Finally, is this the turning point? Glu Mobile sees Q2 2011 revenues rise 11% to $17.7 million

Smartphone freemium revenue was $7.7 million

Finally, is this the turning point? Glu Mobile sees Q2 2011 revenues rise 11% to $17.7 million
Publisher Glu Mobile (NASDAQ:GLUU) has announced its Q2 figures for the three months ending 30 June 2011.

Total revenue was $17.7 million, up 11 percent year-on-year.

This is the first time in over three years the company has seen its quarterly revenues rise year-on-year.

However, the company still posted a loss of $1.6 million, compared to a loss of $2.5 million a year ago.

Light ... Tunnel

These figures are listed as part of the Generally Accepted Accounting Principles (GAAP), which publicly owned US companies have to use.

Stripping out changes in terms of exceptional items such as deferred revenue and one-off costs, non-GAAP revenue was $17.9 million, up 13 percent y-o-y, and Glu posted non-GAAP income of $29,000 compared to an equivalent loss of $417,000 a year ago.

Still, perhaps more important, looking at cash flow, Glu's current investments resulted in a negative flow of $500,000 compared to positive flow of $600,000 for Q2 2010.

Up and at 'em

Drilling down into operational detail, Glu pointed out it had launched various freemium games during the three months; Eternity Warriors, Circus City and Space City on iOS and Bug Village, Big Time Gangsta and Contract Killer on Android.

It also added a real-time multiplayer mode on iOS to cornerstone title Gun Bros.

The company has now hit over 100 million total cumulative installs across smartphone platforms and social networking websites, including 31.8 million installs during Q2.

Glu said its revenues from its smartphone activities were $9.4 million - the first time this sector has out-grossed its legacy feature phone business. Smartphone games made up 53 percent of Glu's GAAP total, up 58 percent compared to FY11 Q1.

Non-GAAP smartphone revenues were $9.7 million, up 43 percent quarter-on-quarter, and consisting of 54 percent of total non-GAAP revenues.

Good cash gone bad

Non-GAAP freemium revenue - micro-transactions, in-game advertising and offers - were up 64 percent quarter-on-quarter to $7.7 million.

Significant in this respect were 'offers'. At its analysts meeting in late May, Glu said during two months of the quarter it had generated $2.9 million from Tapjoy's incentivised downloads on iOS: a business model Apple has banned and Glu has since stopped using.

"Our strong second quarter results highlight the continued successful execution of our social mobile gaming strategy," stated Eric R. Ludwig, Glu's Chief Financial Officer.

"With the increased scale from the recently announced acquisitions, we are well positioned to accelerate growth in 2012, while at the same time, maintaining our strong balance sheet."

Glu ended the quarter with $26.4 million in cash and cash equivalents, thanks to its two re-financing rounds worth $29.5 million. Six months ago, before one of those rounds, it had $12.9 million in cash and equivalents.

The company also announced it had doubled its internal development headcount with the acquisition of start up Blammo Games and established developer Griptonite Games.. 

[source: Glu Mobile]
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