Virginia-based Two Worlds publisher SouthPeak has managed to reverse its losses, reporting GAAP profits of $687,000 for its most recent fiscal quarter -- much better than a $2.7 million GAAP loss in the same period of 2008.

The publisher also managed $16.7 million in revenues, a doubling year-over-year. Along the way, SouthPeak also says it bought "certain assets" from bankrupt Midway's TNA wrestling franchise, and will release upcoming TNA Impact: Cross the Line on PSP and DS.

SouthPeak also noted that its My Baby franchise on DS continues to see strong demand, and calls it "one of the best-selling life simulation titles on Nintendo DS." It plans further extensions on the franchise for the holiday season and expects them to perform strongly, too.

"We are pleased with our operational results for the quarter, and continue to see the benefits of our investment in our infrastructure and personnel," says CEO Melanie Mroz.

Over the period, SouthPeak launched three Xbox 360 titles, including one of its biggest-budget games to date -- Section 8 -- on both the console and Games For Windows Live.

"We are pleased with our continued revenue growth despite the ongoing challenges in the retail environment and are excited by the hardware price reductions," Mroz adds. "We expect that the recent price reductions can drive momentum for the industry going into the holiday season."