Mobile game publisher Glu Mobile says that second fiscal quarter revenues declined to $16 million -- down $3.9 million year-over-year but above analyst estimates. Net loss widened year-over-year to $3.2 million from $1.5 million.
While sales were down for the quarter ended June 30, the publisher of titles like
Build-a-Lot 2: Town Of The Year, Diner Dash: Flo On The Go and
Jump O'Clock cites a 127 percent revenue growth from microtransactions and ads specifically.
The company notes it's just raised $13.5 million in private-placement funds, and says that will sustain its current business plan to earn smartphone revenues on multiple platforms like iOS and Android. "Our social, persistent product strategy continues to take shape," says CEO Niccolo de Masi.
"We now expect to launch five new persistent titles in the fourth quarter of 2010 and anticipate maintaining this pace in 201," De Masi adds. "I am confident our new product strategy will gain traction, especially given the strength we saw in microtransactions and in game advertising during the second quarter of 2010, which increased 127 percent over the first quarter of 2010."
The company also notes it has added a new members to its executive team: a chief creative officer, an e-commerce VP and a marketing VP, hires it expects to be "instrumental" in its growth plans.
The company expects the losses to continue in the near term, however, projecting a $3.7-$4 million loss against revenues of $13.6-$14 million for the current third quarter. CFO Eric Ludwig says the company will need 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," Ludwig adds.
