Net (Loss)/Income
Net Loss attributable to
Cash, Cash Equivalents, Term Deposits and Restricted Cash
Cash, cash equivalents, term deposits, and restricted cash amounted to
Cash Flow
Net cash used in operations for the third quarter of 2017 was
Other Significant Events
Completion of the FL Mobile Divestment and the Sale of Showself's Live Social Video Business
The Company announced in a press release on
Buyback Program
The Company announced on
Subsequent to the announcement on
NQ Mobile Files Form 20-F for the year 2016
As announced on
Conference Call Information
The dial-in details for the conference call are:
U.S. Toll Free: 1-866-519-4004
International: 1-845-675-0437
Conference ID: 5391237
Please dial in 10 minutes before the call is scheduled to begin and provide the conference ID to join the call.
A replay of the call will be available after the conclusion of the conference call at 11:00 p.m. U.S. Eastern Time on
U.S. Toll Free: +1-855-452-5696
International: +1-646-254-3697
Conference ID: 32786286
Additionally, a live and archived webcast of this call will be available on the Investor Relations section of NQ Mobile's website at http://ir.nq.com.
Follow us on Twitter @NQMobileIR.
About NQ Mobile
Non-GAAP Financial Measures
To supplement the Company's financial results prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP"),
The Company's non-GAAP financial information is provided as additional information to help the Company's investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of the Company's continuing operations and its prospects for the future. The Company's non-GAAP financial information 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 this non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.
The non-GAAP financial measures are provided to enhance investors' overall understanding of
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties, Further information regarding these and other risks is included in the Company's filings with the
INVESTOR RELATIONS:
NQ Mobile Inc.
Email: investors@nq.com
Phone:
+1 469 310 5281
+86 10 6452 2017
Twitter : @NQMobileIR
NQ MOBILE INC. |
||||||||
As of |
||||||||
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
|||||
US$ |
US$ |
US$ |
US$ |
|||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
9,896 |
13,661 |
44,616 |
43,220 |
||||
Term deposits |
228,065 |
229,978 |
225,830 |
223,728 |
||||
Restricted cash |
10,848 |
- |
- |
- |
||||
Accounts receivable, net of allowance of US$21,790, |
11,086 |
12,721 |
12,324 |
16,148 |
||||
Inventory |
3,878 |
1,707 |
3,784 |
1,922 |
||||
Deferred tax assets, current portion |
- |
- |
- |
188 |
||||
Prepaid expenses and other current assets, net of allowance of |
31,264 |
35,561 |
35,710 |
33,907 |
||||
Assets held for sale classified as current assets |
365,299 |
361,423 |
356,260 |
176,585 |
||||
Total current assets |
660,336 |
655,051 |
678,524 |
495,698 |
||||
Non-current assets: |
||||||||
Equity investments, net |
86,018 |
85,792 |
75,733 |
67,911 |
||||
Property and equipment, net |
2,548 |
2,650 |
2,689 |
2,798 |
||||
Intangible assets, net |
1,872 |
5,089 |
5,549 |
9,067 |
||||
Goodwill |
6,512 |
20,639 |
20,279 |
118,851 |
||||
Deferred tax assets, non-current portion |
1,865 |
1,582 |
1,461 |
1,427 |
||||
