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NetQin Q2 2011 Profit Up 978% YoY

NetQin, 8/03/11

Chinese mobile security provider NetQin (NYSE: NQ) today announced its unaudited financial results for the second quarter ended June 30, 2011. Net revenues in the second quarter of 2011 were USD 8.9 mln, an increase of 147.4% year-over-year from USD 3.6 mln in the second quarter of 2010 and 16.4% sequentially from USD 7.6 mln in the first quarter of 2011. The significant year-over-year and sequential increases in revenues were mainly due to strong growth in revenues from premium mobile Internet services and revenues from other services.

Net income attributable to NetQin increased 977.8% year-over-year to USD 1.1 mln from USD 0.1 mln in the corresponding period of 2010.

Net revenues from premium mobile Internet services increased 147.9% year-over-year and 17.2% sequentially to USD 7.7 mln in the second quarter of 2011. The increases were primarily due to strong and steady growth in the number of paying user accounts, which reflected growth in the number of NetQin's registered and active user accounts, as well as increased use of its premium services, particularly among its overseas paying user accounts, which generally pay a higher subscription rate. Revenue contribution from overseas users accounted for 49.5% of total net revenues from premium mobile Internet services in the second quarter of 2011, compared with 42.3% in the second quarter of 2010 and 45.4% in the first quarter of 2011.

Net revenues from other services in the second quarter of 2011 were USD 1.18 mln, representing an increase of 144.0% year-over-year and 11.8% sequentially. The year-over-year and sequential increases were primarily due to the growth in revenues from secured download and delivery services for mobile applications produced by third parties. Net revenues from other services as a percentage of total net revenue has remained relatively stable in the 12-14% range for the past five quarters.

Cumulative registered user accounts were 102.7 mln as of June 30, 2011, compared with 50.2 mln as of June 30, 2010 and 86.0 mln as of March 31, 2011.

Average monthly active user accounts for the second quarter ended June 30, 2011 were 36.4 mln, compared with 17.0 mln for the corresponding period of 2010 and 30.3 mln for the first quarter ended March 31, 2011.

Average monthly paying user accounts for the second quarter ended June 30, 2011 were 4.2 mln, compared with 1.9 mln for the corresponding period of 2010 and 3.7 mln for the first quarter ended March 31, 2011.

NetQin expects net revenues to be in the range of USD 10.1 mln and USD 10.3 mln for the third quarter of 2011, representing year-over-year growth of 87%-90% and sequential growth of 14%-16%. NetQin is raising its full year 2011 net revenue guidance from the previously issued range of USD 37.5 mln to USD 38.5 mln to a range of USD 38.3 mln to USD 38.8 mln, representing year-over-year growth of 116%-119% from the previous year of 2010.

To view NetQin's full earnings report, please click here.

Keywords: registered users active users guidance Internet profit revenue security wireless NetQin Q2 2011 NQ fiscal report mobile application

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