Glu is providing the following preliminary updated guidance for the second half and full year 2012:
- Non-GAAP smartphone revenue for the full year is expected to be between $81.9 million and $83.9 million. This is above company’s previous guidance of $76.5 million to $81.5 million.
- Total non-GAAP revenue for the full year is expected to be between $94.4 million and $96.4 million. This is above the company’s previous guidance of $86.7 million to $91.7 million.
- Adjusted EBITDA profitability for the second half of 2012 with an expected loss in Q3 and a strong Q4.
- Full year Adjusted EBITDA better than break even.
- December 31, 2012 cash balance greater than $21.0 million and no debt.
These second-quarter preliminary results are based on management’s initial analysis of operations for the quarter ended June 30, 2012 and are subject to change based on the completion of the company’s normal quarter-end review process.
Earlier Earnings Call Date – Dial in details have not changed:
Glu now plans to issue its final second quarter 2012 results on Thursday, August 2, 2012 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access this call, dial (888) 634-0559 (domestic), or (817) 385-9380 (international), with conference ID #10555321. A replay of this conference call will be available between 3:10 p.m. PT, August 2, 2012 and 8:59 p.m. PT, August 9, 2012 by calling (855) 859-2056, or (404) 537-3406, with conference ID #10555321. A live webcast of this conference call will also be available on the investor relations portion of the company's website at www.glu.com, and a replay will be archived on the website as well.Use of Non-GAAP Financial Measures To supplement Glu's unaudited condensed consolidated financial data presented in accordance with GAAP, Glu uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Glu's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by Glu include historical and estimated non-GAAP revenues, non-GAAP smartphone revenues, non-GAAP freemium revenues, non-GAAP operating expenses, non-GAAP gross margins, non-GAAP operating income/loss, non-GAAP net loss and non-GAAP basic and diluted net loss per share. These non-GAAP financial measures exclude the following items from Glu's unaudited consolidated statements of operations:
- Change in deferred revenues and royalties;
- Amortization of in-process development contracts;
- Amortization of intangible assets;
- Stock-based compensation expense;
- Restructuring charges;
- Change in fair value of Blammo earnout;
- Transitional costs;
- Release of tax liabilities; and
- Foreign currency exchange gains and losses primarily related to the revaluation of assets and liabilities.