August 4th, 2009 by Arjan Olsder Posted in Companies & M&A | No Comments »
Glu has reported it's second quarter financials for 2009. It's been a historic quarter for Glu as CEO Greg Ballard has announced that he wants to leave the company.
Glu has turned over $19.9 million in revenues. Year-on-year revenues went down as the company did $23.7 in Q2 2008. GAAP loss from operations and net loss were $(2.5) million and $(1.5) million, respectively, compared to GAAP loss from operations and net loss of $(6.3) million and $(6.6) million, respectively, in the second quarter of 2008. GAAP loss per basic share was $(0.05) for the quarter ended June 30, 2009, compared with a GAAP loss per basic share of $(0.23) in the same period last year. GAAP net loss for the second quarter of 2009 included $589,000 of royalty impairments and a $513,000 restructuring charge.
Though revenues went down, there is good news from the company as it got cash flow positive one quarter earlier as expected. The company generated $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. 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.
“Our ability to achieve positive cash flow from operations during the second quarter highlights the company’s ability to control expenses while continuing to invest in the business,” said Eric R. Ludwig, Glu’s chief financial officer. “We remain committed to generating positive cash flow from operations in each of the third and fourth quarters of 2009 and being cash flow positive from operations for the full fiscal year.”
For Q3, the company expects the following;
GAAP revenue between $18.75 and $19 Million
GAAP net loss between $3.6 and $3.8 Million
non-GAAP operating loss between $0.1 and $0.3 Million
non-GAAP net loss between $0.8 and $1 Million
Income tax of $0.4 Million
