Glu Mobile Posts Sales Below Estimates, Announces Job Cuts
Mobile game developer Glu Mobile reported lower-than-expected quarterly sales and said it was reducing its workforce by about 85.
Shares of the company, known for its games based on celebrities such as Kendall and Kylie Jenner and Kim Kardashian, fell 14% in extended trading on Tuesday.
The company said it expected to incur pre-tax charges of about $2.25 million-$3.0 million related to the restructuring, expected to be completed by Dec. 31.
Of this, about $1.5 million in charges related to employee severance and benefits will be incurred in the current quarter. Glu expects to take about $750,000-$1.5 million in lease, contract termination and other costs over the year that started in April.
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The company forecast current-quarter adjusted revenue of $46 million-$49 million. Analysts on average were expecting $59 million, according to Thomson Reuters I/B/E/S.
Adjusted net sales fell 13.5% to $54 million in the first quarter ended March 31, missing the average analyst estimate of $54.5 million.
The company reported a net loss of $8.6 million, or 7 cents per share, compared with a profit of $1.1 million, or 1 cent per share, a year earlier.
Excluding items, Glu had a loss of 3 cents per share, smaller than the 5 cents analysts on average had expected.
Shares of Glu, which is set to launch “Britney Spears: American Dream” and “Gordon Ramsay: Dash” games in the second half, were trading at $2.30 after the bell.