NQ Mobile Inc. Announces Fourth Quarter and Fiscal Year

[Gator]

BEIJING and DALLAS, March 6, 2013 /PRNewswire/ --
  Fourth Quarter of 2012:
   -- Record Net Revenues of $30.0 million, Up 134.1% Year-over-Year

   -- Net Income Attributable to NQ Mobile was $4.9 million

   -- GAAP Fully Diluted Earnings per ADS[1] of $0.09

   -- Non-GAAP Net Income Attributable to NQ Mobile[2] was $12.3 million, Up
      88.4% Year-over-Year

   -- Non-GAAP Fully Diluted Earnings per ADS[3] of $0.23
  Fiscal Year 2012:
   -- Record Net Revenues of $91.8 million, Up 125.6% Year-over-Year

   -- Net Income Attributable to NQ Mobile was $9.4 million

   -- GAAP Fully Diluted Earnings per ADS of $0.18

   -- Non-GAAP Net Income Attributable to NQ Mobile was $34.0 million, Up
62.4%
      Year-over-Year

   -- Non-GAAP Fully Diluted Earnings per ADS of $0.66
  NQ Mobile Inc. ("NQ Mobile" or the "Company" (NYSE: NQ), a leading global
provider of mobile Internet services, today announced its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2012.
  (Logo: http://photos.prnewswire.com/prnh/20121224/CN34262LOGO)
  Fourth Quarter 2012 Highlights
   -- Net revenues increased 134.1% year-over-year to $30.0 million.

   -- Net income attributable to NQ Mobile increased 52.7% year-over-year to
      $4.9 million.

   -- Non-GAAP net income attributable to NQ Mobile, defined as net income
      attributable to NQ Mobile excluding share-based compensation expenses,
      increased 88.4% year-over-year to $12.3 million.

-- GAAP fully diluted Earnings per ADS was $0.09 and non-GAAP fully diluted
      Earnings per ADS was $0.23 for the fourth quarter of 2012. Diluted
      weighted average number of ADSs outstanding increased to 53.5 million in
      the fourth quarter of 2012 from 51.2 million in the previous quarter.

   -- On November 30, 2012, the Company completed the acquisition of the
      remaining 73.6% equity interest in Beijing Feiliu Jutian Technology Co.
      ("Feiliu". Feiliu's financials were consolidated in the Company's
      financial statements starting on December 1, 2012.
  Fiscal Year 2012 Highlights
   -- Net revenues for fiscal year 2012 increased 125.6% year-over-year to
      $91.8 million.

   -- Net income attributable to NQ Mobile for fiscal year 2012, decreased
8.0%
      year-over-year to $9.4 million, mainly due to the $24.5 million in
      share-based compensation expenses recorded in the fiscal year of 2012,
      compared with $10.7 million in 2011.

   -- Non-GAAP net income attributable to NQ Mobile for fiscal year 2012,
      increased 62.4% year-over-year to $34.0 million.

   -- GAAP fully diluted Earnings per ADS was $0.18 and non-GAAP fully diluted
      Earnings per ADS was $0.66 for the fiscal year 2012. Diluted weighted
      average number of ADSs outstanding increased to 51.1 million in the
      fiscal year 2012 from 38.7 million in 2011.
  The Company's non-GAAP financial measures and related reconciliations to
GAAP financial measures are described in the accompanying sections of
"Non-GAAP Disclosure" and "Reconciliations to Unaudited Condensed Consolidated
Statements of Operations."
  Fourth Quarter and Fiscal Year 2012 Operating Metrics
   -- Cumulative registered user accounts were 283.4 million as of December
31,
      2012, compared with 146.7 million as of December 31, 2011 and 241.6
      million as of September 30, 2012. Including Feiliu's 67.4 million
      registered user accounts, NQ Mobile had total registered user accounts
of
      350.8 million as of December 31, 2012.

