Welcome!

Search Authors: Elizabeth White, Jnan Dash, Shelly Palmer, Carmen Gonzalez, Lori MacVittie

News Feed Item

Kingsoft Announces 2014 First Quarter Results



- Cheetah Mobile Strengthens Monetization Capabilities
- JX Online III has Grown for the Past 11 Consecutive Quarters


Hong Kong, May 28, 2014 - (ACN Newswire) - Kingsoft Corporation Limited ("Kingsoft" or the "Company"; SEHK: 03888), a well-known Chinese software and Internet service company, announced its unaudited quarterly results for the three months ended 31 March 2014.

During the period under review, the revenue of Kingsoft increased 1% quarter-over-quarter and 48% year-over-year to RMB675.6 million. Revenue from the online game, Cheetah Mobile and office software and others represented 44%, 43% and 13% respectively, of the Company's total revenue for the first quarter of 2014. Gross profit for the first quarter of 2014 decreased 2% quarter-over-quarter and increased 44% year-over-year to RMB 569.0 million. Profit attributable to owners of the parent for the first quarter of 2014 increased 48% quarter-over-quarter and 26% year-over-year to RMB 246.2 million.

Dr. HongJiang Zhang, Chief Executive Officer of Kingsoft, said, "We are pleased to report another strong first quarter results. Total revenue achieved a new record of RMB675.6 million, an increase of 48% year-over-year. We will make proactive investments in mobile business development and market expansion in 2014, though it may have adverse impact on our operating margin in the short term. We firmly believe that these investments are important to support our long term business growth and help us to align our strategy with tremendous mobile opportunities."
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------
                                     For the 3 months ended 
                                 March 31   Change   Dec 31   Change
RMB'000 (unaudited)         2014     2013   YoY(%)     2013   QoQ(%)
--------------------------------------------------------------------
Revenue                  675,625  456,859     48%   668,752      1%
--------------------------------------------------------------------
-Online Games            294,911  266,666     11%   287,724      2%
--------------------------------------------------------------------
-Cheetah Mobile          292,847  125,974    132%   249,833     17%
--------------------------------------------------------------------
-Office Software, Others  87,867   64,219     37%   131,195    -33%
--------------------------------------------------------------------
Gross Profit             569,012  395,278     44%   579,072     -2%
-------------------------------------------------------------------
Profit Attributable to
 Owners of the Parent    246,237  195,914     26%   166,301     48%
--------------------------------------------------------------------
Basic EPS (RMB Cents)         21       17     24%        14     50%
--------------------------------------------------------------------

OPERATIONAL HIGHLIGHTS
--------------------------------------------------------------------
                                  March 31      Dec 31     March 31
                                      2014        2013         2013
--------------------------------------------------------------------
- ONLINE GAMES
--------------------------------------------------------------------
Daily Av. Peak Concurrent Users    599,384     632,171      631,098
--------------------------------------------------------------------
Monthly Average Paying Users     1,972,027   1,869,433    1,768,190
--------------------------------------------------------------------
Monthly Average Revenue per
     Paying User (RMB)                  48          49          47
--------------------------------------------------------------------
- CHEETAH MOBILE
--------------------------------------------------------------------
Mobile Monthly Active Users (Mil)      223         166          46
--------------------------------------------------------------------
Mobile User (Mil)                      502         347         N/A
--------------------------------------------------------------------
% of Mobile MAU from Overseas Markets  63%         53%         N/A
--------------------------------------------------------------------
MAU of Duba.com Personal 
     Start Page (Mil)                   54         47           38
--------------------------------------------------------------------
BUSINESS REVIEW

Online Games Business

Revenue from the online game business increased 2% quarter-over-quarter and 11% year-over-year to RMB 294.9 million in the first quarter of 2014, even under the adverse impact of Chinese New Year holidays. With the continuous improvement of game experiences, JX Online III has grown for the past eleven consecutive quarters. In April 2014, Kingsoft launched a new expansion "Zhu Lu Zhong Yuan" for JX Online III and had received positive feedbacks. For now, more than five mobile games are under full swing development, of which two to three games are in the pipeline for release.

