Shares in Activision Inc. gained more than 3 percent Friday after the videogame developer bucked an industry trend and posted a quarterly profit.
Activision reported first quarter net income of $28 million (9 cents per share), a huge improvement over a loss of $18 million (-7 cents), from the same period a year earlier.
Sales for the Santa Monica-based videogame developer jumped 163 percent to $495 million thanks in large part to sales of its "Guitar Hero 2" video game.
Analysts had expected the company to earn 7 cents a share on sales of $445 million, according to Thomson Financial.
The title sold well during a quarter in which publishers traditionally post weak results. In fact, two of Activision's rivals, Agoura Hills-based THQ and Redwood City-based Electronic Arts Inc., both posted quarterly losses and lower revenue Wednesday, squeezed by a light summer selling season and higher costs associated with developing games for the newer gaming consoles.
Shares in Activision rose 16 cents, or 3.4 percent, to $4.85 in afternoon trading Friday on the Nasdaq.
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