Nq Mobile (NQ) research, news, and more from GeoInvesting

Company description

Thu, 05 May 2011 04:00:00 GMT

NQ Mobile Inc. (NYSE: NQ) is a leading global provider of mobile Internet services focusing on security, privacy and productivity. The company was one of the first to recognize the growing security threats targeting smartphone users and is now a leading Software-as-a-Service (SaaS) provider with nearly 147 million user accounts in over 100 countries. NQ Mobile's proprietary, cloud-based security solution has been recognized by third-party testing facilities around the world as the most effective solution for detecting and combating mobile threats. NQ Mobile was bestowed the 2011 Technology Pioneer Award by the World Economic Forum for its technology leadership and innovation in mobile security. To facilitate global expansion, NQ Mobile headquarters are co-located in Beijing, China and Dallas, TX, USA

Comments & Business Outlook

Wed, 15 May 2013 04:00:00 GMT

First Quarter 2013 Financial Results;

Net revenues increased 108.0% year-over-year to $33.2 million.
Non-GAAP operating income[5] increased 77.9% year-over-year to $10.0 million.
Net income attributable to NQ Mobile increased 34.2% year-over-year to $2.9 million.
Non-GAAP net income[6] increased 64.0% year-over-year to $10.5 million.
GAAP fully diluted Earnings per ADS was $0.05 and non-GAAP fully diluted Earnings per ADS was $0.19. Diluted weighted average number of ADSs outstanding increased to 56.4 million in the first quarter of 2013 from 53.5 million in the previous quarter.

"I am pleased to report that we started 2013 with a solid first quarter. We again achieved record revenue and began to realize the significant growth potential and synergy from the acquisition of NationSky and Feiliu," commented Dr. Henry Lin, Chairman and Co-Chief Executive Officer of NQ Mobile. "NationSky achieved an outstanding quarter and improved its margin significantly by growing its software and services business. Feiliu also launched two self-developed mobile games, Dragon's Summon and Wulin MengZhu, which have become a great success on the iOS platform in China. In 2013, we will continue our evolution to become a leading mobile Internet platform company by focusing on broadening our service offerings, diversifying our revenue streams and creating synergies among different lines of our businesses, particularly in the China market."

"In the first quarter, our consumer mobile security business in the international markets continued its strong growth and accounted for approximately 56% of the total consumer mobile security revenues. Furthermore, our investment in the international markets has started to pay off as we have begun to see upward trends in operating margins," added Omar Khan, Co-Chief Executive Officer of NQ Mobile. "As we continue our strong momentum of international growth through the continued expansion of our retail presence and initiating operations of key carrier partnerships in North and Latin America, we are confident that our international business will further drive and sustain our long term growth."

Business Outlook

The Company expects net revenues to be in the range of $38.5 million and $38.8 million for the second quarter of 2013 and raises the full year 2013 net revenue guidance from the previously issued range of $178 million to $183 million to a range of $179 million to $184 million.

Acquisition Activity

Mon, 22 Apr 2013 04:00:00 GMT

BEIJING and DALLAS, April 22, 2013 /PRNewswire/ -- NQ Mobile (NYSE: NQ) a leading global provider of mobile Internet services, today announced it has again grown its U.S. retail partnerships, bringing the company's award-winning apps to customers in more than 100 Cricket and Metro PCS authorized dealer stores, including Gratis Cellular (50 Cricket retail locations), Exclusive Wireless (40 Cricket retail locations) and I-Communications (24 Metro PCS locations).

"Through our valued partners like Gratis Cellular, Exclusive Wireless and I-Communications, we are able to introduce NQ Mobile to consumers when they are most interested in learning about mobile security and privacy � when they are purchasing a new smartphone," said Chris Stier , Managing Director, Americas, NQ Mobile. "With these retail partnerships we are now able to directly reach customers who are on carriers such as Cricket and Metro PCS. These along with other business development agreements, give us more opportunities to expand our footprint beyond app stores and be better situated for long-term growth around the world."

NQ Mobile's successful retail dealer program now includes nearly 2,000 mobile retailers in the U.S. These dealers provide in-store marketing and point-of-sale promotion for NQ Mobile's top-selling mobile security, privacy and family protection solutions

Joint Venture

Thu, 11 Apr 2013 04:00:00 GMT

DUBAI, United Arab Emirates and DALLAS, April 11, 2013 /PRNewswire/ --Axiom Telecom today announced an exclusive alliance with NQ Mobile (NYSE: NQ), a leading global provider of mobile Internet services, to safeguard Android smartphone customers like never before.

Beginning mid-April, 2013 Axiom Android customers will enjoy unprecedented device protection via the preloaded NQ Mobile Security�, which is the most popular solution of its kind in the world.

Available in 150 countries worldwide, NQ Mobile's premium privacy and security features include anti-theft/anti-loss protection, which allows users to locate, lock and delete information from their lost or stolen phones.

"Axiom Telecom is committed to ensuring our loyal customers get the most out of their mobile experience, and this includes best-in-class protection," said Faisal Al Bannai , Chief Executive Officer, Axiom Telecom. "Our exclusive partnership with NQ Mobile is a key part of an ongoing commitment to offering unmatchable value-added support, and I have no doubt that it will prove a tremendous success."

NQ Mobile Security has been proven by independent security lab tests, like West Coast Labs Comparative Test, to outperform all competitive mobile security platforms. NQ Mobile Security was also a top performer in research conducted by AV-TEST Institute, a leading international and independent service provider in the fields of IT security and anti-virus research.

"NQ Mobile is proud to make NQ Mobile Security available to a premier distributor like Axiom Telecom," said Gavin Kim , Chief Commercial Officer, NQ Mobile. "Mobile users in the Middle East should be able to trust their experience while using their devices whether it is for private conversations, texting, accessing the Internet or financial transactions. With more than 3,700 points of sale, Axiom is one of the best ways to reach these consumers."

Joint Venture

Thu, 04 Apr 2013 04:00:00 GMT

BEIJING and DALLAS, April 4, 2013 /PRNewswire/ -- NQ Mobile (NYSE: NQ) a leading global provider of mobile Internet services, today announced that Russell Cellular, a Verizon Premium Wireless Retailer, will offer NQ Mobile Security, NQ Mobile Vault for Android and NQ Family Guardian at over 170 retail locations across the Midwestern, Western and Southern U.S. beginning in June 2013.

"As the leading global provider of mobile security solutions, NQ Mobile is pleased to partner with Russell Cellular and expand our reach across the Midwestern, Western and Southern portions of the US," said Chris Stier, Managing Director, Americas, NQ Mobile. "Informing and educating wireless users about the benefits of protecting their vital mobile information and their families is central to our mission. Russell Cellular will share our vision by providing their customers with all-in-one security solutions, regardless of location."

"Russell Cellular's primary commitment is to providing our customers with exceptional customer service across our 170-plus Verizon retail locations," said Darin Wray, VP of Operations, Russell Cellular. "We are happy to offer our customers consummate mobile protection with NQ Mobile Security, NQ Mobile Vault for Android and NQ Family Guardian, which will allow our customers to have safer, more fun and more secure mobile experiences."

NQ Mobile's flagship application, NQ Mobile Security detects and deletes viruses, malicious URLs, and other threats. NQ Mobile Security outperformed all competitive mobile security platforms in a West Coast Labs Comparative Test. NQ Mobile Security was also a top performer in effectiveness in research conducted by AV-TEST Institute, a leading international and independent service provider in the fields of IT security and anti-virus research.

Since its 2012 introduction, NQ Mobile Vault for Android and has become a top app on Google Play with millions of downloads and an average user rating of 4.5 out of 5 stars. The app allows consumers to password protect and encrypt photos and videos on their smartphones.

Launched in September 2012, NQ Family Guardian, a unique suite of services for safety and monitoring, comprises a mobile app that is downloaded and installed on the child's smartphone along with a web-based control center that is accessible from any desktop or mobile browser. Currently, the app is available for Android devices, while the control center is compatible with any web browser.

Comments & Business Outlook

Thu, 07 Mar 2013 05:00:00 GMT

Fourth Quarter 2012 Results

Net revenues increased 134.1% year-over-year to $30.0 million.
Net income attributable to NQ Mobile increased 52.7% year-over-year to $4.9 million.
Non-GAAP net income attributable to NQ Mobile, defined as net income attributable to NQ Mobile excluding share-based compensation expenses, increased 88.4% year-over-year to $12.3 million.
GAAP fully diluted Earnings per ADS was $0.09 and non-GAAP fully diluted Earnings per ADS was $0.23 for the fourth quarter of 2012. Diluted weighted average number of ADSs outstanding increased to 53.5 million in the fourth quarter of 2012 from 51.2 million in the previous quarter.

"We are very pleased to report a strong fourth quarter and an excellent 2012 fiscal year performance with record revenues," commented Dr. Henry Lin, Chairman and Co-Chief Executive Officer of NQ Mobile. "In our first full year as a public company, we grew our revenue by 126% from $41 million to over $92 million. Even without taking into account the revenue contribution from the NationSky and Feiliu acquisitions, we achieved revenue of $79 million for 2012 and an outstanding organic growth rate of 93%. This significant growth is driven by our consistent execution, as well as the continued rapid growth of the global smartphone industry and adoption of mobile security and privacy solutions by consumers worldwide."

"This past year also marked an important strategic year in the evolution of NQ Mobile as we broadened from a pure mobile security company to a mobile Internet platform company. Through the acquisitions of NationSky and Feiliu, we greatly expanded our product and service offerings, extended our customer base, and diversified our revenue streams. We are well positioned to capitalize on the significant size and growth of the mobile Internet services market for both consumers and enterprises. Through continuous technology innovation and expansion of products and services, we have set in motion our plan to become an integrated part of our users' daily mobile experiences," continued Dr. Lin.

"Another key theme for NQ Mobile in 2012 was the continued global expansion of our business while maintaining our leadership position in China," added Omar Khan, Co-Chief Executive Officer of NQ Mobile. "We have made tremendous achievements in building a top tier global team, establishing our international corporate headquarters inDallas, broadening our service offerings and gaining significant traction with global consumers and business partners alike. There is no better evidence of that than our latest announcement with America Movil to offer the entire suite of our flagship consumer security and privacy offerings: NQ Mobile Security, NQ Mobile Vault and NQ Family Guardian to its 262 million subscribers across 18 countries. We are confident that the strong momentum in our international business will continue in 2013. We remain committed to our global expansion effort to drive the long term growth for our company."

Business Outlook

The Company expects net revenues to be in the range of $32.8 million and $33.3 million for the first quarter of 2013 and raises the full year 2013 net revenue guidance from the previously issued range of $150 million to $155 million to a range of $178 million to 183 million.

Comments & Business Outlook

Thu, 07 Feb 2013 05:00:00 GMT

BEIJING and DALLAS, February 7, 2013 /PRNewswire/ -- NQ Mobile� (NYSE: NQ) a leading global provider of mobile Internet services, today announced that 4G Wireless will offer NQ Mobile Security, NQ Mobile Vault for Android and NQ Family Guardian at 120 retail locations across California and Nevada.

"As the leading global provider of mobile security solutions, NQ Mobile is pleased to announce our new partnership with 4G Wireless in California and Nevada," said Omar Khan, Co-CEO, NQ Mobile. "4G Wireless is a key partner in our efforts to protect mobile users in the U.S. and globally. By informing and educating wireless users around the clear benefits of our services, 4G Wireless can provide their customers with an all-in-one security solution for protecting their vital mobile information anytime, anywhere."

"As one of the premier Verizon Wireless Premium Retailers in the country, 4G Wireless is committed to providing our customers with industry-leading customer service across our 120 retail locations in California and Nevada," saidMoe Honarkar, President and CEO, 4G Wireless. "We are delighted to be able to offer our customers the best mobile protection on the market with NQ Mobile Security, NQ Mobile Vault for Android and NQ Family Guardian."

Since its 2012 launch, NQ Mobile Vault for Android and has become a top app on Google Play with millions of downloads and an average user rating of 4.5 out of 5 stars. The app allows consumers to password protect and encrypt photos and videos on their smartphones.

Newest to NQ Mobile's line of products is NQ Family Guardian, a unique suite of services for safety and monitoring comprises a mobile app that is downloaded and installed on the child's smartphone along with a web-based control center that is accessible from any desktop or mobile browser. The app is currently available for Android devices, while the control center is compatible with any web browser.

Comments & Business Outlook

Thu, 13 Dec 2012 05:00:00 GMT

BEIJING and DALLAS, December 13, 2012 /PRNewswire/ -- NQ Mobile (NYSE: NQ), a leading global provider of mobile Internet services, and HTC, a global leader in mobile innovation and design, today announced the launch of a proprietary security check service for HTC's App Store in mainland China. The collaboration demonstrates a strong commitment to protecting mobile users against a growing number of mobile threats.

Leveraging NQ Mobile's leadership in the detection of risks including spyware, phishing and viruses, the service will ensure a safe downloading channel for end users by identifying malicious software before it can be circulated. The collaboration will bring a pre-scanning service from NQ Mobile for all applications and plug-ins prior to their inclusion in HTC's App Store. This will protect the growing number of HTC subscribers from the ever-increasing risks of mobile viruses and malware by preventing harmful downloads from being made available in HTC's App Store in the first place.

"Guaranteeing a safe mobile environment is a large undertaking, and we are proud that HTC is joining NQ Mobile to stop malware before it has a chance to harm consumers," commented Gavin Kim, Chief Product Officer, NQ Mobile. "We look forward to helping HTC subscribers get the most out of their mobile experience and enjoy the assurance of threat-free downloads."

"With HTC's philosophy of pursuing excellence, the security service experts of NQ Mobile were the natural choice of partner for our efforts to curtail the spread of mobile malware," said Ray Yam, corporate VP and head of HTC Communication in China. "We are happy that our customers will now have the confidence that ours is a world-leading, secure mobile phone environment."

NQ Mobile's cloud-based database contains one of the world's largest catalogs of mobile threat intelligence in existence, containing well over one billion risk assessed and rated URLs and 1,400,000 mobile applications. Ranked first place in West Coast Labs' "Mobile Phone Security Test 2011" this database is responsible for first detecting and resolving over 75% of all new mobile threats worldwide.

Company Rebuttal

Tue, 11 Dec 2012 05:00:00 GMT

BEIJING and DALLAS, December 11, 2012 /PRNewswire/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company") (NYSE: NQ), a leading global provider of mobile Internet services, today rejected as false allegations made in an article ("Seeking Alpha Article") published on seekingalpha.com on December 10, 2012, written by an author named "FJE Research" who has admitted to holding a short position in the Company.

NQ Mobile strongly rejects these allegations and notes that FJE Research's commentary contains numerous inaccuracies and misleading speculations based on flawed arguments and illustrates a lack of understanding of the Company's business model. The Company also stands firm and ready to protect its reputation and reserves legal rights against any deliberately false accusation. The following statements clarify the key misleading areas contained in the Seeking Alpha Article: Full release here.

Notable Share Transactions

Mon, 26 Nov 2012 05:00:00 GMT

BEIJING and DALLAS, November 26, 2012 /PRNewswire/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company") (NYSE: NQ), a leading global provider of mobile Internet services, today announced that its board of directors has authorized a share repurchase plan under which the Company may repurchase up to US$20 million of its American Depository Shares ("ADSs") over the next 12 months.

Under the share repurchase plan authorized by its board of directors, NQ Mobile may repurchase up to US$20 million worth of its outstanding ADSs over the next 12 months. The repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. NQ Mobile's board of directors will review the share repurchase plan periodically, and may authorize adjustment of its terms and size. NQ Mobile plans to fund repurchases made under this plan from its existing cash balance.