   -- Average monthly active user accounts for the quarter ended December 31,
      2012 were 97.7 million, compared with 52.4 million for the corresponding
      period of 2011 and 84.5 million for the quarter ended September 30,
2012.
      Including Feiliu's 12.5 million average monthly active user accounts, NQ
      Mobile had total average monthly active user accounts of 110.2 million
      for the quarter ended December 31, 2012.

   -- Average monthly paying user accounts for the quarter ended December 31,
      2012 were 8.9 million, compared with 5.6 million for the corresponding
      period of 2011 and 8.2 million for the quarter ended September 30, 2012.

   -- Beijing NationSky Network Technology, Inc. ("NationSky" had over 1,200
      enterprise customers as of December 31, 2012.

                           As of Dec. 31,    As of Dec. 31,    As of Sept. 30,
(In millions)                       2012              2011               2012
Cumulative registered
  user accounts                     283.4             146.7              241.6
  China                             164.0              91.6              141.9
  Overseas                          119.4              55.1               99.7
Feiliu cumulative
registered user
accounts                            67.4                 -                  -
Total cumulative
  registered user
  accounts                          350.8             146.7              241.6


                             Three months      Three months       Three months
                           ended Dec. 31,    ended Dec. 31,    ended Sept. 30,
                                     2012              2011               2012
Average monthly active
  user accounts                      97.7              52.4               84.5
  China                              56.9              32.9               49.7
  Overseas                           40.8              19.5               34.8
Feiliu average monthly
active user accounts                12.5                 -                  -
Total average monthly
  active user accounts              110.2              52.4               84.5

Average monthly paying
  user accounts                       8.9               5.6                8.2
  China                               5.9               4.0                5.6
  Overseas                            3.0               1.6                2.6

