Xunlei Reports Lower Revenue, Net Loss; Stock Declines
The stock of Xunlei Ltd. (Nasdaq: XNET), which provides cloud computing and blockchain services in China, ended nearly 2 percent lower on Wall Street Monday, at $3.28 per American depositary share, after its first quarter financials showed declining revenue and losses.
The Shenzhen-based tech company said in a statement today that its revenue in the three months through March was $41.3 million, down 50 percent year-over-year but just 2 percent lower from the prior quarter.
Xunlei said its net loss narrowed more than 73 percent to $8.6 million from $32.4 million in the previous quarter. Per share loss was 13 cents, compared to 48 cents in the fourth quarter of 2018. Narrower losses were mainly due to the lower expenses across all departments, according to the report. However, a year ago at this time, Xunlei had $8 million in income.
"We saw progress and development in many areas during the first quarter of 2019," Lei Chen, the chief executive officer of Xunlei, said. "For cloud computing and IVAS business, we signed up several major internet customers and expect to increase bandwidth usage in the coming periods. And we continued to make progress on our blockchain development and unveiled several features for ThunderChain to enhance its capability. "
Xunlei said it expects to generate revenues in the range of $42 million to $46 million in the second quarter, at the midpoint of the range representing an increase of 6.5 percent from the first quarter.