Bad Software Tidings In China As Kingsoft's Revenue Drops

Chinese Internet game and software company Kingsoft has published its annual performance for 2010, stating that its annual operating revenue decreased by 5% year-on-year to CNY970 million while its net profit decreased by 4% year-on-year to CNY370 million.Qiu Bojun, chairman and chief executive officer of Kingsoft, told local media that the year 2010 was a year of revolution for Kingsoft. To adapt to the ever-evolving Internet environment, the company made adjustments in various sectors, establishing it as a more efficient and aggressive company. In the future, Kingsoft will be committed to improving its operating efficiency via product and service innovations, so as to increase the number of its users and enhance returns for shareholders.Of Kingsoft's total operating revenue, about 66% was from its entertainment software business and 33% from application software business. Its revenue from entertainment software was CNY640 million in 2010, a year-on-year decrease of 6%; and its revenue from application software business was CNY320 million, a year-on-year decrease of 2%.During the year 2010, Kingsoft implemented major adjustments to its businesses. For application software, it enlarged the service range of its WPS Office product to office automation, cloud storage, and Internet office; it found a new strategic direction for its English-Chinese translation tool Ciba; and it completed the restructuring of its security software Duba.For entertainment software, though it did not release any new gaming product in 2010, the company made full preparation for its product launch and operation for 2011. Kingsoft plans to launch five new games this year, which is expected to improve its overall operating capacity.