Kongzhong Corp. (KONG)

[surf1944]

KongZhong Corporation Reports Unaudited Fourth Quarter And Fiscal Year 2007 Financial Results
Tuesday March 4, 6:00 pm ET

BEIJING, March 5 /Xinhua-PRNewswire/ -- KongZhong Corporation (Nasdaq: KONG - News), a leading wireless value-added services ("WVAS") and wireless media company in China, today announced its unaudited fourth quarter and fiscal year 2007 financial results.

Fourth Quarter 2007 Financial Highlights:
-- Total revenues increased 16% sequentially to $19.81 million, exceeding
the Company's fourth-quarter revenue guidance of $18.5 million to $19.5
million.
-- Total mobile advertising revenues increased 12% sequentially to
$298,000.
-- US GAAP net income increased 26% sequentially to $0.69 million.
Diluted earnings per ADS were $0.02.
-- Non-GAAP net income increased 15% sequentially to $1.57 million. Non-
GAAP diluted earnings per ADS were $0.04. Non-GAAP Financial Measures
are described and reconciled to the corresponding GAAP measures in the
section titled "Non-GAAP Financial Measures".

Fiscal Year 2007 Financial Highlights:
-- Total revenues were $74.02 million. Total WVAS revenues were $73.01
million and total mobile advertising revenues were $903,000.
-- US GAAP net income was $2.83 million. Diluted earnings per ADS were
$0.08.
-- Non-GAAP net income was $6.01 million. Non-GAAP diluted earnings per
ADS were $0.17. Non-GAAP Financial Measures are described and
reconciled to the corresponding GAAP measures in the section titled
"Non-GAAP Financial Measures".

Commenting on the results, KongZhong's Chairman and Chief Executive Officer, Yunfan Zhou, said, "We are happy that our WVAS business has regained growth momentum in Q4 2007. We expect the Company to have a better WVAS business in 2008. In regards to our wireless Internet business, we are glad that we have achieved continual growth in our mobile advertising revenues. We are confident about the future of our wireless Internet business and will continue our efforts to develop Kong.net in 2008."

Business Highlights:
-- In March 2008, the Company signed a strategic alliance agreement with
Focus Wireless Media Technology Co., Ltd. ("Focus Wireless"), a
subsidiary of Focus Media Holding Ltd., to jointly expand their
respective mobile advertising business by leveraging on the strong
advertising sales force of Focus Wireless and KongZhong's reputable
wireless Internet portal Kong.net. The Company expects the strategic
alliance to help generate a significant portion of its mobile
advertising revenues over the next two years and bring the mobile
advertising business to the next level.
-- In January 2008, the Company signed a strategic alliance agreement with
China Sports Industry Group Co., Ltd ("CSIG") to jointly explore
business opportunities for developing sports-related content for mobile
phones, including wireless value-added services and wireless Internet
sites.
-- In January 2008 and February 2008, the Company signed cooperation
agreements with Infront to operate the official mobile websites for the
Men's Professional League of the Chinese Basketball Association,
China's National Basketball Teams and China's National Football Teams.
-- In January 2008, the Company signed an agreement with HiU! Media, a
company providing residential community direct marketing advertising
network and residential community marketing solutions in China, to
purchase 9.87% of the total equity interest in HiU! Media for $1.5
million. The investment was completed in January 2008. Nick Yang,
KongZhong's President, was an early investor in HiU! Media. Through its
investment in HiU! Media, Kongzhong expects to strengthen the Kong.net
brand by launching advertisement campaigns on HiU! Media's advertising
network.
-- The Company signed cooperation agreements with Xinhua PR Newswire, Dow
Jones & Company and Finet Group Limited to provide, on the finance
channel of Kong.net, stock quotes and news updates about companies
listed on the Shanghai Stock Exchange, the Shenzhen Stock Exchange, the
Hong Kong Stock Exchange and the stock exchanges in the United States.

Financial Results:

http://biz.yahoo.com/prnews/080304/cntu027.html?.v=17