Earnings: Glu Mobile Exceeds Own Expectations; Achieves Postive Cash Flow

Glu Mobile

Glu Mobile (NSDQ: GLUU), a struggling mobile games company, achieved positive cash flow from operations in Q2, which was one quarter sooner than it expected, and beat all of its revenue and earnings projections for the period. However, the company again expects losses to widen and revenues to fall in the third quarter due to typically slower summers.

Glu generated $1.1 million in cash from operations and said it remains committed to generating cash for the two remaining quarters of the year. The company said results were boosted by the strength of its carrier business. For example, Transformers hit No. 1 on China Mobile; Glu had eight of the top 25 games on Verizon’s network, and Family Guy and The Price is Right unseated classics, such as Tetris and Bejeweled, on Sprint’s network. The company’s non-carrier business, including iPhone games, only contributed 5 percent of all revenues. Last month, Glu Mobile said President and CEO Greg Ballard was resigning, but would remain with the company until a replacement is found.

2Q 2009 2Q 2008 Glu’s 2Q Expectations
EPS $(0.05) $(0.23) $(0.12)-$(0.13)
Net Income $(1.5M) $(6.6M) $(3.5)-$(3.9)M
Revenue $19.9M $23.7M $18.75-$19.25M

Release. Webcast (1:30 PT).

Third Quarter Expectations:

— GAAP revenue is expected to be between $18.75 million and $19.0 million.
— GAAP net loss is expected to be between $(3.6) million and $(3.8) million, or a net loss of between $(0.12) and $(0.13) per basic share.

Full Year Expectations:

— GAAP revenue is expected to be approximately $79.1 to $80.0 million.
— GAAP net loss is expected to be between $(11.8) million and $(13.8) million, or a loss of between $(0.40) to $(0.46) per basic share.

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