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Linktone Reports Unaudited Fourth Quarter and 2009 Financial Results
Mar 18, 2010 (06:03 PM EDT)


BEIJING, March 18 /PRNewswire-Asia-FirstCall/ -- Linktone Ltd. (Nasdaq: LTON), one of the leading providers of wireless interactive entertainment services to consumers in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2009.

    UNAUDITED RESULTS FOR THE FOURTH QUARTER
    -- Wireless value-added services ("WVAS") and other revenues of $15.4
       million, compared with $13.8 million in the third quarter of 2009 and
       $19.4 million in the fourth quarter of 2008.
    -- GAAP net loss of $1.9 million, compared with net income of $0.7 million
       in the third quarter of 2009 and net income of $0.6 million in the
       fourth quarter of 2008. Net loss for the fourth quarter of 2009
       reflects the impact of an impairment provision of $2.5 million related
       to goodwill for the casual games business.
    -- GAAP net loss from continuing operations of $1.9 million, compared with
       net income from continuing operations of $0.6 million in the third
       quarter of 2009 and net income from continuing operations of $1.1
       million in the fourth quarter of 2008.
    -- GAAP net loss per fully diluted American Depositary Share ("ADS") of
       $0.04, compared with net income of $0.02 per fully diluted ADS for the
       third quarter of 2009 and net income of $0.01 per fully diluted ADS for
       the fourth quarter of 2008.
    -- Non-GAAP net income(*) of $0.6 million, compared with non-GAAP net
       income of $0.4 million in the third quarter of 2009 and non-GAAP net
       income of $2.3 million in the fourth quarter of 2008.
    -- Non-GAAP net income per fully diluted ADS of $0.02, compared with
       non-GAAP net income per fully diluted ADS of $0.01 in the third quarter
       of 2009 and non-GAAP net income per fully diluted ADS of $0.05 in the
       fourth quarter of 2008.

    (*) Non-GAAP measures exclude share-based compensation expense and
        impairment charges. Please refer to the table at the end of this
        release titled "Non-GAAP Reconciliation" which provides a
        reconciliation between GAAP and non-GAAP financial measures.


    UNAUDITED RESULTS FOR FISCAL YEAR 2009
    -- WVAS and other revenues of $62.2 million, compared with $67.0 million
       in 2008.
    -- GAAP net income of $0.1 million compared with a net loss of $16.5
       million in 2008.
    -- GAAP net income per fully diluted ADS of $0.00 compared with GAAP net
       loss per fully diluted ADS of $0.44 in 2008.
    -- Non-GAAP net income per fully diluted ADS of $0.06 compared with
       non-GAAP net loss per fully diluted ADS of $0.21 in 2008.

Chief Executive Officer Hary Tanoesoedibjo said, "Although Linktone has not been immune to the challenges faced by our industry, we were pleased to deliver full year financial results that were above our expectations. During 2009, we made considerable progress in enhancing our content offerings, broadening distribution channels, and expanding our geographic footprint in Southeast Asia. In early January 2010, we announced our acquisition of Chinese game developer, Letang, which is a strategic decision that will not only strengthen our content portfolio by providing more comprehensive products and service offerings, but will also allow us to accelerate our momentum in the fast-growing mobile and online games market."

Mr. Tanoesoedibjo continued, "Linktone returned to profitability for 2009 after two consecutive years of losses. Going forward into 2010, we will continue to position ourselves for long-term sustainable profitability. We believe our emphasis on delivering growth initiatives while remaining disciplined in our overseas expansion strategy will help us build shareholder value."

FOURTH QUARTER REVENUE MIX

Linktone's fourth quarter revenue mix includes WVAS data-related services (SMS, MMS, WAP, and Java), WVAS audio-related services (IVR and CRBT) and others (casual game and enterprise services).

Data-related services revenue was $9.5 million, representing 62% of gross revenues, compared with $7.8 million or 57% of gross revenues for the third quarter of 2009. The sequential increase in Linktone's data-related services revenue was primarily attributable to an improved operating environment and a stabilized team following the previously reported management and staff changes in June and the third quarter of 2009.

