Publisher Glu Mobile (NASDAQ:GLUU) has announced its Q2 2010 financials for the three months ending June 30.

Revenue was $16 million, down 20 percent year-on-year.

Net losses for the quarter were $3.2 million, compared to a loss of $1.5 million in Q2 2009.

This included a loss of $429,000 due to foreign exchange flucuations as the Euro fell over 9 pecent against the dollar. It compared to a $759,000 foreign exchange gain last year.

Non-GAAP net loss, which excludes foreign currency exchange gains and losses primarily related to the revaluation of assets and liabilities, was $0.7 million for the quarter compared to net income of $0.7 million in the same period last year.

Dash for cash

However, Glu did rack up positive cash flow from operations for the fifth consecutive quarter, generating $0.6 million from operations.

Yet it ended the quarter with lower cash and cash equivalents of $6.2 million, compared to $10.5 million three months ago. It also reduced the draw down on its line of credit to $2.8 million.

Glu expects to raise around $13.5 million in a private stock placement at the end of August to refinance its future operations.

Steady as she blows

"I am very pleased with our ability to achieve our operating expense reduction goals earlier than anticipated and once again generate positive cash flow from operations during this transition period," stated Eric R. Ludwig, Glu's Chief Financial Officer.

"With our improved balance sheet, we will continue to closely manage our cost structure and endeavor to carefully allocate capital only toward areas that lead to growth.

"In addition, given our ability to generate positive cash flow from operations during the first half of 2010, we remain confident that we will be cash flow positive from operations for the full year during 2010."

However Glu predicts Q3 sales will continue to slide from $19.6 million in Q3 2009 to between $13.6 million and $14.0 million in 2010. It will also continue to be loss making during the quarter.

[source: Glu Mobile]