Xunlei Limited (NASDAQ:XNET)

SHENZHEN, China, April 20, 2018 (GLOBE NEWSWIRE) -- Xunlei Limited (“Xunlei” or the “Company”) (Nasdaq:XNET), a leading cloud-based acceleration technology company in China, today announced that it has launched ThunderChain, a high-performance blockchain platform, which can concurrently conduct millions of transactions per second (TPS).

Based on Xunlei’s proprietary homogeneous multichain framework, ThunderChain is designed to realize confirmation and interaction among homogeneous chains and enable multiple transactions to be executed on different chains in parallel. An optimized practical byzantine fault tolerance (PBFT) is adopted by ThunderChain as its consensus model which results in low latency and makes it possible to generate one block per second. PBFT, as a consistency algorithm, is also able to avoid soft fork. ThunderChain supports smart contracts written in solidity language and is compatible with Ethereum Virtual Machine (EVM), making it easy to migrate applications from other blockchain platforms.

The Company also announced to partner with InfoQ, a global leading community for tech developers, to host a Blockchain Applications Global Challenge. The goal is to develop blockchain applications and cultivate talents to help overcome complex challenges facing multiple industries, including logistics, healthcare, education and the public sectors. Participants are invited to develop decentralized applications (dApps) on ThunderChain. The winning teams will receive cash prizes and have opportunities to receive angel investments in addition to opportunities to learn from the global blockchain experts. The Challenge is open for registration on April 20, 2018 and the deadline for project submissions is June 15, 2018. Interested parties can find more information on the event page:

Xunlei Limited (NMS:XNET) ($21.01, marked down to $16.69 premarket) - according to Chinese news reports, there are big disputes between XNET and another company, Xunlei Big Data Information Service Ltd and its subsidiaries. Below are details of the dispute, paraphrased from the reports:

First, XNET put out an notice last night stating that the business conducted under the names such as “Xunlei Finance”, “Xunlei YiDai”, “Xunlei Small Games”, “Xunlei Ai Jiaoyi” are all under the company Xunlei Big Data Information Service Ltd (“Xunlei Big Data”) and its subsidiaries, and they are not businesses under XNET Group. Xunlei Big Data is a company that XNET Group invested in August 2016, and XNET’s equity interest in Xunlei Big Data decreased to 28.77% as of December 2016 (as well as losing its board seat), thus XNET does not have ways to supervise and manage Xunlei Big Data. Also XNET has never consolidated Xunlei Big Data’s financials and has no plan to do so in the future.

Then, Xunlei Big Data fought back with a statement saying that Xunlei Big Data and its subsidiary finance company are established under XNET’s Board and invested by XNET, and the usage of Xunlei trademark and traffic is protected by the agreement. Xunlei Big Data will continue to conduct business under Xunlei Big Data and Xunlei Finance trademark, and the company never received any notice from XNET Group regarding the investment agreement violation. They stated that the rumor came from the person in charge of Wang Xin Company, Lei Chen, who is also XNET’s CEO, and Lei Chen is seeking revenge on Xunlei Big Data because Xunlei Big Data does not want to help the OneCloud Coin illegal activities. In addition, the illegal OneCloud Coin publishing activities by Lei Chen do not use any blockchain technology and it violates seven  department’s restrictions on ICOs.

After that, XNET put out another statement regarding Xunlei Big Data’s statement, and XNET stated that all the activities conducted by XNET are under the approval of XNET’s Board in order to protect XNET’s shareholders’ interest and company’s brand. XNET has already sent a legal letter to Xunlei Big Data to request it to stop using any of XNET’s trademarks. The finance business conducted by Xunlei Big Data brings risk and XNET does not have a supervision channel, and so XNET taking back its trademark is a way to protect the company, its users and its shareholders. In addition, XNET found that there are some unfair treaties in the agreement between XNET and Xunlei Big Data, and XNET is seeking legal remedies to protect XNET Group’s interest. The company will seek legal, civil, administrative or criminal options to press charges if applicable to the baseless defamation from Xunlei Big Data to XNET’s CEO, Lei Chen and XNET Group.

