NEW YORK (TheStreet) -- Shares of Glu Mobile (GLUU) - Get Report are plunging by 17.23% to $2.21 on heavy trading volume late Wednesday morning, after the San Francisco-based company posted its 2016 first quarter results and provided a downbeat outlook.
After yesterday's market close, the mobile game developer reported non-GAAP revenue of $54 million, below analysts' estimates of $54.5 million.
Glu said it had a loss of 3 cents per share, narrower than the loss of 5 cents per share analysts had projected.
The company is known for its games including celebrities such as Kim Kardashian and Kendall and Kylie Jenner.
"Our first quarter guidance outperformance was primarily due to the strong Kendall and Kylie launch as well as the ongoing success of Kim Kardashian: Hollywood and Cooking Dash," CEO Niccolo de Masi said in a statement.
For the second quarter, Glu forecasts an adjusted loss of 5 cents to 6 cents on revenue of $46 million to $49 million, while analysts are looking for a loss of 4 cents per share on revenue of $59 million.
For 2016, the company expects a loss of 11 cents to 16 cents on revenue of $215 million to $235 million.
Analysts are projecting a loss of 9 cents per share on revenue of $261 million.
Glu also said it was slashing its workforce by about 85. It expects to incur pre-tax charges between approximately $2.25 million and $3 million related to the restructuring, which should be completed by December 31, Reuters noted.
About 4.88 million of Glu's shares were traded so far today compared to its average volume of 2.05 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GLUU