Posted November 3, 2010 by M.H. WilliamsYesterday, Glu Mobile announced its financial results for the third quarter ended September 30. The company reported revenues of $15.5 million, down from $19.6 million in the third fiscal quarter of 2009. Glu shored up losses, reporting a net loss of $1.6 million for the quarter, better than last year’s net loss of $4.0 million.
"We are confident that our new product strategy will gain traction in the coming quarters, as we continue to make progress in repositioning the business," stated Niccolo de Masi, Chief Executive Officer of Glu. "During the third quarter, we were able to sequentially grow smartphone revenues by 12%, micro-transactions and in-game advertising by 98% as well as monthly active users by 15%. 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."
For the fiscal fourth quarter ending on December 31, 2010, Glu Mobile expects to see revenues between $14.0 million and $14.5 million. Non-GAAP net loss is expected to be between $3.0 million and $3.3 million. This number excludes some factors; most notably $2.3 million in restructuring costs for relocating Glu’s headquarters to San Francisco and planned headcount reductions in Europe, the Middle East and Africa.
"While we continue to carefully manage costs, we expect to increase our investments in marketing to support the launch of our new products during the fourth quarter of 2010. With a significantly strengthened balance sheet, I am confident that Glu is in position to successfully implement its strategy,” said Eric R. Ludwig, Glu's Chief Financial Officer.
The company also forecasted financial earnings for the year ending on December 31, with expected revenue between $62.7 million and $63.2 million. Non-GAAP net loss is expected to be between $5.4 and $5.7 million.
Finally, Glu Mobile announced the addition of a new member to its Board today.
"We are delighted to announce that Ben T. Smith, IV, a pioneer in the freemium mobile gaming space, has joined our Board effective today," stated Bill Miller, Chairman of Glu. "Ben was one of the earliest investors in Tapulous and provided leadership to its Board through its sale to the Walt Disney Company earlier this year. He is also an investor and Board member in a number of other social platforms including having co-founded MerchantCircle and Spoke Software. We look forward to benefiting from his insights and support."
