Qihoo 360 Plans Cloud-Computing Services in China

The Chinese company is developing data-storage services that could be accessed via the Internet, Zhou said in an interview in Beijing yesterday, without disclosing when they will be introduced. Qihoo 360 has started selling technical support and repair services for computer users, he said.

Qihoo 360 will use proceeds from its $202 million initial public offering in the U.S. in March to acquire companies to boost its innovation and expand its product line, according to Zhou, a former head of Yahoo! Inc.’s China operations. The Beijing-based company this week reported its first-quarter revenue more than doubled afterwards it increased online advertising sales, and started offering Web games.

Internet company

"We see ourselves as an Internet company, not merely a security software company," Zhou said. Qihoo 360, with more than 300 million users who download the company’s free security software online, will boost revenue by marketing new Internet services just as group buying to subscribers and increase advertising sales, he said.

First-quarter revenue rose to $22.9 million, compared with $9.7 million a year previously, Qihoo 360 reported May 24. The company had a loss of $21.4 million, afterwards booking $26.7 million of share-based compensation expenses afterwards its IPO.