Again, this post is from a pipedreamer (probably WSP) imposter posting as APPLLENGINEER, not APPLENGINEER - in a half-wit attempt to discredit me. I take no responsibility for his far-fetched inuendo and idiotic speculation of a Deloitte or PwC resignation. The only serious chatter is coming from a figment of his imagination.
As for lack of communication from IR, it is interesting to note that NQ Mobile has announced the date of Q4 earnings between Feb 16-20 every year, and has released the earnings on March 6 every year. While NQ Mobile has no legal requirement to communicate the status of the earnings release or lack thereof, in my opinion they have a fiduciary responsibility to do so. It doesn't help the stock or instill investor confidence in management to be silent on the most critical of issues in the company's history. Furthermore, NQ Mobile has a pattern of excessive company PRs, with 82 press releases in 2013 alone vs. 53 for Apple Inc (a half-trillion dollar company), so the lack of communication is somewhat troublesome. That said, I do believe that a delay in filing the 20-F is on the horizon and that a restatement of earnings and/or revenues (visavi Yidatong) a likely outcome.
Good luck to all.
NQ announced 82 press releases last year. Did you know Apple Inc announced 53 press releases last year? For such a vocal company acclimated to idiotic press releases, such as the recent discovery that NQ Security ACTUALLY worked on the ZooTiger trojan, is it too much to expect Kim or Matt to update investors on the Q4/FY release date (or at a minimum an update on the audit progress)? Since it's IPO, NQ has ALWAYS announced the date of Q4 earnings between Feb 16-20, and the earnings release on March 6. If there is nothing wrong happening with the company right now and it's business as usual, ARROGANCE is the only explanation. After all, the audit and earnings release is the binary event on every pipedreamers mind RIGHT NOW. Why are all the longs so complacent about this issue, when in reality they're on pins and needles?
These are irrefutable facts.
Hey dimwit, read plain English: Read page F15 of the 20F (copy and pasted): "Cost of revenues primarily consists of fees paid to the handset makers for them to preload the Group’s software".
Revenue is NOT created when the applications are activated. Where did you learn this from?? Don't you know that the majority of consumers in China DO NOT activate preloads and HATE THEM WITH PASSION? Furthermore, for NQ to generate ANY revenue from the activation, THOSE ACTIVATIONS MUST OPT FOR PREMIUMS SUBS! This is simply not the case, with most users in China opting for Qihoo 360, Baidu's, and Tencent's security offerings from app download stores. If NQ had a super product, they wouldn't need to pay the carriers and handset makers to stuff it down users throats. Rather, the users would come to NQ via app stores, like the best in the game do.
China Mobile, China Unicom, Telkomsel.....they don't mean anything. At the end of the day, bloatware is NQ's losing battle for mobile software dominance. Everyone else already learned this lesson, but NQ has nowhere else to go. You pay a carrier or handset co to bundle your product........the consumer then buys the carrier service or handset and removes the bloatware with Qihoo360 or another tool. But NQ can still boast "user" numbers based on pre-installs that in real terms mean nothing. It's the same as download fraud, which allegedly Feiliu engaged in with iTunes China (resulting in their account removal). And yes, Feiliu is still removed from iTunes. The best they can do is cloak their games under other developer accounts or create sham names like Pangea. As one of the chief pumper minions on this mb, you should be ashamed of yourself for distorting the truth. Your time would be better served helping Henry sell some knock-off Segways.
Read first sentence, Page F15 of the latest 20-F:
"(p) Cost of revenues
Cost of revenues primarily consists of customer acquisition cost paid to third party business partners based on number of end users referred by them, which are expensed when earned by third party business partners, fees paid to the handset makers for them to preload the Group’s software, and fees paid to or retained by SPs and third party payment processors for their services relating to the billing of the Group’s consumer mobile security revenues. Cost of revenues also includes the hardware procurement cost for our enterprise mobility business, as well as fees paid to third parties for placing advertisements on their platforms. Staff costs of those departments directly involved in providing consumer mobile security, enterprise mobility, mobile games and advertising as well as other services are also included in cost of revenues."
