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GigaMedia Reveals Negative Financials

Online gambling software developer GigaMedia revealed its third quarter financial results, with numbers showing a decline in revenues, and prompting the company to announce a change in strategy.

Yichin Lee, GigaMedia CEO said: "We are making incremental improvements but need to restructure to respond to an ongoing, dramatic shift in online gaming from PCs to mobile devices. Starting in the fourth quarter we will change course. We will build a more complete online games business with a broader and deeper portfolio supported by specific development capabilities for different game genres. We will also extend our platform to mobile devices."

"We have a lot of work ahead of us, but we are convinced our strategy will provide us with substantial opportunities for growth, stronger performance, and increased shareholder value."

Financial highlights for GigaMedia in the third quarter were:

  • Group consolidated revenues for Q3/2011 held steady at $7.8 million, even from the same period last year.

  • Asian online games business in Q3/2011 were stable from the same period last year but down 12% from the second quarter.

  • FunTown Q3/2011 revenues increased to $6.3 million from $5.3 million during the same period last year, but were down from $6.5 million in the second quarter of 2011.

  • IAHGames revenues came in at $1.5 million, down from $2.3 million in the second quarter of 2011.

  • GigaMedia's 40% share in Everest Gaming yielded:

  • A total net loss of $14.0 million for the period; consequently, GigaMedia took an investment loss of $5.6 million for its 40% interest in the company.

  • Everest Gaming's total revenues amounted to $12.4 million, including poker revenues of $9.2 million with 111,000 active depositing players and 27,000 new depositing players in the period.

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