Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Stephen Monticelli with Mosaic Investments. Please go ahead.
Stephen Monticelli - Mosaic Investments
I have two questions regarding the business. First, in your guidance for Q3, you talk about revenues of $18 million to $20 million, which would represent healthy growth versus the Q2, as well as the Q3, from a year ago. According to my notes you did 16 million on a comparable basis in Q3 of ’08. My question is this, is it fair to expect that you would be profitable at that level of revenues given your current cost structure, and presumably the absence of ongoing severance payments?
Colin Sung
At the current level, giving the guidance of $18 million to $20 million for Q3 and also comparable with the current revenue based on Q2, so far we announced, yes, the question from you regarding profitability; as a company it will be profitable even though we are not giving the guidance related to our net income yet, but at this current level company anticipate will be continued profitability going forward.
Stephen Monticelli - Mosaic Investments
My second question has to do with the market in competition. There are many companies that are your competitors both large and small; can you talk about how you see yourself positioned with respect to those competitors in the Mainland?
Colin Sung
You’re correct. There are still many competitors in our space, but relatively speaking the environment is much healthier compared to 2008. I mean healthier is the competition, the product and services is much more in a healthy competition. The Linktone strategy [as Hary] our Chairman and CEO mentioned, the company is not only focusing on domestic, but also we are looking at international landscape. The strategy or the important focus for us going forward it will be more concentrating on strategic partnership related to our services as well as the content-related services.
Stephen Monticelli - Mosaic Investments
Can you talk about why the competition is less severe?
Colin Sung
Because the carries impose of deploy, it’s all in regulation and policy right, which regulate the industry in a much more healthier environment by means of people used to be doing a lot of great area operation was limited, which in turn give us a better health for company like, a public company like Linktone and [KongZhong, such as].
Stephen Monticelli - Mosaic Investments
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