FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of December 2009
Commission File Number: 000-51116
Hurray! Holding Co., Ltd.
15/F, Tower B, Gateway Plaza
No. 18 Xia Guang Li North Road
East Third Ring, Chaoyang District
Beijing 100027, Peoples Republic of China
(Address of principal executive offices)
Indicate by check mark
whether the registrant files or will file annual reports under cover Form
20-F or Form 40-F.
Form 20-F
þ
Form 40-F
o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes
o
No
þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b):
82-
N.A.
Hurray! Reports Third Quarter 2009 Unaudited Financial Results
BEIJING, December 16, 2009 /Xinhua-PRNewswire/ Hurray! Holding Co., Ltd. (Nasdaq:
HRAY
News
),
a leading company in artist development, music production and wireless music distribution and other
wireless value-added services in China, today announced its unaudited financial results for the
third quarter ended September 30, 2009.
Financial Highlights
Highlights for the Third Quarter of 2009:
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Total revenues: $6.9 million, representing a decrease of 2.9 million quarter-over-quarter and a decrease
of 6.6 million year-over-year.
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Wireless value-added services (WVAS) revenues: $4.5 million, representing a decrease of 1.0 million
quarter-over-quarter and a decrease of 6.5 million year-over-year.
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Recorded music revenues, which are from our record label businesses: $2.4 million, representing a
decrease of 1.9 million quarter-over-quarter and a decrease of 0.1 million year-over-year.
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Net loss attributable to Hurray! Holding: $5.1 million
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EBITDA
1
: a net loss of $4.0 million
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Diluted loss per ADS: $0.23
|
Commenting on the third quarter results, Mr. Haibin Qu, Acting CEO of Hurray! stated:
This quarter was challenging for Hurray!. However, we view this quarter as a turning point for a
new Hurray! and going forward, we will remain focused on developing ways to better enrich our
contents and enhance our distribution channels, as well as to integrate these business initiatives
with our existing business lines. We believe these efforts are essential for the restoration of our
growth and to further development of Hurray! into an integrated digital media distribution
platform.
Business Results
Total revenues for the third quarter ended September 30, 2009 were $6.9 million, decreased from
$9.8 million for the preceding quarter and $13.5 million for the same quarter last year.
Total wireless value-added services revenues were $4.5 million for the third quarter of 2009,
decreased from $5.5 million in the previous quarter and $11.0 million in the same quarter of 2008
as a result of business restructuring in Q2 and early Q3 that focused on trimming off
non-profitable WVAS business lines and resources realignment amongst WVAS business and music
content business.
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1
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A non-GAAP measure, which is defined as net loss
attributable to Hurray! Holding company except for income (loss) before
interest, income tax, depreciation and amortization.
|
1
Recorded music revenues, which represent revenues of our controlled music companies Freeland Music,
Huayi Brothers Music, Hurray! Secular Bird and Seed Music, which was acquired on January 1, 2009,
were $2.4 million, decreased from $4.3 million in the previous quarter and $2.5 million in the same
period of 2008, mainly reflects a seasonal fluctuation of the music market.
Total gross margin was 20.7% for the third quarter of 2009 as compared to 21.3% for the previous
quarter and 30.9% for the same period of 2008.
Gross margin for wireless value-added services was 27.3% for the third quarter of 2009, as compared
to 26.7% in the previous quarter, and 26.4% for the same period of 2008.
Recorded music gross margin was 8.6% for the third quarter of 2009 as compared to 14.4% in the
previous quarter and 51.2% for the same period of 2008. The decrease in margin was mainly due to
increment of marketing programs to promote new artist releases by Hurray! affiliated music
companies, Seed Music, which may benefits and strengthens the market presence in music content
industry.
Total gross profit was $1.4 million for the third quarter of 2009, as compared to $2.1 million for
the previous quarter, and $4.2 million for the same period of 2008.