We will closely monitor the price action of the stock as this story unfolds.

SHENZHEN, China, Sept. 14, 2017 (GLOBE NEWSWIRE) -- Xunlei Limited (“Xunlei” or the “Company”) (Nasdaq:XNET), China's leading provider of acceleration products and services, today announced the appointment of Mr. Eric Zhou as its Chief Financial Officer (“CFO”), effective September 18, 2017. Mr. Eric Zhou will replace Mr. Tao Thomas Wu, who tendered his resignation as the CFO for personal reasons, effective September 18, 2017.

Mr. Chen Lei, Xunlei’s Director and Chief Executive Officer commented, “We are pleased to welcome Mr. Eric Zhou as our new CFO. We believe Eric’s extensive expertise in finance and global capital markets will greatly contribute to Xunlei’s development. On behalf of Xunlei, we appreciate Tom for his significant contribution and dedication to the Company over the past four years as CFO. We wish him every success for the next stage of his career.”

Mr. Zhou has twenty years of professional experience covering corporate finance, financial planning and analysis, domestic and international investment project due diligence, and mutual fund and private equity investment research and management in the U.S. and in China. Most recently, Mr. Zhou was an interim chief financial officer at ChinaCache International Holdings Limited, a Nasdaq-listed company. Mr. Zhou was as senior vice president of ChinaCache from September 2015 to June 2016. From February 2010 to December 2014, he served as the vice president of finance and Chief Financial Officer at Sutor Technology Group Limited. Prior to that, Mr. Zhou served in various roles, including executive vice president and Chief Financial Officer at Richfield Investment Ltd., equity research analyst at Roth Capital Partners, and principal financial planner at American Electric Power. Mr. Zhou obtained a bachelor’s degree with honors in Petroleum Management Engineering from China Petroleum University, and an MBA in Finance and Ph.D. in Interdisciplinary Energy and Mineral Resources from the University of Texas at Austin. Mr. Zhou is a Chartered Financial Analyst (CFA).

First Quarter 2017 Financial Results

• Total revenues were US$39.6 million, a 2.9% increase from the corresponding period of last year and up 0.4% from the previous quarter.
• Diluted loss per ADS from continuing operations in the first quarter of 2017 was US$0.1015. Non-GAAP diluted loss from continuing operations per ADS in the first quarter of 2017 was US$0.0665.

Xunlei announced that Mr. Quan Zhou has tendered his resignation as a director of the Company for personal reasons, effective on May 10, 2017. After this change, Xunlei’s board of directors will be comprised of eight members.

''I would like to thank Mr. Zhou for his contributions to Xunlei over the past three years, and we appreciate his valuable insight and dedication.'' said Mr. Sean Shenglong Zou, Chairman and Chief Executive Officer of Xunlei.

Guidance for Second Quarter 2017

For the second quarter 2017, Xunlei estimates total revenues to be between US$39.5 million to US$42.5 million, the midpoint of the range representing a year-over-year increase of 6.6%. This estimate represents management’s preliminary view as of the date of this release, which is subject to change and any change could be material.

Third Quarter 2016 Financial Results

• Total revenues were US$40.9 million, a 22.1% increase from the corresponding period of last year and a 7.4% increase from the previous quarter.
• Non-GAAP diluted loss from continuing operations per ADS in the third quarter of 2016 was US$0.0795.

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, commented on the financial results: “We continue to make progress in cloud computing, the most strategic investment for Xunlei. We are particularly pleased with progress in the live videos segment, one of the fastest growing segments for our cloud computing services.”

Guidance for Fourth Quarter 2016

For the fourth quarter 2016, Xunlei estimates total revenues to be between US$38 million to US$43 million, the midpoint of the range representing a year-over-year increase of 15.4%. This estimate represents the management’s preliminary view as of the date of this release, which is subject to change and any change could be material.

