Glu Mobile, Inc. Q3 2009 Earnings Call Transcript

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2009-11-03 18:05:33.0

Tags: Revenue, Glu Mobile Inc., Nokia Corp., N-Gage, Call Transcript, Earnings, Cellular Phones, Handhelds, Consumer Electronics, Personal Technology, Hardware, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Your first audio question comes from the line of Travis Mccourt.

Justin Patterson for Travis Mccourt - Keegan & Company, Inc.

This is Justin Patterson in behalf of Travis. First, I was wondering if you could comment on Nokia’s recent decision to close the N-Gage service. What type of impact this may have on your revenues going forward?

L. Gregory Ballard

We were not entirely surprised to see that announcement. The Nokia folks had been pretty clear over the course of the last several months, if not quarters, the direction that they are going to go was away from N-Gage. We are disappointed in a sense that we always thought the service was a promising next generation service. It was frankly a part of our original forecast for 2009. But long ago I would say, several quarters ago, we realized that the promise of the N-Gage was not going to materialize. So, we had already moved resources away from it, had not published a game on it in quite some time. Our past our mourning stage, if you will on that service, I think there are a lot of other opportunities out there right now that are taking those same resources. I think giving us a higher return so we nod the Nokia for a well tried effort but it did not work out. It has not really had a material effect on us at all.

Justin Patterson for Travis Mccourt – Keegan & Company, Inc.

Okay. With respect to the Next Gen platforms then, I think you had commented earlier that you are expecting things to double to about 5% of revenues next quarter. Just off of that and looking at your guidance, can we presume that the current level there is about 500,000 in terms of the contribution from Next Gen platforms?

L. Gregory Ballard

It is pretty close. That is correct, that is across all platforms including the iPhone and N-Gage and Android.

Justin Patterson for Travis Mccourt - Keegan & Company, Inc.

Okay. And that will include social networks as well, correct?

L. Gregory Ballard

That will include social networks as well correct.

Justin Patterson for Travis Mccourt - Keegan & Company, Inc.

Okay. With respect to that aspect there is a lot of a different revenue models thus far for [Inaudible] networks. So we are looking primarily at just kind about pay download type of thing or will this be something where, say, the service is free and users can pay for additional content?

 

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