Editorial Summary

Chinese wireless value-added service (WVAS) provider KongZhong Corporation (Nasdaq: KONG) released first quarter earnings after market close on Thursday. Total revenue was $21.39 million, up 8 percent from the previous quarter, while net income came in at $0.09 million, below $687,000 from the last quarter and $1.6 million from the first quarter of 2007.

KongZhong's SMS revenue increased 20 percent quarter-on-quarter to reach $9.59 million, while WAP revenue was up 42 percent to $3.06 million. Interactive voice response (IVR) revenue fell 33 percent sequentially to $2.87 million. Java-based service revenue and color ring back tone (CRBT) service revenue saw respective quarter-on-quarter increases of 18 and 24 percent at $0.78 million and $1.97 million, respectively. Multimedia message service (MMS) revenue was up 3 percent from last quarter to $2.87 million. KongZhong's mobile advertising revenues in the quarter were $212,000, compared to $298,000 last quarter and $116,000 in the year-ago period.

KongZhong expects to generate between $22 million and $23 million in second quarter revenues.