remaining excess charged entirely to retained earnings.
NQ Mobile Senior Management Share Purchase Plan
The senior management of NQ Mobile, including Co-CEOs Dr. Henry Lin andOmar Khan, COO Dr. Vincent Shi, CFO KB Teo, and CCO Gavin Kim, among others remain committed to purchasing up to $3 million worth of the Company’s ADSs pursuant and subject to the restrictions of, and consistent with, applicable laws and the Company’s securities trading policy. To comply with on the applicable laws and the Company’s securities trading policies, the Senior Management team was unable to purchase shares on the open market during Q4 2013.
NQ Mobile Subsidiary NationSky to Deploy Enterprise Mobile Solution on More Than 500,000 devices for The National Bureau of Statistics of PRC
NQ Mobile announced on Jan 9, that its subsidiary, NationSky successfully deployed its NQSky MDM platform solution on more than 500,000 devices for the National Bureau of Statistics of China for its 2014 National Economic Census.
This project is NationSky’s largest deployment of MDM to date and the project includes unified customization of the devices for data procurement while maintaining security. Through an open bid process in September 2013, the National Bureau of Statistics chose NationSky and its NQSky platform.
Sprint Live, powered by NQ Live, to provide Sprint customers a more interactive, informative and immersive mobile experience
On Jan 15, NQ Mobile and Sprint (S) have signed a definitive agreement for NQ Mobile to collaborate and deliver the next generation of Sprint ID, powered by NQ Live, on all new Sprint Android-powered smartphones in the U.S. market later this year. Unlike a standard wallpaper or third-party launcher, NQ Live is an engaging mobile desktop that will change the way consumers use their connected devices.
Acquisition
In 2013 and the first quarter of 2014, the Company signed a series of agreements to acquire a total of 58% of Tianjin HuaYong Wireless Technology Ltd. (vLife) with total cash payment of RMB 15.2 million, $34.4 million, and restricted shares of the Company at the market value of $ 45.5 million. Their main product vLife was fundamental in deriving the NQ Live platform which is an “always-on” replacement for the wallpaper on an Android device. It delivers content and functionality to the device’s home screen, tailored to the brands consumers follow or the news they’re interested in receiving.
Historical accounting overstatement of share based compensation expense
In the fourth quarter of 2013, the Company identified an accounting overstatement relating to share based compensation expense in the unaudited financial results for the three months and nine months ended September 30, 2013 as previously reported in the Company’s quarterly result announcement on Form 6-K dated November 12, 2013. This overstatement resulted from two clerical errors in the calculation of the share-based compensation expense and caused the overstatement of the share based compensation expense in the unaudited financial results for the three months and nine months ended September 30, 2013. Therefore, the Company has revised the unaudited financial results for the three months and nine months ended September 30, 2013 to reflect the impact of the correction.
Correction of the overstatement in the Company’s unaudited interim condensed consolidation statements of comprehensive income for the three months ended September 30, 2013 resulted in a reduction of $369,624 in the amount reported for general and administrative expenses and correspondingly resulted in a reduction of $369,624 in the amount reported for net loss attributable to NQ Mobile Inc. and a reduction of $0.0013 in the amounts reported for both basic net loss per share and diluted net loss per share attributable to NQ Mobile Inc., as compared to the amounts reported in the Company’s previously announced quarterly result on Form 6-K for the three months ended September 30, 2013. Correction of the error in the Company’s unaudited condensed consolidated balance sheets as of September 30, 2013 resulted in an increase of $369,624 in additional paid-in capital, as compared to the corresponding amounts reported in the Company’s announced quarterly result on Form 6-K.
Business Outlook
The Company expects net revenues to be in the range of $75 million and $76 million for the first quarter of 2014 and raises the full year 2014 net revenue guidance from the previously issued range of $305 million to $310 million to a range of $320 million to $325 million.
The above forecast reflects the Company’s current and preliminary view, which is subject to possible material changes.
Conference Call Information
NQ Mobile’s management team will hold an earnings conference call to discuss its results and outlook at 8:00PM U.S. Eastern Time on Thursday, April 10 2014, (8:00AM Beijing/Hong