Total operating expenses were $6.5 million for the third quarter of 2009. This represents a
decrease of 57.9% as compared to the total operating expenses of $15.5 million for the previous
quarter, which included provisions for account receivable and other current assets of $3.3 million,
transaction expenses of $1.3 million in connection with the equity tender offer by Shanda, an
impairment for goodwill of $3.0 million and a write-down for intangible assets of $3.5 million for
music business, and severance costs of $ 0.4 million in previous quarter, and a decrease of
25.0% as compared to the total operating expenses of $8.7 million for the same period of 2008,
which included impairment charges of $ 4.2 million in respect of our music business.
The income tax expense for the third quarter of 2009 was $0.7 million, as compared to an income tax
benefit of $0.4 million in the previous quarter and the same period of 2008.
Net loss attributable to Hurray! Holding was $5.1 million for the third quarter of 2009.
EBITDA was negative $4.0 million for the quarter ended September 30, 2009, as compared with an
EBITDA of negative $10.7 million in the previous quarter. A reconciliation of net loss attributable
to Hurray! Holding Company under U.S. generally accepted accounting principles (GAAP) and adjusted
EBITDA is included at the end of this release.
Fully diluted loss per ADS was $0.23 based on a weighted average of 22.0 million diluted ADSs for
the third quarter of 2009, as compared to the diluted loss per ADSs of $0.50 based on a weighted
average of 22.0 million diluted ADSs for the previous quarter, and a fully diluted
loss per ADS of $0.42 based on a weighted average of 21.9 million diluted ADSs for the third
quarter of 2008.
As of September 30, 2009, the Company had $47.9 million in cash and cash equivalents, and short
term time deposit of $10.0 million.
2
Business Highlights
Hurray! continued executing its strategy of developing proprietary content and diversifying
distribution channels, with the following highlights:
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In August, Hurray! officially became China Unicoms GJAVA
partners, one of the first batch in mainland China since the
service was introduced by China Unicom. In addition, Hurray! was
also chosen to be one of the first batch of developers to work
with China Mobiles Mobile Market. In the fourth quarter of 2009,
we are launching another 2 new mobile games.
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Hurray! affiliated music companies, including Huayi Brothers
Music, Freeland Music, New Run Entertainment, Secular Bird and
Seed Music, released a series of new songs, including 6 albums and
1 EP, and launched successful marketing programs to promote the
new releases simultaneously over Internet and wireless platforms.
Subsequently, Very Yu Quan (Hen Yu Quan) by Yu Quan, Love
Embrace (Ai De Bao Bao) by Shuyao Kuo and the self-titled album
Zhou Hui) released by Zhou Hui, became popular hits in the third
quarter.
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Hurray! artists, including Kenji Wu, Shuyao Kuo, Wen Lan and
others has signed up various commercial endorsement deals,
including Mengniu ice cream, online game Metal Knight Zero,
Orangina soft drink and etc, in mainland China and in Taiwan,
respectively.
|
Business Outlook
Release of New Chinese Telecommunication Operators Measures
As of November 30, 2009, the three principal telecom operators in China, including China Mobile
Communications Corporation, or China Mobile, China United Telecommunications Corporation, or China
Unicom, and China Telecommunications Corporation, or China Telecom has announced that it suspended
all of its WAP service partners ability to charge for services. This applies to all of its WAP
wireless value-added service partners in China, regardless of a partners propensity to disseminate
pornography. The telecom operators will now implement an overall examination, with the aim of
eradicating pornographic websites from its network. Prior to this announcement, Chinas Ministry of
Industry and Information Technology has launched five measures to fight pornographic content on the
mobile Internet.
3
At the moment, all three telecom operators have suspended charges from all service and content
providers that signed WAP service fee collection agreements with the operators and the operators
will immediately implement an overall examination in various areas, including service names,
service contents, and promotion channels. It will prevent errant WVAS providers from conducting
service promotions through third parties and will require them to make an information security
responsibility commitment and promise there are no possible profit relations with pornographic
websites. We believe that services offered by the Company do not contain any content targeted by
these measures and we believe these measures would benefit the WVAS industry in the long run.
