Shares of Jamdat Mobile Inc. plunged in after-hours trading Thursday after the wireless game maker offered a disappointing outlook for the coming quarter.
Jamdat reported impressive gains during the second quarter, including a five-fold increase in revenues over the same period last year. The publisher earned $2.6 million, or 11 cents a share, on $19.3 million in sales in the most recent quarter; Jamdat posted second-quarter profits of $423,000, or 9 cents a share, on $8.4 million in sales last year.
But investors fled on the company’s revised third-quarter outlook. Jamdat said it predicts adjusted net income for the period of 13 cents to 15 cents per share on revenues of $20 million to $21 million-well below Wall Street’s target of 21 cents a share on revenues of $21.9 million.
The stock plummeted more than 24 percent on the news, dropping $7.29 to $22.20 after the closing bell. Shares rebounded slightly Friday morning, settling at $22.65 in mid-day trading on the Nasdaq.
Research firm Kaufman Bros. downgraded the stock from “buy” to “hold” on the news.
The only publicly traded, pure-play wireless game publisher in the nation, Jamdat spent $137 million during the quarter to acquire Blue Lava Wireless and a 15-year exclusive license to publish the Tetris franchise for mobile phones. Jamdat reaffirmed its outlook for the year, predicting revenues of $80 million, slightly below analysts’ predictions of $81.8 million.