Second Quarter 2016 Financial Results 

• Total revenues were US$38.1 million, a 22.3% increase from the corresponding period of last year.
• Diluted loss per ADS from continuing operations in the second quarter of 2016 was US$0.06. Non-GAAP diluted loss from continuing operations per ADS in the second quarter of 2016 was US$0.03.

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, commented on the financial results: “we are pleased to see the progress on our mobile advertising effort as well as continued momentum of our subscription business. In addition, our cloud computing business has progressed during the quarter as well. We will remain focused on executing our cloud computing strategies on an on-going basis”.

Outlook

The Company remains confident in its core strategy of continued innovation through cloud computing and continues to advance on the technology front and expand in scale. However, there remains the possibility that download acceleration subscriptions may decline as a result of the on-going government scrutiny of internet content in China. The Company has also permitted temporary suspension of services provided to about 267,000 existing subscribers as of the end of the second quarter of 2016.

Guidance for Third Quarter 2016

For the third quarter 2016, Xunlei estimates total revenues to be between US$38 million to US$42 million, the midpoint of the range representing a year-over-year increase of 19.4%. This estimate represents the management’s preliminary view as of the date of this release, which is subject to change and any change could be material.

First Quarter 2016 Financial Results

• Total revenues were US$38.5 million, a 27.4% increase from the corresponding period of last year and a 9.6% increase from the previous quarter.
• Non-GAAP diluted loss from continuing operations per ADS in the first quarter of 2016 was US$0.0425 as opposed to last years same quarter gain of $0.0738.

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, commented on the financial results: “We are pleased to announce significant progress on cloud computing and mobile advertising, which grew by 40.4% and 97.2%, respectively. Our total revenues for the past quarter again exceeded the high end of our own guidance range. We believe our steady growth of core subscription business, ongoing transition to mobile internet, and execution of cloud computing are key factors to our long term success and growth.”

Outlook

The Company remains confident in its core strategy of continued innovation through cloud computing and continues to advance on the technology front and expand in scale. However, in the near term, we expect our PC-based download acceleration subscriptions to decline as a result of the on-going government scrutiny of internet content in China. In addition, the Company has permitted temporary suspension of services provided to about 276,000 existing subscribers as of the end of the first quarter of 2016.

Guidance for Second Quarter 2016

For the second quarter 2016, Xunlei estimates total revenues to be between US$37 million to US$41 million, the midpoint of the range representing a year-over-year increase of 25.0%. This estimate represents the management’s preliminary view as of the date of this release, which is subject to change and any change could be material.

SHENZHEN, China, Jan. 27, 2016 (GLOBE NEWSWIRE) -- Xunlei Limited (�Xunlei� or the �Company�) (Nasdaq:XNET), China�s leading provider of acceleration products and services, today announced the adoption of a new share repurchase program of up to US$20 million and the resignation of a senior management member.

New Share Repurchase Program

The Board of Directors of the Company (�the Board�) authorized a new share repurchase program under which the Company may repurchase up to US$20 million worth of its shares (including in the form of American depositary shares (�ADSs�)) over the next 12 months.  Share repurchases under this program may be made through open market transactions, privately negotiated transactions or other legally permissible means as determined by Xunlei's management, including through Rule 10b5-1 share repurchase plans. The timing and extent of any purchases will depend upon market conditions, the trading price of Xunlei�s ADSs and other factors.  The Board will review the share repurchase program periodically, and may authorize adjustment of its terms and size. This share repurchase program will be funded by the Company's available cash balance. As of September 30, 2015, Xunlei had cash, cash equivalents and short-term investments of approximately US$445 million.

Third Quarter 2015 Financial Results

• Total revenues were US$33.5 million, up 7.5% sequentially, exceeding the high end of the Company�s previously issued guidance range.
• Diluted loss per ADS from continuing operations in the third quarter of 2015 was US$0.0453. Non-GAAP diluted loss from continuing operations per ADS in the third quarter of 2015 was US$0.0063.

