GigaMedia's income halved; nearing Everest Poker sale
GigaMedia is in final discussions with two parties regarding the sale of its Everest Gaming brand, the company said today, as it revealed the poker and software business are responsible for net income having fallen by more than half.
GigaMedia is in final discussions with two parties regarding the sale of its Everest Gaming brand, the company said today, as it revealed the poker and software business are responsible for net income having fallen by more than half.
The group’s first quarter 2009 results show net income down 60% on the same period in 2008 to US$4.8m, from US$12.1m, while revenue is down 13% to reach US$44m, from US$51.2m. The company blamed on the impact of the downturn global economy and the weakness of the euro against the US dollar on Giga’s European-focused poker and casino business.
Revenues from the poker software business fell 27% on the same period in 2008 to $21.6m, and 10% on the fourth quarter 2008.
The casino software vertical performed more strongly, with revenues growing 18% year-on-year to US$10.2m during the first quarter of 2009. The company put this down to enhancements to the platform software enabling stronger cross-selling to Everest Poker players.
Chief executive Arthur Wang said: “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.”
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