Monthly average paying accounts ("APA") for the Company's online games for the first quarter of 2014 increased 5% quarter-over-quarter and 12% year-over-year to 2 million. Daily average peak concurrent users ("ADPCU") for the Company's online games for the first quarter of 2014 reached 0.60 million while the monthly ARPU for the Company's online games for the first quarter of 2014 achieved RMB48.

Cheetah Mobile

Due to the growth in revenue from the internet-value added and online marketing services driven by contribution from mobile games and increasing traffic from Cheetah Mobile platform, revenue from Cheetah Mobile for the first quarter of 2014 increased 17% quarter-over-quarter and 132% year-over-year to RMB292.8 million.

Cheetah Mobile is now the #1 mobile application publisher in the Google Play Tools category based on worldwide downloads in March 2014, according to App Annie, and the #2 internet security software provider in China according to iResearch as of March 2014. Mobile monthly active users ("MAU") of Cheetah Mobile in March 2014 has increased 385% year over year from 46 million to 223 million, of which 63% are from the overseas markets. Mobile user in the first quarter of 2014 has increased 45% quarter over quarter from 347 million to 502 million. In the period under review, Cheetah Mobile strengthened its mobile monetization capabilities and had generated approximately 17% of its revenue from mobile services, compared with 11% in the fourth quarter of 2013. On 8 May 2014, Cheetah Mobile made its trading debut on the New York Stock Exchange.

Office Software and Others

Revenue from the office services and other business for the first quarter of 2014 decreased 33% quarter-over-quarter and increased 37% year-over-year to RMB87.9 million. The quarter-over-quarter decrease was mainly due to the adverse seasonal impact on WPS Office. The solid year-over-year increase was primarily attributable to record growth in revenue from WPS Office and online marketing revenue from WPS Office. The MAU of WPS Personal Edition continued to rise to over 66 million. The global MAU of WPS Mobile Office ramped up to 43 million in March 2014.

The daily data storage of Kingsoft's cloud storage services is close to 200T at the end of first quarter of 2014. Meanwhile, the Company focused on establishing a one-stop cloud service platform for game developers. By partnering with Xiaomi and leveraging the fast growing mobile game business, the platform will offer game developers a one-stop solution for server deployment, game testing, game operation and game promotion.

Mr. Jun Lei, Chairman of Kingsoft, concluded, "We had an impressive and promising start for 2014. The financial and operating metrics for the first quarter of 2014 demonstrated the successful adoption of our mobile business strategy. Our MAU continued to grow rapidly to a new record of 276 million in March2014, compared to 62 million a year ago. With the focused investment in mobile internet business, strengthened monetization capabilities of Cheetah Mobile, continuous optimization of JX Online III, full swing mobile game development, strong sales and fast growing user base of WPS, I believe the year of 2014 will manifest Kingsoft' breakthrough in its mobile transformation."

About Kingsoft Corporation Limited

Kingsoft is a leading Chinese software and Internet service company with its shares listed on the Stock Exchange of Hong Kong Limited. Headquartered in Beijing, Kingsoft has set up R&D centers in Zhuhai, Beijing, Chengdu and Dalian. Since the commercial launch of its first office applications software, WPS 1.0, in 1989 followed by over 20 years of innovative endeavors, Kingsoft has become well recognised as a leading brand in China. Kingsoft has also rejuvenated itself by successfully transforming from "the King of package software" to an Internet technologies and service provider.

Kingsoft provides a range of products and services across devices and platforms, and its main business encompasses online games, internet software, mobile applications, office software, and cloud storage and computation services. The Company utilises the Internet as an effective channel to market and distribute its products and services, and has built an extensive sales and distribution network.

Enhancing the quality of digital lifestyle has been the mission of Kingsoft. Kingsoft will continue developing new products, expanding our products and services to Internet especially mobile Internet and expanding its market share in China, while vigorously penetrating into overseas markets. For more information, please visit www.kingsoft.com

Source: Kingsoft Corporation Limited

Contact:
Kingsoft Corporation Limited
Ms. Francie Lu
Tel: +86 10 62927777 ext.5581
Email: [email protected]




Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.