VANCOUVER, British Columbia, Aug. 9 /PRNewswire-FirstCall/ -- China Mobility Solutions, Inc., a Florida corporation (BULLETIN BOARD: CHMS) ("China Mobility") is pleased with the results from the second quarter of 2006.
HIGHLIGHTS OF Q2 RESULTS
* Total revenue for Q2 2006 was of US$1,461,370, a 25.5% increase over
Q2 2005 revenue of US$1,164,618
* Revenue from the first six months of 2006 was US$2,921,314, up 27.4%
from the first six months of 2005 (US$2,293,809)
* Net loss for Q2 2006 was US$142,348, and loss per share was $0.01, as
compared with a net loss of US$112,013 for Q2 2005
* Cash and cash equivalents was US$5.85 million as of June 30, 2006,
compared to US$6.1 million as of June 30, 2005
In the quarter, revenue increased to US$1,461,370, a 25.5% year-over-year improvement. Deferred revenue at the end of the quarter was US$2,559,362. The Company has seen US$2,921,314 of revenue so far in 2006, which is 27.4% higher than the first six months of 2005.
The revenue from mobile marketing was US$1,451,107 in the second quarter, up 28% from US$1,131,988 in Q2 2005. Our quarterly customer base was up to around 3800 for the quarter, a 23% increase over the last quarter. Net loss was US$142,348, and loss per share was only $0.01.
The balance sheet as of June 30, 2006 included cash and cash equivalents of US$5.85 million.
"I am pleased to see that the Company showed a solid 27% year-over-year increase in revenue, and increased gross profit margin from 75% to 79% for the first half year. Our continuing strong sales growth is driven by the strength of the market and the quality of our technology and service. We have more repeat customers than ever before and our customer base during Q2 was around 3800, a 23% increase over the last quarter. These results, along with our strong cash position of US$5.85 million, show excellent momentum in our core business, and give us confidence in our ability to achieve our operating plan and growth objectives for 2006," said Angela Du, President of the Company. "Last month, China Mobile and China Unicom announced a series of policy changes. Although these changes apply to all mobile content providers that use China Mobile's and Unicom's networks, our Company's revenue model differs from that of the individual market content providers, and the new regulations will not affect our revenue."
About China Mobility Solutions, Inc.
China Mobility Solutions, Inc. (BULLETIN BOARD: CHMS) , a pioneer in developing Short Message Services (SMS) as a primary advertising medium in China, provides mobile marketing, branding and enterprise solutions to its rapidly expanding client base of Small and Medium Enterprises (SME). China Mobility also provides other mobile solutions such as mobile email systems and mobile solutions for field sales to SME. Through proprietary profit sharing agreements, China Mobility's advertising audience includes SMS subscribers from China Mobile, China Unicom and China Telecom.
Forward-looking statements
This report contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. All statements other than statements of historical facts included in this report, including, without limitation, the statements regarding our mission to become the number one provider of mobile solutions to businesses in China are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.
The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
Contact:
Angela Du, President
China Mobility Solutions, Inc.
900-789 W. Pender Street
Vancouver, B.C.
Contact Number: 604-632-9638
Email:
