Glu Mobile 3Q loss narrows, but warns on 4Q
SAN FRANCISCO (AP) — Mobile game maker Glu Mobile Inc. reported a smaller loss than analysts had expected Thursday thanks to the popularity of Frontline Commando, Deer Hunter Reloaded and other games.
But the San Francisco-based company said its results should weaken in the fourth quarter because newly launched games aren't panning out quite as well.
The forecast sent the company's stock down 12 percent in after-hours trading, falling 40 cents to $2.86.
Sales for Glu Mobile Inc. surged 26 percent to $21.3 million in the third quarter over the year before. The company still posted a net loss of $3.6 million, or 6 cents per share. But that's better than the net loss of $6.2 million, or 10 cents per share, it reported in the third quarter of 2011.
Results in the latest quarter included a goodwill impairment charge of $3.6 million and other items. Excluding those, Glu's adjusted net loss for the quarter was 3 cents per share. Analysts had expected the company to report a loss of 6 cents per share and sales of $21.1 million, according to FactSet.
In a statement, Eric Ludwig, Glu's chief financial officer, said the company's fourth-quarter results will likely be hurt by underperforming games launched in the third quarter as well as Apple's prohibition of certain types of advertising.
Glu forecast that it will likely post an adjusted net loss between 6 cents and 8 cents per share in the fourth quarter on revenue of $19.5 million to $20.5 million. The revenue forecast excludes changes in deferred revenue and other items. Analysts expect break-even earnings per share.