Glu continues turnaround with Q1 FY12 revenues up 31% to $21.5 million

Expects to hit breakeven during Q4

Glu continues turnaround with Q1 FY12 revenues up 31% to $21.5 million
Glu Mobile (NASDAQ:GLUU) has announced its figures for Q1 FY12, the three months ending 31 March.

Revenue was $21.5 million, up 31 percent year-on-year.

Of this total, 81 percent came from Glu's mainly free-to-play smartphone business; worth $17.4 million.

However, thanks to increasing staffing when it purchased the Blammo and Griptonite studios, and the effect of changes in its share price on the stock component of the Blammo earn out, the company continued to make a loss.

In Q1 FY12, this was $6 million, compared to a loss of $2.6 million in Q1 FY11.

On the up

Nevertheless, the increase in revenues pleased CEO Niccolo de Masi.

"The first quarter was a strong start to the year for Glu," he stated.

"We are very pleased with our sixth consecutive quarter of freemium smartphone revenue growth. This quarter's continued momentum from both existing and new title launches drove total GAAP smartphone revenues up 192 percent year-over-year.

"We believe that our investments to expand studio capacity, as well as our recent acquisition of the Deer Hunter brand assets, position Glu for significant growth in the second half of 2012."

Glu agree to pay Atari $5 million to buy the Deer Hunter in early April, although the cash won't transfer until the next quarter.

In full flow

It now predicts it will hit cash flow breakeven in Q4 2012, a point when it will also be profitable in terms of adjusted EBITDA.

To ensure that happens, Glu continues to release a lot of games; 23 titles are planned during 2012.

It said new releases Samurai vs. Zombies Defense and Small Street had performed strongly on iOS and Android, as had the Kindle Fire versions of Blood & Glory and Frontline Commando.

Glu ended the quarter with cash and equivalents of $28.9 million, down from $32.2 million at the end of 2011.

It expects to end 2012 with over $18.0 million of cash.

[source: Glu Mobile]
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