Glu Mobile Plunges, Sony Surges: Tech Winners & Losers
NEW YORK ( TheStreet) –– Glu Mobile
In its second quarter, Glu lost 2 cents per share on revenues of $35.0 million, compared to a loss of 5 cents per share on revenues of $23.2 million a year earlier. This represents a 51% revenue increase year-over-year. Analysts polled by Thomson Reuters expected the company to lose 2 cents per share on revenues of $34.0 million. Gross margins for the third quarter will be 58%, down from 69% in the second quarter.
Glu, the maker of the wildly popular game Kim Kardashian: Hollywood , also increased its full-year revenue guidance to between $222.0 million and $232.0 million, up from its previous forecast of between $155.0 million and $161.5 million. The earnings are projected to be between 17 cents and 21 cents per share, up from between 2 cents and 3 cents Analysts expect the company will earn 12 cents a share on revenues of $217.9 million.
“Our second quarter results were boosted by the continued strength of Deer Hunter 2014 and Eternity Warriors 3 in addition to the exceptional early performance of Kim Kardashian: Hollywood ,” said CEO Niccolo de Masi in the press relase. “ Kim Kardashian: Hollywood has broken Glu single-day revenue and sustained ARPDAU records, while Dino Hunter: Deadly Shores , has achieved a Glu single-day download record. These two titles simultaneously achieved the #1 and #3 chart positions on the U.S. App Store Top Free for iPhone.”
Glu also announced yesterday that it was acquiring Cie Games , the creator of the leading racing franchise game for Android and iOS. The company paid about $100 million, or $30 million in cash and $70 million in shares.
Electronic car company Tesla announced today that it had finalized an agreement with Panasonic, the Japanese tech giant, to collaborate on constructing a large-scale battery manufacturing plant in the United States called the Gigafactory. Under the terms of the agreement, Tesla is responsible for finding and maintaining land, buildings, and utilities, while Panasonic is responsible for investing in equipment and manufacturing and supplying cylindrical lithium-ion cells. Tesla will then assemble these cells and other components into battery modules and packs.
The purpose of the Gigafactory, according to the press release, is to “enable a continuous reduction in the cost of long range battery packs in parallel with manufacturing at the volumes required to enable Tesla to meet its goal of advancing mass market electric vehicles.” Tesla projects that by 2020, the plant will produce 35GWh of cells and 50GWh of packs per year and will employ 6,500 people.