This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Glu Reports Second Quarter 2013 Financial Results; Changes To Gross Accounting For Revenues And Cost Of Revenues

Glu Mobile Inc. (NASDAQ:GLUU), a leading global developer and publisher of free-to-play games for smartphone and tablet devices, today announced financial results for its second quarter ended June 30, 2013. The company also announced that as a result of discussions between management and its independent registered public accounting firm, Glu has concluded that smartphone revenues and cost of revenues for sales to end customers through digital storefronts need to be restated to a gross accounting basis, rather than the net basis previously applied.

The company is revising its financial statements for the year ended December 31, 2010 and restating its financial statements for the years ended December 31, 2011 to 2012 and the first quarter of 2013. The revision and restatements increase GAAP and non-GAAP revenues with a corresponding identical increase to GAAP and non-GAAP cost of revenues. As a result, gross profit, operating income/(loss), net income/(loss), per share amounts, Adjusted EBITDA and cash flows during the affected periods were unchanged. Below is a summary of the impact of the revision and restatements on a GAAP and non-GAAP basis:

 
(in thousands, except percentage and per share data) (unaudited)
  GAAP Revised   GAAP Restated   GAAP Restated   GAAP Restated   Non-GAAP Revised   Non-GAAP Restated   Non-GAAP Restated   Non-GAAP Restated
  2010       2011       2012     Q113   2010       2011       2012     Q113
           
As Reported:
Featurephone $ 54,475 $ 31,091 $ 13,135 $ 1,856 $ 54,052 $ 31,007 $ 13,141 $ 1,885
Smartphone   9,870       35,094       74,358       17,275     10,221       41,904       74,615       17,138  
Total Revenues 64,345 66,185 87,493 19,131 64,273 72,911 87,756 19,023
Cost of Revenues 21,532 18,367 12,723 3,062 17,142 12,965 8,964 1,907
Gross Profit 42,813 47,818 74,770 16,069 47,131 59,946 78,792 17,116
Gross Margin 67 % 72 % 85 % 84 % 73 % 82 % 90 % 90 %
 
Net Loss $ (13,423 ) $ (21,101 ) $ (20,459 ) $ (5,497 ) $ (3,004 ) $ (4,036 ) $ (5,057 ) $ (2,299 )
Net Loss Per Share (0.38 ) (0.37 ) (0.32 ) (0.08 ) (0.08 ) (0.07 ) (0.08 ) (0.03 )
Adjusted EBITDA - - - - 255 (1,534 ) (2,274 ) (1,436 )
 
Adjustments:
Featurephone $ - $ - $ - $ - $ - $ - $ - $ -
Smartphone   2,459       7,840       20,690       5,474     2,610       9,745       21,166       5,693  
Total Revenues 2,459 7,840 20,690 5,474 2,610 9,745 21,166 5,693
Cost of Revenues 2,459 7,840 20,690 5,474 2,610 9,745 21,166 5,693
Gross Profit - - - - - - - -
 
Revised/Restated:
Featurephone $ 54,475 $ 31,091 $ 13,135 $ 1,856 $ 54,052 $ 31,007 $ 13,141 $ 1,885
Smartphone   12,329       42,934       95,048       22,749     12,831       51,649       95,781       22,831  
Total Revenues 66,804 74,025 108,183 24,605 66,883 82,656 108,922 24,716
Cost of Revenues 23,991 26,207 33,413 8,536 19,752 22,710 30,130 7,600
Gross Profit 42,813 47,818 74,770 16,069 47,131 59,946 78,792 17,116
Gross Margin 64 % 65 % 69 % 65 % 70 % 73 % 72 % 69 %
 
Net Loss $ (13,423 ) $ (21,101 ) $ (20,459 ) $ (5,497 ) $ (3,004 ) $ (4,036 ) $ (5,057 ) $ (2,299 )
Net Loss Per Share (0.38 ) (0.37 ) (0.32 ) (0.08 ) (0.08 ) (0.07 ) (0.08 ) (0.03 )
Adjusted EBITDA     -       -       -       -       255       (1,534 )     (2,274 )     (1,436 )




Stock quotes in this article: GLUU 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs