Glu Mobile Shrinks its Quarterly Losses

Mobile games developer, Glu Mobile has reported a drop in second-quarter revenues of US$19.9 million compared to US$23.7 million in the second quarter of 2008. Losses improved though to US$1.5 million, compared to US$6.6 million a year ago.

The GAAP net loss for the second quarter of 2009 included $589,000 of royalty impairments and a $513,000 restructuring charge. The company achieved positive cash flow from operations one quarter sooner than its previously announced expectations, generating US$1.1 million in cash from operations during the second quarter of 2009.

"We were pleased with the company's ability to achieve positive cash flow from operations ahead of schedule and exceed our expectations during the second quarter," said Greg Ballard, Chief Executive Officer of Glu. "Our traditional carrier business continues to stabilize, which is allowing the company to invest in new platforms as evidenced by our launch of seven titles for the iPhone during the second quarter."

Ballard concluded, "While the overall revenue contribution from new platforms remains small at this point, we will continue to invest in growth initiatives and believe that Glu remains well positioned to benefit from the growth of the mobile gaming market opportunity from a long-term perspective."

The company ended the quarter with a cash and cash equivalents balance of $12.8 million, and had $4.5 million outstanding on its line of credit. As of July 1, 2009, the company had successfully fulfilled its fiscal 2009 obligations with respect to the promissory notes issued to the former shareholders of MIG.

Looking ahead, the company expects the full-year loss to be in the range of US$11.8 million to US$13.8 million.

Posted to the site on 5th August 2009