jumped up as much as 16% on Thursday after the company preannounced better-than-expected first-quarter results and said it has acquired the rights to publish
, a long-popular puzzle game.
The company, which offers video games, ring tones and other applications for mobile phones, now expects to report first-quarter revenue of about $15 million, the company said Wednesday after the bell. That would be up about 29% from the sales it posted in the fourth quarter. Previously, the company predicted that it would post $14.1 million in sales for the quarter.
Jamdat also said that it expected its earnings to come in higher than its previous guidance of 8 cents a share, or 12 cents excluding non-cash charges.
On a pro forma basis, analysts polled by Thomson First Call had predicted that the company would earn 12 cents a share on $14.13 million in sales in the quarter.
The company acquired the rights to Tetris by purchasing Blue Lava Wireless, a rival publisher and developer of mobile games, for $137 million, in a deal that was completed on Wednesday. Jamdat paid $60 million of the acquisition price in cash and made up the bulk of the rest with 4.05 million shares of its stock. The company owes Blue Lava shareholders another $13.7 million in the form of a deferred payment, which Jamdat can pay in either cash or stock at its discretion.
The acquisition will boost Jamdat's 2005 earnings by 10 cents a share, the company said.
As part of the transaction, Jamdat will immediately have the rights to publish and distribute mobile-phone versions of
in North America, Latin America and India. The company will gain the rights to publish the game in Europe, China, Japan, Korea, Australia and New Zealand later this year as the rights of current licensees in those countries expire.
In recent trading, Jamdat shares were up $2.41, or 15.3%, to $18.12.
The company will report first-quarter results on May 5.