N+ house Silverbirch posted a major leap in Q3 revenues on Thursday, but losses widened year-on-year as expenditure rose.

Revenues for the June quarter were $4.6m (£2.5m), up 498 percent from the comparable quarter last year, which saw $327K in sales.

Silverbirch said the increase primarily comes from revenues associated with the 2007 acquisitions of mobile firms CrossRoad Mobile and Jambo Mobile.

"These businesses have generated significant organic revenue growth," the publisher said.

The company also noted revenues from the "free-to-play" virtual item-buy-supported MMO, Metin2, which generated $668K (£365K) fiscal year-to-date.

Net loss grew to $681K (£373K) from $346K during the quarter due to increased expenditure in marketing, administrative and fulfillment costs.

During the quarter, Silverbirch also said it invested $775K (£424K) in software development for its upcoming MMO, CrossFire, which is slated to launch in fiscal Q1 next year.

While management was upbeat about the revenue spike, it remains aware of the lack of profits. "Ultimately companies need to be profitable in order to create value for their shareholders, and when we reach a more critical mass, anticipated early next year, we would also begin to track earnings before interest, depreciation and amortization (“EBITDA”) as a key performance indicator of how efficiently we are running our businesses," the firm said.