Jamdat's Q1 earnings exceed expectations

NASDAQ-listed wireless games publisher Jamdat Mobile has announced significant growth in its first quarter earnings for 2005, reporting revenue of $15.1 million and net income of $2.7 million.

This marks an increase of $2 million over net income for Q1 2004. Revenue is also up from $11.6 million in Q4 of last year.

Jamdat predicts that the growth will continue in Q2, with revenues estimated at $19 million. Total revenue for 2005 is forecast at $80 million, with a net income of around $0.55 per diluted share.

The company also predicts that earnings will go on to expand throughout 2006 - revenues for next year are estimated at almost $120 million.

Jamdat completed its initial public offering last September, and share prices quickly rose from a starting rate of $16 to a high of over $23 before settling. Following yesterday's announcement, which was made after the bell, the stock rose by $1.82 - 10 per cent - to $19.33.

Jamdat has recently an extensive acquisition programme, which could explain why it is growing increasingly attractive to investors.

In January the company acquired mobile game developer Downtown Wireless, which specialises in casino-based games, adding Downtown Texas Hold 'Em to its portfolio.

Then last month Jamdat secured the Major League Baseball licence before acquiring Hawaiian mobile games developer Blue Lava. As part of the deal, Jamdat obtained the rights to distribute Tetris throughout the US, Latin America and India, and worldwide distribution rights will apply by the end of this year. However, Jamdat has warned that revenues could dip slightly as Blue Lava is integrated.