Hurray! narrows profit, misses expectations
Shares of Hurray! Holding Co., Ltd. (Nasdaq: HRAY) are depressed following news released after Thursday’s close that the artist development and music production firm reported a decline in second-quarter profit and missed Wall Street’s expectations.
The net income for the period ended June 30 was $0.2 million, or $0.01 per share, below the consensus estimate of three analysts polled by Thomson Financial, who were expecting a net income of $0.04 per share. The Beijing, China-based company had a profit of $0.99 million during the same quarter of 2006.
Hurray! also reported that its second quarter revenues fell 20.4% to $14.6 million, from $18.3 million a year earlier. Analysts were anticipating sales of $15.45 million.
“Despite the current volatile market conditions and constantly changing regulatory environment, we got through the quarter in reasonable shape which is very encouraging,” CEO QD Wang said.
Looking ahead, Wang said that Hurray! will be focused on developing proprietary content and diversifying distribution channels. The company forecast third-quarter revenues of between $15.5 million and $16.5 million. Wall Street was projecting revenues of $15.85 million.
The stock is down $0.50, or 13%, to $3.46, at 3:28 p.m. ET.
