New Transcripts published every two weeks and new analysis added every business day. Register for a free account to gain access to longer previews of the 100+ timely interviews published each month, unlimited access to full-length archived interviews, and free special reports. Or call Customer Service (212) 952-7400 or send us a message. Interview with the Executive Vice President: Bellatrix Exploration Ltd. Investing in U.S. George J. Ryan E. Shanghai,China - March 26,2014.The9 Limited (NASDAQ: NCTY) ("The9"), an online game developer and operator, announced its unaudited financial results for the third quarter ended September 30, 2013 and the fourth quarter ended December 31, 2013 today. - Net revenues in the third quarter of 2013 amounted to RMB33.9 million (US$5.6 million), representing a 29.5% increase from RMB26.2 million (US$4.3 million) in the second quarter of 2013. Net revenues in the fourth quarter of 2013 amounted to RMB24.8 million (US$4.1 million), representing a 26.8% decrease from RMB33.9 million (US$5.6 million) in the third quarter of 2013. - In the third quarter of 2013, net loss attributable to holders of ordinary shares was RMB121.5 million (US$20.1 million), representing a 27.6% decrease from a net loss of RMB167.8 million (US$27.7 million) in the second quarter of 2013. In the fourth quarter of 2013, net loss attributable to holders of ordinary shares was RMB122.9 million (US$20.3 million), representing a 1.1% increase from RMB121.5 million (US$20.1 million) in the third quarter of 2013. Jun Zhu, Chairman and Chief Executive Officer of The9 said, "We are very excited to introduce Fun Box to the China market. Fun Box is the home entertainment set top box developed by our joint venture ZTE9. Unlike the typical online video and music, Fun Box also enables video conferencing on TV. More importantly, with the gamepad and high-end built-in hardware, Fun Box provides excellent video game experience on TV. We are considering different plans to share the maximum business opportunities of Fun Box to The9 shareholders. For our existing online game business, with the signing of a $23 million investment deal from Shanghai Oriental Pearl (Group) Co., Ltd., Firefall has entered into the last stage of beta testing. We are planning a large-scale commercial launch of Firefall in 2014. Our net revenues in the third quarter of 2013 amounted to RMB33.9 million (US$5.6 million), representing a 29.5% increase from RMB26.2 million (US$4.3 million) in the second quarter of 2013 and a 4.5% increase from RMB32.4 million (US$5.4 million) in the third quarter of 2012. The increase from the previous quarter was primarily due to an increase in net revenues from Planetside 2 and Firefall, which is in limited beta testing. Our net revenues in the fourth quarter of 2013 amounted to RMB24.8 million (US$4.1 million), representing an 26.8% decrease from RMB33.9 million (US$5.6 million) in the third quarter of 2013 and a 33.5% increase from RMB18.6 million (US$3.1 million) in the fourth quarter of 2012. The decrease from the previous quarter was primarily due to a decrease in net revenues from several web games. The increase from the fourth quarter of 2012 was primarily due to an increase in net revenues from Planetside 2 and Firefall, which is in limited beta testing. Our gross loss in the third quarter of 2013 amounted to RMB8.2 million (US$1.4 million), compared with a RMB3.0 million (US$0.5 million) gross profit in the second quarter of 2013 and a gross profit of RMB14.8 million (US$2.4 million) in the third quarter of 2012. The gross loss in the third quarter of 2013 was primarily due to the impairment of prepaid royalties and deferred cost of Planetside 2 as lower-than-expected revenues were generated. Our gross profit in the fourth quarter of 2013 amounted to RMB3.0 million (US$0.5 million), compared to gross loss of RMB8.2 million (US$1.4 million) in the third quarter of 2013, and a gross loss of RMB1.3 million (US$0.2 million) in the fourth quarter of 2012. The gross profit in the fourth quarter of 2013 was primarily due to an increase in net revenues from Planetside 2 and Firefall which were sufficient to cover the cost of services. In the third quarter of 2013, our operating expenses were RMB126.1 million (US$20.8 million), representing a 15.6% decrease from RMB149.4 million (US$24.7 million) in the second quarter of 2013 and a 38.5% decrease from RMB205.0 million (US$33.9 million) in the third quarter of 2012. The decrease from the second quarter of 2013 was primarily due to a decrease in general and administrative expense as a result of the decrease in share-based compensation. The decrease from the third quarter of 2012 was primarily due to a decrease in product development expenses as a result of our restructuring of investments in and termination of certain contractual arrangements with certain game development variable interest entities in the third quarter of 2012, a decrease in marketing expenses related to Firefall, as well as a decrease in general and administrative expense as a result of our cost cutting efforts. In the third quarter of 2013, our share-based compensation was RMB4.6 million (US$0.8 million), compared to RMB11.8 million (US$2.0 million) in the second quarter of 2013 and RMB11.4 million (US$1.9 million) in the third quarter of 2012. In the fourth quarter of 2013, our operating expenses were RMB126.5 million (US$20.9 million), representing a 0.3% increase from RMB126.1 million (US$20.8 million) in the third quarter of 2013 and a 15.0% decrease from RMB148.9 million (US$24.6 million) in the fourth quarter of 2012. The increase from the third quarter of 2013 was primarily due to the increase in impairment