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Glu revenue drops 17% in first quarter

By Kath Brice

Wed 05 May 2010 9:41am GMT / 5:41am EDT / 2:41am PDT

Net loss of $3.7m attributed to fewer but bigger smartphone releases

Glu Mobile

Glu Mobile (formerly Sorrent, Inc. and Macrospace Ltd.)
is a leading developer and global publisher...

Glu Mobile revenues dropped over the first quarter of 2010 to $17.3 million, down from $20.8 million generated over the same quarter in 2009.

Operational and net losses were reduced however to $2.7 million and $3.7 million respectively, compared to $2.9 million and $5.8 million in 2009.

GAAP loss per basic common share was $0.12 for the quarter compared with a loss of $0.19 in the same period last year. GAAP net loss for the first quarter of 2010 included $594,000 in restructuring charges.

Positive cash flows were generated from operations for the fourth consecutive quarter, making $1.6 million in cash from operations during the first quarter of 2010.

"We continue to make progress on expanding our smartphone studio capacity as well as focusing on our new social, persistent product strategy," said Niccolo de Masi, chief executive officer of Glu.

"We anticipate the shift to fewer and larger titles to limit smartphone revenue growth over the next two quarters and expect increasing momentum from the fourth quarter of 2010 as our transition begins to gain traction.

"In the fourth quarter of 2010, we have several new franchises slated for launch. In addition, we are working to build out our management team depth and expertise to optimise the execution of our transition.

"I am confident in our ability to build on Glu's core strengths as we shift our focus in our efforts to fully capitalise on the growth opportunities in the social smartphone gaming market."

The company's forecast for the next quarter ending June 30 anticipated that revenue would fall to between 13.6 million and $14 million and net loss would reach between $4.4 million and $4.7 million.

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