Gigamedia Profits Rise on Asian Sales

[Qbins Missile Crisis]

March 11, 2008, 9:53AM
Gigamedia Profits Rise on Asian Sales
© 2008 The Associated Press

NEW YORK — Online gambling and entertainment company GigaMedia Ltd. said Tuesday its fourth-quarter profit rose 8.1 percent on Asian online gaming and global poker software sales.

Net profit rose to $10.7 million or 18 cents per share from $9.9 million or 17 cents per share in the 2006 fourth quarter.

Excluding one-time items, the company's profit was $11.3 million, or 19 cents per share, compared with $10 million, or 17 cents per share, in the same quarter last year.

Sales rose 58.5 percent to $47.7 million compared with $30.1 million in the 2006 fourth quarter.

Analysts polled by Thomson Financial expected profit of 17 cents per share on sales of $47.6 million. Analysts typically exclude one-time items.

The company said that strong growth in sales of its poker software and Asian online games were key factors during the quarter.

For fiscal 2007, the company's profit rose 26.3 percent on Asian online gaming and strong European sales of its poker software.

It made $38.9 million or 65 cents per share compared with $30.8 million or 51 cents per share in 2006.

Sales rose 77 percent to $166.9 million from $94.3 million in 2006.

Excluding one-time items, the company's profit was $40.6 million, or 68 cents per share, compared with $31.1 million, or 51 cents per share, in 2006. The company reported a $7 million gain on the sale of a business last year.

Analysts expected profit of 65 cents per share on sales of $166.7 million.

Taiwan-based Gigamedia owns a U.S-based software development company and runs numerous Chinese-language internet sites.