Glu Mobile Profit Tops Street, Adds Britney Spears To Celebrity Roster; Stock Up

(RTTNews) - Glu Mobile Inc (GLUU), a developer of games for smartphone and tablet users, on Wednesday reported first-quarter net earnings of $1.1 million or $0.01 per share compared with $133 thousand or $0.00 per share last year.

Excluding items, adjusted earnings for the quarter were $0.02 per share compared with $0.06 per share a year ago.

Revenues for the quarter were higher at $69.5 million compared with $44.6 million in the prior year. Adjusted revenues were $62.4 million compared with $46.96 million a year ago.

Analysts polled by Thomson Reuters estimated a loss of $0.01 per share on revenues of $51.6 million for the quarter. Analysts' estimates typically exclude special items.

For the second quarter, the company expects adjusted loss of $0.05 to $0.03 per share on adjusted revenues of $50 million and $52 million. Analysts expect a loss of $0.02 per share on revenues of $50.9 million.

For the full year 2015, the company now expects adjusted earnings of $0.20 to $0.24 per share on adjusted revenues of $262 million and $287 million. Earlier it expected earnings of $0.23 to $0.28 per share on revenues of 245 million and $275 million.

Analysts expect earnings of $0.25 per share on revenues of $265.6 million for the year.

Separately, Glu Mobile said it would partner with Britney Spears on the development of a new mobile game. The exclusive agreement spans a five-year term with the possibility of a three-year extension.

Featuring the voice, likeness, and creative influence of Ms. Spears, the game will allow players to interact with Britney and experience the glitz and glamour of the entertainment business. Glu expects to launch the game worldwide in the first half of 2016.

Also, Glu Mobile said Tencent Holdings agreed to purchase 21 million shares of Glu's stock at a price of $6.00 per share for total of $126 million.

The transaction will be completed in two tranches, with Tencent today purchasing 12.5 million shares, and committing to purchase the remaining 8.5 million shares upon the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

The parties expect the second tranche to be completed in the second quarter of 2015.

Tencent will own about 14.6% of the total shares on a fully-diluted and as converted basis immediately after completion of the investment.

Glu said it would have a pro forma cash balance of about $190 million, based on Glu's cash balance as of March 2015, immediately after the completion of the transaction.

Shares of the company were gaining $1.24 or 22.96% at $6.64 in after-hours trade on the Nasdaq.