Consideration prepaid for acquiring an investee |
1,354 |
1,354 |
990 |
4,081 |
||||
Other non-current assets |
3,591 |
3,303 |
232 |
1,003 |
||||
Assets held for sale classified as non-current assets |
- |
- |
- |
152,792 |
||||
Total Assets |
764,096 |
775,460 |
785,457 |
853,628 |
||||
LIABILITIES |
||||||||
Current liabilities: |
||||||||
Advance from customers |
3,012 |
1,202 |
993 |
852 |
||||
Accounts payable |
6,827 |
7,877 |
8,672 |
8,537 |
||||
Deferred revenue |
4,528 |
4,413 |
4,358 |
4,626 |
||||
Consideration received from shareholder |
48,625 |
47,638 |
46,776 |
46,521 |
||||
Consideration received from investors |
28,355 |
28,587 |
28,182 |
- |
||||
Accrued expenses and other current liabilities |
8,375 |
15,414 |
20,700 |
20,039 |
||||
Tax payable |
2,797 |
2,980 |
2,965 |
2,946 |
||||
Short term borrowing |
5,850 |
2,850 |
2,850 |
2,850 |
||||
Liabilities held for sale classified as current liabilities |
55,133 |
55,232 |
62,362 |
73,272 |
||||
Total current liabilities |
163,502 |
166,193 |
177,858 |
159,643 |
||||
Non-current liabilities: |
||||||||
Derivative liability of contingent interest |
9,716 |
8,336 |
5,419 |
7,205 |
||||
Convertible debt, net of unamortized debt issuance costs and |
212,403 |
210,553 |
208,766 |
207,040 |
||||
Deferred tax liabilities |
1,721 |
2,136 |
2,446 |
3,247 |
||||
Liabilities held for sale classified as non-current liabilities |
- |
- |
- |
729 |
||||
Total Liabilities |
387,342 |
387,218 |
394,489 |
377,864 |
||||
EQUITY |
||||||||
NQ Mobile Inc.'s shareholders' equity |
299,777 |
312,065 |
317,292 |
385,843 |
||||
Non-controlling interest |
76,977 |
76,177 |
73,676 |
89,921 |
||||
Total equity |
376,754 |
388,242 |
390,968 |
475,764 |
||||
Total Liabilities and Equity |
764,096 |
775,460 |
785,457 |
853,628 |
NQ MOBILE INC. |
|||||||||||||||||||||||||||||||
Three months ended |
|||||||||||||||||||||||||||||||
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
September 30, |
June 30, 2016 |
March 31, 2016 |
||||||||||||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||||||||||||
Net Revenues |
|||||||||||||||||||||||||||||||
Consumer |
|||||||||||||||||||||||||||||||
-Advertising |
2,317 |
2,594 |
2,308 |
4,225 |
5,043 |
3,501 |
|||||||||||||||||||||||||
-Other services |
1,191 |
919 |
998 |
1,410 |
1,501 |
1,920 |
|||||||||||||||||||||||||
Enterprise |
|||||||||||||||||||||||||||||||
-Sales of product |
13,790 |
11,092 |
8,481 |
8,047 |
5,649 |
10,083 |
|||||||||||||||||||||||||
-Service |
186 |
86 |
217 |
456 |
554 |
788 |
|||||||||||||||||||||||||
Total net revenues |
17,484 |
14,691 |
12,004 |
14,138 |
12,747 |
16,292 |
|||||||||||||||||||||||||
Cost of revenues* |
(16,906) |
(15,358) |
(12,910) |
(14,393) |
(11,667) |
(17,469) |
|||||||||||||||||||||||||
Gross profit/ (loss) |
578 |
(667) |
(906) |
(255) |
1,080 |
(1,177) |
|||||||||||||||||||||||||
Operating expenses: |
|||||||||||||||||||||||||||||||
Selling and marketing expenses* |
(1,194) |
(1,258) |
(1,126) |
(1,773) |
(2,296) |
(1,515) |
|||||||||||||||||||||||||
General and administrative expenses* |
(6,715) |
(13,570) |
(8,720) |
(12,579) |
(7,113) |
(16,844) |
|||||||||||||||||||||||||
Research and development expenses* |
(2,573) |
(3,505) |
(3,482) |
(3,194) |
(3,399) |
(2,592) |
|||||||||||||||||||||||||
Impairment of goodwill and intangible assets |
(17,254) |
- |
(80,604) |
- |
- |
- |
|||||||||||||||||||||||||
Total operating expenses |
(27,736) |
(18,333) |
(93,932) |
(17,546) |
(12,808) |
(20,951) |
|||||||||||||||||||||||||
Loss from operations |
(27,158) |
(19,000) |
(94,838) |
(17,801) |
(11,728) |
(22,128) |
|||||||||||||||||||||||||
Interest expense |
(6,428) |
(6,393) |
(6,385) |
(1,947) |
(1,794) |
(1,800) |
|||||||||||||||||||||||||
Foreign exchange gain /(loss), net |
266 |
217 |
159 |
(291) |
(283) |
(22) |
|||||||||||||||||||||||||
Realized gain on disposal of a subsidiary |
- |
- |
1,038 |
- |
- |
- |
|||||||||||||||||||||||||
Investment (loss) /income , net |
(17) |
47 |
5 |
770 |
(352) |
936 |
|||||||||||||||||||||||||
Investment impairment loss |
(2,091) |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||
Fair value change of derivative liability |
(1,381) |
(2,917) |
1,786 |
- |
- |
- |
|||||||||||||||||||||||||
Other income, net |
542 |
521 |
631 |
824 |
859 |
352 |
|||||||||||||||||||||||||
Loss before income taxes |
(36,267) |
(27,525) |
(97,604) |
(18,445) |
(13,298) |
(22,662) |
|||||||||||||||||||||||||
Income tax benefit |
572 |
201 |
481 |
999 |
292 |
423 |
|||||||||||||||||||||||||
Net loss from continuing operation |
(35,695) |
(27,324) |
(97,123) |
(17,446) |
(13,006) |
(22,239) |
|||||||||||||||||||||||||
Discontinued operations: |
|||||||||||||||||||||||||||||||
Income from discontinued operations |
10,567 |
8,572 |
10,702 |
14,696 |
18,355 |
14,467 |
|||||||||||||||||||||||||
Net (loss)/income |
(25,128) |
(18,752) |
(86,421) |
(2,750) |
5,349 |
(7,772) |
|||||||||||||||||||||||||
Net loss/(income) attributable to the |
|||||||||||||||||||||||||||||||
Net loss attributable to the non- |
4,670 |
852 |
18,843 |
700 |
671 |
994 |
|||||||||||||||||||||||||
Net income attributable to the non- |
(3,969) |
(2,976) |
(3,774) |
(6,972) |
(5,512) |
(1,052) |
|||||||||||||||||||||||||
Net (loss)/income attributable to |
(24,427) |
(20,876) |
(71,352) |
(9,022) |
508 |
(7,830) |
|||||||||||||||||||||||||
Net (loss)/income |
(25,128) |
(18,752) |
(86,421) |
(2,750) |
5,349 |
(7,772) |
|||||||||||||||||||||||||
Other comprehensive income/(loss): |
11,402 |
9,503 |
5,326 |
(4,658) |
(17,880) |
3,495 |
|||||||||||||||||||||||||
Comprehensive loss |
(13,726) |
(9,249) |
(81,095) |
(7,408) |
(12,531) |
(4,277) |
|||||||||||||||||||||||||
Comprehensive (income)/loss |
(800) |
(2,501) |
14,115 |
(5,765) |
(3,095) |
(479) |
|||||||||||||||||||||||||
Comprehensive loss attributable |
(14,526) |
(11,750) |
(66,980) |
(13,173) |
(15,626) |
(4,756) |
|||||||||||||||||||||||||
Net (loss)/earnings per Class A and |
(0.0481) |
(0.0414) |
(0.1429) |
(0.0182) |
0.0010 |
(0.0160) |
|||||||||||||||||||||||||
Net loss per Class A and Class B |
(0.0611) |
(0.0525) |
(0.1567) |
(0.0338) |
(0.0252) |
(0.0435) |
|||||||||||||||||||||||||
Net earnings per Class A and Class |
0.0130 |
0.0111 |
0.0138 |
0.0156 |
0.0262 |
0.0275 |
|||||||||||||||||||||||||
Net (loss)/earnings per ADS, basic & |
(0.2405) |
(0.2070) |
(0.7145) |
(0.0910) |
0.0050 |
(0.0800) |
|||||||||||||||||||||||||
Net loss per ADS from continuing |
(0.3055) |
(0.2625) |
(0.7835) |
(0.1690) |
(0.1260) |
(0.2175) |
|||||||||||||||||||||||||
Net earnings per ADS from |
