Glu Mobile (GLUU) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $43.73 million in the quarter, against a net profit of $0.16 million in the last year period.
Revenue during the quarter dropped 18.77 percent to $51.38 million from $63.25 million in the previous year period. Gross margin for the quarter stood at negative 9.13 percent as compared to a positive 52.88 percent for the previous year period. Operating margin for the quarter stood at negative 81.64 percent as compared to a positive 0.62 percent for the previous year period.
Operating loss for the quarter was $41.94 million, compared with an operating income of $0.39 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.06 million compared to negative $30.72 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 15.69 percent for the quarter compared to negative 48.56 percent in the last year period.
De Masi continued, "As I transition to the Company’s Executive Chairman I will work to ensure a smooth handover to newly named chief executive officer, Nick Earl. Nick is a video game industry veteran with a proven track record of creating hit games and I am confident in his ability to lead Glu in the future."
Working capital drops significantlyGlu Mobile has witnessed a decline in the working capital over the last year. It stood at $128.32 million as at Sep. 30, 2016, down 27.02 percent or $47.52 million from $175.84 million on Sep. 30, 2015. Current ratio was at 3.06 as on Sep. 30, 2016, down from 3.59 on Sep. 30, 2015. Days sales outstanding went down to 35 days for the quarter compared with 37 days for the same period last year.
At the same time, days payable outstanding went down to 18 days for the quarter from 34 for the same period last year.
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