November 5th, 2007 by Arjan Olsder Posted in Companies & M&A | No Comments »
Glu has reported good third quarter results as they gathered $ 16.7 million in revenue in the quarter which is an increase of about 35% year-on-year.
Third quarter 2007 non-GAAP net income was $957,000, or $0.03 per diluted share, which excludes amortization of intangible assets of $550,000 and stock-based compensation charges of $1.2 million, compared to a non-GAAP net loss of $(1.7) million, or $(0.33) per basic share in the third quarter of 2006 which excludes amortization of intangible assets of $721,000, stock-based compensation charges of $443,000 and $998,000 related to the change in the fair value of preferred stock warrants.
Glu’s top 10 titles represented 59% of the revenue during Q3, which is 1% more year-on-year. The average revenue per top ten title was $ 980,000 which is a 38% increase year-on-year.
"During the quarter we experienced strong growth in North and South America and saw renewed growth in the Asia Pacific market, however, this was tempered with slower growth in certain geographies in Europe," said Greg Ballard, Glu’s chief executive officer. "We had one of the strongest quarters in our history in terms of game rankings and continued to expand our licensing agreements to build the foundation for future growth. We have recently extended our relationships with SEGA and PopCap Games, announced Diner Dash(R) 2, and signed a new partnership with Big Fish Games. Combined with our recently announced lineup of original IP titles, we believe this represents our best publishing lineup."
Revenue for the nine month period ended September 30, 2007 was $48.7 million, or 53 percent more than the comparable 2006 period. Including the pro forma effects for iFone which was acquired on March 29, 2006 as if it had been acquired at the beginning of fiscal 2006, the Company’s revenue grew 42 percent for the nine month period ended September 30, 2007 as compared to the same period in 2006. The GAAP net loss for the nine months ended September 30, 2007 was $(2.4) million, or $(0.11) per basic share as compared to the GAAP net loss of $(10.0) million, or $(2.07) per basic share, for the nine months ended September 30, 2006. In addition, our GAAP net loss attributable to common stockholders for the nine months ended September 30, 2007 was $(5.6) million, or $(0.26) per basic share after inclusion of the $3.1 million non-cash, non-recurring dividend for warrants issued to pre-existing preferred stockholders of the Company.
The non-GAAP net income for the nine months ended September 30, 2007 was $1.1 million, or $0.04 per diluted share which excludes amortization of intangible assets of $1.8 million, stock-based compensation charges of $2.8 million, gain on sale of assets of $1.0 million and $3.1 million relating to the non-cash deemed dividend, as compared to the non-GAAP net loss for the nine months ended September 30, 2006 of $(4.8) million, or $(0.99) per basic share which excludes in process research and development of $1.5 million, amortization of intangible assets of $1.7 million, stock-based compensation charges of $965,000 and $1.1 million related to the change in the fair value of preferred stock warrants.
Rocky Pimentel, chief financial officer, said, "We are well positioned to continue the pursuit of our growth strategy, despite recent market dynamics in Europe. Our core competencies of world class distribution relationships, broad product catalog and a powerful technology platform as well as our solid financial foundation enable us to increase market share worldwide."
