February 12th, 2008 by Arjan Olsder Posted in Companies & M&A | No Comments »
Glu has opened up the books on the last quarter of 2007, which show a decrease in losses and an increase in revenues.
The consolidated revenue was reported at $18.1 million, which is an improvement on Q4 06 when the company did $14.3 million. The GAAP net loss in the fourth quarter of 2007 was $(861,000), or $(0.03) per basic share, which includes a tax benefit of $1.5 million or $0.05 per basic share, compared to a GAAP net loss of $(2.3) million, or $(0.44) per basic share in the fourth quarter of 2006.
Fourth quarter 2007 non-GAAP net income was $1.7 million, or $0.06 per diluted share which includes the $1.5 million tax benefit, and excludes amortization of intangible assets of $659,000, stock-based compensation charges of $1.0 million, an impairment of investments in auction rate securities of $806,000 and a $59,000 charge related to acquired in process research and development for the acquisition of Beijing Zhangzhong MIG Information Technology Co. Ltd. (MIG). This compares to a non-GAAP net loss of $(882,000), or $(0.17) per basic share in the fourth quarter of 2006 which excludes amortization of intangible assets of $693,000, stock-based compensation charges of $774,000 and $38,000 related to the change in the fair value of preferred stock warrants.
“We closed a solid 2007 with a strong fourth quarter,” said Greg Ballard, Glu’s chief executive officer. “Over the past 12 months, we significantly raised our market position by securing world-class, long-term licenses, expanding geographically and consolidating market share. Our title line-up for 2008 provides a solid foundation for our success in the coming year. In addition, we are focused on increasing our global opportunities with the addition of MIG and the proposed acquisition of Superscape.”
Revenue for the full year ended December 31, 2007 was $66.9 million, compared to revenue for the full year ended December 31, 2006 of $46.2 million. The GAAP net loss for the full year 2007 was $(3.3) million, or $(0.14) per basic share, which includes a tax benefit of $1.5 million or, $0.05 per basic share, compared to a GAAP net loss of $(12.3) million, or $(2.48) per basic share for the full year 2006. In addition, the GAAP net loss attributable to common stockholders for the full year 2007 was $(6.4) million, or $(0.28) per basic share after inclusion of the $3.1 million non-cash, non-recurring dividend for warrants issued to pre-existing preferred stockholders of Glu.
Full year 2007 non-GAAP net income was $2.8 million, or $0.10 per diluted share which includes the $1.5 million tax benefit, and excludes amortization of intangible assets of $2.4 million, stock-based compensation charges of $3.8 million, gain on sale of assets of $1.0 million, a $59,000 charge related to acquired in process research and development for the acquisition of MIG, an impairment of investments in auction rate securities of $806,000, a $10,000 charge related to the change in fair value of preferred stock warrants and $3.1 million relating to the non-cash, non-recurring deemed dividend, as compared to a non-GAAP net loss for the full year 2006 of $(5.7) million, or $(1.14) per basic share which excludes acquired in process research and development of $1.5 million for the iFone acquisition, amortization of intangible assets of $2.4 million, stock-based compensation charges of $1.7 million and charges related to the change in fair value of preferred stock warrants of $1.0 million.
A reconciliation of the non-GAAP net income and EPS to net loss and EPS on a GAAP basis is provided in the GAAP to non-GAAP reconciliations following the Consolidated Balance Sheets.
Glu’s top ten titles represented approximately 52 percent of revenue in the fourth quarter of 2007, which was down slightly from 53 percent of revenue in the fourth quarter a year ago. The average revenue per top ten title was $950,000, an increase of 26 percent compared to $751,000 in the fourth quarter of last year. New titles released in the fourth quarter of 2007 included Pro Evolution Soccer 2008 and Call of Duty
