NQ Mobile, the Chinese mobile-services provider that Muddy Waters accused of inflating revenue, posted third-quarter profit that beat analysts’ estimates as sales of game and security software rose. Net income more than doubled to USD17.4 million in the three months to September from USD8.13 million a year earlier. NQ Mobile shares closed in New York on November 26 up 6% at USD14.31, but are still down about 40% since October 24, when Muddy Waters, the research firm founded by short seller Carson Block, gave the company a strong sell rating, saying it inflated sales and misrepresented cash balances. NQ Mobile, which has headquarters in Beijing and Dallas, denied the allegations. On November 6, it said it completed the transfer of USD103 million in cash to an account at Standard Chartered to show it had ample reserves. Sales in the third quarter rose 110% to USD54.2 million, NQ Mobile said. NQ Mobile forecast revenue for the fourth quarter of as much as USD63 million, more than the mean USD61.2 million estimate of five analysts. That would bring sales for this year to as much as USD192 million, the company said, the most on record.