GigaMedia Reports 60 Pct Drop In 1Q Profit

NEW YORK (AP) — Online gaming and software company GigaMedia Ltd. reported a 60 percent drop in first-quarter profit, citing the impact of a global recession and the weakness of the euro against the U.S. dollar.

The Taiwan-based company said it earned $4.8 million, or 8 cents per share in the first three months of the year. That compared to $12 million, or 20 cents per share, in the year-ago period.

Revenue fell to $44.4 million, from $51.2 million a year earlier.

Analysts polled by Thomson Reuters were expecting earnings of 9 cents per share on revenue of $43.9 million.

GigaMedia also said it's in final stage discussions with two parties about a partnership or sale of its poker and casino software business. No additional details were disclosed.

Revenue from GigaMedia's gaming software business fell 17 percent year-over-year to $31.7 million in the first quarter. The company noted the segment is traditionally driven by an upturn in online gaming during winter in the fourth quarter.