Glu Mobile (NSDQ: GLUU) reported today that Q3 revenues fell again in the third quarter, and will likely continue to slide in the fourth quarter as it prepares to launch at least five new game titles by year end.
The new titles are expected to reposition the company, which has been stuck relying on building and releasing hit titles, to leverage social networks and micropayments. However, without evidence that relief is in sight, investors punished Glu in after-hours trading, by pushing its stock down by 11 cents, or 6.4 percent, to trade at $1.60 a share.
The company lost $1.6 million on revenues of $15.5 million in the third quarter. In the same period a year ago, the company lost $4 million on revenues of $19.6 million. In the fourth quarter, it expects revenues to fall between $14 million and $14.5 million, and for its net loss to widen to $7 million to $7.4 million.
In a release, Niccolo de Masi, Glu’s CEO, said he’s confident in the company’s ability to reposition the business, and has been working on the upcoming model by focusing on microtransactions within games and in-game advertising. He said on a sequential basis, smartphone revenues are up 12 percent; micro-transactions and in-game advertising are up 98 percent, and monthly active users are up by 15 percent. “With our goal of launching five to six new social, persistent titles every quarter beginning in the fourth quarter of 2010, I am cautiously optimistic that our smartphone and tablet revenue growth will accelerate in 2011.”
Release and webcast can be found on the investor site here.