|By ACN Newswire||
|August 19, 2014 06:54 AM EDT||
- Revenue Records Solid and Continuous Growth
- Global Mobile MAU Hits New Record High
Hong Kong, Aug 19, 2014 - (ACN Newswire) - Kingsoft Corporation Limited ("Kingsoft" or the "Company;" SEHK stock code: 03888), a well-known Chinese software and Internet services company, announced its unaudited quarterly and interim results for the three and six months ended 30 June 2014 respectively.
For the second quarter of 2014, revenue increased 11% quarter-over-quarter and 51% year-over-year to RMB750.5 million. Revenue from the online game, Cheetah Mobile and office software and other businesses represented 41%, 47% and 12%, respectively, of the Company's total revenue. Gross profit increased 11% quarter-over-quarter and 47% year-over-year to RMB634.2 million. Operating profit before share-based compensation costs increased 20% quarter-over-quarter and 1% year-over-year to RMB180.1 million.
For the first half of 2014, revenue increased 50% year-over-year to RMB1,426.1 million. Revenue from the online game, Cheetah Mobile and office software and other businesses represented 42%, 45% and 13%, respectively, of the Company's total revenue. Gross profit surged 46% to RMB1,203.2 million. Operating profit before share-based compensation costs decreased 5% year-over-year to RMB331.7 million.
For the first half of 2014, the Company has made proactive investments in its mobile internet business to support its long term business growth and strategy in mobile development and market expansion. As a result, the Company has achieved significant progress in the mobile internet business as its global Mobile MAU skyrocketed 242% year-over-year to a new record of 344 million in June 2014. R&D costs, net of government grants, increased 67% year-over-year to RMB419.1 million, primarily attributable to the expansion of the Company's mobile application development teams. As a result, the Company has launched and will continue to introduce new products throughout the year. The company has also been continuously committed to improving the product quality and enhancing the user experience across all of its business lines. Selling and distribution expenses increased 132% year-over-year to RMB323.6 million for the first half of 2014, primarily driven by higher marketing expenses as Cheetah Mobile continued to extend its mobile internet penetration in the global market. As a result, Mobile MAU from Cheetah Mobile soared 255% year-over-year to 284.3 million in June 2014.
Mr. Jun LEI, Chairman of Kingsoft, commented, "During the first half of 2014, we have achieved significant progress in our mobile internet business. We have continued to gain traffic share and competitive advantage with the rapid growth of our mission critical apps. In the coming quarters, we will continue to reinforce our core competence, expand our mobile user base, strengthen our position in mobile security, mobile office and mobile game, and speed up our global penetration."
Dr. Hong Jiang ZHANG, Chief Executive Officer of Kingsoft, added, "The second quarter of 2014 marked another quarter of consistent and strong top-line growth with revenue posted a growth of 11% quarter-over-quarter and 51% year-over-year to RMB750.5 million. I am pleased with the results, particularly the progress of mobile monetization. All of our business lines have set new records in terms of both revenue and operational results. The decrease in operating profit primarily reflected our proactive investments in mobile applications development and market expansion, and is in line with our strategy. As the mobile Internet is growing tremendously, we firmly believe that it is the right time to make investment in mobile development and market expansion in order to support our long-term business growth. The rapid increase of our overall mobile user base has shown that our strategy is effective."
Online Game Business
For the second quarter of 2014, the revenue from the online game business increased 4% quarter-over-quarter and 14% year-over-year to RMB307.5 million. For the first half of 2014, the revenue from the online game business increased 12% year-over-year to RMB602.4 million, outperforming the growth rate of the MMO gaming market in China. The continuous increases were primarily due to the sustained strong performance of JX Online III driven by the continuous optimization and innovation of the game through expansion packs on quarterly basis, and the Company's constant efforts in improving game experiences.
In the second quarter of 2014, the revenue and operating metrics of Cheetah Mobile achieved impressive growth. Supported by the significant progress in mobile monetization, and robust growth in traffic from Duba.com personal start page, the revenue from Cheetah Mobile increased 21% quarter-over-quarter and 146% year-over-year to RMB353.6 million for the second quarter of 2014. For the first half of 2014, the revenue from Cheetah Mobile soared 140% year-over-year to RMB646.4 million, and approximately 18% of its revenue was from mobile services, compared with approximately 3% in the first half of 2013.
Mobile MAU from Cheetah Mobile increased 28% quarter-over-quarter and increased 255% year-over-year to 284.3 million in June 2014. Clean Master, a flagship mobile application launched in September 2012, has rapidly gained an extremely large user base to be a "super app". The MAU of Duba.com Personal Start Page increased 25% quarter-over-quarter and 70% year-over-year to 67.6 million in June 2014. Other new products launched during the first half of 2014 were CM Security and CM Browser, which have also quickly ramped up user traffic.
On 8 May 2014, Cheetah Mobile was successfully listed on the New York Stock Exchange, and this initiative helped Kingsoft to strengthen and accelerate its mobile and global expansion strategies. In June 2014, approximately 67% of mobile MAU of Cheetah Mobile was from overseas markets, mostly the United States, Asia (excluding China) and Europe, compared to approximately 53% in December 2013. This significant increase shows the mobile mission critical applications, particularly Clean Master, have become very popular globally, and the Company's efforts in mobile and global expansion were a great success during the first half of 2014.