Outlook

The Company remains confident in its core strategy of ongoing innovation through Project Crystal and continues to advance on the technology front and expand in terms of scale. In the near term, the Company's PC-based download acceleration subscriptions remain subject to influence by the continuing government scrutiny of internet content in China, which may have ongoing negative impact on the Company's subscription revenues. In addition, the Company has permitted temporary suspension of services provided to about 311,000 existing subscribers as of the end of the third quarter of 2015.

Guidance for Fourth Quarter 2015

For the fourth quarter of 2015, Xunlei estimates total revenues from continuing operations to be between US$31 million to US$34 million. This estimate represents management's preliminary view as of the date of this release, which is subject to change and change could be material.

Second Quarter 2015 Financial Results

• Total revenues were US$31.2 million, up 3.2% sequentially and down 6.3% year-over-year. Subscription revenues decreased by 0.8% sequentially and by 16.9% year-over-year, while revenues generated by other internet value-added services were up 14.3% sequentially and 39.4% year-over-year.
• Diluted income per ADS from continuing operations in the second quarter of 2015 was US$0.0496. Non-GAAP diluted income from continuing operations per ADS in the second quarter of 2015 was US$0.0849.

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, commented on the results. "Our second quarter revenue exceeded the high end of our previously issued guidance range. We continue to focus on executing our key strategies of migrating to mobile internet and continued innovation partly through Project Crystal. I am also pleased to note that our subscription business appeared to show signs of stabilization. "

Outlook

The Company remains confident that its mobile strategy will yield positive future results, and looks to deepen its business cooperation with Xiaomi, which the Company expects to serve as a key driver for its continued transition to mobile internet. In the near term, the Company's PC-based download acceleration subscriptions remain subject to influence by the continuing government scrutiny of internet content in China, and as a result, the Company may experience a negative impact on its subscription revenues. The Company is continuing its efforts to comply with the government's internet content campaign. In addition, the Company has permitted temporary suspension of services provided to about 426,000 existing subscribers as of the end of the second quarter of 2015.

In August 2015, the Company intends to divest its client games business, which accounted for 4.2% of Xunlei's total revenues in the second quarter of 2015. The divestiture remains subject to the negotiation and signing of a definitive agreement.

SHENZHEN, China, July 24, 2015 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq:XNET), China's leading provider of acceleration products and services, today announced a strategic partnership with iQIYI, a leading online video streaming services provider in China, whereby Xunlei's Project Crystal will provide crowd-sourced bandwidth services to iQIYI.

Project Crystal is an ongoing project involving technology innovation in crowd-sourcing idle bandwidth and potentially storage from Xunlei's user base, by providing crowd-sourced bandwidth without investing in hard assets. This project grew from Xunlei's traditional technology for Xunlei Accelerator. Project Crystal, under the trademark Nebula CDN, allows video users to enjoy smooth video viewing experiences in various complex network environments and enables internet content providers to increase the stability and security of their services and to reduce operating costs.

"This partnership with iQIYI is a major milestone for Project Crystal, in terms of product development, market acceptance and its competitive value proposition. The size and geographic diversity of iQIYI's user base, the complexity of iQIYI's video streaming services and its planned adoption of crowd-sourced bandwidth from Project Crystal are a testimony to both Project Crystal's maturing technology and increasing value proposition. We look forward to our cooperation with iQIYI and other internet content providers in China," said Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei.

• Total revenues were US$30.2 million, an 8.4% decrease from the corresponding period of last year and a 14.9% decrease from the previous quarter.
• Diluted income per ADS from continuing operations in the first quarter of 2015 was US$0.0401. Non-GAAP diluted income from continuing operations per ADS in the first quarter of 2015 was US$0.0738.

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, commented on the results. "Our first quarter revenue was within our guidance range as we continue to focus on our key strategic imperative. The ongoing transition to mobile internet is a critical factor to our planned long-term growth. We remain steadfast in our focus to deepen our existing business cooperation with Xiaomi, expand our presence in the mobile space, continue apace with Project Crystal and create long term value for our shareholders."

