Shares of

Intermix

(MIX)

soared in after-hours trading Tuesday after the Internet company announced strong revenue growth, raised guidance for the coming year and, perhaps most significantly, announced a settlement with the New York attorney general's office related to a spyware investigation.

After reaching a high of $9.25 in February, Intermix's stock fell as low as $3.20 in April on news that Eliot Spitzer was suing Intermix for allegedly installing spyware and adware on the PCs of visitors to its game and social networking sites. Late Tuesday afternoon, the stock was trading at $7.60, or 25% above its price at the end of active trading.

"The settlement in principle will pay $7.5 million over three years," said Intermix CEO Richard Rosenblatt. "We wanted to settle this quickly because we didn't want anything to slow us down." Intermix has said it stopped distributing late last year any programs that were considered by Spitzer's office to be spyware.

Intermix posted a loss of $409,000 for the fourth quarter, compared with a loss of $4.4 million in the year-ago quarter. The loss in the recent quarter included a $6.9 million reserve related to settlement and legal costs in the Spitzer lawsuit, as well as a $6.3 million gain from a deal making its MySpace.com unit an independent subsidiary.

The company's revenue grew 68% to $24.1 million in the quarter, much faster than the 49% revenue growth rate for the full fiscal year. In all of fiscal 2005, which ended March 31, 2005, Intermix posted revenue of $79 million and a profit of $4.5 million, compared to a $13.1 million loss in 2003.

The Los Angeles-based company also raised guidance for the current fiscal year to revenue of $118 million, up from its previous target of $112 million, and boosted its forecast for earnings before interest, taxes, depreciation and amortization to $15.3 million from the previous guidance figure of $12 million. Its guidance for net income this year remains at $8.2 million.