Glu Mobile (NSDQ: GLUU) reported first-quarter revenues of $20.8 million today, easily beating its own forecasts of up to $18.5 million in revenues. The company’s $5.8 million net loss also was better than its own estimates, which predicted that the company would lose between $6.7 million and $7.1 million.
The San Mateo-based mobile game developer said results were better than expected because its traditional carrier channels preformed better than expected. However, sales on emerging platforms, like the iPhone and BlackBerry, remain low as the company ramps up its focus on smartphones. Release. Earnings call (1:30 PST).
— Traditional carrier business: Today, most of Glu’s revenues continue to occur on the carrier’s deck, where subscribers buy games directly from operator. In the fourth quarter 2008, those revenues fell, which they thought would be a continuing trend. Glu’s CEO Greg Ballard said during the conference call that he believes the worst of declines for the carrier-based business is behind them.
More on app stores and smartphone initiatives after the jump…
— Smartphone initiatives: Glu’s CFO Eric Ludwig said the company’s carrier-based business achieved 11 percent operating margins, which they were able to use to fund the company’s new focus on the iPhone, the BlackBerry App World, and upcoming stores, like Microsoft’s Marketplace and Nokia’s Ovi Store. It is now offering eight games for the iPhone and 29 games for the Blackberry app store.
— App store first impressions: Ballard said as of today, the iPhone comprises only a small amount of revenue. The company marked down prices in the App Store to help establish the Glu’s brand. “We are not seeing significant revenue on this platform, but our next releases should driver higher revenue.” As for the BlackBerry App World, Ballard said since the app store is still not bundled and shipped with phones, “it
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