Glu loses $6M, stock rises

Shares of Glu Mobile Inc. climbed after the mobile game maker posted a $6 million first-quarter loss despite increased revenues.
The San Mateo, Calif.-based publisher reported $20.6 million in revenue, up 31% from the $14.7 million posted during the same quarter last year. The quarterly loss included amortization of intangible assets of $1.8 million, stock-based compensation charges of $2 million and other items.
The report heartened Wall Street analysts, however, who expected a larger loss and lesser revenues. Glu executives cited the company’s diverse portfolio – no titles accounted for more than 10% of revenue – as well as increased sales in China.
The company also pointed to the integration of recent acquisitions including the $36 million takeover of Superscape Group plc and the $14 million buyout of China’s Beijing Zhangzhong MIG Information Technology Co. Ltd.
“Strong sales in the U.S. and China, as well as a rebound in the European market, contributed to a better than expected quarter for us,” said CEO Greg Ballard. “The integration of MIG and Superscape, our title plan roadmap for the remainder of 2008 and our continued operational discipline position us to increase significantly our global market share in the coming months and quarters.”
Glu shares gained 25 cents, or more than 6%, climbing to $4.36 per share following the report.