    Data-related services breakdowns are as follows:
    -- Short Messaging Services ("SMS") revenue represented 58% of gross
       revenues, compared with 54% for the third quarter of 2009. SMS revenue
       was $8.9 million for the fourth quarter of 2009, compared with $7.4
       million for the third quarter of 2009.
    -- Multimedia Messaging Services ("MMS") revenue represented 1% of gross
       revenues, which was unchanged compared with the third quarter of 2009.
       MMS revenue was $0.2 million for the fourth quarter of 2009, compared
       with $0.1 million for the third quarter of 2009.
    -- Wireless Application Protocol ("WAP") and Java Gaming ("Java") revenue
       represented 3% of gross revenues compared with 2% for the third quarter
       of 2009. WAP and Java revenue was $0.4 million for the fourth quarter
       of 2009, compared with $0.3 million for the third quarter of 2009.

Audio-related services accounted for 37% of gross revenues, or $5.7 million, compared with 36% of gross revenues, or $4.9 million, for the third quarter of 2009. The sequential increase in Linktone's audio-related services revenue was primarily attributable to an improved operating environment and a stabilized team following the previously reported management and staff changes in June and the third quarter of 2009.

    Audio-related service breakdowns are as follows:
    -- Interactive Voice Response Services ("IVR") revenue increased to 27% of
       gross revenues, compared with 24% for the third quarter of 2009. IVR
       revenue was $4.2 million for the fourth quarter of 2009, compared with
       $3.3 million for the third quarter of 2009.
    -- Color Ring-Back Tones ("CRBT") revenue decreased to 10% of gross
       revenues, compared with 12% for the third quarter of 2009. CRBT
       revenue was $1.5 million for the fourth quarter of 2009, compared with
       $1.6 million for the third quarter of 2009.


    Other services were insignificant in the fourth quarter of 2009.

MARGINS, EXPENSES AND BALANCE SHEET

Linktone's key operating benchmarks and balance sheet items for the fourth quarter of 2009 include the following:

    -- Gross profit margin decreased to 36% of net revenues, or gross revenues
       minus business tax, compared with 39% for the third quarter of 2009 and
       47% for the fourth quarter of 2008. The sequential decrease was
       primarily due to a higher revenue share to business partners for
       certain popular content.
    -- Operating loss was 15% of net revenues, compared with operating loss of
       1% for the third quarter of 2009 and operating profit of 7% for the
       fourth quarter of 2008. The operating loss in the fourth quarter of
       2009 was primarily due to an impairment provision of $2.5 million
       against goodwill for the Company's casual games business.
    -- Operating expenses increased to $7.4 million, compared with $5.2
       million for the third quarter of 2009 and $7.4 million for the fourth
       quarter of 2008 due to the above mentioned impairment provision.
    -- Selling and marketing expenses were $1.9 million, compared with $3.1
       million for the third quarter of 2009 and $3.9 million for the fourth
       quarter of 2008. The sequential decrease was primarily due to
       decreased spending on media advertising which was generating
       unsatisfactory returns.
    -- Product development expenses were $0.8 million, compared with $0.9
       million for the third quarter of 2009 and $0.9 million for the fourth
       quarter of 2008.
    -- Other general and administrative expenses were $2.2 million, compared
       with $1.6 million for the third quarter of 2009 and $2.6 million for
       the fourth quarter of 2008. The sequential increase was primarily due
       to higher professional fees and bad debt provision.
    -- Impairment provision was $2.5 million in the fourth quarter of 2009,
       compared with a reversal of provision for impairment of $0.4 million in
       the third quarter of 2009. The impairment provision in the fourth
       quarter related to the goodwill for the casual games business, while
       the reversal of provision for impairment in the third quarter
       represented cash collected from a loan receivable against which a full
       provision of the total loan balance was made in 2007. The impairment
       was caused by a downward revision in expected future cash flow for the
       casual game business in light of lower than expected revenue earned in
       the second half of 2009, affected by increased market competition.
    -- Loans receivable from related parties includes the Company's loan of
       Singapore Dollars 11.5 million (approximately $8 million) to GLD
       Investments Pte Ltd ("GLD"), a limited liability company incorporated
       in Singapore, which is 10% owned by the Company's Chief Executive
       Officer. The loan has been due for repayment since October 2009.
       Linktone's management is in the process of negotiating with the
       shareholders of GLD to have the loan converted to an equity interest in
       GLD. After the conversion, which is expected to be finalized in the
       second quarter of 2010, Linktone will become the majority shareholder
       of GLD.
    -- Cash and cash equivalents, as well as short-term investments available
       for sale, totaled $99.2 million as of December 31, 2009, compared with
       $97.2 million as of September 30, 2009. The increase in cash and cash
       equivalents was primarily due to positive cash flow generated from
       operations.
    -- Days Sales Outstanding for Continuing Operations ("DSO"), the average
       length of time required for Linktone to receive payment for services
       delivered, was 103 days as of December 31, 2009, compared with 112 days
       as of September 30, 2009.

