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What: Shares of Chinese online game developer Perfect World
So what: Perfect World's stock has been crushed over the past couple of years on waning demand and allegations of fraud, but a big fourth quarter -- revenue surged 32% from the year-ago period -- suggests that the worst may be behind it. Management cited strong demand for its game Zhu Xian and solid overseas growth for the blowout quarter, triggering renewed optimism over its long-term growth prospects.
Now what: Looking ahead, management expects current-quarter revenue of $112.8 million-$119.0 million. "Given the continued, successful execution of our strategy and unwavering focus on our commitments, we are confident in our ability to continue generating value for our shareholders over the long term," Chairman and CEO Michael Chi said. Given the company's status as a Chinese small cap, however, investors shouldn't expect the ride to be a smooth one.
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