loss on certain equipment, intangible assets and other long-lived assets and the increase in general and administration expenses, offset by the decrease in marketing expenses and product development expenses. The decrease from the fourth quarter of 2012 was primarily due to decrease in marketing expenses, product development expenses and general and administrative expenses, offset by the increase in impairment loss on certain equipment, intangible assets and other long-lived assets. In the fourth quarter of 2013, our share-based compensation was RMB4.9 million (US$0.8 million), compared to RMB4.6 million (US$0.8 million) in the third quarter of 2013 and RMB8.2 million (US$1.3 million) in the fourth quarter of 2012. In the fourth quarter of 2013, we recognized an impairment loss of RMB15.2 million (US$2.5 million) in relation to our investment in an app development company based in Beijing. As a result of the foregoing, in the third quarter of 2013, our net loss attributable to holders of ordinary shares was RMB121.5 million (US$20.1 million), representing a 27.6% decrease from RMB167.8 million (US$27.7 million) in the second quarter of 2013 and a 28.0% decrease from RMB168.7 million (US$27.9 million) in the third quarter of 2012. Our fully diluted loss per share and per ADS in the third quarter of 2013 was RMB5.31 (US$0.88), compared to RMB7.34 (US$1.21) in the second quarter of 2013 and RMB6.88 (US$1.14) in the third quarter of 2012. In the fourth quarter of 2013, our net loss attributable to holders of ordinary shares was RMB122.9 million (US$20.3 million), representing a 1.1% increase from RMB121.5 million (US$20.1 million) in the third quarter of 2013 and a 6.0% increase from RMB115.9 million (US$19.1 million) in the fourth quarter of 2012. Our fully diluted loss per share and per ADS in the fourth quarter of 2013 was RMB5.33 (US$0.88), compared to RMB5.31 (US$0.88) in the third quarter of 2013 and RMB4.73 (US$0.78) in the fourth quarter of 2012. The translation of Renminbi (RMB) into US dollars (US$) in this press release is presented solely for the convenience of readers. The translation was made based on the noon buying rate for U.S. dollars in the City of New York for cable transfers in Renminbi as certified for customs purposes by the H.10 weekly statistical release of the Federal Reserve Board as of December 31, 2013, which was RMB 6.0537 to US$1.00. Such translations should not be construed as any representation that the related RMB amounts represent, have been or could be converted into U.S. dollars at that or any other exchange rate. The percentages stated in this press release are calculated based on the RMB amounts. The9's management team will host a conference call on Tuesday, March 25, 2014 at 9:00 PM, U.S. Eastern Time, corresponding to Wednesday, March 26, 2014 at 9:00 AM, Beijing Time, to present an overview of The9's financial performance and business operations. A digital recording of the conference will be available for replay from 12:00am ET on March 26, 2014 for 7 days. U.S. The9 will also provide a live webcast of the earnings call. Participants in the webcast may log onto the Company's Investor Relations website http://www.corp.the9.com 15 minutes prior to the call, then click on the icon for "The9 Limited 3Q & 4Q 2013 Earnings Conference Call" and follow the instructions. The9 Limited is an online game developer and operator. The9 develops and operates, directly or through its affiliates, its proprietary MMO, web and mobile games including Firefall, QijiGuiLai, ReXue NBA and TianTianWenXiYou. In 2010, The9 established its Wireless Business Unit to focus on mobile internet business including mobile advertising platform Juzi and mobile reading platform KingReader. In 2013, The9 formed a joint venture with Shanghai ZTE to develop and operate home entertainment set top box business. This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. The9 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about The9's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, political and economic policies of the Chinese government, the laws and regulations governing the online game industry, information disseminated over the Internet and Internet content providers in China, intensified government regulation of Internet cafes, The9's ability to retain existing players and attract new players, license, develop or acquire additional online games that are appealing to users, anticipate and adapt to changing consumer preferences and respond to competitive market conditions, and other risks and uncertainties outlined in The9's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. The9 does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Ms. Email: IR@corp.the9. This noodl was issued by The9 Limited and was initially posted at www.the9.com. It was distributed, unedited and unaltered, by noodls on 2014-03-26 03:26:32 CET. The issuer is solely responsible for the accuracy of the information contained therein. Intuitive Surgical, Inc. Red Robin Gourmet Burgers, Inc. IHS Inc. The Wall Street Transcript is a completely unique resource for investors and business researchers. Ryan E. Buy ($75)A Balanced Yet Flexible Approach to Investing as the U.S. Topics Covered: Orthopedics and Cardiovascular Medical Devices - Medical Device Innovation and Consolidation Trends - Affordable Care Act - Aging U.S. Investing in U.S. George J. Ryan E. Keefe, Bruyette & Woods, Inc. 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- Mar 26 Wed 2014 11:02
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The9 Limited Reports Third and Fourth Quarter 2013 Unaudited Financial Results
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