- In addition to beating Q1 revenue estimates (while posting in-line EPS), NQ Mobile is guiding for Q2 revenue of $102M-$103M (+25%-26.2% Y/Y), above a sole analyst estimate of $99.5M, and full-year revenue of $455M-$460M (+36.9%-38.4%), above a sole estimate of $443M.
- Business performance: Q1 mobile value-added service revenue -8.2% Y/Y to $25.1M - lower consumer mobile security revenue offset mobile gaming (FL Mobile) and live mobile video growth. Ad revenue +4.3% to $17.5M . Enterprise mobility revenue (NQSky) +33.6% to $46M thanks to an Apple distribution deal and iPhone 6 sales. Other revenue -54.8% to $0.6M.
- Financials: Gross margin fell to 21% from 29.6% in Q4 and 36.9% a year ago (hurt EPS); a mix shift towards enterprise mobility sales was responsible. Operating expenses (non-GAAP) rose 1.1% to $22.3M - sales/marketing spend totaled $7.1M, G&A $8M, and R&D $7.2M.
- NQ ended Q1 with $270.5M in cash, and $172.5M in convertible debt (compares with a current market cap of $310M). $11.6M of its $80M buyback authorization had been used as of today.
- NQ has risen to $3.84 AH.
- Q1 results, PR