Hurray! News

Hurray! Reports Fourth Quarter and Fiscal Year 2007 Unaudited Financial Results

BEIJING, March, 6, 2008 /Xinhua-PRNewswire/ -- Hurray! Holding Co., Ltd. (Nasdaq: HRAY - News), a leader in artist development, music production and wireless music distribution and other wireless value-added services in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2007.

FINANCIAL HIGHLIGHTS:

Highlights for Fourth Quarter 2007
 ●Total revenues: $16.7 million, representing growth of 23.0% quarter-over-quarter and a slight decline of 1.1% year-over-year; higher than our previous guidance of $13.0-14.0 million
 ●Wireless value-added services (“WVAS”) revenues: $11.9 million, representing growth of 4.2% quarter-over-quarter and a decline of 21.5% year-over-year
 ●Recorded music revenues, which are from our record label businesses: $4.9 million, representing growth of 117.8% quarter-over-quarter and 171.3% year-over-year
 ●Net loss: $31.3 million
 ●Net loss included a goodwill impairment charge of $29.2 million for our wireless business as well as an impairment charge of $1.9 million on other acquired intangible assets from this business and a gain of $0.16 million from the sale of the software and system integration services business.
 ●Adjusted EBITDA (a non-GAAP measure which is defined as income from continuing operation before interest, tax, depreciation, amortization, stock-based compensation and provisions for impairment of goodwill and other intangible assets): $(0.6) million
 ●Diluted loss per ADS: $1.43
 ●Excluding these impairment charges and the gain on the sale of the software and system integration business, non-GAAP fully diluted loss per ADS: $0.02

Highlights for Fiscal Year 2007
 ●Total revenues: $61.4 million, a decline of 10.7% as compared to $68.7 million for 2006
 ●Wireless value-added services revenues: $50.9 million, a decline of 18.6% as compared to $62.5 million for 2006
 ●Recorded music revenues: $10.5 million, representing growth of 69.1% as compared to $6.2 million for 2006
 ●Net loss: $41.7 million, compared to net income of $5.8 million for 2006
 ●Net loss included a goodwill impairment charge of $38.8 million for our wireless business as well as an impairment charge of $2.5 million for other acquired intangible assets from this business and a gain of $0.19 million from the sale of the software and system integration services business.
 ●Adjusted EBITDA (a non-GAAP measure which is defined as earnings before interest, tax, depreciation, amortization, stock-based compensation and provisions for impairment of goodwill and other intangible assets): $1.8 million, as compared to $8.1 million for 2006
 ●Diluted loss per ADS: $1.91
 ●Excluding the impairment charges and the gain on the sale of the software and system integration business, non-GAAP fully diluted loss per ADS: $0.03

Commenting on the fourth quarter results, QD Wang, Chairman and CEO of Hurray! stated: "We are glad that we stabilized our WVAS business and generated growth quarter over quarter in a very challenging environment. We recognized further impairment charges of $31.1 million, a non-cash expense, writing down substantially all our remaining WVAS goodwill and intangible assets in Q4. We continue to reduce our costs to seek profitable WVAS growth so as to generate positive cash flow. We are very pleased that our music business had a record performance showing excellent growth in this quarter and we are expecting further growth in 2008. Currently, we enjoy a very good cash position, which allows us to execute our strategy through both organic and non-organic growth. We are confident of developing Hurray! into a leading entertainment production and distribution company in China. ”

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