NQ Mobile Inc. (NYSE: NQ)
NQ Mobile Inc., a global internet services company yesterday announced its unaudited financial results for the second quarter. In addition the company announced an asset sale where it will sell its stake in FL Mobile to Tsinghua Holdings for no less than $626 million. In a second announcement the company said it will sell its stake in NationSky to Hou Shuli who is founder and senior member of Beijing NationSky for $80 million.
NQ Mobile Inc. Earnings and Outlook
Quarterly Net Revenues were $102.1 million in the second quarter of 2015, a 25.0% increase year-over-year from $81.6 million in the same period in 2014, a new record level for the Company. Gross Margin was 24.8% in the second quarter of 2015, compared with 21.0% in the first quarter of 2015. Non-GAAP Operating Margin was 5.1% in the second quarter of 2015, up from negative 1.8% in the first quarter of 2015. Net Loss attributable to NQ Mobile was $1.6 million, or a loss of $0.02 per ADS, in the second quarter of 2015, a 90.2% improvement compared with a net loss of $16.8 million, or a loss of $0.22 per ADS, in the same period in 2014. Non-GAAP Net Income attributable to NQ Mobile was $7.0 million, or $0.08 per ADS in the second quarter of 2015, compared with Non-GAAP net income of $14.8 million, or $0.20 per ADS, in the same period in 2014. Total Share Based Compensation Expenses fell to $1.1 million, a 95.6% decline year-over-year from $25.4 million in the same period in 2014. PR Newswire
NQ Mobile Inc. CEO’s Comments
“We are encouraged to see solid improvement in the second quarter of 2015,” said Mr. Zemin Xu, CEO of NQ Mobile, “The management team remains committed to executing our business strategies, with great efforts in the monetization of our traffic-based mobile entertainment businesses, in order to achieve sustainable growth.” PR Newswire
Technical Analysis
NQ gapped up today in price to $4.66 up from yesterday’s close of $3.03 which is a 54% increase in price based on favorable news. Taking a look at the daily chart we can see the last time the stock traded above this price level was back on July 2 when it traded at $5.21. This level could be a significant resistance level as it tested it three times, back on June 23 the stock closed at $5.32 and June 30 it closed at $5.28. After testing this $5.30 price level the stock tanked all the way down to it 52 week lows which was reached on Aug 24 at $2.80. The stock is trading on heavy volume today (3 ½ times normal volume at the time of the writing of this article). The pre market highs for the stock reached $5.18 so it gave back $0.52 at the open which concerns me a little bit. For trading purposes my entry point would be $4.80 looking for a pop through $5.00, with $5.00 as a possible add on price. My stop loss would be the gap up price of $4.66 fearing if it falls below that level the stock will start to fill in the gap up.
Company Profile
NQ Mobile Inc. provides mobile Internet services in the Peoples Republic of China and internationally. The company provides products and services in the areas of mobile security, privacy, productivity, personalized cloud, and family protection. It operates through two segments, Consumer and Enterprise. The company offers NQ Mobile Security, a mobile security product that protects users mobile voice and data from malicious software, hacking, phishing, and privacy intrusion; and mobile malware scanning, Internet firewall, financial and social media account and communication protection, phone performance optimization, and call and SMS blocking services. It also provides NQ Mobile Vault, a mobile privacy product for users digital privacy through active control and on-device encryption of content and communication, including contacts, call logs, SMS, pictures, and videos; and Android Booster, Mobile Manager, NQ Easy Battery Saver, and Super Task Killer mobile productivity products, which enhance users time and relationship management. In addition, the company offers NQ Family Guardian that allows parents to protect their childrens smart device activities; a cloud security and storage software development kit for third-party developers; and mobile games, interest-based community applications, and advertising services. Further, it provides enterprise mobility solutions, such as mobile device, application, and content management solutions; and bring-your-own-device smart mobile devices, cross platform middleware/center enterprise server solutions, enterprise mobile security platform, industry mobility solutions, and architecting mobility strategies, as well as device sourcing, devices and application deployment and optimization, and training and support services. The company was formerly known as NetQin Mobile Inc. and changed its name to NQ Mobile Inc. in April 2012. NQ Mobile Inc. was founded in 2005 and is headquartered in Beijing, the Peoples Republic of China. Yahoo Finance
