KongZhong posts 2007 4Q earnings of US$1.57 mln

Nasdaq-listed KongZhong Corporation, a leading wireless value-added services and media company based in Beijing, announced its 2007 fourth quarter financial results yesterday. It includes an adjusted earnings of US$1.57 million, or 4 cents per American Depositary Share.

The Beijing-based company posted a net income of US$687,000, or 2 cents per ADS, versus US$3.66 million, or 10 cents per ADS, last year.

KongZhong also forecasted that revenue in the first quarter of 2008 will be between US$20 million and US$21 million. This is approximately US$3.7million lower than the first quarter last year.

Earlier this month, KongZhong signed a strategic alliance agreement with Nasdaq-listed Focus Wireless Media Technology Co.Ltd to jointly expand their respective mobile advertising business by leveraging on the strong advertising sales force of both companies.

In 2008, the company will continue to focus on expanding its wireless Internet business. A huge proportion of the operating income generated from the WVAS segment will be used for the development of the wireless Internet business, which will be one of their major growth drivers.