Mr. Tom Wu, Chief Financial Officer of Xunlei, added, "The pending divestiture of Xunlei Kankan is a key step for us to resharpen our strategic focus and shift resources to drive future growth, which we believe will help to improve our cash flow and financial results."

Outlook

The Company remains confident that its mobile strategy will yield positive future results, and looks to deepen its business cooperation with Xiaomi, which the Company expects to serve as a key driver for its continued transition to mobile internet. In the near term, the Company expects its PC-based download acceleration subscriptions to decline due to the continuing government scrutiny of internet content in China, and as a result the Company expects to continue to experience a negative impact on its subscription revenues. The Company is continuing its efforts to comply with the government's internet content campaign and as such, saw a reduction in the number of total subscribers in the first quarter of 2015. In addition, the Company has permitted temporary suspension of services to about 390,000 existing subscribers as of the end of the first quarter of 2015.

SHENZHEN, China, March 31, 2015 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq:XNET), China's leading provider of acceleration products and services, today announced that it has entered into a legally binding framework agreement with Beijing Nesound International Media Corp., Ltd. ("Nesound"), an independent third party, to sell the Company's entire stake in its online video streaming platform, Xunlei Kankan.

The Company intends to sell Xunlei Kankan for a consideration of RMB130 million. Xunlei's Board approved the transaction after considering the benefits of the transaction to the Company and its shareholders. The Company believes that the divestment of Xunlei Kankan is consistent with Xunlei's new strategic focus on streamlining existing non-core and unprofitable businesses so as to devote sufficient management attention to execute strategies on mobility and Project Crystal.  The completion of the transaction is subject to the signing of a definitive purchase agreement and fulfilling closing conditions contained therein, which may include the completion of a specific research and development project, the transfer of domain name and other assets and businesses of Xunlei Kankan, and the application for the transfer of permits and licenses required for Xunlei Kankan's operations. If the transaction fails to close due to the fault of either Xunlei or Nesound, including the failure to meet closing conditions, the responsible party shall be liable to pay an additional fee of RMB52 million.

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, stated: "I am pleased that the Board has unanimously approved the sale of Kankan as part of our initiative to streamline existing businesses and to focus on our continued transition to mobile internet, which we expect will offer our employees and our investors with exciting future prospects."

"As I mentioned in our last earnings call, we are convinced that it is necessary to respond to changing environment, technical innovation and more diverse customer expectations with a bold new beginning.  Xunlei will tap the growth potential created by its transformation from a primarily PC-based company to a mobile internet company, which we believe to be critical to our long term growth," added Mr. Zou.

Fourth Quarter 2014 Financial Results

• Total revenues were US$46.7 million, a 7.1% increase from the corresponding period of last year and a 5.2% decrease from the previous quarter.
• Non-GAAP diluted earnings per ADS in the fourth quarter of 2014 was US$0.0518 vs. last years same quarter of (0.4536),

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, commented on the results: "Our fourth quarter revenues were close to the high end of the guidance range we provided to the market. 2015 is an important year for Xunlei, in its transition to mobile internet and continued product innovation. We will be concentrating on executing our mobile strategies, Project Crystal, and focused approach to managing our existing businesses."

Outlook

We remain optimistic regarding the progress of our mobile initiatives, and look to deeper integration with Xiaomi as its key drivers. However, in the near term, we expect our PC-based download acceleration subscriptions to decline as a result of the ongoing and increased government scrutiny of internet content in China, which we expect to continue to have a negative impact on our subscription revenues. The Company is continuing its compliance efforts in response to the government's internet content campaign and as a result, saw a reduction in the number of total subscribers in the fourth quarter of 2014. In addition, the Company has permitted temporary suspension of services to about 350,000 existing subscribers as of the end of the fourth quarter.