  "We are very pleased to report a strong fourth quarter and an excellent 2012
fiscal year performance with record revenues," commented Dr. Henry Lin,
Chairman and Co-Chief Executive Officer of NQ Mobile. "In our first full year
as a public company, we grew our revenue by 126% from $41 million to over $92
million.  Even without taking into account the revenue contribution from the
NationSky and Feiliu acquisitions, we achieved revenue of $79 million for 2012
and an outstanding organic growth rate of 93%. This significant growth is
driven by our consistent execution, as well as the continued rapid growth of
the global smartphone industry and adoption of mobile security and privacy
solutions by consumers worldwide."
  "This past year also marked an important strategic year in the evolution of
NQ Mobile as we broadened from a pure mobile security company to a mobile
Internet platform company. Through the acquisitions of NationSky and Feiliu,
we greatly expanded our product and service offerings, extended our customer
base, and diversified our revenue streams. We are well positioned to
capitalize on the significant size and growth of the mobile Internet services
market for both consumers and enterprises. Through continuous technology
innovation and expansion of products and services, we have set in motion our
plan to become an integrated part of our users' daily mobile experiences,"
continued Dr. Lin.
  "Another key theme for NQ Mobile in 2012 was the continued global expansion
of our business while maintaining our leadership position in China," added
Omar Khan, Co-Chief Executive Officer of NQ Mobile. "We have made tremendous
achievements in building a top tier global team, establishing our
international corporate headquarters in Dallas, broadening our service
offerings and gaining significant traction with global consumers and business
partners alike. There is no better evidence of that than our latest
announcement with America Movil to offer the entire suite of our flagship
consumer security and privacy offerings: NQ Mobile Security™, NQ Mobile
Vault™ and NQ Family Guardian™ to its 262 million subscribers across 18
countries. We are confident that the strong momentum in our international
business will continue in 2013. We remain committed to our global expansion
effort to drive the long term growth for our company."
  Fourth Quarter 2012 Results
  Revenues[4]
  Net revenues in the fourth quarter of 2012 were $30.0 million, up 134.1%
year-over-year and up 16.4% sequentially.
  Consumer Mobile Security revenues increased 69.4% year-over-year and 7.0%
sequentially to $19.6 million in the fourth quarter of 2012. The increases
were primarily due to the growth in the number of paying user accounts, which
reflected growth in the number of registered and active user accounts, as well
as increased use of NQ Mobile's premium services, particularly among its
overseas paying user accounts, which generally pay a higher subscription fee.
Revenue contribution from overseas users accounted for 53.7% of Consumer
Mobile Security revenues in the fourth quarter of 2012, compared with 49.8% in
the same quarter a year ago and 54.1% in the previous quarter.
  Enterprise Mobility revenues increased 49.1% sequentially to $6.7 million in
the fourth quarter of 2012 due to the strong growth in the enterprise business
and new customer gains.
  Mobile Games and Advertising revenues were $0.7 million for the month of
December in the fourth quarter of 2012. The Feiliu acquisition was closed on
November 30, 2012 when the Company fully controlled Feiliu, thus only the
December month of its financials were consolidated.
  Other revenues in the fourth quarter of 2012 were $3.1 million, up 147.5%
year-over-year and 3.0% sequentially, primarily due to the growth in revenues
from secured download and delivery services for mobile applications produced
by third parties. 
Cost of revenues in the fourth quarter of 2012 was $9.7 million, up 277.9%
year-over-year and 21.6% sequentially. The year-over-year increase was
primarily due to the impact from NationSky and Feiliu acquisitions, increased
customer acquisition costs to drive user growth, higher staff costs from
increased headcounts and salaries, and higher revenue sharing with mobile
payment service providers consistent with the increase of revenue from mobile
payment service providers. The sequential increase was primarily due to the
impact from NationSky and Feiliu acquisitions, partially offset by lower
customer acquisition costs to meet the annual expenditure budget.
  Gross Profit and Gross Margin
  Gross profit in the fourth quarter of 2012 was $20.4 million, up 98.2%
