This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

GigaMedia Announces Preliminary 4Q Results And 1Q Outlook; Updates Cloud Business Progress

TAIPEI, Taiwan, March 12, 2013 /PRNewswire/ --

4Q Preliminary Results

  • Revenues of approximately $4.8 million; the quarterly sequential variation in revenues reflected a decline in the fourth quarter of Tales Runner contributions in Hong Kong as well as the beneficial impact on third-quarter revenues of licensing fees, a category of revenues GigaMedia did not receive in the fourth quarter.
  • Net loss of $2.2 million.
  • Cash outflow of approximately $1.4 million.
  • Operating loss in GigaMedia's online games business of $700 thousand.
  • Cash, cash equivalents, and marketable securities-current of approximately $80.5 million, with the quarterly sequential decrease largely related to a variation in the value of marketable securities-current.
  • Short-term debt held steady at approximately $7.7 million.

1Q Outlook

  • Online Games Business - GigaMedia's FunTown online games business forecasts mixed results in the first quarter, with growth in the MMO titles A.V.A. and Tales Runner offsetting declines in casual games.
  • Cloud Computing Business - Management believes GigaMedia's cloud computing business is well positioned to benefit from an emerging market for cloud services for SMEs in Greater China and achieve significant long-term growth. GigaMedia expects plans to strengthen and scale-up its cloud computing business will help drive growth and increasingly offset the challenges GigaMedia faces; namely, strong competition in the online game market and the repositioning of GigaMedia's online games business. Management does not expect the cloud computing business to make a contribution to operating results in the first quarter of 2013.
  • GigaMedia expects to receive cash proceeds in the late first/early second quarter in excess of $1 million from the sale of non-strategic assets.

GigaMedia Limited (NASDAQ: GIGM) announced today preliminary fourth-quarter 2012 consolidated financial results.

"Fourth-quarter revenues were down due to a decline in revenues in Hong Kong from our legacy MMO title Tales Runner; the decline reflected a variety of factors, including a lack of new content," stated GigaMedia Limited Chief Executive Officer Collin Hwang. "As noted, in the third quarter, we also benefited from licensing revenues, which we did not have in the fourth quarter."

"Going forward, we seek to stabilize the performance of our legacy PC-based products while we transition the business, extending our offerings to self-developed browser/mobile games, which we will start rolling out in the second half of this year," stated CEO Collin Hwang.

"We also look forward to growth of our new GigaCloud business, which has completed initial product development and is now operational," added CEO Collin Hwang. "While we forecast minimal initial contributions from GigaCloud, we continue to be enthusiastic about the market opportunity and will provide details on our 4Q call on a new strategic partnership we are now finalizing that will strengthen the business."

"Finally, we are currently working on the disposal of certain game-related investments, which are non-strategic and would boost our cash," stated CEO Collin Hwang. "We will provide further details on these transactions in due course."

The financial results presented above are preliminary and subject to completion. GigaMedia's expectations with respect to these unaudited results are based on management estimates and information available at this time. As a result, these preliminary estimates may be different from the actual results that will be reflected in GigaMedia's consolidated financial statements for the fourth quarter of 2012 when they are released.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,675.76 -100.36 -0.56%
S&P 500 2,055.47 -12.42 -0.60%
NASDAQ 4,861.9930 -38.8920 -0.79%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs