GigaMedia Limited (NASDAQ:GIGM) reported its results for the third quarter. GigaMedia is a provider of gaming software and services to the online gaming industry, and an operator of online games in Greater China, including the PRC, Taiwan, Hong Kong and Macau.
GigaMedia Earnings Cheat Sheet for the Third Quarter
Results: The company’s loss narrowed to $3.9 million (7 cents per share) vs. a loss of $4.3 million (17 cents per share) the year earlier.
Revenue: Fell 1% $7.8 million.
Quoting Management: “We experienced a challenging environment during the third quarter with low levels of customer activity in our casual games and strong competition,” stated GigaMedia Limited Chief Executive Officer Yichin Lee . “Weaknesses are clear: our offerings are not broad or deep enough and our business unit operations are not efficient. As a result, our financial performance continues to suffer.”"We are making incremental improvements but need to restructure to respond to an ongoing, dramatic shift in online gaming from PCs to mobile devices,” added CEO Yichin Lee . “As a third-party publisher, we are at a competitive disadvantage in today’s environment where the risks for major games are higher than ever and speed and flexibility are critical. In sum, our strategy as a publisher is not working.”
Competitors to Watch: Giant Interactive Group Inc (NYSE:GA), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), Perfect World Co., Ltd. (NASDAQ:PWRD), Changyou.com Limited (NASDAQ:CYOU), The9 Limited (NASDAQ:NCTY), NetEase.com, Inc. (NASDAQ:NTES), and Microsoft Corporation (NASDAQ:MSFT).
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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