year-over-year and 14.1% sequentially. Gross margin, or gross profit as a
percentage of net revenues, was 67.8% in the fourth quarter of 2012, compared
with 80.1% in the same quarter a year ago and 69.2% in the previous quarter.
Excluding the impact from NationSky, gross margin was 79.5% in the fourth
quarter of 2012, compared with 78.5% in the previous quarter. NationSky's
gross margin in the fourth quarter of 2012 was approximately 26.8%, compared
with 24.6% in the previous quarter, and the cost of revenues for NationSky
primarily consists of the hardware device procurement cost.
  Operating Expenses
  Total operating expenses in the fourth quarter of 2012 were $20.0 million,
up 126.6% year-over-year and 6.1% sequentially. Non-GAAP operating expenses
were $12.6 million in the fourth quarter of 2012, up 128.0% year-over-year and
13.2% sequentially.
  Selling and marketing expenses were $4.8 million in the fourth quarter of
2012, up 32.5% year-over-year and down 15.7% sequentially. Non-GAAP selling
and marketing expenses were $4.2 million, up 73.9% year-over-year and down
11.8% sequentially. The year-over-year increases were primarily due to higher
marketing and advertising spending and higher staff costs from headcount and
salary increase, partially offset by lower share-based compensation costs. The
sequential decrease was primarily due to lower marketing and advertising
spending and lower share-based compensation costs.
  General and administrative expenses were $11.8 million in the fourth quarter
of 2012, up 235.7% year-over-year and 14.0% sequentially. The year-over-year
increase was mainly due to higher share-based compensation expenses as a
result of additional option and restricted shares issuance to executives and
non-employee consultants, higher staff costs from salary and headcount
increases, and higher legal and professional fees resulted from acquisition
and investment activities. The sequential increase was primarily due to higher
legal and professional fees and higher staff costs. Non-GAAP general and
administrative expenses were $5.5 million, up 240.1% year-over-year and 37.2%
sequentially. The year-over-year and sequential increases were primarily due
to higher staff cost, higher legal and professional fees expenses and costs
associated with the Feiliu acquisition.
  Research and development expenses were $3.4 million in the fourth quarter of
2012, up 101.5% year-over-year and 21.0% sequentially. The year-over-year
increase was primarily due to higher staff cost from salary and headcount
increases and higher share-based compensation expenses while the sequential
increase was primarily due to higher staff cost from salary increase and
higher office-related expenses. Non-GAAP research and development expenses
were $2.8 million, up 92.3% year-over-year and 22.7% sequentially. The
year-over-year and sequential increases were primarily due to higher staff
costs from salary and headcount increases.
  Operating Income / (Loss) and Operating Margin
  Operating income in the fourth quarter of 2012 was $0.4 million, compared
with the operating income of $1.5 million in the same quarter a year ago and
an operating loss of $1.0 million in the previous quarter. Operating margin
was 1.3% in the fourth quarter of 2012, compared with 11.4% in the same
quarter a year ago. The decline in operating income and operating margin was
mainly due to the significant increase in share-based compensation expenses.
  Non-GAAP operating income was $7.9 million in the fourth quarter of 2012, up
63.1% year-over-year and 15.2% sequentially. Non-GAAP operating margin was
26.2% in the fourth quarter of 2012, compared with 37.5% in the same quarter a
year ago and 26.4% in the previous quarter. Excluding the impact from
NationSky, non-GAAP operating margin was 30.7% in the fourth quarter of 2012,
compared with 29.8% in the previous quarter. Operating margin for NationSky
was about 10.3% in the fourth quarter of 2012, compared with 10.3% in the
previous quarter.
  Foreign Exchange Gain / (Loss), Interest Income and Other Income
  Foreign exchange gain was $0.7 million in the fourth quarter of 2012,
compared with a gain of $0.9 million in the same quarter a year ago and a loss
of $0.2 million in the previous quarter.  Foreign exchange gain was primarily
attributable to the appreciation of RMB against US$. Interest income was $0.9
million in the fourth quarter of 2012, compared with $0.6 million in the same
quarter a year ago and $0.8 million in the previous quarter. Interest income
was primarily due to the term deposit position. The Company also recorded a
