Linktone moves to 4Q loss, hurt by large charge
NEW YORK (AP) — Linktone on Tuesday posted a loss for its fiscal fourth quarter, burdened by a large impairment charge.
Shares dropped more than 10 percent in morning trading.
The Chinese ringtone and games provider lost $3.7 million, or 9 cents per American depositary share, for the three months ended Dec. 31. That compares with a profit of $88,848, or breakeven, a year earlier.
The current quarter included a $9.9 million impairment charge
Excluding the charge, earnings were 15 cents per ADS.
Revenue fell 30 percent to $11 million, as value-added services revenue dropped in China and Indonesia.
For the year Linktone Ltd. earned $20.2 million, or 49 cents per ADS. The year before, the company earned $5.3 million, or 13 cents per ADS.
Adjusted earnings were 74 cents per ADS.
Annual revenue dropped by 23 percent to $45.3 million.
Linktone shares fell 30 cents, or 10.1 percent, to $2.68. The stock has traded in a 52-week range of $1.26 to $3.18.