0.0650 |
0.0555 |
0.0690 |
0.0780 |
0.1310 |
0.1375 |
|||||||||||||||||||||||||
Weighted average number of common shares outstanding: |
|||||||||||||||||||||||||||||||
Basic & Diluted |
507,475,590 |
504,407,621 |
499,461,680 |
495,837,463 |
490,111,171 |
488,601,213 |
|||||||||||||||||||||||||
*Share-based compensation expenses included in: |
|||||||||||||||||||||||||||||||
Cost of revenues |
7 |
8 |
103 |
(10) |
9 |
10 |
|||||||||||||||||||||||||
Selling and marketing expenses |
7 |
(54) |
20 |
(33) |
330 |
158 |
|||||||||||||||||||||||||
General and administrative expenses |
163 |
5,233 |
- |
3,424 |
686 |
7,871 |
|||||||||||||||||||||||||
Research and development expenses |
- |
(66) |
3 |
(16) |
27 |
28 |
|||||||||||||||||||||||||
Total |
177 |
5,121 |
126 |
3,365 |
1,052 |
8,067 |
NQ MOBILE INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In thousands, except for share and per share data) |
|||||||||||||||||||||||
Nine months ended |
Six months ended |
||||||||||||||||||||||
September 30, 2017 |
September 30, 2016 |
June 30, 2017 |
June 30, 2016 |
||||||||||||||||||||
US$ |
US$ |
US$ |
US$ |
||||||||||||||||||||
Net Revenues |
|||||||||||||||||||||||
Consumer |
|||||||||||||||||||||||
-Advertising services |
7,219 |
12,769 |
4,902 |
8,544 |
|||||||||||||||||||
-Other services |
3,108 |
4,831 |
1,917 |
3,421 |
|||||||||||||||||||
Enterprise |
|||||||||||||||||||||||
-Sales of product |
33,363 |
23,779 |
19,573 |
15,732 |
|||||||||||||||||||
-Service |
489 |
1,798 |
303 |
1,342 |
|||||||||||||||||||
Total net revenues |
44,179 |
43,177 |
26,695 |
29,039 |
|||||||||||||||||||
Cost of revenues* |
(45,174) |
(43,529) |
(28,268) |
(29,136) |
|||||||||||||||||||
Gross loss |
(995) |
(352) |
(1,573) |
(97) |
|||||||||||||||||||
Operating expenses: |
|||||||||||||||||||||||
Selling and marketing expenses* |
(3,578) |
(5,584) |
(2,384) |
(3,811) |
|||||||||||||||||||
General and administrative expenses* |
(29,005) |
(36,536) |
(22,290) |
(23,957) |
|||||||||||||||||||
Research and development expenses* |
(9,560) |
(9,185) |
(6,987) |
(5,991) |
|||||||||||||||||||
Impairment of goodwill and intangible assets |
(97,858) |
- |
(80,604) |
- |
|||||||||||||||||||
Total operating expenses |
(140,001) |
(51,305) |
(112,265) |
(33,759) |
|||||||||||||||||||
Loss from operations |
(140,996) |
(51,657) |
(113,838) |
(33,856) |
|||||||||||||||||||
Interest expense |
(19,206) |
(5,541) |
(12,778) |
(3,594) |
|||||||||||||||||||
Foreign exchange gain /(loss), net |
642 |
(596) |
376 |
(305) |
|||||||||||||||||||
Realized gain on disposal of a subsidiary |
1,038 |
- |
1,038 |
- |
|||||||||||||||||||
Investment income |
35 |
1,354 |
52 |
584 |
|||||||||||||||||||
Investment impairment loss |
(2,091) |
- |
- |
- |
|||||||||||||||||||
Fair value change of derivative liability |
(2,512) |
- |
(1,131) |
- |
|||||||||||||||||||
Other income, net |
1,694 |
2,035 |
1,152 |
1,211 |
|||||||||||||||||||
Loss before income taxes |
(161,396) |
(54,405) |
(125,129) |
(35,960) |
|||||||||||||||||||
Income tax benefit |
1,254 |
1,714 |
682 |
715 |
|||||||||||||||||||
Net loss from continuing operation |
(160,142) |
(52,691) |
(124,447) |
(35,245) |
|||||||||||||||||||
Discontinued operations: |
|||||||||||||||||||||||
Income from discontinued operations (net of income tax |