Dr. Henry Lin and Omar Khan, Co-CEOs of NQ Mobile, commented, "We believe that the current price of our ADSs severely undervalues our company and the board's decision to implement the share repurchase plan reflects its strong belief in the strength of our businesses. With over US$120 million in cash and zero debt, we have a strong balance sheet and expect to continue generating cash from operations that would provide enough resources to fund our ongoing research and development, marketing and other business expansion efforts. At the present time, the combination of market valuations, our solid cash flows, cash balances and financial strength lead us to believe that this share repurchase plan represents an effective use of our cash and is in the best interests of our shareholders."

Acquisition Activity

Tue, 13 Nov 2012 05:00:00 GMT

BEIJING and DALLAS, Nov. 12, 2012 /PRNewswire/ -- NQ Mobile Inc. ("NQ Mobile") (NYSE: NQ), a leading global provider of mobile Internet services, today announced that it has entered into a definitive agreement to acquire the controlling stake of Beijing Feiliu Jiutian Technology Co. ("Feiliu") not already owned by NQ Mobile. As part of the acquisition, NQ Mobile expects to provide restricted shares and a performance-based earn out if Feiliu continues to achieve certain performance milestones.

Comments & Business Outlook

Tue, 13 Nov 2012 05:00:00 GMT

Third Quarter 2012 Highlights

Net revenues increased 127.4% year-over-year to $25.8 million from $11.3 million in the corresponding period of 2011, exceeding the high end of the Company's previous guidance of $24 million to $25 million. Excluding revenue contribution of $4.5 million from the recently acquired Beijing NationSky Network Technology, Inc. ("NationSky"), net revenues increased 88.0% year-over-year to $21.3 million.
GAAP fully diluted Earnings per ADS was $0.01 and non-GAAP fully diluted Earnings per ADS was $0.16. Diluted weighted average number of ADSs outstanding increased to 51.2 million in the third quarter of 2012 from 50.1 million in the previous quarter.
Net cash flow generated from operations was $6.9 million in the third quarter of 2012, compared with $2.6 millionin the corresponding period of 2011. Cash and cash equivalents and term deposits together amounted to $126.2 million as of September 30, 2012.
Deferred revenue was $10.9 million at the end of the third quarter of 2012, up 14.7% from $9.5 million at the end of the second quarter of 2012.

"I am pleased to report that we again achieved a strong quarter with revenue growth exceeding the high end of the previously issued guidance. Both our registered and active user base recorded the highest sequential growth for 2012, reaching 242 million and 85 million, respectively. Additionally, we are starting to see significant revenue contribution from the NationSky acquisition for our enterprise business," commented Dr. Henry Lin, Chairman and Co-Chief Executive Officer of NQ Mobile. "While we continue to see strong growth in the global mobile security market, we also undertook an important strategic step in broadening our mobile Internet service offerings through the acquisition of Feiliu, to further transform NQ Mobile to become a leading mobile Internet platform and services company."

"In the third quarter, we continued our product expansion and were excited to bring more innovative products to the global market such as NQ Family Guardian," added Omar Khan, Co-Chief Executive Officer of NQ Mobile. "With the formal opening of our new international corporate headquarters in Dallas, we remain committed to our global expansion efforts and continue to see strong momentum in international business development with newly announced agreements with Go Wireless, Wireless and Cat� Phones in the United States, Celcom in Malaysia, epay in Australia and Phones4you in the United Kingdom. Revenue from international markets today already accounts for more than 54% of our consumer business and we believe that the continued build out and investment in our international business will further drive and sustain NQ Mobile's long term growth."

Business Outlook

The Company expects net revenues to be in the range of $28.5 million and $29.5 million for the fourth quarter of 2012 and raises the full year 2012 net revenue guidance from the previously issued range of $86 million to $89 million to a range of $90 million to $91 million. The Company also initiates its revenue guidance for 2013 to be in the range of$150 million and 155 million.

The above forecast reflects the Company's current and preliminary view, which is subject to possible material changes.

Comments & Business Outlook

Thu, 18 Oct 2012 04:00:00 GMT

BEIJING and DALLAS, October 18, 2012 /PRNewswire/ -- NQ Mobile™ (NYSE: NQ), a leading global provider of mobile Internet services focusing on security, privacy and productivity, today announced that GoWireless will now offer NQ Mobile's award-winning applications including NQ Mobile Guard, NQ Mobile Vault for Android and NQ Family Guardian to its customers at more than 350 retail locations across the United States.

Comments & Business Outlook

Thu, 27 Sep 2012 04:00:00 GMT

DALLAS, September 27, 2012 /PRNewswire/ -- With kids 13 to 17 now representing the fastest growing group of smartphone owners(1), NQ Mobile™ (NYSE: NQ) is giving families a way to make sure their mobile device experiences stay safe and fun. Today, the leading global provider of mobile Internet services focusing on security, privacy and productivity, announced the launch of NQ Family Guardian, a complete solution suite that gives parents and their kids the needed balance between protection and connection.

NQ Family Guardian's unique suite of services for safety and monitoring comprises a mobile app that is downloaded and installed on the child's smartphone along with a web-based control center that is accessible from any desktop or mobile browser. The app is currently available for Android devices, while the control-center is compatible with any web browser. Full Release.

Notable Share Transactions

Wed, 05 Sep 2012 04:00:00 GMT

BEIJING, September 5, 2012 /PRNewswire/ -- NQ Mobile Inc. (NYSE: NQ), a leading global provider of mobile Internet services focusing on security, privacy and productivity ("NQ Mobile" or "the Company"), announced today that RPL Holdings Limited ("RPL"), a substantial shareholder in NQ Mobile, has agreed to a two-year voluntary lock-up which will expire in September 2014.

RPL, a limited liability company organized under the laws of the British Virgin Islands, is owned and controlled by the three founders of NQ Mobile, Dr. Henry Yu Lin, Dr. Vincent Wenyong Shi, and Mr. Xu Zhou (collectively, the "Founders"). Dr. Henry Yu Lin is currently the Chairman and Co-CEO of NQ Mobile, Dr. Vincent Wenyong Shi is the Chief Operating Officer of NQ Mobile and Mr. Xu Zhou is a Director of NQ Mobile.

As of June 30, 2012, RPL held 50,352,941 Class B common shares (equivalent to approximately 10.1 million ADSs) of NQ Mobile, representing approximately 21.2% of NQ Mobile's outstanding common shares. Under the terms of the lock-up agreement with the Company, RPL agreed to a two-year lock-up, which means it will not sell any of its holdings until September 2014. In addition, Dr. Henry Yu Lin and Dr. Vincent Wenyong Shi have agreed not to sell any of the other NQ Mobile shares, including shares underlying stock options that they hold, totaling 5.35 million Class B common shares assuming exercise of all the outstanding options (equivalent to approximately 1.1 million ADSs), during the same lock-up period.

"The voluntary lock-up by the Founders underscores our strong confidence in the future of NQ Mobile and our commitment to drive NQ Mobile's growth as a leading global provider of mobile Internet services," remarked Dr. Henry Yu Lin, Chairman and Co-CEO of NQ Mobile. "With our recent investments in technology, platforms and channels as well as our extension into family and enterprise products and services, we remain committed to the continued growth and global expansion of NQ Mobile".

Comments & Business Outlook

Wed, 29 Aug 2012 04:00:00 GMT

DALLAS, August 29, 2012 /PRNewswire-Asia/ -- NQ Mobile™ (NYSE: NQ), a leading global provider of mobile Internet services focusing on security, privacy and productivity, today announced the launch of NQ Mobile Vault for iPhone, bringing its award-winning Android privacy application to even more smartphone users.

NQ Mobile Vault for Android was launched earlier this year and has become a top app on Google Play with more than 3 million downloads and an average user rating of 4.5 of 5 stars.

Today, with the launch of NQ Mobile Vault for iPhone, consumers will have access to a number of unique features including Vault Camera, which allows consumers to take and then automatically save photos and videos directly within Vault, and SecureCam, an innovative security tool utilizing the iPhone's main camera to activate a hidden login panel.

