Total gross profit was $17 million compared to $16.5 million in 1Q, while gross margins remain stable at 41%. Total OpEx was $12.3 million, an increase of – from 1Q levels of $11.4 million as we increased sales and marketing activities for the long-term loan to tax for the full period of 2Q.
Net profit in the quarter was $4.39 million compared to a net loss in 1Q of $0.46 million, but this included a charge related to the change in the fair value of the Dacheng contingent consideration of $3.73 million. Basic net profit for ADS was $0.11 based on $40.9 million ADS which included the full quarter – first two quarters impact of new shares issued to the shareholder’s of Dacheng at the end of March.
Non-GAAP net income was $6.2 million in line with the company’s guidance range of $6 million to $7 million, while non-GAAP diluted net income per ADS was $0.14.
At the end of 2Q, the company had $134.2 million in cash and cash equivalents or $3.3 per basic ADS in cash compared to 11 of a $118.3 million at the end of 1Q. However, cash and cash equivalents exclude to $21.6 million third party loan and it’s including the value of the RMB third-party loan which was made totally for the purpose of treasury management.Total cash and third-party loans amounted to $155.8 million at the end of 2Q or equivalent to $3.8 per ADS.Now, I would like turn to each business unit’s financial performance in the Internet games, mobile games, and WVAS. Internet game revenues in the second quarter were $10.35 million a 59% increase from 1Q and 158% increase compared to 2Q 2.10. Net game revenues were driven by the strong performance of World of Tanks which was launched commercially on March 15, 2011.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV