Glu Mobile (NASDAQ:GLUU) has announced its figures for Q3 FY12, the three months ending 30 September.
Revenue was $21.3 million, up 12 percent year-on-year, although down 10 percent compared to Q2 2012.
The company made a loss of $4.2 million, an improvement on the $7.3 million it lost during Q3 FY11.
However, Glu used $2.6 million of its cash flow. During Q2 FY12 it was adjusted EBITDA cash flow positive.
Troubling headwinds
"We are satisfied with our 73 percent year-over-year growth in non-GAAP smartphone revenue. User reviews remained strong, with growth in daily active users from July to September," stated CEO Niccolo de Masi.
"Q3 was underpinned by the strength of newly launched Eternity Warriors 2 across iOS and Android and the continued success of catalog titles Frontline Commando and Deer Hunter Reloaded.
"As expected, both consumer adoption of new hardware, and advertising demand, slowed over the summer in anticipation of new device launches. These industry headwinds, along with weaker-than-anticipated monetisation from most new launches during the quarter, resulted in a sequential decline in smartphone revenue from Q2 2012."
Small year
During the three months, Glu launched 11 free-to-play games, generating $16.5 million in micro-transactions, in-game advertising and offers.
However, it said that many of these titles performed more weakly than expected.
CFO Eric R. Ludwig also highlighted some concerns in terms of ongoing revenues generated by offers.
"Our fourth quarter is being impacted by the combination of underperforming titles launched in Q3, Apple's prohibition of incentivised advertising for external HTML 5 sites, along with the reduction in the number of titles launched during the quarter as we further optimise their monetisation," he stated.
With this in mind, Glu dropped its full year predictions to between $86.4 million and $87.4 million (using the non-GAAP accounting methods). This is also because it's pushing the release of five titles into 2013.
This compared to a prediction of $94.4 million and $96.4 million provided in August: a difference of between $8-9 million.
The company expects to end the year with $21.5 million in cash. It currently has $24 million in cash and cash equivalents.
[source: Glu Mobile]
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