Glu may consider whether significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.
Glu believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding Glu's performance by excluding certain items that may not be indicative of Glu's core business, operating results or future outlook. Glu's management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing Glu's operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of Glu's performance to prior periods.
2008 Equity Inducement Plan
In connection with the GameSpy acquisition, Glu issued stock options to purchase a total of 115,500 shares of its common stock to 13 non-executive employees of GameSpy from Glu’s 2008 Equity Inducement Plan. The stock options have a six-year term, vest on a four-year schedule (25% of the underlying shares vest on the first anniversary of the employee's hire date and 2.083% of the underlying shares vest monthly thereafter), and have an exercise price equal to the closing price of Glu's common stock on the NASDAQ Global Market on August 2, 2012.
Glu’s Board of Directors adopted the 2008 Equity Inducement Plan to facilitate the granting of stock options as an inducement to new employees to join Glu. In accordance with NASDAQ Marketplace Rule 5635(c)(iv), these awards were made under a stock incentive plan that has not received stockholder approval. NASDAQ rules require a public announcement of equity awards made under this type of plan.
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements, including those regarding our "Business Outlook as of August 2, 2012" ("Third Quarter Expectations – Quarter Ending September 30, 2012" and “2012 Expectations – Full Year Ending December 31, 2012”); and the statements that GameSpy’s battle-tested team will enable Glu’s product roadmap to include robust and highly scalable multiplayer and social functionality; we expect that GameSpy will be earnings neutral in the near term; the acquisition of GameSpy is expected to help us drive higher monetization and lifetime value in Glu’s titles from 2013 on; and the combination of our better than expected second quarter performance and increased expectation for the year will result in our ability to end the year with more than $21.0 million in cash. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Investors should consider important risk factors, which include: the risks identified under "Business Outlook as of August 2, 2012"; the risk that Glu will be unable to successfully integrate GameSpy, Griptonite and Blammo and its employees and achieve expected synergies, the risk that Glu will have difficulty retaining key employees of GameSpy, Griptonite and Blammo; the risk that consumer demand for smartphones, tablets and next-generation platforms does not grow as significantly as we anticipate or that we will be unable to capitalize on any such growth; the risk that we do not realize a sufficient return on our investment with respect to our efforts to develop freemium games for smartphones, tablets and next-generation platforms, the risk that we will not be able to maintain our good relationships with Apple and Google, the risk that our development expenses for games for smartphones are greater than we anticipate; the risk that our recently and newly launched games are less popular than anticipated; the risk that our newly released games will be of a quality less than desired by reviewers and consumers; the risk that the mobile games market, particularly with respect to freemium gaming, is smaller than anticipated; and other risks detailed under the caption "Risk Factors" in our Form 10-Q filed with the Securities and Exchange Commission on May 10, 2012 and our other SEC filings. You can locate these reports through our website at
. We are under no obligation, and expressly disclaim any obligation, to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
About Glu Mobile
Glu Mobile (NASDAQ:GLUU) is a leading global developer and publisher of freemium games for smartphone and tablet devices. Glu is focused on creating compelling original IP games such as
BLOOD & GLORY, DEER HUNTER, FRONTLINE COMMANDO, GUN BROS, and SAMURAI VS. ZOMBIES DEFENSE
on a wide range of platforms including iOS, Android™, Windows Phone, Google Chrome and MAC OS. Glu’s unique technology platform enables its titles to be accessible to a broad audience of consumers globally. Founded in 2001, Glu is headquartered in San Francisco with major offices outside Seattle, and overseas in Brazil, Canada, China and Russia. Consumers can find high-quality entertainment created exclusively for their mobile devices wherever they see the ‘g’ character logo or at
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BIG TIME GANGSTA, BLOOD & GLORY, BUG VILLAGE, DEER HUNTER, FRONTLINE COMMANDO, GEARS & GUTS, GUN BROS, LIL’ KINGDOM, MUTANT ROADKILL, SAMURAI VS ZOMBIES DEFENSE, STARDOM: THE A LIST, GLU, GLU MOBILE and the 'g' character logo are trademarks of Glu Mobile Inc.