Jamdat Creamed After Hours

Shares spiral down more than 21% on weak outlook.
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Profits surged at

Jamdat Mobile

(JMDT)

in the second quarter, thanks in part to a 128% jump in sales.

But the company also offered a disappointing outlook for the coming quarter, which apparently weighed heavily on investors who sent shares spiraling downward $6.44, or 21.8%, to $23.05 in recent after-hours trading.

The mobile game and entertainment publisher earned $2.6 million, or 11 cents a share, on $19.3 million in sales in the June quarter. Those results were up from the $423,000, or 9 cents a share, the company posted in the year-ago period on $8.4 million in sales. (The company completed its initial public offering between the two reports, swelling its share count to 24.8 million in the just-completed quarter from 4.9 million a year earlier.)

Excluding certain expenses, the company would have earned $7.2 million, or 30 cents a share.

On this basis, analysts polled by Thomson First Call were expecting the company to earn 19 cents a share on sales of $19.3 million. Jamdat predicted last quarter that it would earn 12 cents a share -- or 18 cents on a non-GAAP basis -- on $19 million in sales.

But that GAAP prediction didn't include certain in-process research and development expenses related to a recent acquisition or corresponding tax benefits, the company said.

In the third quarter, Jamdat expects to earn 4 cents to 6 cents a share -- or 13 cents to 15 cents excluding charges -- on sales ranging from $20 million to $21 million. For the full year, the company now expects earnings of 42 cents a share -- 83 cents on a pro forma basis -- on sales of about $80 million.

Previously, the company had predicted it would earn 55 cents a share -- 76 cents a share non-GAAP -- on 80 million this year.

Analysts have predicted that the company will earn 21 cents a share sans expenses in the current quarter on sales of $21.91 million. For the full year, analysts were looking for 77 cents a share on $81.81 million in sales.

The company's stock closed regular trading up 4 cents, or less than 1%, to $29.49.