August 4th, 2010 by Arjan Olsder Posted in Companies & M&A | No Comments »
Glu has closed their second quarter with $16 Million in revenues. That is $3.9 million down year-on-year as the company is changing from the traditional J2me business to a smartphone-only model.
GAAP and net loss for the company were $2.5 million and $3.2 million. GAAP loss is similar year-on-year though net loss grew from $1.5 million in 2009. Excluding non-cash royalty impairments of $663,000 and $589,000 in the quarters ended June 30, 2010 and June 30, 2009, respectively, non-GAAP net loss would have been approximately breakeven in the quarter ended June 30, 2010 compared to non-GAAP net income of $1.3 million in the same period last year.
Glu had a positive cashflow for the fifth consecutive quarter, generating $0.6 million from operations. The Company ended the quarter with cash and cash equivalents of $6.2 million while reducing its draw down on its line of credit to $2.8 million. Glu’s cash and cash equivalents balance does not reflect the recently announced private placement, which is expected to close before the end of the third quarter of 2010.
“Upon the completion of our recently announced $13.5 million private placement, we believe that Glu’s current business plan will be fully funded with the resources necessary to scale our smartphone revenues across all platforms worldwide,” stated Niccolo de Masi, Chief Executive Officer of Glu. “Our social, persistent product strategy continues to take shape. We now expect to launch five new persistent titles in the fourth quarter of 2010 and anticipate maintaining this pace in 2011. I am confident our new product strategy will gain traction, especially given the strength we saw in micro transactions and in game advertising during the second quarter of 2010, which increased 127% over the first quarter of 2010. In addition, we are very excited about the recent additions of a Chief Creative Officer, Vice President of E-commerce and Vice President of Marketing to our senior management team and expect them to be instrumental in helping execute our growth strategy going forward.”
“I am very pleased with our ability to achieve our operating expense reduction goals earlier than anticipated and once again generate positive cash flow from operations during this transition period,” stated Eric R. Ludwig, Glu’s Chief Financial Officer. “With our improved balance sheet, we will continue to closely manage our cost structure and endeavor to carefully allocate capital only toward areas that lead to growth. In addition, given our ability to generate positive cash flow from operations during the first half of 2010, we remain confident that we will be cash flow positive from operations for the full year during 2010.”
