Glu opens the Book
A bit of surprising news coming by way of our friends over at Moconews: Glu Mobile has filed for an IPO on the NASDAQ, hoping to raise $92 million in common stock. Glu now becomes only the second mobile gaming pureplay IPO in North America after Jamdat Mobile (now part of EA Mobile).
Rafat has also dug into Glu’s SEC filing (which can be found here) and gathered some telling information about their financial state. Glu suffered a net loss of $17.9 million in 2005 and a net loss of $10.0 million in the first nine months of 2006. With major losses as well in 2003 and 2004, Glu had accrued a deficit of $43.7 million, as of September 30, 2006.
This news validates rumors that GLU had been strapped for cash and looking for a solution. Many thought that was going to come through a buyout by Time Warner, which had invested in Glu last year, but I guess they chose the public route.
Glu is one of the best mobile game publishers out there and we hope this sets them on the right track. More Glu info from their SEC filing is after the jump.
– Revenues derived from mobile games and other applications based on or incorporating brands or other intellectual property licensed from third parties accounted for 77.1% and 85.0% of our revenues in 2005 and the first nine months of 2006, respectively. During the first nine months of 2006, revenues derived from our four largest licensors, Atari, Celador, Fox and PopCap Games, together accounted for approximately 62.3% of our revenues.
– We intend to use approximately $12.1 million of the net proceeds of this offering to repay in full the principal and accrued interest on our outstanding loan from Pinnacle Ventures. We expect to use the remaining net proceeds of this offering for general corporate purposes, including working capital and potential capital expenditures and acquisitions.
– Licenses for intellectual property that terminate prior to 2008 and during 2008 represented 55.0% and 18.3%, respectively, of our revenues in the first nine months of 2006.
– A significant portion of our revenues is derived from a very limited number of carriers. For the first nine months of 2006, we derived approximately 20.9% of our revenues from subscribers of Verizon Wireless, 12.0% of our revenues from subscribers of Sprint Nextel, 11.4% of our revenues from subscribers of Cingular Wireless and 10.7% of our revenues from subscribers of Vodafone. In 2005 and the first nine months of 2006, subscribers from carriers representing the next ten largest sources of our revenues represented 25.6% and 26.4% of our revenues, respectively.
– In our industry, new games are frequently introduced, but a relatively small number of games account for a significant portion of industry sales. Similarly, a significant portion of our revenues comes from a limited number of mobile games, although the games in that group have shifted over time. For example, in 2005 and in the first nine months of 2006, we generated approximately 52.8% and 57.0% of our revenues, respectively, from our top ten games, but no individual game represented more than 10% of our revenues in either period.
– International sales represented approximately 41.8% and 44.6% of our revenues for 2005 and the first nine months of 2006, respectively.
– As of September 30, 2006, we had 226 employees, including 140 in research and product development. Of these employees, 123 were in the United States, 96 were in Europe and 7 were in Hong Kong.
source: quickly bored
Rafat has also dug into Glu’s SEC filing (which can be found here) and gathered some telling information about their financial state. Glu suffered a net loss of $17.9 million in 2005 and a net loss of $10.0 million in the first nine months of 2006. With major losses as well in 2003 and 2004, Glu had accrued a deficit of $43.7 million, as of September 30, 2006.
This news validates rumors that GLU had been strapped for cash and looking for a solution. Many thought that was going to come through a buyout by Time Warner, which had invested in Glu last year, but I guess they chose the public route.
Glu is one of the best mobile game publishers out there and we hope this sets them on the right track. More Glu info from their SEC filing is after the jump.
– Revenues derived from mobile games and other applications based on or incorporating brands or other intellectual property licensed from third parties accounted for 77.1% and 85.0% of our revenues in 2005 and the first nine months of 2006, respectively. During the first nine months of 2006, revenues derived from our four largest licensors, Atari, Celador, Fox and PopCap Games, together accounted for approximately 62.3% of our revenues.
– We intend to use approximately $12.1 million of the net proceeds of this offering to repay in full the principal and accrued interest on our outstanding loan from Pinnacle Ventures. We expect to use the remaining net proceeds of this offering for general corporate purposes, including working capital and potential capital expenditures and acquisitions.
– Licenses for intellectual property that terminate prior to 2008 and during 2008 represented 55.0% and 18.3%, respectively, of our revenues in the first nine months of 2006.
– A significant portion of our revenues is derived from a very limited number of carriers. For the first nine months of 2006, we derived approximately 20.9% of our revenues from subscribers of Verizon Wireless, 12.0% of our revenues from subscribers of Sprint Nextel, 11.4% of our revenues from subscribers of Cingular Wireless and 10.7% of our revenues from subscribers of Vodafone. In 2005 and the first nine months of 2006, subscribers from carriers representing the next ten largest sources of our revenues represented 25.6% and 26.4% of our revenues, respectively.
– In our industry, new games are frequently introduced, but a relatively small number of games account for a significant portion of industry sales. Similarly, a significant portion of our revenues comes from a limited number of mobile games, although the games in that group have shifted over time. For example, in 2005 and in the first nine months of 2006, we generated approximately 52.8% and 57.0% of our revenues, respectively, from our top ten games, but no individual game represented more than 10% of our revenues in either period.
– International sales represented approximately 41.8% and 44.6% of our revenues for 2005 and the first nine months of 2006, respectively.
– As of September 30, 2006, we had 226 employees, including 140 in research and product development. Of these employees, 123 were in the United States, 96 were in Europe and 7 were in Hong Kong.
source: quickly bored
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