"Our smartphones have become portable picture frames that we put into the hands of our friends, family members and colleagues every day," says Gavin Kim, Chief Product Officer, NQ Mobile. "To date, it's been an all or nothing proposition -- either you choose to share your phone and expose all your content or you keep it to yourself. NQ Mobile Vault offers the best of both worlds, allowing consumers the ability to create two distinct albums on their iPhones -- one for openly sharing and another, more private album, that is kept safely behind a password.

Comments & Business Outlook

Wed, 08 Aug 2012 04:00:00 GMT

Second Quarter 2012 Highlights

Net revenues increased 125.0% year-over-year to $20.0 million from $8.9 million in the corresponding period of 2011. Excluding revenue contribution of $1.4 million from the recently acquired Beijing NationSky Network Technology, Inc. ("NationSky"), net revenues increased 109.1% year-over-year to $18.6 million, exceeding the high end of the Company's previous guidance of $17.5 million to $17.8 million.
Income from operations, or operating income, increased 216.4% year-over-year to $1.5 million from $0.5 million in the corresponding period of 2011. Non-GAAP operating income[5], increased 77.5% year-over-year to $6.5 million from $3.7 million in the corresponding period of 2011. Excluding operating income contribution of $0.15 million from NationSky, operating income and Non-GAAP operating income increased 185.5% and 73.5% year-over-year to $1.4 million and $6.4 million, respectively.
Net income attributable to NQ Mobile increased 95.1% year-over-year to $2.1 million from $1.1 million in the corresponding period of 2011. Non-GAAP net income[6] increased 66.4% year-over-year to $7.1 million from$4.3 million in the corresponding period of 2011. Net income contribution from NationSky only amounted to$0.05 million in the second quarter.
GAAP fully diluted Earnings per ADS was $0.042 and non-GAAP fully diluted Earnings per ADS was $0.142. Diluted weighted average number of ADSs outstanding increased to 50.1 million in the second quarter of 2012 from 48.6 million in the previous quarter.
Net cash flow generated from operations was $1.9 million in the second quarter of 2012, compared with$3.0 million in the corresponding period of 2011. Cash and cash equivalents and term deposits together amounted to $128.6 million as of June 30, 2012.
Deferred revenue was $9.5 million at the end of second quarter of 2012, up 13.9% from $8.3 million at the end of the first quarter of 2012.
On May 11, 2012, the Company completed the acquisition of 55% equity interest of NationSky, a leading provider of mobile services to enterprises in China. NationSky's financial statements were consolidated in the Company's financial statements starting from June 1, 2012.

The Company's non-GAAP financial measures and related reconciliations to GAAP financial measures are described in the accompanying sections of "Non-GAAP Disclosure" and "Reconciliations to Unaudited Condensed Consolidated Statements of Operations."

"I am pleased to report that we delivered another solid quarter with record revenue again exceeding the high end of the previously issued guidance. We achieved another milestone in our business as our registered user accounts surpassed the 200 million mark in the second quarter, nearly doubling from a year ago," said Dr. Henry Lin, Chairman and Co-Chief Executive Officer of NQ Mobile. "The strong growth in our user base is clear evidence of the consumer acceptance of our products and services as well as the effectiveness of our user acquisition efforts."

"In the second quarter, we continued to grow our consumer business by launching innovative products and also expanded into enterprise business by completing the acquisition of NationSky and forging collaborations with industry leaders such as TD Mobility," added Omar Khan, Co-Chief Executive Officer of NQ Mobile. "Our newest consumer product, NQ Mobile Vault, has already won several awards and accolades and is gaining strong user traction. And we continue to see tremendous momentum in our business development pipeline and expect our business in certain key markets such as North America and Latin America to hit an inflection point in 2013 and begin to contribute significant growth in revenues. We will continue to invest in our international business and build the necessary infrastructure in place to position us for long term growth."

Business Outlook

The Company expects net revenues to be in the range of $24 million and $25 million for the third quarter of 2012 and raises the full year 2012 net revenue guidance from the previously issued range of $73 million to $75 million to a range of $86 million to $89 million.

Comments & Business Outlook

Thu, 28 Jun 2012 04:00:00 GMT

BEIJING and DALLAS, June 28, 2012 /PRNewswire-Asia/ -- Scientists from NQ Mobile's Mobile Security Research Center, in collaboration with North Carolina State University today disclosed a revolutionary new way to detect mobile threats without relying on known malware samples and their signatures.

Today, malicious software often sits in app marketplaces for days, weeks and even months being downloaded, before finally being discovered. RiskRanker is a unique analysis system that can automatically detect whether a particular app exhibits dangerous behavior. It differs from other malware tools by identifying apps with risky behavior while they are in the app market and before they make their way to a user's phone.

RiskRanker was jointly developed by NQ Mobile's Vice President of Research, Dr. Simon Shihong Zou and NQ Mobile's Chief Scientist and Associate Professor at North Carolina State University, Xuxian Jiang, along with fellow researchers

"RiskRanker employs a unique two-step method of discovering malware," said Dr. Zou today, in a presentation at MobiSys 2012, the 10th International Conference on Mobile Systems Applications and Services, in the United Kingdom. "This two-step system greatly improves the accuracy in identifying patterns of seemingly innocent API uses that can actually be malware," Zou concluded.

In a trial run earlier this year RiskRankerscanned over one hundred thousand apps from a variety of marketplaces that provide Android applications and identified 718 malware threats, including 322 zero-day threats.

"The development of RiskRankeris another demonstration of NQ Mobile's leadership in mobile security and privacy," said NQ Mobile Chief Product Officer, Gavin Kim. "Unlike other security providers, NQ Mobile is taking a more holistic approach to mobile security and privacy protection, while proving that we can proactively protect our 172 million security, privacy, and productivity users by addressing these threats before they become a problem, not after the fact."

Comments & Business Outlook

Thu, 07 Jun 2012 04:00:00 GMT

DALLAS, June 7, 2012 /PRNewswire-Asia/ -- According to a recent survey commissioned by NQ Mobile, smart device owners are becoming increasingly concerned about others accessing private content on their mobile devices. Furthermore, nearly a quarter of those surveyed feel someone close to them may have already secretly accessed the content on their smart phones, including employers, friends, significant others and even their own children.

NQ Mobile Vault^™ is a new Android privacy app from NQ Mobile, which creates an encrypted and password-protected space on devices where consumers can safely store private contacts, SMS message, call logs, photos and videos.

"Whether being passed around to share photos from a recent vacation, being used to entertain children or being left untended on a table in a business meeting, its clear our smart phones are finding their way into more and more people's hands," says Gavin Kim. Chief Product Officer, NQ Mobile. "Surprisingly, smart phones provide no simple way to curate the content we feel comfortable others seeing and storing away the content we'd rather keep private. NQ Mobile Vault is an elegant and simple solution that should give consumers the confidence to keep sharing their devices."

Since the launch of the NQ Mobile Vault public beta in mid-December 2011, over 1.6 million users have downloaded the application and have rated it 4.5 of 5 stars. NQ Mobile Vault is currently a top-ten downloaded free application in the business category within Google Play.

Notable Share Transactions

Wed, 06 Jun 2012 04:00:00 GMT

BEIJING and DALLAS, June 6, 2012 /PRNewswire-Asia/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company", formerly known as NetQin Mobile Inc.) (NYSE: NQ), a leading global provider of mobile Internet services focusing on security, privacy and productivity, today announced that members of its senior management, including Co-CEOs Dr. Henry Lin and Omar Khan, COO Vincent Shi, President Zemin Xu and CFO Suhai Ji, among others, intend to use their personal funds to purchase up to an aggregate of $2 million worth of the Company's American depositary shares ("ADSs") in open market transactions within six months from June 6, 2012, pursuant and subject to the restrictions of, and consistent with, applicable laws and the Company's securities trading policy.

"We consider the recent drop in NQ Mobile's share price to be unjustified and we believe our stock to be currently undervalued," commented Dr. Henry Lin, Chairman and Co-CEO of NQ Mobile. "The plan to purchase NQ Mobile shares on the open market by the NQ Mobile senior management team demonstrates our strong confidence in the company and reflects our commitment to executing our business plan and delivering shareholder value."

Joint Venture

Tue, 05 Jun 2012 04:00:00 GMT

BEIJING and DALLAS, June 5, 2012 /PRNewswire-Asia/ -- NQ Mobile (NYSE: NQ), a leading global provider of mobile Internet services focusing on security, privacy and productivity, today announced an alliance with TDMobility, the joint U.S. venture between Brightstar Corp and Tech Data Corporation (NASDAQ: TECD). The collaboration will enable TDMobility to bring NQ Enterprise Shield to Tech Data's network of 65,000 Value Added Resellers across the US, serving small, medium, and large businesses. Full release

Comments & Business Outlook

Thu, 31 May 2012 04:00:00 GMT

BEIJING and DALLAS, May 31, 2012 /PRNewswire-Asia/ -- NQ Mobile (NYSE: NQ) a leading global provider of mobile Internet services focusing on security, privacy and productivity, today announced that A Wireless will offer NQ Mobile Guard at more than 125 retail locations across the United States.

A Wireless is one of six National Exclusive Premium Retailers for Verizon Wireless, employing over 600 wireless experts at over 125 locations. A Wireless will offer their customers NQ Mobile's award-winning mobile security protection for their Android devices. Customers will be able to purchase an NQ Mobile Guard retail card at all A Wireless retail locations throughout the United States.

NQ Mobile Guard utilizes NQ Mobile's proprietary, cloud-based security solution, which is used by over 172 million users in 150 countries and has been recognized by third-party testing facilities around the world as the most effective solution for detecting and combating mobile threats.

"As a leading global provider of mobile security solutions, NQ Mobile is pleased to announce our alliance with A Wireless," said Omar Khan, Co-Chief Executive Officer, NQ Mobile. "Retailers such as A Wireless are essential collaborators in our efforts to protect mobile users throughout the U.S. By informing and educating wireless users around the clear benefits of NQ Mobile Guard, A Wireless will be able to provide their customers with the best real-time security solution for protecting their vital mobile information."

"At A Wireless, it's our mission to provide every customer with the convenience of superior wireless service coupled with an advanced product line and an unparalleled customer service experience," said A Wireless CEO Rich Balot. "By offering our customers NQ Mobile Guard, we are ensuring our commitment to providing Android users with the best possible mobile experience available."

As a result of NQ Mobile's collaboration with Brightstar, NQ Mobile Guard will be available to A Wireless customers either as a standalone product or bundled with device protection from eSecuritel, a Brightstar company.

With features that include GPS-based anti-loss/theft, backup and restore tools for your contacts, complete privacy protection, traffic monitoring, and more, customers can keep their mobile information safe and secure.

Share Structure

Wed, 30 May 2012 04:00:00 GMT

BEIJING and DALLAS, May 30, 2012 /PRNewswire-Asia/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company", formerly known as NetQin Mobile Inc.) (NYSE: NQ), a leading global provider of mobile Internet services focusing on security, privacy and productivity, today announced that it has decided to withdraw its contemplated follow-on offering, a registration statement relating to which was filed with the Securities and Exchange Commission on May 10, 2012.

"In light of the recent market conditions and the current trading price for our American depositary shares, our board has decided that it is not in the best interest of our company or our shareholders to proceed with the offering," said Dr. Henry Lin, Chairman and Co-CEO of NQ Mobile. "We continue to see strong growth momentum across all of our security, privacy and productivity offerings year to date and remain focused on growing our business globally."

Acquisition Activity

Tue, 29 May 2012 04:00:00 GMT

BEIJING and DALLAS, May 29, 2012 /PRNewswire-Asia/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company," formerly known as NetQin Mobile Inc.) (NYSE: NQ), a leading global provider of mobile Internet services focusing on security, privacy and productivity, today announced that it has closed its acquisition of 55% of Beijing NationSky Network Technology, Inc. ("NationSky"), a leading provider of mobile services to enterprises in China, on May 28, 2012.

NQ Mobile acquired 55% of NationSky in a cash and share transaction totaling up to $12.9 million, if certain performance based milestones are met. The consideration included approximately $3.2 million in cash, $6.8 million in stock, and a performance-based earn out of $2.9 million in stock. Henry Lin, Chairman and Co-CEO of NQ Mobile will become the new Chairman of NationSky, and Charlie Hou, founder of NationSky will remain as the CEO. NQ Mobile will have the majority control of NationSky's board. With this acquisition, NQ Mobile has expanded its footprint into the enterprise market in China.

Founded in 2005, NationSky is a leader in providing mobile services to more than 1,000 enterprises in China. By working with carriers and smart phone platform providers, NationSky delivers device agnostic managed mobile services, mobile device management services and other mobile SaaS services. Headquartered in Beijing, NationSky also has offices in Shanghai and Shenzhen.

"NQ Mobile is excited to bring mobile security services to enterprises in China," said Henry Lin. "With NationSky, we will be able to help enterprises increase mobile services deployment adoption and create a fully protected bring-your-own-device work (BYOD) environment. This acquisition is also expected to be earning accretive to NQ Mobile's financial results for the fiscal year 2012," Lin added.

"Being a part of NQ Mobile, NationSky will further enhance China enterprise customer coverage and deliver a more comprehensive portfolio of enterprise services," said Charlie Hou. "We are already seeing ramp up in our enterprise customer pipeline since the acquisition announcement."

Financial Impact of the NationSky Acquisition
*Q2 FY12: This transaction will affect NQ Mobile's results in its fiscal second quarter ended June 30, 2012. Incremental GAAP revenue from the acquisition is expected to be in the range of $1.0 million to $1.2 million.
*FY 12: This transaction will affect NQ Mobile's results in its fiscal second through fourth quarter of 2012. Incremental GAAP revenue from the acquisition is expected to be in the range of $10 million to $12 million.

Notable Share Transactions

Mon, 14 May 2012 04:00:00 GMT

NetQin files to sell 6 million ADS. The company has not released a press release on this issue yet.

Acquisition Activity

Tue, 08 May 2012 04:00:00 GMT

BEIJING and DALLAS, May 8, 2012 /PRNewswire-Asia/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company", and formerly known as NetQin Mobile Inc.) (NYSE: NQ), a leading global provider of mobile Internet services focusing on security, privacy and productivity, today announced its intent to acquire 55% of Beijing NationSky Network Technology, Inc. ("NationSky"), a leading provider of mobile services to enterprises in China. This transaction is expected to close in the second quarter of 2012.

NQ Mobile, having over 60% market share in China's consumer mobile security market, is now expanding its footprint into the enterprise market through its majority acquisition of NationSky. NQ Mobile is acquiring 55% of NationSky in a cash and share transaction.

"We are proud to be part of NQ Mobile," said Charles Shuli Hou, Founder and CEO of NationSky, "Mobile malware and viruses attacks have been steadily increasing, and businesses in China know that they cannot leave their mobile workforce's devices and data at risk. NQ Mobile and NationSky will be able to jointly resolve enterprise mobility security issues."

Mobile devices used in enterprise, such as smartphones and tablets, are at risk from the same threats that target consumer devices- threats such as malware, malicious sites, SMS-related viral attacks, and privacy intrusion. Given the amount of sensitive information that resides on enterprise devices, businesses are proactively seeking protection solutions.

"By becoming the majority owner in NationSky, we are forging a new path into the enterprise market. An investment in NationSky opens up a direct channel for providing mobile security solutions to Chinese enterprises," said Dr. Henry Lin, Founder, Chairman and Co-CEO of NQ Mobile, "We intend to cross leverage our technology know-hows, and direct customer relationships to deliver the best-in-class secured mobile services to enterprise customers in China.

