CMCM - Cheetah Mobile -3.7% as revenues profits slide alongside overseas challenges

Cheetah Mobile (CMCM) is off 3.7% after posting Q3 earnings that were sharply lower year-over-year, as gross profit was more than halved amid a tumble in sales. Revenues came in ahead of management expectations, but "we still face challenges in growing our total revenues in the coming quarters due to the unfavorable environment in overseas markets," says Chairman/CEO Sheng Fu. "On the other hand, we don't expect our AI-related robotics business to generate significant revenues in the foreseeable future." Revenues slipped 60% to 365.1M yuan; excluding the deconsolidation of LiveMe, revenues fell nearly 47%. Gross profit fell nearly 55% to 251.9M yuan. Gross margin rose to 69% from a year-ago 60.3%. Operating loss narrowed to 118.9M yuan (about $17.5M) from a year-ago loss of 221.5M yuan. Net income per ADS fell to 1.87 yuan for the quarter, down 46% from a year-ago 3.47 yuan. Revenue by segment: Utility products and

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Cheetah Mobile -3.7% as revenues, profits slide alongside overseas challenges