KongZhong Corporation (ADR) (NASDAQ:KZ) has been slowly declining, since it posted its 1Q2016 financial results. It should be noted here that the stock was trading at $5.5 per share, when it made the announcement. KongZhong reported revenue of $51.44 million, as compared to analyst estimates of $264.70 million. However, the figure was still 21.11% higher than that of the preceding quarter and 1.84% up from the previous year.

For its 1Q2016, KongZhong reported a net income of $25.6 million, up by 319.72% from the previous quarter and up by 510.03% from the preceding year. The cash position, at the end of the quarter, for the company, was $163.49 million. In its conference call, for the 1Q2016, KongZhong announced that it would continue to focus its efforts on internet and mobile games, in addition to its War Saga game platform. Moreover, the new games would also be developed around the War Sage theme, throughout 2016.

KongZhong reported a surge in its operating expenses for the 1Q2016, which moved to $17.48 million, from $16.8 million. The majority of this surge was attributable to the company’s sales and marketing expenses, which was partially offset by general and administrative expenses. The company stated that the surge in marketing expenses was mainly due to increased promotion activities for present and newly launched games.

In its full 1Q2016 report, KZ provided an update about the acquisition offer from IDG-Accel China Growth Fund. Following the offer, in June 2015, the company’s board had formed a special committee, to respond to going private proposals. The committee had later appointed Duff & Phelps LLC and Duff & Phelps Securities as financial advisors for such proposals. However, the special committee has not yet responded to the proposal and the management is still unsure about its final decision on the matter.

KongZhong Corporation (ADR) (NASDAQ:KZ) began trading at a share price of $4.82 and had dropped to $4.76, by 10:25 am EDT, during the July 15 trading session.