Mr. Cheng continued, "As the market potential and excitement of the LBS market grow, mobile map is emerging as a key delivery platform for engaging consumers and advertisers. In 2013, we will continue to execute on our mobile strategy with further investment to expand the reach of our mobile offerings and deepen user engagement. We are confident that our strategic planning capabilities, early-mover advantage and well-recognized brand will continue to help us evolve ahead of the market, leading to increased market share and the realization of our long-term growth objectives." 

Fourth Quarter 2012 Results

Revenues

Total net revenues in the fourth quarter of 2012 were $43.6 million, an increase of 25.7% year-over-year from $34.7 million in the fourth quarter of 2011, and an increase of 8.4% from $40.2 million in the third quarter of 2012.

Automotive Navigation

Net revenues from the automotive navigation market in the fourth quarter of 2012 were $21.6 million, a decrease of 1.9% year-over-year and 9.8% from the previous quarter. The sequential decrease was largely attributable to a decrease in the number of copies of digital map data licensed for use with in-dash navigation systems, which is directly linked to the number of vehicles sold in China that are equipped with these systems.

Mobile and Internet Location-based Solutions

The mobile and Internet location-based solutions business in the fourth quarter of 2012 achieved $15.5 million in net revenues, representing an increase of 63.4% year-over-year and 39.2% over the previous quarter. The increases were primarily due to the growth in revenues derived from the pre-installation of the Company's navigation solutions on mobile phones and Internet-based map API solutions. 

Public Sector and Enterprise Applications

Net revenues from the public sector and enterprise applications market in the fourth quarter of 2012 were $5.8 million, an increase of 110.1% year-over-year and 32.6% from the previous quarter. The year-over-year increase was largely attributable to certain new aerial photogrammetry, 3-D modeling application and map data licensing contracts entered this year. The sequential increase was mainly due to the better progress of 3-D modeling applications contracts in the fourth quarter.

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