Sky-Mobi Limited (NASDAQ: MOBI), a leading mobile app store (Maopao) provider in China, released its quarterly unaudited financial results for the “First Quarter 2013” (ended June 30, 2012) this week, highlighting its strong performance despite a trending drop in revenue for the feature phone market at large, previously its greatest focus. Though overall revenue was down about 7.6% Y-o-Y, this compares with an estimated decrease of 25% for the industry overall.
Since launching its Android platform earlier this year at GMIC2012, the company has made some significant progress partnering with manufacturers. Michael Song, the CEO of Sky-mobi, had the following to say about the results:
We made significant progress in the smart phone market while maintaining strong cash flow from the declining Chinese feature phone industry in the June quarter. Since the launch of our smartphone series of products at the Global Mobile Internet Conference in May, we have entered into partnership agreements with 50 handset manufacturers to pre-install our smartphone application store platform, application store assistant, browser, mobile game competition platform or game content.
In essence, the feature phone market for applications is losing steam, which is why revenue has steadily declined this year. Yet with the launch of Sky-Mobi’s smartphone services, the company intends to expand and capitalize on the rapid growth of this market while utilizing the cash flow from its feature phone segment. In total, application store downloads were 764 million, while 22.8 million new users were added to bring the total to 193.4 million. “The quick pace of adoption by industry players since the recent launch of our platform is proof of the commercial competitiveness of our products as well as our monetization capabilities in China,” says Michael Song.
You can read the full release here.