GigaMedia, www.gigamedia.com – the developer of content for several areas of operation in online entertainment, providing software and services for a variety of online gaming including the Company’s own highly successful venues, reported a return to an upward trend in growth and operating profitability for 2011.
CEO of GIGM, Arthur Wang, cited steps taken to improve operating efficiency, prevailing economic conditions in European markets and the debut of several hot new games on the Company’s pan-Asian gaming platform as key factors generating this renewed growth.
Wang pointed to the strong balance sheet and heavy cash position as the Company rounded out 2010 on solid strategic footing, taking in the first payment from partner Everest Poker while dynamically restructuring the overall operational profile for significantly enhanced efficiency.
President and COO of GIGM, Thomas Hui, reinforced the positive outlook and delineated the salient elements of the Company’s growth strategy for Asia, including the launch of new products, expansion into new markets and continuous improvements in existing gaming.
Hui also asserted that the Company’s ongoing legal dispute in China would yield positive results and that after two years of diligent effort in Europe, despite economic turbulence and heavy stamp costs associated with opening the French market in 2010, GIGM could now look forward to reaping the rich rewards of all its efforts.
The Company sold 60% interest in its online gambling software business to top European sports betting/online gambling concern, BetClic Everest Group (then Mangas Gaming) in May of 2010 and retains the other 40% with a put option to sell all or part of the rest in 2013 to BetClic.
Kicking off 2011 with the debut of a flash-based version of the Company’s hugely successful MahJong title and enjoying continued strong presence from the class-based online multiplayer FPS title A.V. A., GIGM is well positioned and yet is not resting on these laurels, plans are already underway to launch a spate of new titles.
Specific focus on delivering content featuring popular IPs via the Asian operating platform, like the upcoming SpongeBob SquarePants online game to launch in partnership with MTV International, is essential to GIGM’s growth strategy for Asia.
Wang cited the formation of strong relationships with such top global developers as Activision Blizzard, EA and Take-Two in addition to a robust portfolio of external studio development as all contributing to a fat pipeline of content that will give GIGM the force to continue to pull down huge numbers across Asia.
Looking at the Q3 2010 data, GIGM took in $7.8M in revenue, off 28% from the previous quarter ($0.17 loss per share) due to deconsolidation of China-based operations related to the ongoing legal suit and is going into 2011 with very positive momentum.