29,841 |
47,518 |
19,274 |
32,822 |
|||||||||||||||||||
Net loss |
(130,301) |
(5,173) |
(105,173) |
(2,423) |
|||||||||||||||||||
Net loss/(income) attributable to the non-controlling interest |
|||||||||||||||||||||||
Net loss attributable to the non-controlling interest |
24,365 |
2,365 |
19,695 |
1,665 |
|||||||||||||||||||
Net income attributable to the non-controlling |
(10,719) |
(13,536) |
(6,750) |
(6,564) |
|||||||||||||||||||
Net loss attributable to NQ Mobile Inc. |
(116,655) |
(16,344) |
(92,228) |
(7,322) |
|||||||||||||||||||
Net loss |
(130,301) |
(5,173) |
(105,173) |
(2,423) |
|||||||||||||||||||
Other comprehensive income/(loss): foreign |
26,231 |
(19,043) |
14,829 |
(14,385) |
|||||||||||||||||||
Comprehensive loss |
(104,070) |
(24,216) |
(90,344) |
(16,808) |
|||||||||||||||||||
Comprehensive loss/(income) attributable to non- |
10,814 |
(9,339) |
11,614 |
(3,574) |
|||||||||||||||||||
Comprehensive loss attributable to NQ Mobile Inc. |
(93,256) |
(33,555) |
(78,730) |
(20,382) |
|||||||||||||||||||
Net loss per Class A and Class B common share, basic |
(0.2315) |
(0.0333) |
(0.1837) |
(0.0150) |
|||||||||||||||||||
Net loss per Class A and Class B common share |
(0.2695) |
(0.1024) |
(0.2087) |
(0.0686) |
|||||||||||||||||||
Net earnings per Class A and Class B common |
0.0380 |
0.0691 |
0.0250 |
0.0536 |
|||||||||||||||||||
Net loss per ADS, basic & diluted |
(1.1575) |
(0.1665) |
(0.9185) |
(0.0750) |
|||||||||||||||||||
Net loss per ADS from continuing operations, basic & |
(1.3475) |
(0.5120) |
(1.0435) |
(0.3430) |
|||||||||||||||||||
Net earnings per ADS from discontinued operations, basic & |
0.1900 |
0.3455 |
0.1250 |
0.2680 |
|||||||||||||||||||
Weighted average number of common shares outstanding: |
|||||||||||||||||||||||
-Basic & Diluted |
503,810,985 |
491,532,385 |
501,948,313 |
489,356,192 |
|||||||||||||||||||
*Share-based compensation expenses included in: |
|||||||||||||||||||||||
Cost of revenues |
118 |
9 |
111 |
19 |
|||||||||||||||||||
Selling and marketing expenses |
(27) |
455 |
(34) |
488 |
|||||||||||||||||||
General and administrative expenses |
5,396 |
11,981 |
5,233 |
8,557 |
|||||||||||||||||||
Research and development expenses |
(63) |
39 |
(63) |
55 |
|||||||||||||||||||
Total |
5,424 |
12,484 |
5,247 |
9,119 |
NQ MOBILE INC. |
||||||||||||||||||||
Three months ended |
||||||||||||||||||||
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
September 30, 2016 |
June 30, 2016 |
March 31 2016 |
|||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|||||||||||||||
Selling and marketing expenses under GAAP |
(1,194) |
(1,258) |
(1,126) |
(1,773) |
(2,296) |
(1,515) |
||||||||||||||
Adjustment (a) |
7 |
(54) |
20 |
(33) |
330 |
158 |
||||||||||||||
Non-GAAP selling and marketing expenses |
(1,187) |
(1,312) |
(1,106) |
(1,806) |
(1,966) |
(1,357) |
||||||||||||||
General and administrative expenses under GAAP |
(6,715) |
(13,570) |
(8,720) |
(12,579) |
(7,113) |
(16,844) |
||||||||||||||
Adjustment (a) |
163 |
5,233 |
- |
3,424 |
686 |
7,871 |
||||||||||||||
Adjustment (c) |
- |
- |
- |
565 |
577 |
577 |
||||||||||||||
Non-GAAP general and administrative expenses |
(6,552) |
(8,337) |
(8,720) |
(8,590) |
(5,850) |
(8,396) |
||||||||||||||
Research and development expenses under GAAP |