Comments & Business Outlook

Mon, 07 May 2012 04:00:00 GMT

First Quarter 2012 Highlights

Net revenues increased 109.6% year-over-year to $16.0 million from $7.6 million in the corresponding period of 2011, exceeding the high end of the Company's previous guidance of $14.5 million to $15.0 million.
Income from operations, or operating income, decreased 13.2% year-over-year to $1.3 million from $1.5 million in the corresponding period of 2011.
Non-GAAP operating income, defined as operating income excluding share-based compensation expenses, increased 87.6% year-over-year to $5.6 million from $3.0 million in the corresponding period of 2011.
Net income attributable to NQ Mobile increased 28.5% year-over-year to $2.1 million from $1.7 million in the corresponding period of 2011.
Non-GAAP net income, defined as net income attributable to NQ Mobile excluding share-based compensation expenses, increased 106.2% year-over-year to $6.4 million from $3.1 million in the corresponding period of 2011.
Net cash flow generated from operations was $6.8 million in the first quarter of 2012, compared with $2.0 million in the corresponding period of 2011. Cash and cash equivalents and term deposits together amounted to $131.0 million as of March 31, 2012.
Deferred revenue was $8.3 million at the end of first quarter of 2012, up 17.3% from $7.1 million at the end of the fourth quarter of 2011.

The Company's non-GAAP financial measures and related reconciliations to GAAP financial measures are described in the accompanying sections of "Non-GAAP Financial Measures" and "Non-GAAP Measure Reconciliations".

"I am very pleased to report that we started 2012 with another strong quarter. We again achieved record revenues and exceeded the high end of the previously issued guidance, for the fourth consecutive quarter since our IPO in May 2011," said Dr. Henry Lin, Chairman and Co-Chief Executive Officer of NQ Mobile. "In particular, we have made significant progress in building a global management team and accelerating our international expansion. I was joined by Omar Khan as Co-CEO in the first quarter and together we are directing NQ Mobile towards being a truly global company. Omar's efforts already began to yield results as we have formed new industry partnerships, made additional key hires and further enhanced our product roadmap and strategies. More recently, we have started to expand into the enterprise market by leveraging our technology and success in consumer mobile security. We believe NQ mobile is well positioned to capture the exciting mobile Internet growth opportunities in both consumer and enterprise markets globally."

"In the first quarter we announced several key international business development initiatives," added Omar Khan, Co-Chief Executive Officer of NQ Mobile. "We have announced agreements with Telefonica, Cricket Communication, 3LM, eSecuritel and most recently, The Cellular Connection ("TCC"), which is the largest Verizon premium wireless retailer in the US. More importantly, we also have had great success in attracting top industry talent and building a world-class team. Our recent hires included Gavin Kim, formerly General Manager of the Windows Phone Product Marketing at Microsoft, as our Chief Product Officer, and Conrad Edwards, formerly of Samsung Mobile, as our Chief Experience Officer and General Manager of International Marketing. We are confident that those new additions will equip NQ Mobile with the right talent and resources to execute our global expansion strategies."

Business Outlook

The Company expects net revenues to be in the range of $17.5 million and $17.8 million for the second quarter of 2012, representing year-over-year growth of 97.2%-100.6% and sequential growth of 9.5%-11.4%. For fiscal year 2012, the Company raises the guidance from the previously issued range of $70 million to $72 million to a range of $73 million to $75 million, representing year-over-year growth of 79.5%-84.4% from the previous year of 2011. The above forecast reflects the Company's current and preliminary view, which is subject to possible material changes.

Corporate Structure Info.

Thu, 19 Apr 2012 04:00:00 GMT

BEIJING and DALLAS, April 19, 2012 /PRNewswire-Asia/ -- NQ Mobile Inc. (NYSE: NQ), previously named as NetQin Mobile Inc., a leading global provider of mobile security, privacy and productivity applications ("NQ Mobile" or the "Company"), today announced that it held an extraordinary general meeting of shareholders in Hong Kong on April 18, 2012. NQ Mobile's shareholders approved the proposed change of the Company's name to NQ Mobile Inc., which was previously approved by the Company's board of directors.

Comments & Business Outlook

Tue, 03 Apr 2012 04:00:00 GMT

SAN JOSE, Calif. and MARION, Ind., April 3, 2012 /PRNewswire-Asia/ -- NQ Mobile, the international brand of NetQin Mobile Inc. (NYSE: NQ), a leading global provider of consumer-centric mobile Internet services focusing on security and productivity, today announced that The Cellular Connection (TCC) will offer NQ Mobile Security at more than 800 Verizon Premium Wireless Retail locations across the U.S. Rollout of this program will begin with availability at TCC's nearly 300 corporate stores.

TCC is the nation's largest Verizon Premium Wireless Retailer, offering unparalleled customer service and competitive industry pricing. Through partnering with NQ Mobile, TCC will be able to offer Verizon customers best-in-class protection for their Android devices.

Customers will be able to purchase NQ Mobile Security through a retail card solution. In addition to offering a premium retail version of NQ Mobile's Mobile Security, TCC will also offer special savings for customers that purchase additional insurance for their mobile phone.

"As a leading global provider of mobile security solutions, NQ Mobile is pleased to announce with our alliance with TCC," said Omar Khan, Co-Chief Executive Officer, NQ Mobile. "Wireless retailers such as TCC are essential partners in combating mobile malware threats in the U.S. Through informing and educating customers around the clear benefits of NQ Mobile Security, TCC will be able to provide Verizon customers with the best real-time security solution for protecting their important mobile information."

"As the largest Verizon Wireless Premium Retailer in the country, TCC is committed to providing our customers with the best customer service in the industry," said Scott Moorehead, president and CEO, TCC. "We are thrilled to be able to offer our customers the best mobile protection through NQ Mobile Security."

Comments & Business Outlook

Tue, 06 Mar 2012 05:00:00 GMT

Fourth Quarter 2011 Highlights

Net revenues increased 104.8% year-over-year to $12.8 million from $6.3 million in the corresponding period of 2010, exceeding the high end of the Company's previous guidance of$12.4 to $12.7 million.
Income from operations, or operating income, increased to $1.5 million from a loss of $10.4 million in the corresponding period of 2010.
Non-GAAP operating income, defined as operating income excluding share-based compensation expenses, increased 570.9% year-over-year to $4.8 million from $0.7 million in the corresponding period of 2010.
Net income attributable to NetQin increased to $3.2 million from a loss of $10.5 million in the corresponding period of 2010.
Non-GAAP net income attributable to NetQin, defined as net income attributable to NetQin excluding share-based compensation expenses, increased 917.6% year-over-year to $6.5 million from $0.6 million in the corresponding period of 2010.
Net cash flow generated from operations was $4.2 million in the fourth quarter of 2011, compared with $0.3 million in the corresponding period of 2010. Cash and cash equivalents and term deposits together amounted to $128.1 million as of December 31, 2011.
Deferred revenue was $7.1 million at the end of the fourth quarter of 2011, up 17.7% from $6.0 million at the end of the third quarter of 2011.

"We are very pleased to report a strong fourth quarter and to finish year 2011 on a high note exceeding our previously issued guidance," commented Dr. Henry Lin, chairman and co-chief executive officer of NetQin Mobile. "In our first year as a public company, we have achieved excellent growth and delivered three consecutive solid quarters following our IPO in May 2011.

"In 2011, NetQin Mobile set a number of new records in financial and operating metrics. Both our net revenues and registered user base reached record highs, more than doubling from the previous year. This success is driven by a number of factors including our relentless focus on product and technology innovation, as well as user experience. We also continued our expansion of industry partnerships and user acquisition channels. The rapid growth of global smartphone shipments and the proliferation of mobile Internet applications, as well as increasing consumer awareness and adoption of mobile security helped assure our success," continued Dr. Lin.

"While maintaining our dominant market share in China, we have also seen our internationalization strategy take off in 2011, with now almost half of our net revenues coming from overseas. This underscores the global demand for mobile security and privacy protection. With the recent joining of Omar Khan as our Co-CEO, we will continue to expand and grow our international business aggressively, signing up new industry partners and making key hires in overseas markets."

"We believe the growth of the smartphone and mobile Internet industry presents us with an unprecedented global market opportunity. 2012 is shaping up to be another exciting year for NetQin Mobile during which we will continue to expand our service offerings and extend our geographic outreach," said Khan. "With recently announced agreements with Motorola, Telefonica, 3LM and eSecuritel, we already had a great start in 2012 and I am also pleased to report that Cricket Communications, a leading provider of wireless services that serves six million customers in 35 states, has just selected NetQin as the preferred security solution provider for its Android devices. We remain confident that we will continue our growth momentum in 2012 and capitalize on these global opportunities."

