Earnings: Glu Mobile Sees Record Revenue In Q2; Losses Increase From Charges


image Glu Mobile (NSDQ: GLUU) reported its second-quarter earnings today, saying that it hit a record-high for revenue of $23.7 million, a 45 percent increase from the year-ago period when it recorded $16.4 million in revenue. However, its net loss widened due to charges mostly associated with its acquisitions of MIG and Superscape. In Q2, it lost $6.6 million, or 23 cents a share, compared to the year-ago period when it lost $898,000, or 3 cents a share. The loss of 23 cents a share was close to the 22 cent loss analysts were expecting. Excluding some items, it reported non-GAAP income of $278,000, or 1 cent a share, a decrease over last year’s non-GAAP net income of $730,000 or 2 cents a share, excluded amortization of intangible assets and stock-based compensation charges.

Other highlights:

— Results were driven by sales in parts of Europe, and a better than expected performance in China, but the U.S. market was soft. The second-half will have a strong line-up with new partnerships with Activision (NSDQ: ATVI), Sony (NYSE: SNE) Pictures Television International, Sega and FremantleMedia Enterprises.

— Glu’s top ten titles represented about 32 percent of revenue in Q2, compared to about 43 percent of revenue in Q1. The average revenue per top ten title was $752,000, down 14 percent from the the same period last year. New titles released in the second quarter of 2008 included: Mystery Case Files: Agent X, Speed Racer, Wedding Dash, Super Slam Ping Pong and Get Cookin’.

— Glu also announced that Eric Ludwig, SVP of finance and interim CFO, has been appointed chief financial officer.

— Q3 expectations: Revenue is expected to be between $24 million and $24.7 million; net loss is expected to be between $5.9 million and $6.3 million, or 20 to 21 cents a share.


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