(2,573) |
(3,505) |
(3,482) |
(3,194) |
(3,399) |
(2,592) |
||||||||||||||
Adjustment (a) |
- |
(66) |
3 |
(16) |
27 |
28 |
||||||||||||||
Adjustment (c) |
114 |
114 |
114 |
114 |
305 |
305 |
||||||||||||||
Non-GAAP research and development expenses |
(2,459) |
(3,457) |
(3,365) |
(3,096) |
(3,067) |
(2,259) |
||||||||||||||
Loss from operations under GAAP |
(27,158) |
(19,000) |
(94,838) |
(17,801) |
(11,728) |
(22,128) |
||||||||||||||
Adjustment (a) |
177 |
5,121 |
126 |
3,365 |
1,052 |
8,067 |
||||||||||||||
Adjustment (c) |
358 |
351 |
556 |
1,626 |
1,954 |
1,674 |
||||||||||||||
Adjustment (d) |
17,254 |
- |
80,604 |
- |
- |
- |
||||||||||||||
Non-GAAP loss from operations |
(9,369) |
(13,528) |
(13,552) |
(12,810) |
(8,722) |
(12,387) |
||||||||||||||
Net (loss)/ income attributable to NQ Mobile Inc. under GAAP |
(24,427) |
(20,876) |
(71,352) |
(9,022) |
508 |
(7,830) |
||||||||||||||
Adjustment (a) |
177 |
5,121 |
126 |
3,365 |
1,052 |
8,067 |
||||||||||||||
Adjustment (b) |
8,730 |
10,204 |
5,440 |
2,653 |
2,338 |
2,330 |
||||||||||||||
Adjustment (c) |
1,067 |
1,063 |
1,853 |
3,325 |
3,681 |
3,400 |
||||||||||||||
Adjustment (d) |
19,345 |
- |
80,604 |
- |
- |
- |
||||||||||||||
Adjustment (e) |
(570) |
(454) |
(924) |
(502) |
(818) |
(593) |
||||||||||||||
Non-GAAP net income/(loss) attributable to NQ Mobile Inc. |
4,322 |
(4,942) |
15,747 |
(181) |
6,761 |
5,374 |
||||||||||||||
Non- GAAP weighted average number of diluted ADS outstanding: |
||||||||||||||||||||
-Basic |
101,495,118 |
100,881,524 |
99,892,336 |
99,167,493 |
98,022,234 |
97,720,243 |
||||||||||||||
-Diluted |
101,896,886 |
100,881,524 |
100,506,191 |
99,167,493 |
99,404,207 |
98,910,564 |
||||||||||||||
Non-GAAP earnings/(loss) per ADS, basic |
0.0426 |
(0.0490) |
0.1576 |
(0.0018) |
0.0690 |
0.0550 |
||||||||||||||
Non-GAAP earnings/(loss) per ADS, diluted |
0.0424 |
(0.0490) |
0.1567 |
(0.0018) |
0.0680 |
0.0543 |
(a) |
Adjustment to exclude the share-based compensation expenses for each period |
|||||||||||||||||||
(b) |
Adjustment to exclude the interest expenses related to convertible debt and fair value change of derivative liability |
|||||||||||||||||||
(c) |
Adjustment to exclude the amortization of intangible assets arising from acquisitions |
|||||||||||||||||||
(d) |
Adjustment to exclude impairment loss from goodwill, intangible assets arising from acquisitions and investment |
|||||||||||||||||||
(e) |
To adjust income tax provision related to item (c) and (d). Deferred tax liabilities was recognized along with intangible assets recognized related to acquisitions. The amortization and impairment of such intangible assets resulted in reversal of corresponding deferred tax liabilities that impact deferred income tax expense. Other non-GAAP to GAAP reconciling items have no income tax effect * |
|||||||||||||||||||
*The reconciliation items (a) and (b) were recorded in entities in tax free jurisdictions hence no income tax implications. |
NQ MOBILE INC. |
|||||||||||||||||||
Nine months ended |
Six months ended |
||||||||||||||||||
September 30, 2017 |
September 30, 2016 |
June 30, 2017 |
June 30, 2016 |
||||||||||||||||
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
Selling and marketing expenses under GAAP |
(3,578) |
