Glu Mobile is “disappointed” with the performance of most of...

games “exhibited weak average revenue per daily active user” (ARPDAU), he said. Glu is “implementing a number of measures to ensure that our next product cycle will deliver higher ARPDAU,” he said. Glu shares closed 21.5 percent lower Friday at $2.56. In Q4, Glu has already launched Death Dome and the sequel to its most downloaded title of all time, Contract Killer 2, it said. As with most Q3 titles, “downloads and reviews are strong,” but ARPDAU on Death’s Dome is “below expectations,” said the CEO. Contract Killer 2, however, is “off to a solid start” and is among the top 25-grossing iPad apps and top 40-grossing iPhone apps, he said. To “prevent a reoccurrence of our weak Q3 new title performance,” and to “maximize Glu’s long-term growth,” the CEO said he decided to delay five Q4 title launches until Matthew Ricchetti, its new president of studios, can review them. As a result, by year-end, Glu expects to launch only two more titles: Dragon Slayer and Contract Killer: Zombies 2, he said. Glu Q3 revenue grew to $21.3 million from $16.9 million in the year-ago quarter and its loss narrowed to $3.6 million, or 6 cents a share, from $6.2 million, or 10 cents (CED Nov 2 p15). But of the 11 titles that Glu launched in Q3, only Eternity Warriors II and Blood & Glory: Legend were “financially successful,” said Chief Financial Officer Eric Ludwig. Sixty percent of Glu’s Q3 smartphone revenue was on iOS, 32 percent on Android and the rest on other smartphone platforms, he said. In the quarter, “the consumer smartphone upgrade cycle slowed in anticipation” of new iOS and Amazon device launches, the CEO said. That “resulted in slower sales for some device manufacturers and a restrained expenditure by consumers on their associated ecosystems,” he said. Ad budgets were also “soft due to the consumer pause,” he said. But Glu “maximized our positioning for Apple fall iOS launches,” he said. Glu “optimized and had five titles featured” in the new iOS 6 store and on the launch weekend of the iPhone 5, he said. All of Glu’s “most significant titles have now been optimized” for the iPhone 5, he said. Glu also recently “experienced degradation” in iOS ad revenue as Apple “extended it prohibition of incentivized advertising to include any linkage to external HTML 5 sites,” reducing sales via the Tapjoy iOS channel, he said. As a result, Glu’s Q4 forecast was “substantially lowered,” he said.