Guidance for First Quarter 2015

For the first quarter 2015, Xunlei estimates total revenues to be between US$37 million to US$41 million, the midpoint of the range representing a year over year decrease of 5% and a quarter-over-quarter decline of 16%. This estimate represents management's preliminary view as of the date of this release, which is subject to change and change could be material

• Total revenues were US$49.2 million, a 7.6% increase from the previous quarter and a 1.5% increase from the corresponding period in 2013.
• Diluted earnings per ADS in the third quarter of 2014 was US$0.0052. Non-GAAP diluted earnings per ADS in the third quarter of 2014 was US$0.0345.

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, commented on the results: "We are delighted to report our performance for the second time since our IPO, which we were pleased to note is above the midpoint of the guidance range we provided to the marketplace. We remain resolute in driving our mobile initiatives through collaboration with Xiaomi and our continued efforts in innovation through Project Crystal."

Mr. Tom Wu, Chief Financial Officer of Xunlei, commented on the results. "We were pleased to deliver positive revenue growth sequentially and on a year over year basis. Xunlei will remain committed to its core value of content delivery, increasingly with our efforts on the mobile end. Our innovation in crowd sourcing bandwidth has shown early signs of success. "

Outlook

We remain optimistic regarding the progress of our mobile initiatives, and look to deeper integration with Xiaomi as its key drivers. However, in the near term, we expect our PC-based download acceleration subscriptions to decline as a result of the ongoing and increased government scrutiny of internet content in China, which we expect to continue to have a negative impact on our subscription revenues. The Company is continuing compliance efforts in response to the government's internet content campaign and saw a reduction in the number of total subscribers in the third quarter. In addition, the company has permitted temporary suspension of services to about 300,000 existing subscribers as of the end of the third quarter.

BEIJING, Sept. 3, 2014 (GLOBE NEWSWIRE) -- eFuture Information Technology Inc. (Nasdaq:EFUT) (the "Company" or "eFuture"), a leading provider of software and mobile social shopping network services to China's rapidly growing retail and consumer goods industries, today announced at its annual conference, eFuture World 2014, that the number of registered myStore users has exceeded 1 million .

"1 million registered users is an important milestone for myStore, which increased its user base 100 times since we officially initiated public trial of myStore at eFuture World 2013, which was held exactly a year ago." Mr. Adam Yan, the Chairman and CEO, further commented, "I would like to say thanks to all of our clients and every consumer. You are the promoters of the third retail revolution."

eFuture World 2014 was held on Ramada Hotel in Xishuang Banna in Yunnan province from September 2 to 4, 2014. Mr. Pei Liang, the secretary general of China Chain Store & Franchise Association, was invited to be the honored guest and presented opening remarks. Over 200 key representatives of our clients and partners attended this meeting, including senior level personnel of China top retailers such as Suning, Alibaba, Yonghui Superstore, Wangfujing Group, Yansha, Tianhong Department Store, Womai.com, and sponsors from our strategic partners, including Vocollect, Datalogic, Cisco, and HP.

SHENZHEN, China, September 2, 2014 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq:XNET), China's leading provider of acceleration products and services, announced today that the Company, through its PRC subsidiary, Shenzhen Xunlei Network Technology Co., Ltd. has entered into a definitive agreement (the "Agreement") with PRC subsidiaries of Kingsoft Corporation Limited ("Kingsoft"), namely Beijing Kingsoft Cloud Network Technology Co., Ltd., Zhuhai Kingsoft Cloud Technology Co., Ltd., and Beijing Kingsoft Cloud Technology Co., Ltd., to acquire Kuaipan Personal and Kansunzi software (collectively the "Kuaipan Personal").

Pursuant to the Agreement, Xunlei will acquire business and assets in relation to Kuaipan Personal for an aggregate cash consideration of US$33 million. The transaction is subject to customary closing conditions and is expected to close before the end of September of 2014. Kingsoft, through its wholly owned subsidiary, owns approximately 12% of the outstanding share capital of the Company.