So for example, when NQ announced their deal with Cherry Mobile last month, it only makes sense that this is one of those "fee paid to handset distributor deals". As you know, device margins are razor thin, so Cherry flashes their own pre-loaded apps and collects a fee per device flashed. Cherry Mobile is not a carrier service, but the principle model is the same - the device homescreen becomes virtual parcels of "real estate" for sale.
Kshen, I can't post a reply to your last message, so let me continue here:
First, someone (at Yahoo presumably) deleted my original post of the top 500 iOS apps, perhaps because I referenced App Annie multiple times - a competitor to Yahoo's web/app analytics business perhaps.
Regarding your comments, I agree NQ is a carrier based business. However, it's a losing model when NQ pays a fee for each preloaded device, regardless of whether the buyer of the device activates the app or not. Most consumers are savvy to know which apps they will use before they buy or upgrade their device. In fact, most will simply migrate their apps from one device to the other, circumventing preloaded apps altogether.
As for poor brand recognition, I find a challenge to explain how a company such as NQ Mobile, who spent almost $2 mil just to license the NQ domain in China and spends heavily on CAC (in the 3rd quarter of 2013 alone increased spending as a cost of revenue 175.7% year-over-year and 58.9% sequentially) should have a problem establishing brand recognition, unless consumers simply aren't buying into the benefits or superiority of NQ's line of products.
That's precisely my point. Preloaded apps do not define popularity with users......downloaded ones do.....and NQ has none in the top 500 downloaded category....make sense?
Evan, you get the award for the most consistent baseless bashing of others without ever providing any merit for debate. This is why I don't read any of your posts -- with the exception of the first sentence that unfortunately shows up as a preview, and always begins with a childish insult.
Really, how old are you?
Again, you must be an NQNewbie or have no clue about iOS7. Let me be gentle. You are correct in the first sentence, NQ sells (or rather buys the right) to be pre-loaded by Android carriers and manufacturers. In fact, NQ Mobile pays to have carriers and handset cos preload, from the latest 20-F "Cost of revenues primarily consists of customer acquisition cost paid to third party business partners based on number of end users referred by them, which are expensed when earned by third party business partners, fees paid to the handset makers for them to preload the Group’s software"
However, as we all know, Apple will not let NQ pay or buy-in to iOS7. So the iTunes platform is the unbiased and best metric to judge the popularity of all apps, without skewing numbers enjoyed by NQ Mobile (by simply counting number of NQ preloaded phones that users immediately disable or uninstall bloatware). So by all measure, iTunes is the ONLY equal playing field - and the real mobile users have cast their vote, with not one NQ app appearing in the top 500 (as ranked by App Annie).
Why does everyone always get so angry when I'm simply stating the facts? If the opposite of these facts were true and I stated them in bullish terms, I would be thumbs up king of the board. Again, it only reinforces my assertion that most of the bulls on this mb are delusional pipedreamers in denial of facts as stated. And oc course it looks great at face value when NQ goes from $10 to $20, a byproduct of "all Chinese boats get lifted" syndrome.
For a company like NQ Mobile who released a whopping 82 fluff press releases in 2013, silence is deadening. Food for thought: Apple, a half trillion dollar company had a total of 53 press releases in all of 2013.
What's wrong with this picture?
You meant to ask, what's wrong with this picture? And it ain't no Academy Award nomination either.
Reality check: Not one award is based on technological achievement. To boot, I think we all fear these non-FA milestones are likely to unwind in due time. At the end of the day, a complete waste of money (see below) in exchange of "paid" editorial sponsorship.
Business Expansion of the Year (e.g. new markets, new partners, etc.)
NQ Mobile - Dallas, TX USA
Company Growth of the Year (e.g. new products, new offices, new employees, etc.)
NQ Mobile - Dallas, TX USA
Fastest Growing Security Company of the Year (percentage wise growth)
NQ Mobile - Dallas, TX USA
Here's what Vinne, Henry, Omar, KB, Gavin, Matt, Kim, Michelle, Will and the esteemed audit committee members Yin, William, Jun got for their money:
Terabyte Milestones and Achievements US$7,500
Key benefits of "Terabyte Milestones" at the awards program:
12 VIP Dinner Seats - invite your employees and key customers to the awards banquet dinner in February 2014 in San Francisco.