Business Outlook

The Company expects net revenues to be in the range of $14.5 million and $15.0 million for the first quarter of 2012, representing year-over-year growth of 90.8%-97.4% and sequential growth of 13.3%-17.2%. For fiscal year 2012, the Company expects net revenues to be in the range of $70 million and $72 million, an increase of 70.7% to 75.6% compared to fiscal year 2011. The above forecast reflects the Company's current and preliminary view, which is subject to possible material changes.

Joint Venture

Mon, 27 Feb 2012 05:00:00 GMT

SAN JOSE, Calif., Feb. 27, 2012 /PRNewswire-Asia/ -- NQ Mobile, the international brand of NetQin Mobile, Inc. (NYSE: NQ), a leading provider of consumer-centric mobile security and productivity applications, today announced that it has integrated the BlueVia payment API from Telefonica, one of the largest telecommunications operators in the world, in order to offer a seamless mobile payment option to more than 200 million Telefonica subscribers across 8 markets. The integration of BlueVia is an extension of the framework agreement signed with Telefonica in 2011.

"We are very excited to be partnering with Telefonica in order to give mobile users around the world access to our award-winning mobile security solutions," said Omar Khan, Co-Chief Executive Officer, NQ Mobile. "Through tapping into Telefonica's BlueVia Developer platform, NQ Mobile will be able to provide our users with a seamless security solution for protecting their important mobile information, with the added convenience of trusted carrier billing integrated into our clients."

Comments & Business Outlook

Wed, 04 Jan 2012 05:00:00 GMT

BEIJING, January 4, 2012 /PRNewswire-Asia/ -- NetQin Mobile Inc. ("NetQin" or the "Company") (NYSE: NQ), a leading global provider of consumer-centric mobile security and productivity applications, and Motorola Mobility, Inc., ("Motorola") (NYSE: MMI) an innovator of communications technology and products, today announced that they have signed an agreement to pre-install NetQin Mobile Security on Motorola Android smartphones in China. This agreement will ensure that consumers have instant access to the strongest mobile security application and services on the market.

The first Motorola Android phones that include NetQin Mobile Security will be shipped at the beginning of 2012. Motorola customers will receive 60 days of free access to NetQin Mobile Security Premium features, which:

Protect against malware, spyware, hackers, and all mobile threats
Secure the personal and financial data stored on smartphones
Keep devices running at optimum speed
Provide backup and restore tools to protect data
Locate, lock, and delete information from lost or stolen phones
Provide control over running apps, power consumption, and data usage

"With mobile threats expected to reach an all-time high in 2012, this agreement comes at the right time to give smartphone users the security they need for their mobile devices, as well as all the personal and financial data on them," said Dr. Henry Yu Lin, chairman and CEO of NetQin. "We are very pleased to partner with Motorola Mobility to bring our powerful security to their Android customers. This is another step towards ensuring that users around the world can enjoy their mobile life in a safe and secure environment."

Comments & Business Outlook

Mon, 07 Nov 2011 05:00:00 GMT

SAN JOSE, Calif., November 7, 2011 /PRNewswire-Asia-FirstCall/ -- NetQin Mobile Inc. ("NetQin" or the company) (NYSE: NQ), a leading provider of consumer-centric mobile security and productivity applications, today announced that it added over 20 million registered users during the third quarter. NetQin's comprehensive suite of mobile Internet services, which includes anti-virus, anti-spam, privacy protection, data backup and restoration applications, now has over 122 million registered users, in over 100 countries.

This 19% third quarter increase builds on momentum of the 16 million users NetQin added in the second quarter (an 18% increase over the first quarter). NetQin's continued rapid growth reflects several factors, including:

The relentless proliferation of smartphones and mobile malware,
Growing consumer awareness and concern about mobile security threats,
The company's global expansion to regions like the Americas and EMEA, where mobile security is becoming more critical, and
NetQin's proprietary "cloud+client" technology, which allows the company to identify and resolve more threats than any other mobile software company on the market today.

"Shipments of smartphones overtook PCs last year, and continue to grow at an astonishing rate, tripling over just the past two years," said Will Jiang, NetQin's Chief Strategy Officer. "As smartphones become more universally accepted, consumers place more and more confidential data - including financial information - on these devices and take them everywhere. Hackers, who can now steal significantly more personal and financial data from a vulnerable smartphone, are developing and releasing malware at a record pace. These numbers show that more and more smartphone users are taking advantage of NetQin's industry-leading technology to protect their mobile lives. Nevertheless, our highest priority remains increasing consumer awareness, because while we protect millions of users around the world, millions more are unaware of the very real threats that could compromise their data or personal information every day."

"As NetQin expands its presence in markets like the Americas and EMEA, we are adding over 200,000 new users every day," said Chris Stier, Managing Director Americas for NetQin. "The power of NetQin's unique cloud-based technology is that every user we add helps increase the knowledge gathered by our database, and that in turn helps us identify malware and provide solutions more quickly than any competitor. To date, we've identified over a billion malicious URLs and hundreds of thousands of malicious applications, giving us the ability to provide protection consumers won't find anywhere else."

Comments & Business Outlook

Thu, 03 Nov 2011 04:00:00 GMT

Third Quarter 2011 Results

Net revenues increased 109.7% year-over-year to $11.3 million from $5.4 million in the corresponding period of 2010, exceeding the high end of the Company's previous guidance of $10.1 million to $10.3 million disclosed in the second quarter 2011 results announcement.
Income from operations, or operating income, increased 67.8% year-over-year to $2.1 million from $1.2 million for the corresponding period of 2010. Non-GAAP operating income, defined as operating income excluding share-based compensation expenses, increased 146.6% year-over-year to $4.7 million from $1.9 million for the corresponding period of 2010.
Net income attributable to NetQin increased 343.5% year-over-year to $4.3 million from $1.0 million for the corresponding period of 2010. Non-GAAP net income, defined as net income attributable to NetQin excluding share-based compensation expenses, increased 320.2% year-over-year to $7.0 million from $1.7 million for the corresponding period of 2010.
Net cash flow generated from operations was $2.6 million in the third quarter of 2011, compared with net cash outflows of $0.8 million for the corresponding period of 2010. Cash and cash equivalents and term deposits together amounted to $121.5 million as of September 30, 2011.
Deferred revenue was $6.0 million at the end of the third quarter of 2011, up 31.1% from $4.6 million at the end of the second quarter of 2011.

"I am very pleased to report that we achieved another strong quarter, delivering record revenue and beating the high end of our guidance," commented Dr. Henry Lin, chairman and chief executive officer of NetQin. "Even in the face of global economic uncertainty, our business and user growth have not experienced any slowdown, in fact our business momentum remains as strong as ever. We continue to benefit from the rapid growth in global smartphone shipments and the proliferation of mobile Internet applications. Smartphone users have become increasingly aware of the severity of mobile security risks and are implementing mobile security solutions in response. NetQin is well positioned to seize this global market opportunity."

"Aside from our impressive third quarter results, the past few months also marked a number of notable business development and operational achievements. Most recently, we were favorably evaluated by West Coast Labs, which determined through rigorous testing that NetQin has the best mobile security solution available and we further expanded our research capability by establishing a Security Research Center in Raleigh, North Carolina. On product development, in addition to regularly updating our existing products, we launched a new smart calendar product named NiceDay to add to our product lineup on the iPhone and Android platforms. In the past quarter we also recruited industry veterans to spearhead our expansion into the Americas and Europe. And we saw continued market traction through our new partnerships with Brightstar and Taiwan Mobile," added Dr. Lin.

"We have achieved two consecutive record quarters following our IPO in May 2011 and we are confident that we will continue to deliver strong operational and financial results given our solid business fundamentals and promising growth prospects. We look forward to bringing more exciting news and progress to our shareholders when we report our fourth quarter and full-year 2011 results next year," Dr. Lin concluded.

