Linktone (NSDQ: LTON), a Chinese mobile entertainment company, reported revenues of $19.1 million in the second quarter, increasing about 63 percent from $11.7 million in the same period a year earlier. The company recorded a net loss of $10.6 million during the second quarter, which widened from the year ago period when it recorded a loss of $3.2 million. Release.
– Revenue mix: Linktone’s Q2 revenue mix includes data-related services (SMS, MMS, WAP, and Java), audio-related services (IVR and CBRT), advertising service and others (casual game and enterprise services). Revenue from data-related services totaled $6.9 million, representing 36 percent of total revenues; Audio-related revenues totaled $7 million, or 37 percent of total revenues; and advertising revenues totaled $4.6 million, or 24 percent of of total revenues.
– Returning to profitability: The company is trying to reduce operating costs and return to profitability. One way it is doing this is by terminating unprofitable contracts. It incurred a one-time impairment charge of $6 million associated with the termination of its agreements with the Chinese Youth League Internet, Film and Television Centre with regard to Qinghai Satellite Television (”QSTV”). The company’s other operating expenses for the second quarter totaled $6.4 million, which decreased 12 percent from the prior quarter.
– Cash totals: At the end of the quarter, it had $105.3 million in cash and cash equivalents, which jumped considerably from $39.7 million in the first quarter. The increase was primarily due to the strategic investment of $68.4 million received from MNC in April.