FISCAL YEAR 2009

The Company's gross revenues for 2009 decreased by 7% to $62.2 million, compared with $67.0 million reported in 2008. Gross profit margin for 2009 declined to 35% of net revenue compared with 48% in 2008. The decrease was mainly caused by the significant drop in revenue and profitability in the third quarter of 2009 following stricter policies by the Chinese telecommunication network operators related to imbedding services into mobile phones and the lower level of revenue generated from Linktone's promotional activities conducted via media channels.

Full year GAAP net income was $0.1 million, or $0.00 per fully diluted ADS, compared with net loss of $16.5 million, or $0.44 per fully diluted ADS, for 2008. Net loss in 2008 was mainly associated with the discontinued advertising business.

Excluding the effect of non-cash stock-based compensation and provisions for impairment, non-GAAP net income for 2009 was $2.4 million, or $0.06 per fully diluted ADS, compared with non-GAAP net loss of $7.7 million, or $0.21 per fully diluted ADS, for 2008.

FIRST QUARTER 2010 OUTLOOK

For the first quarter ending March 31, 2010, Linktone anticipates gross revenues to be in the range of $14 million to $15 million.

USE OF NON-GAAP FINANCIAL MEASURES

The reconciliation of GAAP measures with non-GAAP measures for net income or loss and net income or loss per fully diluted ADS included in this press release is set forth after the attached financial statements. Linktone believes that the supplemental presentation of adjusted net income or loss and net income or loss per fully diluted ADS, excluding the effect of share-based compensation expense and provisions for impairment and their reversals, provides meaningful non-GAAP financial measures to help investors understand and compare business trends among different reporting periods on a consistent basis, independently of share-based compensation and items not indicative of Linktone's future ongoing operating results. Thus, the non-GAAP financial measures provide investors with another method for assessing Linktone's operating results in a manner that is focused on the performance of its ongoing operations. Linktone management also uses non-GAAP financial measures to plan and forecast results for future periods. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP results with non- GAAP results located after the financial statements.

DISCONTINUED OPERATIONS

As previously reported, Linktone terminated its partnership agreement with the Chinese Youth League Internet, Film and Television Centre with regard to Qinghai Satellite Television and its partnership agreement with Tianjin Satellite Television in 2008. In the attached financial statements, the results of these advertising arrangements are reported separately as discontinued operations for both current and prior periods for the purpose of focusing on continuing operations and providing a consistent basis for comparing financial performance over time.

TODAY'S CONFERENCE CALL

As previously announced, Linktone's management plans to host a conference call to discuss its fourth quarter and fiscal year 2009 financial results at 9:00 p.m. Eastern Time on March 18, 2010 (6:00 p.m. Pacific Time on March 18, 2010 and 9:00 a.m. Beijing/Hong Kong Time on March 19, 2010). The dial-in number for the call is 877-941-2069 for U.S. callers and 480-629-9713 for international callers. The management team will be on the call to discuss the results and highlights and to answer questions from participants. A replay of the call will be available through April 1, 2010. To access the replay, U.S. callers should dial 800-406-7325 and enter passcode 4263860#; international callers should dial 303-590-3030 and enter the same passcode.

Additionally, a live webcast of this call will be available on the Linktone web site at http://www.linktone.com/webcasts.jsp . An archived replay of the call will be available for 90 days.

ABOUT LINKTONE LTD.

Linktone Ltd. is one of the leading providers of wireless interactive entertainment services to consumers in China. Linktone provides a diverse portfolio of services to wireless consumers and corporate customers, with a particular focus on media, entertainment and communications. These services are promoted through the Company's strong distribution network, integrated service platform and multiple marketing sales channels, as well as through the networks of the mobile operators in China. Through in-house development and alliances with international and local branded content partners, the Company develops, aggregates, and distributes innovative and engaging products to maximize the breadth, quality and diversity of its offerings.

FORWARD-LOOKING STATEMENTS

This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: Linktone's ability to expand into Asian markets outside of China; changes in the policies of the People's Republic of China ("PRC") Ministry of Industry and Information and/or the telecom operators in China or in the manner in which the operators interpret and enforce such policies, including policies which reduce the prices the Company or Letang may charge customers and current and future restrictions on the ability of Linktone to enter into profit sharing arrangements with mobile phone manufacturers to embed its services; the risk that other changes in Chinese laws and regulations, including without limitation tax and media-related laws or laws relating to the usage of telecom value-added services, or in application thereof by relevant PRC governmental authorities, could adversely affect Linktone's financial condition and results of operations; the risk that Linktone will not be able to compete effectively in the telecom value-added services market in China or any new markets it enters, for whatever reason, including competition from other service providers or penalties or suspensions for violations of the policies of the telecom operators; the risk that Linktone will not be able to realize meaningful returns from strategic partnerships or may be required to record additional provisions for impairments in the value of the Company's investments in such partnerships; uncertainty regarding whether the acquisition of a controlling interest in Letang will yield the benefits anticipated by Linktone, including expanding Linktone's presence in the mobile and PC online game market in China and elsewhere; the risk of a slow-down in the growth of the mobile and PC online game market; the risk that Linktone and Letang will not be able to develop and effectively market innovative games and other services; the risk that Linktone will not be able to effectively control its operating expenses in future periods or make expenditures that effectively differentiate Linktone's services and brand; and the risks outlined in Linktone's filings with the Securities and Exchange Commission, including its registration statement on Form F-1 and annual report on Form 20-F. Linktone does not undertake any obligation to update this forward-looking information, except as required under applicable law.

    For more information, please contact:

    Investor Relations

    Linktone Ltd.
     Serena Shi
     Tel:   +86-10-6539-6802
     Email: Serena.shi@linktone.com

    The Piacente Group, Inc.
     Brandi Piacente
     Email: brandi@thepiacentegroup.com

     Kristen McNally
     Email: kristen@thepiacentegroup.com
     Tel:   +1-212-481-2050



    LINKTONE LTD.
    CONSOLIDATED BALANCE SHEETS
    (In U.S. dollars, except share data)
                                         December 31,            December 31,
                                            2008                    2009
                                          (audited)              (unaudited)
    Assets
    Current assets:
      Cash and cash
       equivalents                       81,593,823               79,477,153
      Short-term investments             14,372,646               19,702,747
      Accounts receivable, net           15,245,030               12,538,597
      Tax refund receivable               1,240,718                1,953,740
      Loans receivable from
       related parties                    7,984,450               10,087,400
      Deposits and other
       current assets                     5,106,901                2,382,402
      Deferred tax assets                 1,479,554                1,055,378
    Total current assets                127,023,122              127,197,417

    Property and equipment, net           1,031,543                  530,769
    Intangible assets, net                  171,238                  106,039
    Goodwill                             14,584,212               12,084,212
    Deferred tax assets                     116,235                  162,787
    Other long-term assets                  476,368                  364,276

    Total assets                        143,402,718              140,445,500

    Liabilities and
     shareholders' equity
    Current liabilities:
      Taxes payable                       4,097,447                3,013,374
      Accounts payable,
       accrued liabilities and
       other payables                    10,796,440                7,915,352
      Deferred revenue                      210,833                  351,049
      Deferred tax
       liabilities                           87,947                  274,704
    Total current liabilities            15,192,667               11,554,479

