Korean mobile games publisher Com2uS (KOSDAQ: 078340) has announced its unaudited financial results for Q1 2011, for the three months ending March 31.

Revenue was 7.3 billion Won ($6.8 million), up 6 percent compared to Q1 2010.

Operating income 460 million Won ($0.4 million), while net income was 600 million Won ($0.6 million), down 53 percent year-on-year.

Testing times

The company has been experiencing a difficult transition as its core feature phone games business in Korea switches to smartphone. As part of this, it's also looking to rapidly expand its international business, although this remains a relatively small proportion of its revenue total.

Games released during the period include endless runner Zombie Runaway and RPG Third Blade, but, amongst others, music game Touch the Beat was delayed.

Com2uS also said profits had been hit as it invested hiring additional developers and setting up new teams.

During the three months, net cash flow was a negative $0.7 million, leaving the company with cash and cash equivalents of $3 million.

[source: Business Week]