Game-maker Glu Mobile Inc. (GLUU) said its second-quarter revenue topped its prior guidance and it raised its full-year revenue guidance as the company looked to quell investor fears a day after casual game-maker Zynga Inc.'s (ZNGA) disappointing quarterly report weighed on the stock.
Zynga, which makes casual games such as "FarmVille" and "Words With Friends" has built most of its success through ties to Facebook Inc. (FB). Glu Mobile, on the other hand, emphasized that its success isn't dependant on Facebook. Glu creates games for smartphones and tablet devices, including "Blood & Glory," "Deer Hunter" and "Gun Bros."
Zynga shares were off 38% to $3.15 in recent trading and pressed shares of peers, including Glu Mobile, which was down as much as 20% ahead of its early report, before paring the decline to 2.6%.
Glu also said it has brought forward its earnings call and now plans to announce its results on Aug. 2. Social-networking giant Facebook will issue its first earnings report as a public company after the close.
"Glu's strong year-over-year growth was powered by our mobile-focus, lack of dependence on Facebook web users, and strength in male-oriented games," Chief Executive Niccolo de Masi said. He noted that this is the tenth quarter in which preliminary second-quarter results have exceeded the upper end of the company's guidance.
Stripping out changes in deferred revenue, Glu's second-quarter revenue was about $24.2 million, up 35% from the year-ago period and topping the company's previous guidance of $20.5 million to $21.5 million. Adjusted smartphone revenue was about $20.4 million, more than double the year-ago period.
The company raised its full-year adjusted revenue guidance to between $94.4 million and $96.4 million, up from $86.7 million to $91.7 million. It said adjusted smartphone revenue for the full year is expected to be between $81.9 million and $83.9 million, above previous guidance of $76.5 million to $81.5 million. http://online.wsj.com/article/BT-CO-20120726-719346.html