NQ Mobile Plummets Following Recent Results

NQ Mobile Inc (ADR) NQ on Thursday afternoon posted results for its first three financial quarters of 2014 and said it expects full-year revenue growth of about 65 percent.

The company also said it agreed to sell its FL Mobile unit in an all-stock deal worth between $570 million and $630 million to Hong Kong-listed Tack Fiori International Group Ltd.

After popping up in Thursday's after-hours session, shares were down 3.6 percent at $4.85 in Friday's premarket.

NQ had suffered a series of painful reporting delays this year amid accusations of accounting fraud. It posted audited 2013 results in October that it said cleared it of earlier allegations.

On Thursday, NQ Mobile forecast full year 2014 revenue of between $325 million to $326 million, up about 65 percent compared with 2013 revenue of $196.7 million.

For the recent third quarter ended September 30, the company's net loss widened to $17 million, or $0.04 per share, from $2.4 million, or less than $0.01 a share, a year earlier

Adjusted income for the recent period was $3.7 million, compared with $17.4 million a year earlier.

Third-quarter revenue grew nearly 50 percent to $81.2 from $54.2 million in the same period in 2013.

During the second quarter ended June 30, the company posted a net loss of $16.8 million, or $0.04 a share, compared with net income of $1.9 million, or less than $0.01 cent a share, in the same period in 2013.

Adjusted income for the second period was $12.1 million compared with $15 million a year earlier.

Second quarter revenue grew 97.2 percent to $81.6 million, from $41.4 million in 2013.

Net loss in the first quarter ended March 31 totaled $21.7 million, or $0.08 a share, compared with net income of $2.9 million, or $0.01 a share, in the same quarter a year ago. Adjusted income was $7.1 million compared with $10.5 million in the first quarter of 2013.

First-quarter revenue grew 140.1 percent to $79.8 million from $33.2 million in the same period in 2013.

NQ Mobile on Thursday also cut its board to nine directors, from 10, and said its board currently includes five independent members.