Mobile app maker Sky-mobi Limited (NASDAQ:MOBI) cut on Friday its first-quarter revenue forecast, citing lower-than-expected handset sales and a more difficult operating environment for mobile service providers.
China-based Sky-mobi said it expects revenues to now be between RMB164 million (US$25.62 million) to RMB167 million (US$26.1 million), down from its previous outlook of RM180 million (US$28 million) to RM190 million (US$29 million).
Revenues for the fiscal year ending March 31, 2012 are expected to be in the range of RMB 680 million (US$106) to RMB 690 million (US$107 million).
"We expect revenues for the quarter to be approximately 10% below our original expectations due to our lower than expected overall handset sales in China and a more difficult operating environment for mobile service providers, which has lowered our monetization rate on user activities," said CEO, Michael Tao Song, in a statement.
"At the same time, we have seen strong growth for the Maopao community and expect the growth of the Maopao community to continue in fiscal 2012 and beyond."
The company, which provides applications and content with social networking functions to registered members, said it will announce its first quarter earnings Monday August 22.
Sky-mobi operates a mobile app store in China and works with handset companies to pre-install its Maopao mobile app store on handsets. Users of its Maopao store can browse, and download a range of content like games, music and books.
The China-based company’s shares lost 62 cents to $4.68 Friday in pre-market trade. Sky-mobi’s stocks closed yesterday at $5.30 on Nasdaq Stock Markets.