Office Software and Others
For the second quarter of 2014, the revenue from the office software and other business increased 2% quarter-over-quarter and 9% year-over-year to RMB89.4 million. For the first half of 2014, the revenue increased 21% year-over-year to RMB177.2 million. Revenue from WPS for the first half of 2014 grew 30% year-over-year to RMB132.4 million. The online marketing revenue from WPS is becoming a growth catalyst supported by the increasing user traffic of WPS Personal Edition and Docer.com.
The MAU of WPS Personal Edition recorded 73 million in June 2014 compared to 56 million in June 2013. The global mobile MAU of WPS Office continued to grow robustly, exceeding 50 million in June 2014 compared to 21 million in June 2013. In addition to user base expansion, the Company was committed in improving the quality of the products in WPS and compatibility with other enterprise application systems to enhance the products' competitiveness and penetration of enterprise markets. During the second quarter of 2014, WPS Mobile Office for Android 6.0 was launched and new features, including a simplified user interface, phone reading mode redesign, and document synchronization were introduced to enhance the mobile user experience with the products.
The Company's growth in the enterprise data storage services has been accelerated, driven by the rapid increase of users' data from Xiaomi, WPS and Kuaipan. The daily upload of data into storage services is approximately 250T at the end of June 2014. The Company will focus on optimizing the underlying storage framework and providing its users with stable, secure and cost-efficient storage services. Also, the one-stop game cloud service platform has grown robustly, and the Company provided game cloud services to approximately 50 third party game developers since the services are launched. In the second quarter, the Company improved the platform layout based on the feedbacks from third party developers. These progresses have laid a solid ground for Kingsoft to become a leading player in China cloud storage and computing market.
"We had an impressive and encouraging first half of 2014. With the continuous proactive investment in mobile businesses, strengthened mobile monetization of Cheetah Mobile, continuous optimization of JX Online III, four mobile games to be launched, strong sales and fast growing users base of WPS as well as advantageous partnerships with Xiaomi, Tencent, Sogou and Xunlei, we are well positioned to achieve our goal in 2014." concluded Dr. ZHANG.
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. Since the commercial launch of its first office applications software, WPS 1.0, in 1989 followed by more than 20 years of innovative endeavors, Kingsoft has become well recognized as a leading brand in China. Kingsoft has also rejuvenated itself by successfully transforming from "the King of Packaged Software" to an internet technologies and services provider.
Kingsoft provides a range of products and services across devices and platforms, and its main business encompasses online game, internet software, mobile applications, office software, and cloud storage and computing services. The Company utilizes 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 the digital lifestyle has been the mission of Kingsoft. Kingsoft will continue developing new products, expanding our products and services across the internet especially the mobile internet and expanding its market share in China, while vigorously penetrating overseas markets.
For more information, please visit www.kingsoft.com
Source: Kingsoft Corporation Limited
Kingsoft Corporation Limited Ms. Francie Lu Tel:(86) 10 62927777 ext.5581 Email: [email protected] Strategic Financial Relations (China) Limited Ms. Nan Dong Tel: (852) 2527 1628 Email: [email protected]
Copyright 2014 ACN Newswire. All rights reserved.
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, p...
Nov. 23, 2014 07:30 PM EST Reads: 1,682
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Nov. 23, 2014 12:30 PM EST Reads: 1,359
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Nov. 23, 2014 11:00 AM EST Reads: 1,322
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
Nov. 23, 2014 08:00 AM EST Reads: 1,446
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...
Nov. 23, 2014 07:45 AM EST Reads: 1,465
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
Nov. 23, 2014 02:00 AM EST Reads: 1,210
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 ha...
Nov. 22, 2014 10:00 PM EST Reads: 1,366
Software-driven innovation is becoming a primary approach to how businesses create and deliver new value to customers. A survey of 400 business and IT executives by the IBM Institute for Business Value showed businesses that are more effective at software delivery are also more profitable than their peers nearly 70 percent of the time (1). DevOps provides a way for businesses to remain competitive, applying lean and agile principles to software development to speed the delivery of software that ...
Nov. 22, 2014 08:00 PM EST Reads: 1,522
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
Nov. 22, 2014 06:45 PM EST Reads: 1,324
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Nov. 22, 2014 05:45 PM EST Reads: 1,446
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 asse...
Nov. 22, 2014 05:30 PM EST Reads: 1,297
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.
Nov. 22, 2014 05:30 PM EST Reads: 1,445
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 Ar...
Nov. 21, 2014 09:15 PM EST Reads: 1,369
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 ...
Nov. 21, 2014 08:00 PM EST Reads: 1,434
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, a...
Nov. 21, 2014 08:00 PM EST Reads: 1,382
"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.
Nov. 21, 2014 07:00 PM EST Reads: 1,290
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nov. 20, 2014 10:30 PM EST Reads: 1,324
DevOps Summit 2015 New York, 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 widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Nov. 20, 2014 09:00 PM EST Reads: 1,507
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
Nov. 20, 2014 07:00 PM EST Reads: 1,177