However, the tentative suspension by the major telecom operators of billing content suppliers for
all WAP services includes those services that do not contain offensive or unauthorized content, on
behalf of third party service providers of services.
Currently, the three principal telecommunication operators have not yet indicated how long its new
measures would last or whether it will expand its current measures. This may bring pressures on the
WVAS market in China and add to uncertainty of Hurray!s WVAS operation in the following quarters.
Announcement of merger with Ku6
On November 27, 2009, the Company and the shareholders of Ku6 Holding Limited (Ku6), a leading
online video portal in China agreed to the sale of Ku6 to Hurray!, in an all stock transaction
under which all of the outstanding capital shares of Ku6 will be sold to Hurray! and all of the
outstanding employee stock options of Ku6 will be cancelled, in exchange for an aggregate of
723,684,204 Hurray! ordinary shares, of which 44,438,100 will be represented by American Depositary
Shares of Hurray!, each representing 100 ordinary shares of Hurray!. Completion of the share
purchase will be subject to the condition that the shareholders of Hurray! approve the issuance of
ordinary shares of Hurray! to the shareholders and option holders of Ku6 at a special shareholders
meeting to be convened in the near future. The Board of Directors of Hurray! has unanimously
recommended this transaction. The transaction is expected to close in the first quarter of 2010.
Note to the Financial Information
The unaudited financial information disclosed above is preliminary. The results for the nine months
ended September 30, 2009 are not necessarily indicative of the results expected for the full fiscal
year or for any future period. Adjustments to the financial statements may be identified when audit
work is completed, which could result in significant differences from the audited financial
statements to this preliminary unaudited financial information.
4
Conference Call
The Company will host a conference call to discuss the third quarter 2009 results at
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Time:
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9: 00 pm Eastern Time on December 15, 2009
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or 10:00 am Beijing/Hong Kong Time on December 16, 2009
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The dial-in number:
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+1-800-901-5213 (US)
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+1-617-786-2962 (International)
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Password: 49890189
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A replay of the call will be available from December 16, 2009 until December 23, 2009 as follows:
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+1-888-286-8010 (US)
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+1-617-801-6888 (International)
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Password: 11825002
|
Additionally, a live and archived web cast of this call will be available at:
http://phx.corporate-ir.net/playerlink.zhtml?c=187793&s=wm&e=2561576
or http://www.hurray.com.cn/english/home.htm
About Hurray! Holding Co., Ltd.
Hurray! is a leading company in artist development, music production and offline distribution in
China through its record labels Huayi Brothers Music, Freeland Music, New Run Entertainment, and
Secular Bird. The Companys latest acquisition, Seed Music, expands the Companys music services
into Taiwan as well growing our business in China. The Company, through Fly Songs, also organizes
concerts and other music events in China.
Hurray! is also a leading online distributor of music and music-related products such as ringtones,
ringbacktones, and truetones to mobile users in China through the full range of wireless
value-added services platforms over mobile networks and through the internet.
The Company also provides a wide range of other wireless value-added services to mobile users in
China, including games, pictures and animation, community, and other media and entertainment
services.
5
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, believes 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: continued competitive pressures in
Chinas wireless value-added services market; changes in technology and consumer demand in this
market; the risk that Hurray! may not be able to control its expenses in future periods; Hurray!s
ability to succeed in the music development, production and distribution business, with which it
has only limited experience; changes in the policies of the mobile operators in China or the laws
governing wireless value-added services; the state of Hurray!s relationships with Chinas mobile
operators and the risk that Hurray! may be subject to further sanctions and penalties from them in
future periods; and other risks outlined in Hurray!s filings with the Securities and Exchange
Commission, including the Companys annual report on Form 20-F. Hurray! does not undertake any
obligation to update this forward-looking information, except as required under applicable law.
