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Last Update: 10-Oct-12 09:14 ET
Glu Mobile shares fall 8% following disappointing guidance
Glu Mobile (GLUU $2.97 -0.32) reaffirmed non-GAAP revenues for Q3 2012 to be in the range of $20.25-21.25 million, which includes $17.5 million to $18.5 million in non-GAAP smartphone revenues. We also stated that we expected an Adjusted EBITDA loss of between $3.1 mln and $4.0 million for Q3 2012. "We currently expect that, on our regularly scheduled earnings call on November 1, 2012, we will report Q3 2012 revenue results that are consistent with that prior guidance. We also expect Adjusted EBITDA results to be slightly favorable to the $3.1 mln high end of that guidance." When the company gave revenue guidance for Q3 of 2012, only 1 of the 9 titles expected to be launched during the quarter was globally live. The co then commented that it used its "historical batting averages" of success and failures to calculate its revenue guidance on those back-end loaded titles. The co noted that if those 8 then-yet-to-be-launched titles performed better than its historical averages, then its guidance could prove conservative. "As we have stated in the past, the revenue contribution across quarters of a title depends on its early peak performance. We did not have any breakout title launches in Q3 and are still evaluating our expectations of their lifetime performance. In the next several weeks, we expect to launch Contract Killer 2 and Death Dome, which titles will be important to Q4 revenue performance. Consequently, we have yet to form an updated view on Q4 2012 results. However, we will manage the business to be Adjusted EBITDA break-even or better for Q4.
