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These risk factors are described in our press release and are more fully detailed under the caption Risk Factors on the Form 10-Q filed with the Securities and Exchange Commission on May 10, 2012.On this call we will present both GAAP and non-GAAP financial measures. Non-GAAP measure exclude the change in deferred revenues and royalties, amortization of in-process development contracts, amortization of intangibles, stock-based compensation charges, restructuring charges, changes in the fair value of the Blammo earn-out, transitional costs, release of tax liabilities, and foreign currency gains and losses primarily related to reevaluation of assets and liabilities. Additionally, we will be discussing adjusted EBITDA, which is defined as non-GAAP operating income loss, excluding depreciation. These non-GAAP measures are not intended to be considered in isolation from, as substitute for, or superior to our GAAP results, and we encourage investors to consider all measures before making an investment decision. For complete information regarding our non-GAAP financial information, the most directly comparable GAAP measures, and a quantitative reconciliation of those figures, please refer to today’s press release regarding our second quarter results. The press release has also been furnished to the SEC as part of a Form 8-K. In addition, please note that the date of this conference call is August 2, 2012, and any forward-looking statements that we may make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of future events. Lastly, this conference call is the property of Glu Mobile, and any recording, reproduction, or rebroadcast of this conference call without the express written permission of Glu is strictly prohibited. With that, I’ll turn the call over to Niccolo. Niccolo? Niccolo de Masi Good afternoon, and welcome to everyone joining us today. Before I begin, allow me to direct you to the supplemental presentation accompanying today’s earnings. It can be accessed via our investor website, glu.com/investors. In addition to the presentation, you will find two demo videos of our upcoming H-2 titles.
I am pleased to report that in Q2 2012 we delivered $24.2 million of total non-GAAP revenue, and $20.4 million of non-GAAP smart phone revenue, well ahead of expectations. Smart phone revenue growth was 111% over the same period last year, and 17% quarter-on-quarter. Smart phone revenues made up 85% of total non-GAAP revenues in Q2, compared to 54% last year.During Q2, we continued to invest in the future growth of our business. We were considerably favorable to adjusted EBITDA guidance due to our strength in smart phone revenue and favorable gross margin expansion. Underpinning these strong results were Deer Hunter Reloaded and Little Kingdom, both from our Griptonite studio that we acquired last August. Deer Hunter Reloaded peaked at number six top grossing and number one top free in the iOS store. Little Kingdom was our first title to launch with seven languages supported in addition to English. Our acquisition of the Deer Hunter brand allowed us to save over $1.4 million in royalties. We would have otherwise have owed in the quarter. This morning, we consummated a tuck-in technology infrastructure acquisition in the form of GameSpy Technologies, formerly a subsidiary of News Corp’s IGN division. GameSpy brings a 10 plus year track record providing cross-platform, online, and database services to many of the gaming industry’s largest players. Glu issued 600,000 shares worth under $3 million at today’s closing for an asset which IGN originally acquired for tens of millions. GameSpy brings Glu a team and technology with which to enhance long-term lifetime value through incorporating robust social functionality, synchronous multiplayer, and asynchronous player versus player mechanics. Glu has been working with GameSpy operationally since Gun Brothers multiplayer and Death Match went live on Android earlier this year. We’ve continued and expanded the relationship since and are incorporating GameSpy technology in many of our H-2 releases. Read the rest of this transcript for free on seekingalpha.com