6
Hurray! Holding Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
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As of
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As of
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September 30, 2009
1
|
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December 31, 2008
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|
|
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(As Adjusted)
1
|
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(in thousands of U.S. dollars)
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Assets
|
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|
|
|
|
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|
Current assets:
|
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|
|
|
|
|
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|
Cash and cash equivalents
|
|
$
|
47,949
|
|
|
$
|
59,473
|
|
Short-term investment
|
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|
10,000
|
|
|
|
|
|
Accounts receivable, net
|
|
|
5,219
|
|
|
|
12,658
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Prepaid expenses and other current assets
|
|
|
2,446
|
|
|
|
4,170
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|
Amount due from related parties
|
|
|
190
|
|
|
|
745
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Current deferred tax assets
|
|
|
|
|
|
|
363
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|
Inventories, net
|
|
|
184
|
|
|
|
255
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Receivable on disposal of subsidiary
|
|
|
|
|
|
|
47
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
65,988
|
|
|
|
77,711
|
|
|
|
|
|
|
|
|
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Deposits and other non-current assets
|
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|
1,306
|
|
|
|
720
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Prepaid acquisition cost
|
|
|
|
|
|
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2,507
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|
Property and equipment, net
|
|
|
718
|
|
|
|
980
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|
Acquired intangible assets, net
|
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|
1,113
|
|
|
|
1,945
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Investment in equity affiliate
|
|
|
377
|
|
|
|
825
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|
Goodwill
|
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|
1,858
|
|
|
|
3,157
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Non-current deferred tax assets
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|
|
|
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479
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|
|
|
|
|
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Total assets
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$
|
71,360
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|
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$
|
88,324
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|
|
|
|
|
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Liabilities and shareholders equity
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Current liabilities:
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Accounts payable
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$
|
3,664
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$
|
2,454
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Accrued expenses and other current liabilities
|
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|
4,362
|
|
|
|
3,033
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Amount due to related parties
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|
|
485
|
|
|
|
208
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Income tax payable
|
|
|
681
|
|
|
|
124
|
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Current deferred tax liabilities
|
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|
12
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|
|
|
497
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|
|
|
|
|
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Total current liabilities
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|
9,204
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|
|
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6,316
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|
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Long term payable
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|
19
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|
|
|
24
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|
Non-current deferred tax liabilities
|
|
|
276
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|
|
|
292
|
|
|
|
|
|
|
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Total liabilities
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9,499
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|
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6,632
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|
|
|
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|
|
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|
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|
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Redeemable non-controlling interest
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620
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Shareholders equity:
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Ordinary shares
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110
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|
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110
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Additional paid-in capital
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|
75,155
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|
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75,013
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Accumulated deficit
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|
(26,273
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)
|
|
|
(8,201
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)
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Accumulated other comprehensive income
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9,959
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9,987
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Total Hurray! Holding shareholders equity
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58,951
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76,909
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Non-controlling interest
2
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2,290
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4,783
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Total shareholders equity
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61,241
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81,692
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|
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Total liabilities and shareholders equity
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$
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71,360
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$
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88,324
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7
Hurray! Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
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For the three months ended
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For the nine months ended
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September 30,
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September 30,
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September 30,
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September 30,
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2009
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2008
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2009
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2008
|
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(in thousands of U.S. dollars, except
|
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(in thousands of U.S. dollars, except
|
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share and per share data)
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share and per share data)
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Revenues:
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|
|
|
|
|
|
|
|
|
|
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Wireless value-added services
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4,442
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11,032
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|
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17,869
|
|
|
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31,217
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|
Recorded music
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|
2,426
|
|
|
|
2,494
|
|
|
|
10,603
|
|
|
|
8,315
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total revenues
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|
6,868
|
|
|
|
13,526
|
|
|
|
28,472
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|
|
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39,532
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|
|
|
|
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|
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|
|
|
|
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Cost of revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless value-added services
|
|
|
3,231
|
|
|
|
8,124
|
|
|
|
13,795
|
|
|
|
21,723
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|
Recorded music
|
|
|
2,216
|
|
|
|
1,217
|
|
|
|
9,232
|
|
|
|
4,143
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total cost of revenues
|
|
|
5,447
|
|
|
|
9,341
|
|
|
|
23,027
|
|
|
|
25,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,421
|
|
|
|
4,185
|
|
|
|
5,445
|
|
|
|
13,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
|
|
|
151
|
|
|
|
242
|
|
|
|
379
|
|
|
|
838
|
|
Selling and marketing
|
|
|
1,298
|
|
|
|
2,129
|
|
|
|
5,213
|
|
|
|
6,762
|
|
General and administrative
|
|
|
5,085
|
|
|
|
4,635
|
|
|
|
18,476
|
|
|
|
8,908
|
|
Impairment of goodwill
|
|
|
|
|
|
|
1,710
|
|
|
|
3,009
|
|
|
|
1,710
|
|
Gain on reduction of Unicom liability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,557
|
)
|
Total operating expenses
|
|
|
6,534
|
|
|
|
8,716
|
|
|
|
27,077
|
|
|
|
16,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations
|
|
|
(5,113
|
)
|
|
|
(4,531
|
)
|
|
|
(21,632
|
)
|
|
|
(2,995
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
97
|
|
|
|
579
|
|
|
|
372
|
|
|
|
1,398
|
|
Other income
|
|
|
42
|
|
|
|
107
|
|
|
|
304
|
|
|
|
242
|
|
Interest expense
|
|
|
(3
|
)
|
|
|
|
|
|
|
(9
|
)
|
|
|
|
|
Foreign exchange loss
|
|
|
|
|
|
|
(4,472
|
)
|
|
|
|
|
|
|
(4,472
|
)
|
Gain on reduction of acquisition payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes,
equity in earnings (loss) of affiliate
|
|
|
(4,977
|
)
|
|
|
(8,317
|
)
|
|
|
(20,965
|
)
|
|
|
(827
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)expense
|
|
|
686
|
|
|
|
(412
|
)
|
|
|
227
|
|
|
|
579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before equity in earnings (loss)
of affiliate
|
|
|
(5,663
|
)
|
|
|
(7,905
|
)
|
|
|
(21,192
|
)
|
|
|
(1,406
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in (loss)earnings of affiliate,
net of tax
|
|
|
(28
|
)
|
|
|
1
|
|
|
|
(327
|
)
|
|
|
34
|
|
Impairment of the investment in music
equity affiliate
|
|
|
|
|
|
|
(1,871
|
)
|
|
|
(210
|
)
|
|
|
(1,871
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
|
(5,691
|
)
|
|
|
(9,775
|
)
|
|
|
(21,729
|
)
|
|
|
(3,243
|
)
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of subsidiary, net of tax
|
|
|
|
|
|
|
237
|
|
|
|
222
|
|
|
|
366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(5,691
|
)
|
|
|
(9,538
|
)
|
|
|
(21,507
|
)
|
|
|
(2,877
|
)
|
Less: Net loss attributable to the
non-controlling interest
2
|
|
|
616
|
|
|
|
294
|
|
|
|
3,435
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
For the nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
(in thousands of U.S. dollars, except
|
|
|
(in thousands of U.S. dollars, except
|
|
|
|
share and per share data)
|
|
|
share and per share data)
|
|
Net loss attributable to Hurray!
Holding Company
|
|
|
(5,075
|
)
|
|
|
(9,244
|
)
|
|
|
(18,072
|
)
|
|
|
(2,775
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share-basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.00
|
)
|
Gain from discontinued operations
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
Net loss
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ADS-basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(0.23
|
)
|
|
$
|
(0.43
|
)
|
|
$
|
(0.83
|
)
|
|
$
|
(0.15
|
)
|
Gain from discontinued operations
|
|
$
|
0.00
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
Net loss
|
|
$
|
(0.23
|
)
|
|
$
|
(0.42
|
)
|
|
$
|
(0.82
|
)
|
|
$
|
(0.13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share-diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.00
|
)
|
Gain from discontinued operations
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
Net loss
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ADS-diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(0.23
|
)
|
|
$
|
(0.43
|
)
|
|
$
|
(0.83
|
)
|
|
$
|
(0.15
|
)
|
Gain from discontinued operations
|
|
$
|
0.00
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
Net loss
|
|
$
|
(0.23
|
)
|
|
$
|
(0.42
|
)
|
|
$
|
(0.82
|
)
|
|
$
|
(0.13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in
calculating basic loss per share
|
|
|
2,196,177,940
|
|
|
|
2,187,509,840
|
|
|
|
2,195,793,818
|
|
|
|
2,184,148,576
|
|
Weighted average ADSs used in
calculating basic loss per ADS
|
|
|
21,961,779
|
|
|
|
21,875,098
|
|
|
|
21,957,938
|
|
|
|
21,841,486
|
|
Weighted average shares used in
calculating diluted loss per share
|
|
|
2,196,177,940
|
|
|
|
2,187,509,840
|
|
|
|
2,195,793,818
|
|
|
|
2,184,148,576
|
|
Weighted average ADSs used in
calculating diluted loss per ADS
|
|
|
21,961,779
|
|
|
|
21,875,098
|
|
|
|
21,957,938
|
|
|
|
21,841,486
|
|
9
The use of non-GAAP financial measures:
To supplement its consolidated financial statements presented in accordance with generally accepted
accounting principles (GAAP) in the United States, Hurray! uses a non-GAAP measure of EBITDA,
which is adjusted from results based on GAAP to exclude certain expenses. Hurray!s management
believes the use of this non-GAAP financial measure provides useful information to both management
and investors by excluding certain expenses that are not related to the companys operations. This
non-GAAP financial measure also facilitates managements internal comparisons to Hurray!s
historical performance and our competitors operating results. Hurray! believes this non-GAAP
financial measure is useful to investors in allowing for greater transparency with respect to
supplemental information used by management in its financial and operational decision making. The
presentation of this additional financial information is not intended to be considered in isolation
or as a substitute for the financial information prepared and presented in accordance with GAAP.
Please see below financial table for a reconciliation of EBITDA.
Reconciliation of Net loss attributable to Hurray! Holding Company under GAAP to EBITDA for the
following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
For the nine months ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
(in thousands of U.S.
dollars, except
|
|
|
(in thousands of
U.S.dollars, except
|
|
|
|
share and per share data)
|
|
|
share and per share data)
|
|
Net loss attributable to Hurray! Holding Company
|
|
$
|
(5,075
|
)
|
|
$
|
(9,244
|
)
|
|
$
|
(18,072
|
)
|
|
$
|
(2,775
|
)
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
3
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
686
|
|
|
|
(412
|
)
|
|
|
227
|
|
|
|
579
|
|
Depreciation and amortization
|
|
|
526
|
|
|
|
887
|
|
|
|
2,060
|
|
|
|
2,628
|
|
Interest income
|
|
|
(97
|
)
|
|
|
(579
|
)
|
|
|
(372
|
)
|
|
|
(1,398
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
(3,957
|
)
|
|
$
|
(9,348
|
)
|
|
$
|
(16,148
|
)
|
|
$
|
(966
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
For more information, please contact:
Christina Low
Investor Relations Officer
Tel: 8610-88695237
IR@hurray.com.cn
Source: Hurray! Holding Co., Ltd.
|
|
|
1
|
|
Effective January 1, 2009, the Company adopted SFAS 160.
SFAS 160, which was retrospectively applied, requires non-controlling interests
to be separately presented as a component of stockholders equity on the
unaudited condensed consolidated financial statements.
|
|
2
|
|
June 30, 2008 and December 31, 2008 balances were
extracted from the form 6-K for the quarters ended June 30, 2008 and December
31, 2008 respectively, as adjusted resulting from the adoption of Statement of
Financial Accounting Standards No. 160.
|
11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
Hurray! Holding Co., Ltd.
|
|
|
By:
|
/s/ Haibin Qu
|
|
|
|
Name:
|
Haibin Qu
|
|
|
|
Title:
|
Acting Chief Executive Officer
|
|
|
Date: December 16, 2009
12
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