Business Outlook

The Company expects net revenues to be in the range of $12.4 million to $12.7 million for the fourth quarter of 2011, representing year-over-year growth of 97% to102% and sequential growth of 10% to12%. Accordingly, this raises the full-year 2011 net revenue guidance from the previously issued range of $38.3 million to $38.8 million to a range of $40.2 million to $40.5 million, representing year-over-year growth of 127% to129% from the previous year of 2010. The above forecast reflects the Company's current and preliminary view, which is subject to possible material changes.

Investor Alert

Sat, 03 Sep 2011 04:00:00 GMT

On March 15, 2011, a live program broadcast by China Central Television Station, or CCTV, the national television broadcasting network owned by China’s central government, in celebration of China’s consumer rights protection day, reported various complaints of certain alleged fraudulent practices by Beijing Feiliu, a company in which we hold a 33% equity interest, and by us. Such alleged fraudulent practices generally included, among other things, uploading malware or viruses to imported mobile phones to promote our mobile security products. We have interviewed our employees and reviewed our mobile security products, and from this investigation we have found no evidence of malware or the alleged fraudulent practices. We also understand that Beijing Feiliu has also interviewed their employees and examined or tested their mobile software products and did not find any evidence of malware or alleged fraudulent practices. Following the CCTV broadcast on March 15, 2011, many news articles in China and overseas reported on CCTV’s negative publicity about Beijing Feiliu and us with additional allegations, including claims that China’s Ministry of Industry and Information Technology, or MIIT, directed the three major telecom operators in China to cease offering our mobile security applications on their respective online application stores, and as a result the three major telecom operators have terminated their business relationships with us. Based on our internal investigation and due diligence inquiries with certain major telecom operators in China, we believe that the claims about their termination of our contractual arrangements are false. 21

Liquidity Requirements

Sat, 03 Sep 2011 04:00:00 GMT

To date, we have financed our operations primarily through private placements of preferred shares to investors and cash generated from operations. As of December 31, 2010, we had $18.0 million in cash and cash equivalents. Cash and cash equivalents represent cash on hand, demand deposits and other short-term highly liquid investments placed with banks that have original maturities of three months or less and are readily convertible to known amounts of cash. We expect to require cash to fund our ongoing operational needs, particularly our salaries and benefits and working capital. We believe that our current cash will be sufficient to meet our anticipated operating cash flow needs for the next 12 months.

Joint Venture

Tue, 02 Aug 2011 04:00:00 GMT

JING, Aug. 2, 2011 /PRNewswire-Asia/ -- NetQin Mobile Inc. ("NetQin") (NYSE: NQ), a leading provider of consumer-centric mobile security and productivity applications, and MediaTek Inc. ("MediaTek"), a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today jointly announced that the two companies have reached an agreement on mobile security cooperation. Under the agreement, MediaTek will make NetQin's mobile security service available to the company's smartphone chipset.

"We are very excited to cooperate with MediaTek to provide our industry-leading mobile security services to more consumers globally. This partnership is also a validation of NetQin's technology leadership on the Android platform," said Dr. Henry Yu Lin, Chairman and CEO of NetQin Mobile Inc. "The mobile ecosystem participants are realizing the ever increasing trend of malware attacks. NetQin will continuously work with industry partners such as MediaTek to protect consumers," Dr. Lin added.

"MediaTek's focus is to deliver the best IC solutions to our customer base. We consider mobile security as a must-have for the smartphone platform," said David Ku, Spokesperson and CFO of MediaTek Inc. "NetQin is a leader in the space and we are excited to work with NetQin to deliver the best mobile security services available to consumers," Mr Ku Added.

Notable Share Transactions

Thu, 16 Jun 2011 04:00:00 GMT

BEIJING, June 16, 2011 /PRNewswire-Asia/ -- NetQin Mobile Inc. ("NetQin" or "the Company") (NYSE: NQ), a leading provider of consumer-centric mobile security and productivity applications, today announced that Dr. Henry Yu Lin, NetQin's founder, chairman and chief executive officer, Dr. Vincent Wenyong Shi, NetQin's director and chief operating officer, Mr. James Ding, NetQin's director, and Mr. Weiguo Zhao, NetQin's director, intend to use their personal funds to purchase up to an aggregate total of $2 million worth of the Company's American depositary shares ("ADSs") in open market transactions within the next six months.

"We consider NetQin's stock to be severely undervalued currently," said Dr. Henry Yu Lin. "We saw strong growth momentum across all of the Company's security and productivity offerings during the first quarter of this year as the Company achieved record high numbers of registered users, active users and paying users. The plan to purchase NetQin shares on the open market demonstrates our confidence in the Company and reflects our commitment to executing our long-term strategic vision and to delivering shareholder value."

Dr. Shi added, "Given that the cash value per NetQin ADS is now more than $2, we do not believe the Company's tremendous growth prospects are fully reflected in the current stock price. As such, our directors James and Weiguo, Henry and I see our planned stock purchases as a way to emphasize our long-term commitment to NetQin."

NetQin is in the process of helping the four directors set up a Rule 10b5-1 share repurchase plan. The share purchases will be made subject to applicable legal restrictions and other factors and in a manner consistent with NetQin's securities trading policy and applicable securities laws.

Comments & Business Outlook

Thu, 02 Jun 2011 04:00:00 GMT

First Quarter Results:

Net revenues increased 216.7% year-over-year to $7.6 million from $2.4 million in the same period in 2010.
Operating income increased to $1.5 million from a loss of $0.6 million in the same period in 2010. Non-GAAP operating income, defined as operating income excluding share-based compensation expenses, increased to $3.0 million from a loss of $0.2 million in the same period in 2010.
Net income attributable to NetQin increased to $1.7 million from a loss of $0.4 million in the same period in 2010. Non-GAAP net income, defined as net income excluding share-based compensation expenses, increased to $3.1 million from $0.02 million in the same period in 2010.
Net cash flow generated from operations was $2.0 million in the first quarter of 2011, compared with net cash outflow of $1.5 million in the same period in 2010. Cash and cash equivalents amounted to $24.5 million at the end of the first quarter of 2011.
Diluted EPS: $0.02 vs. Flat for the year before.
Deferred revenue was $3.4 million at the end of the first quarter of 2011, up 25.9% from $2.7 million at the end of the fourth quarter of 2010.

"We are very pleased to report our first quarterly results as a U.S.-listed company," said Dr. Henry Lin, chairman and chief executive officer of NetQin Mobile. "Our strong growth in the first quarter further validates our innovative freemium SaaS business model. With the rapid growth in smartphone shipments globally and the proliferation of mobile Internet applications, mobile security risks are on the rise and mobile security is quickly becoming a fundamental need for smartphone users. NetQin is well positioned to seize this market opportunity and become the leading global mobile Internet service provider."

The Company expects net revenues to be in the range of $8.6 million and $8.8 million for the second quarter of 2011, representing year-over-year growth of 139% to 144% and quarter-over-quarter growth of 13% to 16%. For the full year of 2011, the Company expects net revenues to be in the range of $37.5 million and $38.5 million, an increase of 112% to 118% compared to fiscal year 2010. The above forecast reflects the Company's current and preliminary view, which is subject to possible material changes.

IPO Activity

Thu, 05 May 2011 04:00:00 GMT

BEIJING, May 5, 2011 /PRNewswire-Asia/ -- NetQin Mobile Inc. ("NetQin" or "the Company") (NYSE: NQ), a leading provider of consumer-centric mobile security and productivity applications, today announced that its initial public offering of 7,750,000 American depositary shares ("ADSs"), each representing five Class A common shares of the Company, was priced at $11.50 per ADS, with a total offering size of US$89.125 million, assuming no exercise of the over-allotment option. The ADSs will begin trading on the New York Stock Exchange on May 5, 2011 under the symbol "NQ."

Piper Jaffray & Co. acted as sole bookrunner and Oppenheimer & Co. and Canaccord Genuity acted as co-managers for the offering. The underwriters have been granted a 30-day option to purchase up to 1,162,500 additional ADSs to cover over-allotments.