In its second quarter, Glu lost 2 cents per share on revenues of $35.0 million, compared to a loss of 5 cents per share on revenues of $23.2 million a year earlier. This represents a 51% revenue increase year-over-year. Analysts polled by Thomson Reuters expected the company to lose 2 cents per share on revenues of $34.0 million. Gross margins for the third quarter will be 58%, down from 69% in the second quarter.
Glu, the maker of the wildly popular game Kim Kardashian: Hollywood, also increased its full-year revenue guidance to between $222.0 million and $232.0 million, up from its previous forecast of between $155.0 million and $161.5 million. The earnings are projected to be between 17 cents and 21 cents per share, up from between 2 cents and 3 cents Analysts expect the company will earn 12 cents a share on revenues of $217.9 million.
“Our second quarter results were boosted by the continued strength of Deer Hunter 2014 and Eternity Warriors 3 in addition to the exceptional early performance of Kim Kardashian: Hollywood,” said CEO Niccolo de Masi in the press relase. “Kim Kardashian: Hollywood has broken Glu single-day revenue and sustained ARPDAU records, while Dino Hunter: Deadly Shores, has achieved a Glu single-day download record. These two titles simultaneously achieved the #1 and #3 chart positions on the U.S. App Store Top Free for iPhone.”
Glu also announced yesterday that it was acquiring Cie Games, the creator of the leading racing franchise game for Android and iOS. The company paid about $100 million, or $30 million in cash and $70 million in shares.
Tesla (TSLA) shares were lower, falling 1.33% to $228.08 after announcing an agreement with Panasonic ahead of its second quarter earnings.
Electronic car company Tesla announced today that it had finalized an agreement with Panasonic, the Japanese tech giant, to collaborate on constructing a large-scale battery manufacturing plant in the United States called the Gigafactory. Under the terms of the agreement, Tesla is responsible for finding and maintaining land, buildings, and utilities, while Panasonic is responsible for investing in equipment and manufacturing and supplying cylindrical lithium-ion cells. Tesla will then assemble these cells and other components into battery modules and packs.
The purpose of the Gigafactory, according to the press release, is to “enable a continuous reduction in the cost of long range battery packs in parallel with manufacturing at the volumes required to enable Tesla to meet its goal of advancing mass market electric vehicles.” Tesla projects that by 2020, the plant will produce 35GWh of cells and 50GWh of packs per year and will employ 6,500 people.
"The Gigafactory represents a fundamental change in the way large scale battery production can be realized,” said Tesla co-founder and Chief Technical Officer JB Straubel. “Not only does the Gigafactory enable capacity needed for the Model 3 but it sets the path for a dramatic reduction in the cost of energy storage across a broad range of applications."
"We have already engaged in various collaborative projects with Tesla toward the popularization of electric vehicles,” said Panasonic Executive Vice President Yoshihiko Yamada. “Panasonic's lithium-ion battery cells combine the required features for electric vehicles such as high capacity, durability and cost performance. And I believe that once we are able to manufacture lithium-ion battery cells at the Gigafactory, we will be able to accelerate the expansion of the electric vehicle market."
Tesla reports its earnings this afternoon after the bell. Analysts surveyed by Thomson Reuters expect Tesla to earn 4 cents per share on revenues of $810.6 million.
Shares of Sony (SNE) jumped 5% to $18.41 following the release of better than expected quarterly earnings.
Sony earned a net profit of 26.8 billion yen ($261 million) in the first quarter of its 2015 fiscal year, up from 3.5 billion yen in the same quarter last year ($33.99 million). Analysts expected the company to lose 11.5 billion yen ($111.79) during the quarter.
Revenues were $17.92 billion, or 23 cents per share. Sony attributed this revenue bump to increased sales of its PlayStation 4 gaming console and to a weaker yen relative to the dollar and the euro. Revenues in Sony’s mobile phone business, which was the primary beneficiary of the weaker yen, rose 10% to 314.3 billion yen ($3.05 billion); however, the company also said that unit sales declined, without specifying the amount. Sales in the video gaming business almost doubled to 257.5 billion yen ($2.5 billion), underscoring the strength of the P4. Sony Pictures revenues rose 22.6% to 198.6 billion yen ($1.93 billion) and operating income more than doubled to 8.3 billion yen ($78 million), with The Amazing Spider-Man 2 and 22 Jump Street performing particularly well.
"We have topped our targets (in the first quarter), but if you look at our past, we have made our targets in most first quarters but then haven't been able to meet our full-year targets," new CFO Kenichiro Yoshida said at a press conference following the earnings. "I want to see how the rest of the year goes."
--Written by Laura Berman in New York
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