Jamdat Shares Plunge as Profit, Outlook Fall Shy of Expectations

Jamdat Mobile Inc. said Thursday that second-quarter profit rose more than fivefold, but the results -- and an accompanying forecast -- didn’t meet analysts’ expectations and its shares were creamed in after-hours trading.

The Los Angeles maker of video games for cellphones said net income for the period ended June 30 rose to $2.6 million, or 11 cents a share, from $423,000, or 9 cents, a year earlier.

Analysts were expecting a profit of 19 cents a share, according to a survey by Thomson Financial.

Making matters worse, Jamdat said it expected third-quarter adjusted profit to range from 13 cents to 15 cents a share; analysts were expecting a profit of 21 cents a share.

Jamdat shares plunged 22%, or $6.54, to $22.97 in late trading after gaining 4 cents during the regular session to $29.49.

Second-quarter revenue more than doubled to $19.3 million, up from $8.4 million a year earlier.

The most recent results included $2.6 million in acquisition costs for Blue Lava Wireless, as well as a $1.7-million tax benefit. Excluding those and certain other items, Jamdat’s profit would have been $7.2 million, or 30 cents a share, the company said.