Chinese mobile and online gaming company KongZhong (NASDAQ: KONG) has announced its unaudited results for the 3 months ending 31 March 2013.

Total Q1 revenues were $47.9 million, up 9.3 percent year-on-year.

Net income was $6.8 million, down 0.8 percent year-on-year.

Mouse and keyboard

Online PC games were the company's main sales driver during Q1.

And with launches of World of Planes and Guild Wars 2 being planned for China this will likely remain so in future, too.

PC games made up 59 percent of Q1 sales, compared to 33 percent for wireless value-added services and 7.8 percent for mobile games.

KongZhong has been experiencing problems with its mobile games division over the past six months.

This is partly because Chinese carriers are reducing their feature phone gaming distribution, while KongZhong is trying to shift some of its internal PC MMOG development talent to smartphone games.

"Over the long term, to take advantage of opportunities in smartphone games market, we are developing more innovative mobile game products by leveraging our in-house game engine and R&D teams," commented CEO Leilei Wang.

"We believe that in the following quarters, we will continue to bring new internet games, as well as mobile games to the market."

Smart squeeze

Mobile games generated $3.7 million in Q1, down 33 percent year-on-year.

Feature phone games sales were $2.4 million, while smartphone sales were $1.2 million, down 34 percent compared to the previous quarter.

Gross profit from mobile games was $1.9 million, down 20 percent year-on-year.

"The decrease in smartphone mobile games gross profits was due to a pause in new smartphone game launches in Q1 13 as we continue to transition a portion of our PC MMO game development team onto our internal smartphone game engine," KongZhong noted.

The company ended Q1 with $185 million in cash and cash equivalents, term deposits, held-to-maturity securities and restricted cash.

[source: KongZhong]