HANGZHOU, China, May 30, 2014 (GLOBE NEWSWIRE) -- Sky-mobi Limited ("Sky-mobi" or the "Company") (Nasdaq:MOBI), a leading mobile application platform in China, today announced that the Company's Board of Directors has approved a fiscal year-end change from March 31 to December 31, beginning in the calendar year ending December 31, 2014. Additionally, the Company also announced that its Board of Directors has approved a program to repurchase up to US$20 million of the Company's American depositary shares ("ADSs") over the next 12-month period, ending on May 30, 2015.
The Company's decision to change its fiscal year end is intended to improve its comparability with industry peers on both a quarterly and annual basis, to align Company's reporting cycle with the calendar year and to provide more consistent quarter-to-quarter comparisons.
Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi stated, "Sky-mobi has delivered robust growth both operationally and financially in the past few quarters. Through our well designed initiatives and dedicated efforts, we are confident of the strong growth momentum of our mobile gaming business and hope to effectively present the fast-changing business dynamics to our shareholders. By redefining our revenue breakdown, starting in the second quarter of 2014, and aligning our reporting periods with our peers, we believe investors will be able to better understand our business and develop growing confidence of our tremendous potential as a leading distribution platform in China's mobile application market."
The Company expects to purchase shares on the open market, in negotiated transactions or otherwise in compliance with all of the conditions of Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The timing of the shares repurchased will be at the discretion of management and will depend on a number of factors, including price, market conditions and regulatory requirements. The Company retains the right to limit, terminate or extend the share repurchase program at any time without prior notice.
John Bi, Chief Financial Officer of Sky-mobi stated, "We have experienced significant revenue growth in the past few quarters at our smartphone business and our growth momentum is back on track with our successful transition. Given our strong balance sheet, long-term growth prospects, and successful turnaround story, we believe that now is the right time to enhance shareholder value through share repurchases and continued investment in growth initiatives."
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "may," "will," ''believes,'' ''expects,'' ''anticipates,'' ''intends,'' ''estimates,'' "plans," "continues" or other similar expressions, the negative of these terms, or other comparable terminology. Such statements, including statements relating to the Company's business outlook, are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Potential risks and uncertainties include the effectiveness, profitability and marketability of the Company's solutions; the Company's limited operating history; measures introduced by the PRC government and mobile network operators aimed at mobile applications-related services; the Company's revenue projections for future periods; the Company's ability to maintain relationships with handset companies, content providers and payment service providers; its dependence on mobile service providers and mobile network operators for the collection of a substantial majority of its revenues; billing and transmission failures, which are often beyond the Company's control; its ability to compete effectively; its ability to capture opportunities in the growing smart phone market; its ability to obtain and maintain applicable permits and approvals; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on June 28, 2013. These forward-looking statements are based on current expectations, assumptions, estimates and projections about the Company and its industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
About Sky-mobi Limited
Sky-mobi Limited is a leading mobile application platform in China. The Company works with handset companies to pre-install its Maopao mobile application store on handsets and with content providers to provide users with applications and content titles. Users of its Maopao store can browse, download and enjoy a range of applications and content, such as single-player games, mobile music and books on various mobile handsets with different hardware and operating system configurations. The Company's mobile social network community in China, the Maopao Community, offers mobile social games, as well as applications and content with social network functions to its registered users. The Company is based in Hangzhou, China. For more information, please visit: www.sky-mobi.com.
CONTACT: Investor Relations Contact: Sky-mobi Limited Mr. John Bi, Chief Financial Officer Phone: + (86) 571-8777 0978 (Hangzhou, China) Email: firstname.lastname@example.org ICR, Inc. Qiyiana Tian Phone: + (1) (646) -915-1615 (US) Email: email@example.com