gain of $2.9 million in other income in the fourth quarter of 2012 from step
acquisition of Feiliu's remaining equity interest on November 30, 2012. 
Subsequently, Feiliu became the wholly owned subsidiary of NQ Mobile.  As a
result, the Company re-measured the fair value of the previously owned 26.4%
equity interest at the acquisition date and recognized a gain of $2.9 million
accordingly.
  Income Tax
  Income tax benefit was $0.07 million in the fourth quarter of 2012, compared
with an income tax expense of $0.05 million in the same quarter a year ago and
$0.3 million in previous quarter.  The low effective tax rate was primarily
due to the preferential tax treatment enjoyed by certain subsidiaries of the
Company.
  Net Income
  Net income attributable to NQ Mobile was $4.9 million in the fourth quarter
of 2012, compared with $3.2 million in the same quarter a year ago and $0.3
million in the previous quarter. Non-GAAP net income attributable to NQ Mobile
was $12.3 million in the fourth quarter of 2012, up 88.4% year-over-year and
51.5% sequentially. Excluding the net income contribution of $0.4 million from
Nationsky, the non-GAAP net income for NQ Mobile increased 82.1%
year-over-year and 49.9% sequentially to $11.9 million.
  Cash Flows and Deferred Revenue
  Net cash flow generated from operations for the fourth quarter of 2012 was
$3.9 million, compared with $4.2 million in the same quarter a year ago and
$6.9 million in the previous quarter. As of December 31, 2012, the Company had
total cash position of $120.4 million ($18.9 million in cash and cash
equivalents and $101.5 million in term deposits) and deferred revenue of $12.2
million.
  Fiscal Year 2012 Results
  Revenues
  Net revenues for fiscal year 2012 were $91.8 million, up 125.6% from $40.7
million in 2011. Excluding revenue contribution in fiscal year 2012 of $12.6
million from NationSky acquired in the second quarter of 2012 and $0.7 million
from Feiliu acquired in the fourth quarter of 2012, net revenues were $78.5
million, up 93.1%. The significant increase was mainly due to the strong
growth in Consumer Mobile Security revenue.
  Consumer Mobile Security revenues were $67.9 million in fiscal year 2012, up
87.7% from $36.2 million in 2011. Revenue contribution from overseas users
accounted for 52.6% of Consumer Mobile Security revenues in fiscal year 2012,
compared with 48.9% in 2011.
  Other revenues in fiscal year 2012 were $10.6 million, up 137.5% from $4.5
million in 2011. Other revenues as a percentage of total net revenues
excluding NationSky and Feiliu was 13.5% in fiscal year 2012, compared with
11.0% in 2011.
  Cost of Revenues
  Cost of revenues in fiscal year 2012 was $25.7 million, up 219.5% from $8.1
million in 2011. The increase was primarily due to the impact from NationSky
and Feiliu acquisitions, increased customer acquisition cost, higher staff
costs from salary and headcount increases, and higher revenue sharing with
mobile payment service providers.
  Gross Profit and Gross Margin
  Gross profit in fiscal year 2012 was $66.0 million, up 102.5% from $32.6
million in 2011. Gross margin was 72.0% in fiscal year 2012, compared with
80.2% in 2011. Excluding the impact from Nationsky, gross profit for NQ Mobile
in 2012 was $62.9 million, up 92.8%, and the gross margin was 79.4%.
  Operating Expenses
  Total operating expenses in fiscal year 2012 were $63.8million, up 135.5%
from $27.1 million in 2011. Non-GAAP operating expenses were $39.4 million in
fiscal year 2012, up 138.5% from $16.5 million in 2011.
  Selling and marketing expenses were $17.4 million in fiscal year 2012, up
118.7% from $8.0 million in 2011. Non-GAAP selling and marketing expenses were
$15.1 million in fiscal year 2012, up 149.6% from $6.0 million in 2011. The
increase was primarily due to increased marketing and advertising spending,
higher staff costs from salary and headcount increases and higher travelling
and entertainment expenses.
  General and administrative expenses were $36.8 million in fiscal year 2012,
up 162.2% from $14.0 million in 2011.  The increase was primarily due to
higher share-based compensation expenses, higher staff cost from salary and
headcount increases, higher legal and professional fees and higher consulting
fees. Non-GAAP general and administrative expenses were $16.2million in fiscal
year 2012, up 165.0% from $6.1 million in 2011. The increase was primarily due
to higher staff cost from salary and headcount increases, higher legal and
professional fees, higher consulting fees and higher travelling and
entertainment expenses. 