    Total liabilities                    15,192,667               11,554,479

    Shareholders' equity
      Ordinary shares ($0.0001
       par value; 500,000,000
       shares authorized,
       420,636,230 shares and
       420,756,430 issued and
       outstanding as of
       December 31,2008 and
       December 31, 2009)                    42,063                   42,075
      Additional paid-in
       capital                          137,560,175              137,838,890
      Statutory reserves                  2,466,165                2,466,165
      Accumulated other
       comprehensive income:
        Unrealized gain on
         investment in
         marketable securities                   --                  437,250
        Cumulative translation
         adjustments                      7,363,186                7,217,287
      Accumulated losses                (19,221,538)             (19,110,646)
    Total shareholders' equity          128,210,051              128,891,021

    Total liabilities and
     shareholders' equity               143,402,718              140,445,500



    LINKTONE LTD.
    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
    (In U.S. dollars, except share data)

                                                 Three months ended
                                           December    September     December
                                           31, 2008     30, 2009     31, 2009
                                         (unaudited)  (unaudited)  (unaudited)
    Gross revenues                       19,401,719   13,828,853   15,357,956
    Sales tax                              (768,974)    (492,831)    (622,254)
    Net revenues                         18,632,745   13,336,022   14,735,702
    Cost of services                     (9,926,816)  (8,185,538)  (9,489,999)
    Gross profit                          8,705,929    5,150,484    5,245,703
    Operating expenses:
        Product development                (910,207)    (931,718)    (785,728)
        Selling and marketing            (3,875,868)  (3,150,756)  (1,947,499)
        Other general and
     administrative                      (2,573,934)  (1,553,203)  (2,204,354)
    Reversal of provision for
     impairment/(Provision for
     impairment)                                 --      395,257   (2,463,384)
    Total operating expenses             (7,360,009)  (5,240,420)  (7,400,965)
    Income/(Loss) from operations         1,345,920      (89,936)  (2,155,262)
    Interest income (including interest
     income of $132,687 and $64,249
     from related party loans for the
     three months ended September 30,
     2009 and December 31, 2009
     respectively)                          737,037      691,334      446,117
    Other income / (loss)                   (38,757)      19,253       78,067
    Other-than-temporary impairment
     loss on investments                 (1,476,937)          --           --
    Income/(loss) before tax                567,263      620,651   (1,631,078)
    Income tax benefit/(expense)            514,236      (26,797)    (250,256)
    Net income/(loss) from continuing
     operations                           1,081,499      593,854   (1,881,334)
    Net income/(loss) from discontinued
     operations                            (465,607)     140,467        3,559
    Net income/(loss)                       615,892      734,321   (1,877,775)
    Other comprehensive income/(loss):      162,310      (79,248)     441,950
    Comprehensive income/(loss)             778,202      655,073   (1,435,825)

    Basic income/(loss) per ordinary
     share:
       Continuing operations                   0.00         0.00        (0.00)
       Discontinued operations                (0.00)        0.00         0.00
       Total net income/(loss)                 0.00         0.00        (0.00)
    Diluted income/(loss) per ordinary
     share:
       Continuing operations                   0.00         0.00        (0.00)
       Discontinued operations                (0.00)        0.00         0.00
       Total net income/(loss)                 0.00         0.00        (0.00)

    Basic income/(loss) per ADS:
       Continuing operations                   0.02         0.02        (0.04)
       Discontinued operations                (0.01)        0.00         0.00
       Total net income/(loss)                 0.01         0.02        (0.04)
    Diluted income/(loss) per ADS:
       Continuing operations                   0.02         0.02        (0.04)
       Discontinued operations                (0.01)        0.00         0.00
       Total net income/(loss)                 0.01         0.02        (0.04)

    Weighted average ordinary shares:
       Basic                            420,636,230  420,680,652  420,756,430
       Diluted                          420,712,455  421,543,449  420,756,430

    Weighted average ADSs:
       Basic                             42,063,623   42,068,065   42,075,643
       Diluted                           42,071,246   42,154,345   42,075,643

