GigaMedia stock has dropped 11.3% to $3.70 in the morning trading session.
GigaMedia reported that its results were weighed down by the economic downturn in Europe, which resulted in a marked decrease in playing activities. During both quarters, revenue was also hurt by the traditional slowdown in the European gaming software industry during the summer holiday season. GigaMedia said illegal gaming sites operating in the U.S. had also upset the company's revenue.
For the third quarter, GigaMedia posted a net loss of $2.4 million, or 4 cents per share, compared with a profit of $12 million, or 20 cents per share in the same quarter last year. The figure fell far short of the Wall Street consensus estimate of 12 cents per share. The company's third-quarter revenue declined by 19% to $37.2 million.Meanwhile, GigaMedia's second-quarter net income fell to $128,000, compared with a net income of $11.2 million in the second quarter of 2008. It also reported diluted earnings of a penny per share, which fell far below the analyst consensus estimate of 9 cents per share. Its second quarter revenue fell 22.9% year-on-year to $37.7 million. Last Wednesday, GigaMedia announced that it would drive future growth through the "strategic alliance" that is has entered into with European gaming leader Mangas Gaming.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV