Jamdat Mobile Inc. may have finally climbed off the roller coaster.
The mobile game maker posted a solid fourth quarter of 2004, reporting revenues of $11.6 million and a net income of $600,000, or 3 cents per diluted share, during the period. Jamdat netted $1.8 million on the year compared with a net loss of $7.1 million in 2003.
“We are extremely pleased with our financial results,” said Mitch Lasky, chairman and chief executive officer, said during an earnings conference call. “Revenue and profits grew substantially year-over-year, and we continue to improve our leadership position in the mobile-gaming market.”
Jamdat made headlines last October with a spectacular initial public offering. The first exclusive publisher of mobile games to go public, the company raised nearly $90 million in the offering last September, then watched as its stock soared 41 percent in its first day of trading.
But Jamdat fell to earth just six weeks later with a disappointing third-quarter report, and investors responded as its stock fell more than 30 percent on the news. Despite the seemingly good news, investors seemed to greet Thursday’s report with a tepid response: Jamdat stock was up 2.6 percent, to $19.50, in mid-day trading Friday.
“I think a lot of investors were hoping for some serious upside surprises in Jamdat’s last-quarter earnings. When it didn’t materialize, they dumped the inflated stock and went somewhere else,” said analyst Dave Mock, author of “The Qualcomm Equation.” “The expectations priced into the stock are much more reasonable now.”
