Tuesday, May 4, 2010

Glu Mobile Still Struggling With Smartphone Traction & Cash

Glu Mobile (GLUU) reported earnings after the close of markets today. Here are some highlights from their conference call:
  • Revenue was above guidance, but still down 17% compared with the Q1 2009
  • Glu Mobile is still only deriving 9% of its revenues from smartphones, which looks pretty weak compared with Gameloft, which generates 21% of its revenues from iPhone OS alone
  • They are putting a big stake in 4 new original "mass-market persistent" game franchises that will launch before the end of 2010
  • Forecasting Q2 2010 between $13.6mil & $14mil
  • Revenue by region: 52% NA, 27% EMEA, 21% rest of world
  • Avg revenue per Top 10 title in quarter was $791k
  • Largest title accounted for 9% of revenue
  • Verizon accounted for 18% of revenues
  • 80% of revenues came from licensed titles
  • Even though the company realized a positive cash flow of $1.6mil in Q1, ongoing payment obligations related to their $30.5 acquisition of MIG for in 2007 continue to drain their resources... currently they've got about $7.5mil in the bank
  • CEO Niccolo de Masi & CFO Eric Ludwig plan to announce a solution to ongoing liquidity concerns by the Q2 2010 earnings call
  • There was only 1 question from an analyst at the end of the call (after a long awkward silence)... kinda sad really

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