Presentation and video recording of your Company's Achievements and Milestone - during the awards presentation, we will present a summary of your company's Achievements and Milestone. A senior executive from your company will be invited to the stage and given a certificate. A copy of the video recording will be made available to you for promoting on social media.
2 Full page color ads in the Awards Dinner program book - The programs will be distributed to all attendees at the awards galas, and will also be distributed to more than 40,000 professionals online throughout the rest of the year. You will receive a PDF copy of this program book.
Since its IPO, NQ mgt always issued a press release between Feb 16-20 announcing the date of Q4 earnings - always set on March 6. Well folks, both the two week warning and actual earnings release looks like a no show.
Good luck to all.
From Q3 2013 earnings conference call:
"Cash and cash equivalents and term deposits together amount to $149.5 million as of 30 December. Lastly, I want to discuss accounts receivable days as that one financial metric that we have been focusing on improving and make good progress in this quarter"...blah, blah, blah.
Perhaps I didn't include the proceeds from the Morgan Stanley recent bond offering of approx $160 mil. Oh, fudge. Funny how all this cash gets generated from stock and bond offering, and not so much from operations. Where did you get $500 mil from? More fake money I don't know about?
FL Mobile's chief Ni presented yesterday at the Mobile Gaming conference at the Shanghai Hengshan Hotel, you newbiedweeb.
How can you get better at lying when you always tell the truth?
NQ and Qihoo have little in common. The install base for Qihoo 360 measured by real downloads by real users who want the security apps vs. NQ's bloatware deals (for which NQ pays carriers and handset co's - great business model) to cleverly package their junkware, but are later deleted using Qihoo mobile security suite's rootless removal tool.
Qihoo 360 earnings show us, once again, that they are EATING NQ'S LUNCH. Total smartphone users of Qihoo 360's primary mobile security product reached a record 467 million in December 2013, compared to 207 million in December 2012. The opposite and downward inflection point will likely be true when (if ever) NQ reports. Simple theory: the best product without the sketchy past wins over market share, period. Qihoo 360 is the undisputed leading mobile security provider in market share growth, followed by Baidu and Tencent (in partnership with Kaspersky). NQ Mobile Security doesn't even show up on AppAnnies 500 top android or iOS download list in the PRC.
LMAOOOOOOOOO. If I want peer reviews, I'll go to Martindale. As for Seeking Alpha, please give me a source that has better than zero credibility. SA is a forum of wannabe journalists that have no business posting outside of a pathetic mb forum like the one here......a wasteland of pipedreamers and bashers delusionally believing their posts can move markets. It's a heck of a lot more entertaining calling out you NQ minions on this mb and reading the outlandish replies to my posts exuding nothing more than imbeciles struggling to refute the irrefutable.
Speaking at a meeting in Shanghai on March 5, FL Mobile's chief Ni announced he intends to deploy ¥500mil in cash to buy out other game developers and game franchises in China. Is this guy serious? Where is this money coming from? Are they going to use half of NQ's cash on hand to go on another acquisition binge of dubious companies with checkered or unverifiable history? Remember, NQ acquired 10 companies in Q3 2013, an absolute record breaking number of corporate acquisitions of any NYSE company in history - with at least one company having an intimate relationship to insiders. The notion that NQ's integrity is immune to asset shifting is laughable, and it may be happening right the nose of investors. Furthermore, it is incredible that FL Mobile, who's iTunes publisher account has been suspended (since summer 2013) and a company using pseudonyms to peddle a game here and a game there from the likes of Pangea and others - would not rather focus on having their publisher id restored before pilfering the coffers for stupid acquisitions.
NQ's "investment" in InMotion people movers makes more sense.
Anyone who thinks a rise in NQ over the past several weeks is correlated to improving company fundamentals or positive newsflow should rethink. Rather, the 4% decrease in short interest Feb 14 over Jan 14 on a company where 47% of the float is sold short tells a tale of shorts without conviction, rather than longs with conviction. When new short data is released on March 14, we are likely to see an exponentially larger decrease in the number of short shares outstanding - while the short thesis remains intact.