US publisher Glu Mobile (NASDAQ:GLUU) has announced its Q1 2010 financials for the three months ending 31 March.

Revenues were down 17 percent year-on-year to $17.3 million.

Net losses were $3.7 million, compared to $5.8 million in Q1 2009. This included $594,000 in restructuring charges.

Excluding restructuring charges, foreign currency exchanges, compensation expenses, amortization of intangibles, and money still owing due to its purchase of Chinese publisher MIG (which are included in the standard Generally Accepted Accounting Principles), net losses were $0.9 million.

The good news however for Glu and its shareholders was the company achieved positive cash flows for the fourth consecutive quarter, generating $1.6 million.

The company finished the quarter with a cash and cash equivalents balance of $10.5 million, and has $3.1 million outstanding on its line of credit, down $1.6 million compared to its Q4 2009 total.

Fewer, larger strategy

"We continue to make progress on expanding our smartphone studio capacity as well as focusing on our new social, persistent product strategy," said Niccolo de Masi, commenting on his first set of figures since taking over as Glu CEO.

"We anticipate the shift to fewer and larger titles to limit smartphone revenue growth over the next two quarters and expect increasing momentum from the fourth quarter of 2010 as our transition begins to gain traction.

"In the fourth quarter of 2010, we have several new franchises slated for launch. In addition, we are working to build out our management team depth and expertise to optimise the execution of our transition.

"I am confident in our ability to build on Glu's core strengths as we shift our focus in our efforts to fully capitalise on the growth opportunities in the social smartphone gaming market," he concluded.

Tight on cash

In terms of future outlook, things will remain tight however, with Glu predicting revenues of between $13.6 million and $14.0 million, and a loss of between $4.4 million to $4.7 million during the next quarter.

It also still owes $6.2 million on the MIG buy-out, although paid $2.4 million and $729,000 in interest to MIG's former shareholders on 1 May.

"During this transition period, our capital structure and liquidity remain key priorities and we will closely manage our balance sheet and cost structure in an effort to ensure that we have the resources to successfully reposition our business," said Eric R. Ludwig, Glu's CFO.

[source: Glu Mobile]