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GigaMedia Ltd Reports Poor Profits and Revenues - 06-25-09 |
June 25 - A 60% decline in profits and 14% decline in revenue from last year was reported by EverestPoker.com's owner, GigaMedia Limited, which just divulged its fiscal results for the first quarter of 2009, citing the weak economy and currency as reasons for the decline.
Additionally, GigaMedia disclosed that it was in serious negotiations to sell its poker and casino software business but declined to provide further details. Revenue from their gaming software business fell 17% to $31.7 million and its poker software division revenues fell 27% to $21.6 million as compared with last year. GigaMedia claimed that this part of their business usually surges during the fourth quarter.
GigaMedia's CEO Arthur Wang stated, "In the first quarter, our Everest software business faced greater than expected challenges from the macro-economic downturn and the weakness of the Euro, slowing our business in Europe. We have responded with a set of cost reductions and efficiencies, which will protect the financial strength of the business as well as prepare for a return to growth as a leaner, tighter organisation."
Wang further commented that he believes the worst part of the economic recession is behind the company and predicts growth in the second half of the year throughout Europe. Additionally, Wang stated that Asia is proving to be a source of economic strength for the firm.
Thomas Hui, President and COO for GigaMedia, stated, "We remain confident in the strategic position of our poker and casino software business and are excited about the new games we are launching in Asia this year. Our core businesses remain healthy and well positioned to deliver strong long-term growth."
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