"This transaction represents an opportunity for Xunlei to expand into the personal storage business, " said Sean Zou, Chairman and Chief Executive Officer of Xunlei. " It will further cement Xunlei's access to the mobile ecosystem of Xiaomi and its users and optimize the monetization potential of our efforts towards an efficient use of idle bandwidth and storage."  

Second Quarter 2014 Financial Results

• Total revenues were US$45.8 million, an 11.1% increase from the previous quarter and a 2.3% decrease from the corresponding period in 2013.
• Non-GAAP diluted loss per ADS in the second quarter of 2014 was US$4.65. vs. last years same quarter of $0.10

Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei, commented: "We are delighted to report our quarterly results for the first time since our initial public offering ("IPO"), which in itself represents a major milestone for our company. Our results were in line with our expectation. We saw sequential and year-over-year growth in paying subscribers and subscription revenues, and sequential growth in total revenues," said Mr. Sean Zou, Chairman and Chief Executive Officer of Xunlei. "As we begin this exciting new chapter, we are also happy to report strong progress on our mobile initiatives and a strengthening relationship with Xiaomi, especially our thorough integration with MIUI V6.

"In connection with our mobile efforts, we also entered into advanced discussions with Kingsoft Corporation regarding the acquisition of Kuaipan Personal, its personal storage business. We see this as an opportunity to further cement Xunlei into the mobile ecosystem of Xiaomi and its users, and increase the monetization potential of our efforts towards an efficient use of idle bandwidth and storage."

"Xunlei is uniquely positioned to perform an important role in content delivery, across multiple devices, in the internet ecosystem. We will continue to leverage our technology platform to extend our presence in mobile internet, and the modern living room."

Mr. Tom Wu, Chief Financial Officer of Xunlei, commented on the results. "During the second quarter, we were pleased to see sequential and year-over-year growth in our subscriber base and our subscription revenues. As expected, we saw a year-over-year decline in advertising revenues, as a result of reductions in content acquisition in 2013 and the early part of 2014. Going forward, we expect some near term pressure on the subscriber base as a result of increased government regulation of internet content."

Outlook

We remain optimistic regarding the progress of our mobile initiatives, and look to the potential acquisition of Kuaipan and deeper integration with Xiaomi as its key drivers. However, in the near term, we expect our PC-based download acceleration subscriptions to decline as a result of increased government scrutiny of internet content in China, which we expect to have a negative impact on our subscription revenues.

In April 2014, the Chinese government initiated a campaign to enhance and enforce its scrutiny on internet content in China. As a result, various websites were subject to penalties and in some cases outright suspension of website operations. The Company conducted an internal compliance investigation to ensure that the content transmitted by its products is in compliance with the standards set out by the authorities. As a result, the Company has deleted over 1.7 million cached files, and added over seven thousand key words to its automatic keyword filtration system. The Company is continuing compliance efforts in response to the government's internet content campaign and is seeing a reduction in the number of total subscribers in July and August. In addition, the company has permitted temporary suspension of services by about 250,000 existing subscribers.

Guidance For Third Quarter 2014

For the third quarter of 2014, Xunlei estimates total revenues to be between US$47 million to US$51 million, the midpoint of the range representing a quarter-over-quarter growth of 7.0%. Without the VAT reform related impact, the total revenues for the third quarter of 2014 is expected to be between US$48.5 million to US$52.5 million. This estimate represents management's preliminary view as of the date of this release, which is subject to change and change could be material.

SHENZHEN, China, June 24, 2014 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq:XNET) today announced the pricing of its initial public offering of 7,315,000 American Depositary Shares ("ADSs") at an offering price of $12 per ADS. Each ADS represents five common shares. The Company's ADSs are expected to begin trading on the NASDAQ Global Select Market on June 24, 2014 (US Eastern Time) under the ticker symbol "XNET." Xunlei's initial public offering consists of 7,315,000 ADSs. In addition, the underwriters have been granted a 30-day option to purchase up to an additional 1,097,250 ADSs.