GigaMedia Reports Profit Loss
June 10, 2009 (CAP Newswire) – Why are some gaming companies reporting stronger-than-expected results, and some reporting just the opposite? This inconsistency in the market makes it difficult to draw any conclusions about the state of the iGaming industry, and also makes industry observers a bit reluctant to make predictions about where the market is going in the long run.
The latest company to weigh in with financial results is GigaMedia Ltd., the gaming software technology provider that’s behind Everest Poker, one of the world’s leading poker websites in terms of players and traffic. Forbes is reporting that GigaMedia reported an alarming 60 percent drop in its profits for the first quarter. The company is blaming the global economic downturn and the fact that the Euro is getting weaker compared to the U.S. dollar — however, those factors don’t seem to be having a negative effect on PartyGaming, SportingBet, and other gaming companies that are doing well right now.
GigaMedia, based in Taiwan, reported earnings of $4.8 million for the first quarter of 2009. That’s compared to $12 million, in the same period a year ago. The company also said that it’s close to reaching a deal with two other parties about a partnership or sale of its poker and casino software business.
To read the original report at Forbes, please click here.