Research and development expenses were $9.6 million in fiscal year 2012, up
88.1% from $5.1 million in 2011. The increase was primarily due to higher
staff costs from salary and headcount increases, higher share-based
compensation expenses and higher traveling and entertainment expenses.
Non-GAAP research and development expenses were $8.1 million in fiscal year
2012, up 86.0% from $4.4 million in 2011. The increase was primarily due to
higher staff costs from salary and headcount increases and higher traveling
and entertainment expenses.
  Operating Income / (Loss) and Operating Margin
  Income from operations, or operating income, for fiscal year 2012, decreased
59.0% year-over-year to $2.3 million from $5.5 million in 2011, mainly due to
the significant increase in share-based compensation expenses in the fiscal
year of 2012. Non-GAAP operating income for fiscal year 2012, increased 65.4%
year-over-year to $26.8 million from $16.2 million in 2011. Excluding
operating income contribution of $1.3 million from NationSky, non-GAAP
operating income increased 57.4% year-over-year to $25.5 million.
  Foreign Exchange Gain, Interest Income, Gain on Change of Interest in an
Associate and Other Income
  Foreign exchange gain was $0.07 million in fiscal year 2012, compared with a
gain of $3.0 million in 2011. Foreign exchange gain was primarily attributable
to the appreciation of RMB against US$. Interest income was $3.2 million in
fiscal year 2012, compared with $1.3 million in 2011. The increase was
primarily due to the higher deposit position resulting from the May 2011 IPO
proceeds. The company recorded a gain on change of interest in an associate of
$0.9 million in the third quarter of 2012, because the Company and all other
then shareholders of Feiliu transferred 20% of the equity interest in Feiliu
to a new shareholder, which was accounted for by equity method in the third
quarter of 2012, in exchange for the transfer of certain intangible assets.
The fair value of the intangible assets being valued were higher than the
carrying amount of the equity interest which the Company transferred, which
resulted a gain of  $0.9 million recorded by the Company in the third quarter
of 2012.  The Company also recorded a gain of $2.9 million in other income in
the fourth quarter of 2012 from step acquisition of Feiliu's remaining equity
interest on November 30, 2012.  Subsequently, Feiliu became the wholly owned
subsidiary of NQ Mobile.  As a result, the Company re-measured the fair value
of the previously owned 26.4% equity interest at the acquisition date and
recognized a gain of $2.9 million accordingly.
  Income Tax
  Income tax expense was $0.4 million and the effective tax rate was 4.3% in
fiscal year 2012, compared with an income tax expense of $0.1 million in 2011.
The low effective tax rate was primarily due to the preferential tax
treatment enjoyed by certain subsidiaries of the Company.
  Net Income/(Loss)
  Net income attributable to NQ Mobile for fiscal year 2012, decreased 8.0%
year-over-year to $9.4 million from $10.3 million in 2011, mainly due to the
significant increase in share-based compensation expense recorded in the
fiscal year of 2012. Non-GAAP net income attributable to NQ Mobile for fiscal
year 2012, increased 62.4% year-over-year to $34.0 million from $20.9 million
in 2011. Excluding net income contribution in fiscal year 2012 of $0.7 million
from NationSky, non-GAAP net income increased 59.3% year-over-year to $33.3
million.
  Other Business Updates and Significant Events
  NQ Mobile Share Repurchase Plan
  On November 26, 2012, NQ Mobile announced that its board of directors has
authorized a share repurchase plan under which the Company may repurchase up
to US$20 million of its American Depository Shares ("ADSs" over the next 12
months. As of February 28, 2013, the Company has purchased a total of 523,269
ADSs amounting to approximately $3.2 million. The Company may continue to buy
ADSs subject to applicable legal restrictions and other factors and in a
manner consistent with applicable securities laws.
  America Movil and NQ Mobile™ Collaborate to offer Mobile Subscribers
Security, Privacy and Family Protection across Mexico, and Latin America
  On March 4, 2012, NQ Mobile announced that America Movil (NYSE: AMX), Latin
America's leading telecom group in terms of equity subscribers, will offer NQ
Mobile's flagship products: NQ Mobile Security™, NQ Mobile Vault™ and NQ
Family Guardian™ to its 262 million subscribers located in 18 countries,
including Mexico and Latin America.
  NQ Mobile Offers Unique Enterprise Mobile Device Management and Security
