NQ Mobile™ Expects Second Quarter 2013 Revenues to Exceed $40 Million, Above The Previously Announced Revenue Guidance Range Of $38.5 -- $38.8 Million
The company agrees to purchase the remaining 45 percent stake in its subsidiary, NationSky, and expects the transaction to be accretive in its third quarter 2013
BEIJING and DALLAS, July 15, 2013 /PRNewswire/ -- NQ Mobile Inc. (NYSE: NQ) (NQ Mobile), a leading global provider of mobile Internet services, today provides its preliminary second quarter 2013 revenue guidance. The company now estimates that its overall revenues for the second quarter 2013 will exceed $40 million. The company will provide final second quarter 2013 results during its regularly scheduled earnings conference in mid-August.
Also, the company announces that it has entered into a share purchase agreement to acquire the remaining 45 percent stake in its subsidiary, Beijing NationSky Network Technology, Inc. (NationSky), and fully consolidate the two businesses. This transaction is expected to be accretive to earnings in the third quarter 2013 as both the revenue growth and profitability trends of NationSky are exceeding the company's original targets.
The total cash and stock consideration for the NationSky purchase is valued at $25.2 million. The consideration includes $11 million in cash and $14.2 million in the company's Class A common shares. There will be additional performance-based consideration provided that certain profitability targets are met over the next 18 months.
"Our businesses are performing extremely well. With our updated second quarter 2013 revenue outlook, it is clear that our strategy to monetize our growing user base is taking hold. Our excitement is only increasing as we look towards the future of our business," said Co-CEO, Omar Khan. "The purchase of the remaining 45 percent of NationSky is also an exciting development. NationSky is well positioned to leverage the explosive global growth in enterprise mobility solutions. The bring-your-own-device (BYOD) trends within the enterprise are blending the individual consumer's desires with the demands of the enterprise environment. By fully integrating our business with that of NationSky, NQ Mobile is uniquely positioned as a global mobility solutions and services provider."
"Mobility trends are changing the way enterprises work. NationSky has successfully positioned itself in targeting the enterprise mobility market. The NationSky business has exceeded our expectations since we purchased a controlling 55 percent in NationSky in early 2012," said the Co-Founder and Co-CEO of NQ Mobile, Dr. Henry Lin. "We are excited to be in a position to fully consolidate NationSky's businesses and better reap the rewards of NationSky's rapidly advancing enterprise mobility business. We believe that our shareholders will benefit from the financial and strategic value of this deal."
NationSky currently has more than 1,250 large enterprise customers including banks, brokers, insurance and healthcare companies. Many of these companies are Fortune 500 companies. NationSky has become a tier-1 partner of Apple and Lenovo products and solutions to enterprise customers.
"I am excited to complete the integration with NQ Mobile," said the CEO of NationSky, Charlie Hou. "NQ Mobile provides industry-leading products and services which, when combined with NationSky's enterprise customer base, will drive our leadership in enterprise mobility in China."
The company will host a conference call today at 5:00 p.m. EDT to further discuss the details of this transaction and the related financial and strategic implications. The dial-in information for the call is set forth below. Additionally, a presentation for the conference call is located under the Investors Relations section of the Company's website at ir.nq.com.
The dial-in details for the conference call are:
U.S. Toll Free: 1 866 519 4004
International: +1 718 354 1231
Hong Kong: +852 2475 0994
United Kingdom: +44 2030598139
China Mainland: 400 620 8038 or 800 819 0121
Conference ID # 19520132
Please dial in 10 minutes before the call is scheduled to begin and provide the conference ID to join the call.
NationSky is a leading enterprise mobile services provider headquartered in Beijing, China. Founded in 2005, NationSky provides device agnostic managed mobile services, mobile device management services and other mobile SaaS offerings to over 1,250 enterprise customers in China in a wide range of industries, including IT, manufacturing, finance, energy, healthcare. NationSky enables employees to access the back-end enterprise office system when conducting business activities such as emailing, communication, project planning and more. The current business portfolio covers enterprises services based on platforms such as Apple iOS, BlackBerry and Android. NationsSky also possesses a strong relationship with wireless carriers, such as China Mobile, and provide relevant distribution and maintenance services
About NQ Mobile
NQ Mobile Inc. (NYSE: NQ) is a leading global provider of mobile Internet services. NQ Mobile is a mobile security pioneer with proven competency to acquire, engage, and monetize customers globally. NQ Mobile's portfolio includes mobile security and mobile games & advertising for the consumer market and consulting, mobile platforms and mobility services for the enterprise market. As of March 31, 2013, NQ Mobile maintains a large, global user base of 327 million registered user accounts and 111 million monthly active user accounts through its consumer mobile security business, 77 million registered user accounts and 14 million monthly active user accounts through its mobile games & advertising business and over 1,250 enterprise customers. NQ Mobile maintains dual headquarters in Dallas, Texas, USA and Beijing, China. For more information on NQ Mobile, please visit http://www.nq.com.
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 U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
NQ Mobile Inc.
SOURCE NQ Mobile Inc.
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