Linktone (ticker: LTON) reported Q2 2005 earnings results today. Key stats from the quarter:
(all percentage changes and comparisons are year on year, unless stated otherwise)
- Gross revenue rose 44.0% to $17.5 million, and rose 16.0% sequentially.
- Net revenue rose 43.4% to $16.6 million vs consensus estimate of $15.05 million.
- Gross margin was 66.1% vs 68.1%.
- Operating expenses rose 69.8% to $7.8 million.
- Product development expenses rose 128.4% to $1.5 million.
- Sales and marketing expenses rose 58.3% to $3.4 million.
- Stock-based compensation expenses were flat at $534,147.
- Other G&A expenses rose 88.8% to $2.4 million.
- Operating income fell 3.5% to $3.2 million.
- Operating margin was 19.1% vs 28.4%, and 21% in Q1.
- Net income rose 5.9% to $3.7 million, and rose 16.0% sequentially.
- Net margin was 22.4% vs 30.4%, and 22.0% in Q1.
- Earnings per ADS of $0.14 vs $0.13.
- Adjusted earnings per ADS of $0.15 vs $0.15, above consensus of $0.13.
- 2.5G and audio-related service revenue rose 30.2% sequentially to $6.9 million.
- 2.5G revenue was 40% of gross revenue vs 35% in Q1.
- MMS, WAP and Java game revenue was 13% of gross revenue vs 14% in Q1.
- Audio-related service, IVR, and RBT revenue was 27% of gross revenue vs 21% in Q1.
- SMS revenue rose 6.1% sequentially to $10.4 million representing 59% of gross revenue vs 65% in Q1.
- Diluted earnings per ADS of $0.14.
- Adjusted earnings per ADS of $0.15 in-line with consensus.
Balance Sheet as of June 30, 2005
- Cash and equivalents of $69.5 million.
- Short-term investments of $7.4 million.
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