                                           Twelve months ended
                                          December     December
                                          31, 2008      31, 2009
                                          (audited)   (unaudited)
    Gross revenues                       67,025,802   62,216,694
    Sales tax                            (2,520,119)  (2,303,289)
    Net revenues                         64,505,683   59,913,405
    Cost of services                    (33,837,630) (38,941,272)
    Gross profit                         30,668,053   20,972,133
    Operating expenses:
        Product development              (3,177,071)  (3,316,507)
        Selling and marketing           (13,130,513)  (9,318,469)
        Other general and
     administrative                      (9,901,474)  (8,220,999)
    Reversal of provision for
     impairment/(Provision for
     impairment)                                 --   (2,068,127)
    Total operating expenses            (26,209,058) (22,924,102)
    Income/(Loss) from operations         4,458,995   (1,951,969)
    Interest income (including interest
     income of $132,687 and $64,249
     from related party loans for the
     three months ended September 30,
     2009 and December 31, 2009
     respectively)                        1,728,654    1,614,575
    Other income / (loss)                   384,553      431,005
    Other-than-temporary impairment
     loss on investments                 (1,476,937)          --
    Income/(loss) before tax              5,095,265       93,611
    Income tax benefit/(expense)           (786,057)    (579,270)
    Net income/(loss) from continuing
     operations                           4,309,208     (485,659)
    Net income/(loss) from discontinued
     operations                         (20,807,008)     596,551
    Net income/(loss)                   (16,497,800)     110,892
    Other comprehensive income/(loss):    2,646,071      291,351
    Comprehensive income/(loss)         (13,851,729)     402,243

    Basic income/(loss) per ordinary
     share:
       Continuing operations                   0.01        (0.00)
       Discontinued operations                (0.05)        0.00
       Total net income/(loss)                (0.04)        0.00
    Diluted income/(loss) per ordinary
     share:
       Continuing operations                   0.01        (0.00)
       Discontinued operations                (0.05)        0.00
       Total net income/(loss)                (0.04)        0.00

    Basic income/(loss) per ADS:
       Continuing operations                   0.12        (0.01)
       Discontinued operations                (0.56)        0.01
       Total net income/(loss)                (0.44)        0.00
    Diluted income/(loss) per ADS:
       Continuing operations                   0.12        (0.01)
       Discontinued operations                (0.56)        0.01
       Total net income/(loss)                (0.44)        0.00

    Weighted average ordinary shares:
       Basic                            374,285,807  420,677,724
       Diluted                          374,847,328  420,677,724

    Weighted average ADSs:
       Basic                             37,428,581   42,067,772
       Diluted                           37,484,733   42,067,772



    LINKTONE LTD.
    NON-GAAP RECONCILIATION
    (In U.S. dollars, except share data)
                                                 Three months ended
                                           December    September    December
                                           31, 2008     30, 2009     31, 2009
                                         (unaudited)  (unaudited)  (unaudited)

    Net income/(loss)                       615,892      734,321   (1,877,775)
    Stock based compensation expense        175,500       51,673       62,300
    Provision /(Reversal of provision)
     for impairment                              --     (395,257)   2,463,384
    Other-than-temporary impairment
     loss on investments                  1,476,937           --           --
    Non-GAAP net income/(loss)            2,268,329      390,737      647,909

    Non-GAAP diluted income/(loss) per
     share                                     0.01         0.00         0.00
    Non-GAAP diluted income/(loss) per
     ADS                                       0.05         0.01         0.02
    Number of shares used in diluted
     per-share calculation              420,712,455  421,543,449  420,756,430
    Number of ADSs used in diluted per-
     share calculation                   42,071,246   42,154,345   42,075,643

                                           Twelve months ended
                                           December     December
                                           31, 2008     31, 2009
                                         (unaudited)  (unaudited)

    Net income/(loss)                   (16,497,800)     110,892
    Stock based compensation expense        728,135      266,887
    Provision /(Reversal of provision)
     for impairment                       6,588,195    2,068,127
    Other-than-temporary impairment
     loss on investments                  1,476,937           --
    Non-GAAP net income/(loss)           (7,704,533)   2,445,906

    Non-GAAP diluted income/(loss) per
     share                                    (0.02)        0.01
    Non-GAAP diluted income/(loss) per
     ADS                                      (0.21)        0.06
    Number of shares used in diluted
     per-share calculation              374,847,328  420,677,724
    Number of ADSs used in diluted per-
     share calculation                   37,484,733   42,067,772

SOURCE Linktone Ltd.