Solution, NQSky™, through Its Subsidiary, NationSky
  On February 21, 2013, NQ Mobile announced that it has started offering the
new NQSky Enterprise Mobile Device Management (MDM) solution through its
subsidiary NationSky. Offering a suite of customized services under the NQSky
brand, NationSky provides its customers end-to-end solutions from mobile data
strategy consulting, architecture design and deployment, to mobile device,
content and application management. NationSky also provides industry-specific
solutions as well as complete platform integration services.
  NQ Mobile Announces that U.S. Cellular® Will Begin Offering NQ Family
Guardian™ Product Under the Name U.S. Cellular Family Protector to its 5.9
million Customers
  On February 19, 2013, NQ Mobile announced that U.S. Cellular will offer NQ
Mobile's Family Guardian product under the name U.S. Cellular Family
Protector™ powered by NQ Mobile™ to its 5.9 million customers.
  4G Wireless to Offer NQ Mobile Security™, NQ Mobile Vault™ for Android
and NQ Family Guardian™ in More Than 120 Verizon Premium Wireless Retail
Locations in the Southwest US
  On February 7, 2013, NQ Mobile announced that 4G Wireless will offer NQ
Mobile Security, NQ Mobile Vault for Android and NQ Family Guardian at 120
retail locations across California and Nevada.
  Diamond Mobile to Offer NQ Mobile™ Privacy, Security and Family
Protection Solutions at more than 210 Verizon Premium Wireless Retail
Locations Across Western and Southern US
  On February 1, 2013, NQ Mobile announced that Diamond Wireless, an
authorized Verizon retailer, will offer NQ Mobile Security, NQ Mobile Vault
for Android and NQ Family Guardian at more than 210 retail locations across
the U.S. beginning March 2013.
  I-Mobile and NQ Mobile Collaborate to Offer Southeast Asian Mobile
Subscribers Privacy, Security and Peace of Mind
  On January 7, 2013, NQ Mobile and I-Mobile Corporation, a leading mobile
handset provider in Thailand and Southeast Asia, announced an agreement to
bring consumers easy access to one of the most powerful mobile security and
safety apps on the market to help ensure safe mobile experiences for its
users. I-Mobile will pre-install NQ Mobile Security on its Android mobile
devices beginning in January 2013.
  NQ Mobile Announces Completion of Senior Management Share Purchase Plan
  On December 6, 2012, NQ Mobile announced that members of its senior
management, including Co-CEOs Dr. Henry Lin and Mr. Omar Khan, and COO Mr.
Vincent Shi, among others, have completed their previously announced share
purchase plan to use their personal funds to purchase up to an aggregate of $2
million worth of the Company's ADSs in open market transactions within six
months from June 6, 2012.
  Vox Mobile Collaborates with NQ Mobile to Provide Enterprise Mobile Security
  On November 13, 2012, NQ Mobile and Vox Mobile, a leading provider of
managed mobility solutions for enterprises, announced their collaboration to
integrate and offer enterprise endpoint mobile security solutions to Vox
Mobile's customers globally. NQ Mobile's security features provide enterprise
customers and their employees with the privacy and security features they need
to protect their businesses by securing sensitive device data from mobile
threats and unsecure mobile environments.
  Business Outlook
  The Company expects net revenues to be in the range of $32.8 million and
$33.3 million for the first quarter of 2013 and raises the full year 2013 net
revenue guidance from the previously issued range of $150 million to $155
million to a range of $178 million to 183 million.
  The above forecast reflects the Company's current and preliminary view,
which is subject to possible material changes.
  Conference Call Information
  NQ Mobile's management team will hold an earnings conference call to discuss
its results and outlook at 8:00PM U.S. Eastern Time on Wednesday, March 6,
2013, (9:00AM Beijing/Hong Kong Time on Thursday, March 7, 2013).
  The dial-in details for the conference call are:
  U.S. Toll Free: 1 866 519 4004
  International: +1 718 354 1231
  Hong Kong: +852 2475 0994
  United Kingdom: +44 2030598139
  China Mainland: 400 620 8038 or 800 819 0121
  Conference ID: 13418261
  Please dial in 10 minutes before the call is scheduled to begin and provide
the conference ID to join the call.
  A replay of the call will be available after the conclusion of the
conference call at 11:00 p.m. U.S. Eastern Time on March 6 through April 6,
2013. The dial-in details for the replay are:
  U.S. Toll Free: 1 855 452 5696
  International: +1 646 254 3697
  Conference ID: 13418261