(5,584) |
(2,384) |
(3,811) |
|||||||||||||||
Adjustment (a) |
(27) |
455 |
(34) |
488 |
|||||||||||||||
Non-GAAP selling and marketing expenses |
(3,605) |
(5,129) |
(2,418) |
(3,323) |
|||||||||||||||
General and administrative expenses under GAAP |
(29,005) |
(36,536) |
(22,290) |
(23,957) |
|||||||||||||||
Adjustment (a) |
5,396 |
11,981 |
5,233 |
8,557 |
|||||||||||||||
Adjustment (c) |
- |
1,719 |
- |
1,154 |
|||||||||||||||
Non-GAAP general and administrative expenses |
(23,609) |
(22,836) |
(17,057) |
(14,246) |
|||||||||||||||
Research and development expenses under GAAP |
(9,560) |
(9,185) |
(6,987) |
(5,991) |
|||||||||||||||
Adjustment (a) |
(63) |
39 |
(63) |
55 |
|||||||||||||||
Adjustment (c) |
342 |
724 |
228 |
610 |
|||||||||||||||
Non-GAAP research and development expenses |
(9,281) |
(8,422) |
(6,822) |
(5,326) |
|||||||||||||||
Loss from operations under GAAP |
(140,996) |
(51,657) |
(113,838) |
(33,856) |
|||||||||||||||
Adjustment (a) |
5,424 |
12,484 |
5,247 |
9,119 |
|||||||||||||||
Adjustment (c) |
1,265 |
5,254 |
907 |
3,628 |
|||||||||||||||
Adjustment (d) |
97,858 |
- |
80,604 |
- |
|||||||||||||||
Non-GAAP loss from operations |
(36,449) |
(33,919) |
(27,080) |
(21,109) |
|||||||||||||||
Net loss attributable to NQ Mobile Inc. under GAAP |
(116,655) |
(16,344) |
(92,228) |
(7,322) |
|||||||||||||||
Adjustment (a) |
5,424 |
12,484 |
5,247 |
9,119 |
|||||||||||||||
Adjustment (b) |
24,374 |
7,321 |
15,644 |
4,668 |
|||||||||||||||
Adjustment (c) |
3,983 |
10,406 |
2,916 |
7,081 |
|||||||||||||||
Adjustment (d) |
99,949 |
- |
80,604 |
- |
|||||||||||||||
Adjustment (e) |
(1,948) |
(1,913) |
(1,378) |
(1,411) |
|||||||||||||||
Non-GAAP net income attributable to NQ Mobile Inc. |
15,127 |
11,954 |
10,805 |
12,135 |
|||||||||||||||
Non- GAAP weighted average number of diluted ADS outstanding: |
|||||||||||||||||||
-Basic |
100,762,197 |
98,306,477 |
100,389,663 |
97,871,238 |
|||||||||||||||
-Diluted |
101,305,512 |
99,561,290 |
100,980,038 |
99,157,386 |
|||||||||||||||
Non-GAAP earnings per ADS, basic |
0.1501 |
0.1216 |
0.1076 |
0.1240 |
|||||||||||||||
Non-GAAP earnings per ADS, diluted |
0.1493 |
0.1201 |
0.1070 |
0.1224 |
(a) |
Adjustment to exclude the share-based compensation expenses for each period |
||||||||||||||||||
(b) |
Adjustment to exclude the interest expenses related to convertible debt and fair value change of derivative liability |
||||||||||||||||||
(c) |
Adjustment to exclude the amortization of intangible assets arising from acquisitions |
||||||||||||||||||
(d) |
Adjustment to exclude impairment loss from goodwill, intangible assets arising from acquisitions and investment |
||||||||||||||||||
(e) |
To adjust income tax provision related to item (c) and (d). Deferred tax liabilities was recognized along with intangible assets recognized related to acquisitions. The amortization and impairment of such intangible assets resulted in reversal of corresponding deferred tax liabilities that impact deferred income tax expense. Other non-GAAP to GAAP reconciling items have no income tax effect * |
||||||||||||||||||
*The reconciliation items (a) and (b) were recorded in entities in tax free jurisdictions hence no income tax implications. |
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